With so many insurance carriers to choose from, finding the right one might be difficult. AAA vs State Farm is a comparison of two great insurance options. Let’s find out more about their pricing, features, mobile apps, roadside assistance, and more.
Information about both insurance companies.
AAA (Auto Club) has been around for over a century. Unlike State Farm AAA is not a traditional insurance carrier. AAA is a federation of motor clubs throughout North America. AAA provides valuable membership services at discounted costs. One of the things that you will be able to get with AAA is auto insurance. Today AAA has well over 50 million members.
State Farm was founded in 1922. Today State Farm insures more vehicles than other insurance carrier in the United States. State Farm has over 65,000 employees, over 18,000 independent contractor agents, and has over 50 million policyholders.
Car insurance rates comparison
AAA auto insurance is only available to AAA members. To join AAA you have to pay $60 – $100 a year. You must take into consideration that this annual membership does not include the cost of auto insurance.
To find out which auto insurance is cheaper between AAA and State Farm you must compare insurance rates. Depending on where you live one insurance carrier might be cheaper than another. Rating factors include age, gender, and a number of other factors. Find out the discounts that are available to you and who gives you the best rates by comparing quotes today.
Insurance products
State Farm offers more insurance products than most carriers. State Farm products include, car, home & property, motorcycle, renters, flood, life, health, disability, identity restoration, business, veterinarian insurance, and more.
AAA offers multiple policies as well such as auto, home, condo, renters, boat, motorcycle & off-road vehicles, recreational vehicle, flood, life, personal umbrella, and pet health insurance.
Auto insurance claims comparison
Automobile Club Group received 3 out of 5 Power Circles in the 2017 J.D. Power Auto Claim Study. State Farm also received 3 out of 5 Power Circles. However, in the J.D. Power Overall Satisfaction Index Ranking State Farm received 865 points while AAA received 843 points. According to J.D. Power State Farm handles the claims of their policyholders better.
Financial strength rating comparison
State Farm
- State Farm received the highest financial strength rating from A.M. Best with an “A++” rating.
- S&P Global Ratings which has been a top rating company for over 150 years gave AAA a high “AA” financial strength rating.
- State Farm has well over $200 billion in assets which shows that they are more than capable of handling any insurance claims that you file.
AAA
- AAA received an “A+” financial strength rating from A.M. Best.
Customer complaint comparison using BBB.
Both insurance carriers received “A+” ratings from Better Business Bureau. BBB ratings tell us a lot about how an insurance carrier is likely to act with their policyholders. BBB takes into consideration company size, complaint volume, type of business, time in business, and more.
Insurance Shopping Study – Factors include: Overall Satisfaction, Policy Offerings, Pricing, Local Agent, Call Center Representatives, and the Insurer Website.
Auto Club Group received 4 out of 5 Power Circles in the J.D. Power Insurance Shopping Study.
CSAA Insurance Group received 4 out of 5 Power Circles as well.
State Farm received 3 out of 5 Power Circles.
Auto insurance discounts comparison – There are many insurance discounts to help you to lower your auto insurance rates.
State Farm discounts
State Farm has an extensive list of discounts that you will be able to choose from.
Drive Safe & Save – Signing up for this program will help you to save 5% immediately on your auto insurance. This program factors in things such as distance driven, braking and stops, driving speed, time of day, acceleration, and left & right-hand turns. Overall, safe driving can help you to save up to 50% on auto insurance with the Drive Safe & Save program.
Steer Clear – This is an awesome car insurance discount for drivers under 25.
Accident-Free discount – State Farm policyholders who have been insured with State Farm for 3 continuous years without an at-fault accident will receive this insurance discount.
Driver Training Discount – To qualify, all the drivers of your car under who are under 21 must complete an approved driver education course.
Good Driving Discount – New State Farm customers with a clean driving record for the past 3 years will be able to qualify for this insurance discount.
Good Student Discount – This discount allows you to save up to 25% for being an Honor Roll student. What separates State Farm’s good student discount from other good student discounts is that this discount allows you to save until you turn 25. It’s rare to find an insurance discount that continues after graduation.
Multiple Auto Discount – Policyholders will be able to save up to 20% when they add multiple cars to their insurance policy. All vehicles must be owned by related drivers who live in your household.
Multiple Line Discount – Adding multiple insurance policies will help you to save up to 17% with State farm.
Military personnel discount – Do you need army car insurance? If so you may be able to receive a discount with Start Farm if you are on active duty in the military. You must be based in Louisiana to qualify.
AAA discounts
There are many discounts and benefits available to AAA members.
Benefits – There are so many hidden perks of using AAA that even their members do not know about. With AAA, you will be able to receive hotel discounts. For example, AAA members will be able to save up to 15% at Best Western, Hyatt, Marriott, and more. You will also be able to receive 20% on rental car discounts. Members will be able to save up to 25% on certain restaurant discounts, 15% on certain electronics, up to 25% on certain apparel, up to 25% on airport parking, up to 30% on certain theme parks, and more.
Reduce Mileage – Those who drive less than 10,000 miles a year will be eligible for this auto insurance discount.
Safe Drivers – Having a good driving record can help AAA members to save big.
Multi-Product Discount – When you purchase multiple lines of insurance you will easily be able to save.
Defensive Driver Discount – If you are 55 years old or older, then you will be eligible for this insurance discount by taking an approved defensive driver class.
Anti-Theft Device Discount – Built-in anti-theft devices can result in savings for drivers.
Group Rate Discount – When you belong to certain groups you may be able to save on your auto insurance policy.
Other comparisons
Mobile app comparison
AAA offers an awesome app with tons of features. With the app, you are able to find over 50,000 approved hotels and restaurants. You are able to find member discounts to over 150,000 locations. You are able to find approved repair centers. You are even able to get travel guides and roadside assistance directly from the app.
With the State Farm mobile app, you will have tons of features available to you such as the ability to view your insurance card, file a claim, access your State Farm Bank account, use their Drive Safe and Save program, use their SteerClear program, use CarCapture, and more.
Roadside assistance
AAA is best known for their awesome roadside assistance service. AAA roadside assistance covers minor mechanical issues, emergency fuel service, dead batteries, flat tires, vehicle lockouts, parts, and more. The only drawback of AAA when it comes to roadside assistance is that you are only allowed up to four free calls for roadside services each year.
State Farm excels in roadside services as well. State Farm offers help if you need towing, gas, oil, locksmith, jumpstart, tire change, and more. Emergency roadside services in Ontario and Alberta are subject to a $75 limit.
Bottom Line
State Farm and AAA are great insurance carriers. Each company has its strength and each one has its weakness. Both are rich in features, discounts, they both do average in the claims comparison, and they both have a high financial strength rating. I encourage you to get quotes today and compare insurance rates to get the best price for insurance.