Progressive vs. AAA

Progressive Insurance was founded in 1937 and by 1957 it became the first company to specialize in underwriting nonstandard auto insurance. Since then it has grown to offer insurance to more than 18 million policyholders through several additional lines of business such as motorcycle, homeowners and commercial. According to the 2022 market share data released by the National Association of Insurance Commissioners (NAIC), Progressive Corporation is now the nation’s second-largest personal car insurance company, with a 14.05 percent market share, and is the number one commercial auto insurer with a 15.53 percent market share.

Best known for Flo and the Name Your Price tool, Progressive serves customers nationwide through its full suite of customer service channels, including 24/7 phone claim and customer services, email, online, chat and via its mobile app.

The American Automobile Association, better known as AAA, was founded in 1902 and previously comprised just nine local motor clubs focused on safe roads for motorists. Now, AAA has 32 individual clubs, ranking as the eleventh biggest car insurance company in the nation with 1.45 percent of the auto insurance market share. AAA is one of the few insurance companies requiring a club membership before drivers can hold AAA insurance. AAA is almost synonymous with roadside assistance and, aside from its auto insurance policies, is also well-known for its trip planning, tourism discounts and international affiliate programs.

• Bankrate Score methodology

  Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

  Tier scores are unweighted to show the company’s true score in each category out of a possible five points.

Progressive vs. AAA comparison

When deciding which car insurance company has the best rates and coverage, looking at each company’s positive and negative aspects can help you zero in on what matters to you the most. To take the stress out of hours of research, Bankrate’s insurance editorial team has broken Progressive vs. AAA in the table below.

Progressive pros and cons

AAA pros and cons

Is Progressive cheaper than AAA?

Progressive tends to offer lower average annual premiums for full and minimum coverage policies than AAA. Insurance is a risk pool, meaning that risk and loss are shared among policyholders to a certain extent within each company. Since Progressive has significantly more policyholders than AAA, this works to their advantage in the form of lower premiums.

• Car insurance rates methodology

  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.

Progressive is generally cheaper for drivers with poor credit

Progressive and AAA use a credit-based insurance score model to aid in determining premiums in most states. Notably, California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit in rate calculations. On average, Progressive offers lower premiums to drivers who struggle with their credit history — drivers with AAA may pay up to 82 percent more in average annual premiums for full coverage insurance if they fall into the ‘poor’ credit tier. Drivers rated with average or good credit also usually fare better with lower premiums from Progressive.

*California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

• Rates by credit tier methodology

  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 or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Progressive is generally cheaper for young drivers

Most of the time, it is cheaper for a teen driver to remain on their parents’ insurance policy than to purchase one on their own. Because of their lack of driving experience and higher accident likelihood, teen motorists face some of the highest average rates for any age group.

Keep in mind that in most cases, 16- and 17-year-olds must be on their parents’ or legal guardian’s policy. According to Bankrate’s calculations, Progressive offers a lower average annual premium for insuring young drivers on full coverage policies than AAA. These rates are based on the teen driver being added to their married parents’ full coverage policy.

*16- and 17-year-olds must be on their parents’ or legal guardian’s car insurance policy.

• Rates by age (young driver) methodology

  The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Progressive is generally cheaper for adult drivers

In all states except Hawaii and Massachusetts, a driver’s age will affect their car insurance cost. On average, the youngest drivers tend to pay the most, then rates decrease as they earn more driving experience and may rise again slightly as drivers approach their 70s. Progressive offers lower annual average premiums for full coverage policies for adult drivers in every age group. Keep in mind that, despite Massachusetts’ ban on insurers using age to calculate premium, there is a loophole in the state’s insurance laws that does allow insurers to consider years of driving experience, so younger drivers may not see much financial relief.

*Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

• Rates by age (adult drivers) methodology

  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.

Progressive is generally cheaper for high-risk drivers

Both Progressive and AAA offer SR-22 filings upon request, which is a bonus for high-risk drivers since not all insurance companies do. The following table shows the average premium difference between AAA and Progressive policyholders with clean driving records and drivers with common moving violations. If you require a car insurance policy for a high-risk driver, check with your agent to ensure they offer policies to drivers with DUI convictions. Some insurance providers make an underwriting distinction between existing policyholders with DUIs and acquiring new policyholders.

• Rates by driving record methodology

  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.

Progressive vs. AAA: discounts

Taking advantage of car insurance discounts can be a great way to save money on your car insurance without sacrificing coverage. Some discounts are relatively similar among insurance companies, but finding unique deals where you meet the eligibility criteria can be the key to saving the most money on car insurance — regardless of whether you choose AAA or Progressive. Below are some of the best car insurance discounts from the two insurers.

Progressive unique discounts

• Continuous insurance discount: If you switch to Progressive from another company, you could earn a discount based on how long you were insured with your previous provider. This discount is unavailable to California drivers.
• Online quote discount: Drivers who start their quotes online may save up to 7 percent off their car insurance, but is unavailable to New York and California drivers.
• Sign online discount: Anytime you sign up for a new car insurance policy, there are forms to complete. Progressive offers a discount up to 9 percent for drivers who complete their forms online, except those in California.
• Snapshot discount: Drivers who enroll in Progressive’s Snapshot safe driver reward program can save an average of $231 on their premium by demonstrating safe skills behind the wheel, which is monitored via the Snapshot mobile app.
• Distant student: If a driver on your policy happens to be a student away at school (at least 100 miles) and doesn’t have a vehicle while at school, then the distant student discount could provide added savings. Discount is unavailable in California.

AAA unique discounts

• AAA member discount: Drivers who have an active AAA membership can get a discount on their car insurance policy.
• TeenSmart: This discount is a three-step process that, once completed, can offer teen drivers up to a 24 percent discount on their car insurance. Discount can vary depending on your state.
• Policy bundling discount: AAA offers discounts for drivers who bundle their auto and home, renters or condo insurance policy.

Usage-based insurance comparison: Progressive vs. AAA

Telematics programs or usage-based car insurance is becoming more common and could be a great way to improve your driving skills and save money on car insurance. Both Progressive and AAA now have their own telematics tool. Progressive offers two choices, a mobile app or a plug-in device, while AAA is solely app-based. Refer to the table below for a side-by-side comparison.

Progressive vs. AAA: Customer experience comparison

While AAA may not offer the same online and mobile experience Progressive does, it still has something to offer in terms of customer service. AAA can work well for policyholders with complex changes, drivers who prefer someone to walk them through their policy coverages or just like a more personal car insurance experience. With several offices nationwide, policyholders can stop by to ask questions and learn about local membership discounts.

Progressive

• App Store (4.8 stars): Through Progressive’s iOS app, you can download digital ID cards, report a new claim, track the status of existing claims, request roadside assistance and start a new insurance quote.
• Google Play (4.6 stars): Progressive’s app for Android devices has all the same features as the iOS app. You can get roadside assistance, report a claim, update your policy and much more. Drivers who are enrolled in the Snapshot program can also track their progress and savings through the Android mobile app.

AAA

• App Store (4.6 stars): AAA’s iOS app has good ratings, but the app does not have many insurance-related features. You can request roadside assistance, search for hotels and gas stations in your area, book a rental car, access your member card and more. Unlike Progressive’s app, you cannot access your insurance policy, file claims or make policy changes.
• Google Play (4.4 stars): The AAA app for Android devices also receives good ratings, and it comes with the same features as the iOS app. You will not be able to access your insurance policy information, so this app is better suited for people who want to find nearby hotels, rental cars and gas stations that offer discounts for AAA members.

See the chart below for a side-by-side company comparison of customer experience ratings between AAA and Progressive.

Frequently asked questions

• • Do Progressive and AAA offer homeowners insurance?

    Yes, Progressive and AAA offer homeowners insurance and offer auto and home bundle discounts. Similar to auto insurance, AAA offers home insurance through its regional clubs. Progressive home insurance is underwritten by American Strategic Insurance (ASI), which works with other third-party underwriters nationwide. For both providers, discounts may vary and home insurance is not available in every state.

  • How does AAA roadside assistance compare to Progressive roadside assistance?

    Progressive offers roadside assistance for an additional premium to its auto, motorcycle, boat and RV policies. It provides standard coverage for towing up to 15 miles, jump starts, flat tire changes and additional services. AAA has three expansive package options that can allow for towing up to 200 miles, complimentary rental car and trip interruption protection. An AAA roadside membership also comes with discounts on shopping, travel and entertainment.

  • How do I know which car insurance company is best for me?

    To pinpoint the best car insurance company for you, it helps to start by making a list of your insurance priorities. Do you prefer to manage your policy completely online? Then an insurer with robust digital capabilities may be the best fit. Or, if you’d prefer to work with an agent in person, then perhaps an insurer with local offices would be better for you. With more insight into what you need from your insurer, you can begin the quote-collecting process.Drivers who are looking for the lowest rate might prefer Progressive whereas drivers who travel could benefit more from the additional benefits an AAA membership provides. Before you decide on a policy, make sure to inquire about discounts that max out your savings.