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AAA vs State Farm

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Founded in 1922, State Farm began as an auto insurance provider that catered to local farmers. The insurer has since expanded its insurance options to include a full line of insurance policy options nationwide. State Farm is the #1 insurer for all lines, holding a 12.23% market share with over $70 Billion in premiums written for 2021. The Good Neighbor insurance company specializes in auto, home and life insurance.

Established in 1902, AAA, also known as the American Automobile Association, uses several companies for underwriting related to its home and auto policies, which is based on geographic region. This includes Auto Club Insurance Association and MemberSelect Insurance Company. The auto and home portion of the company is known as CSAA rather than AAA, which is the adopted abbreviation indicative of AAA’s initial presence in California and the surrounding region. The CSAA division of AAA is ranked #14 in homeowners and #10 in auto insurance nationwide, with a total of 2.78% of the market share.

AAA vs State Farm: car insurance rates comparison

To help compare these providers on face-value, Bankrate reviewed each on the basis of industry-recognized third-party agencies for customer satisfaction and financial strength, as well as each company’s quoted average annual premiums from Quadrant Information Services. Based on these factors, Bankrate assigned each company a Bankrate Score on a 5.0 scale. While these factors provide a starting point for your comparison and review, your own circumstances may lend one provider more beneficial than the other. Your unique situation will also affect your rate, which will vary from the average premiums shown here.

Car insurance company Bankrate Score AM Best J.D. Power Average annual premium for minimum coverage Average annual premium for full coverage
AAA* 3.8 A 868/1,000 $602 $2,003
State Farm 4.5 A++ 892/1,000 $539 $1,457

*AAA pricing requires you to be a AAA member, which comes with an added cost

Rates by credit score

The following depicts each company’s average annual premium for full coverage based on credit scores. California, Hawaii, Michigan, and Massachusetts do not allow credit scores as rating factors. Washington state is also currently voting on a measure that would ban credit as a rating factor. State Farm is cheaper on average than AAA for all credit score levels.

Car insurance company Poor Average Good Excellent
AAA $3,706 $2,146 $2,003 $1,645
State Farm $3,309 $1,656 $1,457 $1,126

Rates by age

Age is also commonly a determining factor when car insurance companies set rates. While 2021 quoted average annual premiums from Quadrant Information Services indicate State Farm’s rates are more affordable on average, nationally, AAA and State Farm both see a trend in rates for standalone policy holders declining in cost over time. Because these are national averages, your own rates will vary. Comparing insurance quotes for your situation directly may help you have a better understanding of which auto insurance company could offer you the best rate for the coverage you need.

Car insurance company Age 16* Age 18 Age 25 Age 30 Age 40 Age 60
AAA $3,210 $5,446 $2,317 $2,034 $2,003 $1,808
State Farm $2,077 $4,137 $1,694 $1,494 $1,457 $1,327

*16 year old cost when added to parents’ policy, 18-year-old renter

Rates by driving record

The following shows each company’s average annual premium for full coverage based on driving record. Average annual full coverage premiums show a significant increase for drivers with convictions, with AAA and with State Farm. However, AAA’s quoted average annual premiums increased more than double with a DUI conviction factored in. Speak with these providers to determine if your rates may be lower with an incident on your record, based on your situation and which discounts you may be eligible for.

Car insurance company Clean driving record Speeding ticket Accident DUI conviction
AAA $2,003 $2,817 $2,819 $5,131
State Farm $1,457 $1,590 $1,657 $2,201

AAA vs State Farm: discounts

While insurance companies typically offer a variety of industry-standard discounts, there are also often discounts unique to each provider. Standard discounts most providers offer include those for insuring multiple cars or for bundling home and auto policies. AAA and State Farm have these as well, plus a few more that are designed to assist new customers and to retain existing policyholders. AAA offers unique member discounts and an incentive for new customers who switch, and State Farm has a few discounts that specifically favor drivers who practice safe driving habits.

AAA

  • AAA Dollars — Offers discounts and deals to members for more than just insurance. Helps members save on gas, rental cars and much more.
  • Paying in full — Insureds receive a discount on premiums when they pay in full, as opposed to setting up a payment plan.
  • Advanced shopping discount — Great for new members, drivers may be eligible for this discount if they purchase a policy more than seven days before the coverage begins on a vehicle that was previously covered by another policy for at least six continuous months.

State Farm

  • Accident Free — Insureds receive a discount for remaining accident free. Discount increases the longer a customer goes without accidents.
  • Steer clear — This discount is offered to drivers under the age of 25; those who participate in the program to learn to be a better driver and save money on their premium.
  • Drive Safe & Save — Drivers eligible for this discount will save based on their personal driving habits. Mileage and other factors help determine how much they can save.

AAA vs State Farm: online and mobile experience comparison

Both AAA and State Farm make it easy for customers to navigate its websites, as well as the mobile apps. Each site provides helpful information regarding understanding and managing policies and the apps offer similar functionalities for policy management. Based on app feedback from users, State Farm’s mobile app is more positively reviewed, with the iOS version of the app receiving the highest scores.

AAA

  • Apple store rating: 4.4 — Allows for easy emergency roadside assistance. Also displays local perks to members, as well as overview of policies.
  • Google Play rating: 4.3 — Features the same functionality of the iOS version, but the display may differ slightly on Android devices.

State Farm

  • Apple store rating: 4.8 — Shows snapshot of policy information, along with alerts for anything the insured has to do to manage their policy. Makes filing a claim quick and easy, and lets customers check status along the way.
  • Google Play rating: 4.6 — While the Android application shares the same functional aspects as iOS users experience, the ratings indicate the Android experience is not as highly reviewed.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MI, & MA

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence. Age is a banned rating factor in Hawaii and Massachusetts.

Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.

Written by
Kay Irvin
Personal Finance Writer
Kay Irvin is a former contributor to Bankrate. Irvin has writing experience for insurance domains such as Bankrate and My Top Insurance Blogs. She has written about auto and life insurance and was a licensed insurance agent for 10 years.
Edited by
Insurance Editor