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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
The American Automobile Association (AAA) was founded in 1902, in Chicago, Illinois. Most commonly referred to as AAA, the company specializes in coverage and services that cater to traveling and roadside assistance. AAA is divided into different clubs by region, with the clubs having different underwriting companies for their policies. Due to its segmented structure, determining the market cap for AAA can be difficult, but it is not listed in the top 10 largest auto insurers by market cap.
Nationwide was founded in 1926, although it had previously existed as the Farm Bureau Mutual Automobile insurance Company. While it was initially geared toward farmers, the company has grown and developed into one of the largest insurance providers in the United States. Nationwide now offers a broad array of insurance products for a range of demographics. Nationwide underwrites its own auto insurance policies and the company represents 2 percent of the market share.
| Nationwide | AAA | |
|---|---|---|
| Bankrate score | 3.6 | 2.9 |
| Tier 1 | 3.4 | 2.3 |
| Tier 2 | 3.8 | 3.3 |
| Tier 3 | 3.7 | 3.8 |
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare auto insurance rates
Save on auto insurance with quotes from trusted providers like:
Drivers switch & save an average of $750+/year
Are you overpaying for auto insurance?
Safe drivers choose Allstate®
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Nationwide vs. AAA comparison
When comparing Nationwide vs. AAA, it’s useful to list potential benefits and downsides as well as considering a comparison of average rates. We’re highlighting some of the more important pros and cons below for each company and have included average rate information for each under a variety of driver considerations.
Nationwide pros and cons
| Pros | Cons |
|---|---|
| Available perks and discounts Specialized insurance for modified vehicles One of the largest insurance companies in the United States |
Below average for customer claims satisfaction Not available in all states Higher average rates for drivers with serious traffic violations |
AAA pros and cons
| Pros | Cons |
|---|---|
| Available in all states nationwide Extra perks and discounts for members Specializes in roadside assistance services and coverages |
Clubs and regions have different coverage options and underwriting Must be a member to receive all perks, services and discounts Coverage options are limited in some regions |
Is Nationwide cheaper than AAA?
Nationwide and AAA are close in price when it comes to average annual rates. Nationwide has lower average rates for full coverage car insurance policies but AAA has lower average rates for minimum coverage.
| Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
|---|---|---|
| Nationwide | $1,442 | $567 |
| AAA | $1,642 | $553 |
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- Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 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.
Nationwide is generally cheaper for drivers with poor credit
Credit scores are often used in insurance underwriting to help determine car insurance rates, but this practice is not permitted within the states of California, Hawaii, Massachusetts and Michigan. When looking at average rates from AAA, credit scores may not directly impact rates, but it may depend on your state and on the AAA club in that area. The table below outlines average annual premiums for full coverage car insurance from both companies based on driver credit scores.
| Credit Score | Nationwide | AAA |
|---|---|---|
| Poor | $1,928 | $5,470 |
| Average | $1,534 | $2,822 |
| Good | $1,383 | $2,562 |
| Excellent | $1,218 | $2,162 |
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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. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Nationwide is generally cheaper for young drivers
Age is a key rating factor in most states when companies calculate auto insurance premiums. Younger drivers are statistically likely to have more accidents and incidents, making it riskier to insure them, and are charged higher average premiums in return. Below are each provider’s average annual rates for young drivers who are listed on their parent’s full coverage car insurance policies.
| Nationwide | AAA | |
|---|---|---|
| Age 16 | $2,262 | $5,339 |
| Age 17 | $2,217 | $4,932 |
| Age 18 | $2,188 | $4,640 |
| Age 19 | $2,059 | $4,197 |
| Age 20 | $1,990 | $4,008 |
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The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy.
Nationwide is generally cheaper for adult drivers
Insurance premiums tend to go down as age increases and drivers get more experience behind the wheel. However, average rates may climb for drivers over a certain age, and in particular, senior drivers. Below are the average annual rates for adult drivers who have their own full coverage car insurance policy.
| Nationwide | AAA | |
|---|---|---|
| Age 18 | $4,783 | $6,706 |
| Age 25 | $1,665 | $3,067 |
| Age 30 | $1,472 | $2,620 |
| Age 40 | $1,383 | $2,562 |
| Age 60 | $1,219 | $2,246 |
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Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Nationwide is generally cheaper for high-risk drivers
Car accidents and traffic violations play a significant role in determining car insurance rates. In some cases, drivers who have more severe driving-related convictions on their records, like DUIs, may pay substantially higher rates for car insurance coverage or may be refused coverage altogether by some insurance providers. Below are annual average rates for full coverage for Nationwide and AAA based on driving records. The average rates being listed below does not guarantee that a specific company will offer insurance to a driver with the specified infraction.
| Nationwide | AAA | |
|---|---|---|
| Clean driving record | $1,383 | $2,562 |
| Speeding ticket conviction | $1,684 | $3,131 |
| At-fault accident | $1,852 | $3,717 |
| DUI conviction | $2,634 | $5,569 |
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Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Nationwide vs AAA: Discounts
Nationwide and AAA both offer car insurance discounts that could help policyholders get a lower rate. However, each company offers different savings opportunities. Here are how some of the discounts available differ from Nationwide vs. AAA:
Nationwide
- SmartRide discount: Drivers who sign up for Nationwide’s SmartRide safe driver discount program could save up to 10% when they enroll and up to 40% for practicing safe driving habits.
- Multi-policy discount: Bundling your home and auto insurance with the same carrier often results in savings on both policies.
- SmartMiles discount: Through Nationwide’s SmartMiles program, infrequent drivers may get a lower premium based on the number of miles they drive each year.
AAA
- AAA member discount: You may qualify for a discounted car insurance premium if you have an active AAA membership,
- Advanced shopping discount: Drivers who switch car insurance companies may get a discount from AAA if they get a quote more than seven days before the policy’s start date.
- Good student discount: Students in high school and college could earn a lower car insurance rate if they maintain a set minimum GPA in school.
Usage-based insurance comparison: Nationwide vs AAA
Many insurance companies offer telemetric programs that analyze how you drive. That data is then used to determine whether you qualify for potential discounts or savings. The idea behind these programs is that they will lead to greater savings for drivers who exhibit responsible driving habits behind the wheel.
| Nationwide SmartRide | AAADrive | |
|---|---|---|
| Telematics device | App, device, or connected car | App |
| Monitored driving factors | Miles driver, braking, acceleration, idling and night driving | Start and end time, location, accelerometer data |
| Potential impact on rates | Decreased | Decreased |
| Potential discount | Up to 40% | Up to 15% |
| Availability | All states | Select states |
Nationwide vs AAA: customer experience comparison
When considering customer experience, we looked at each company’s app ratings and functions and incorporated scoring from the 2022 J.D. Power Auto Claims Satisfaction study.
According to our research, both companies offer strong online resources, but they differ when it comes to app functionality. In particular, Nationwide offers a variety of online tools, resources and articles via its app, which can be helpful for first-time auto insurance buyers
Overall, we found that Nationwide has a more useful app for insurance purposes, as AAA’s app does not include any insurance-related features. However, both companies fared about equally on customer claims satisfaction, with neither scoring above the industry average. Below is a comparison table highlighting ratings for both companies.
| Nationwide | AAA | |
|---|---|---|
| Apple store | 4.4 out of 5 | 4.4 out of 5 |
| Google play | 4.2 out of 5 | 4.3 out of 5 |
| J.D. Power | 868 / 1,000 | 847 / 1,000 |
Frequently asked questions
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Yes, both Nationwide and AAA offer homeowners insurance policies to customers across most states in the nation. AAA is available in all 50 states but homeowners insurance options and underwriters may vary by region. Nationwide offers homeowners insurance to customers in 45 states and Washington, D.C.
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The best car insurance company is different for every driver. It may depend on your budget, which ZIP code you live in, what discounts you qualify for, what coverage you need and the vehicle you drive. Researching more than one insurance carrier will help you understand which might be the best for you.
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The average cost of car insurance in the United States is $2,014 per year for a full coverage policy. However, auto insurance rates are different for every driver. Factors like your driving and claims history typically impact the price.
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Car insurance is a legal requirement in most states. The only states that do not require traditional car insurance are New Hampshire and Virginia. However, drivers in these states typically have to file some proof of financial responsibility to demonstrate their ability to pay for damages in the event of an at-fault accident.
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Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 2021 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, MA
Age: Rates were calculated by evaluating a 16-year-old male or female driver and their married parents on a full coverage car insurance policy.
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.
Bankrate Score
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2021 Toyota Camry. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.
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