Do you need an insurance company with perks beyond auto insurance? This is what this USAA Vs AAA comparison is all about. In this review, we are comparing two companies that offer membership benefits that policyholders can take advantage of.
In this article, we will take a look at financial strength, insurance discounts and features, average insurance costs, customer complaints, and more.
History about both companies
USAA was founded in 1922 in San Antonio, Texas. Today the company has over 12 million members.
The American Automobile Association was founded on 1902 and has over 58 million members worldwide.
Car insurance rates comparison
USAA is well-known for offering great monthly car insurance for their policyholders. The only drawback of USAA is that you have to be in the military or have military personnel in your family to use their insurance services.
AAA offers decent insurance rates, but you will have to be an AAA member to use their car insurance services. To become an AAA member, you will have to pay $60 to $100 a year. Depending on where you live depends on how much your membership fee will be.
To get the best insurance prices it is imperative to compare insurance quotes which can be done in one minute. Comparing rates can save you 15% or more.
Financial strength comparison
Financial strength allows us to know if the company that we want is financially stable to pay our insurance claims.
AAA received great ratings from financial strength companies. From A.M Best, AAA received an “A+” rating and from S&P AAA received an “A” rating.
USAA received the highest possible rating from A.M. Best. USAA received an “A++” financial strength rating from A.M. Best. Moody’s Investors Service gave a “Aaa” financial strength rating. USAA has over $150 billion in insurance assets.
Auto Claims Study
USAA was one of the three companies that received 5 out of 5 Power Circles in the J.D. Power Auto Claims Study. USAA received 5 out of 5 Power Circles in 4 categories and 4 out of 5 Power Circles in 3 categories. In the J.D. Power Auto Claims Study, Automobile Club Group received 3 out of 5 Power Circles in Overall Satisfaction in almost every category.
Home Insurance Study
In the Homeowner’s Insurance Study by J.D. Power the scores were similar. USAA received 5 out of 5 Power Circles and AAA received 3 out of 5 Power Circles.
Insurance Shopping Study
In the Insurance Shopping Study USAA received 5 out of 5 Power Circles and AAA received 3 out of Power Circles.
Customer complaints
AAA has been a BBB accredited company since 04/14/2011. AAA received an “A+” rating from Better Business Bureau which is the best rating that you will be able to receive from them. Their perfect composite score is based on 2 customer reviews and a BBB rating of A+.
USAA received an “A+” from BBB as well. They received 3.79 out of 5 stars based on 300+ Customer reviews and an “A+” BBB rating.
Auto insurance discount comparison
USAA discounts
Safe Driver – If you maintain a clean record for multiple years, then you will be able to save with USAA. You have to maintain a good record for over 5 years.
Family discount – If your parents use USAA, then you can save 10% when you start your own USAA insurance policy.
Length of Membership Savings – The amount that you are able to save with this policy depends on how long you remain with USAA. Loyal customers will be able to save a lot.
Military Installation Discount – If your vehicle is garaged on base, you will be able to save up to 15% on your policy.
USAA Auto Circle – With USAA you will be able to save thousands because USAA offers you competitive loans.
Annual Mileage – If you drive less than the average driver, then you will easily be able to save with USAA.
New Vehicle – USAA considers new cars to be vehicles that are current models or up to 3 years old. You may be able to save because of the features of your new car as well.
Good Student – Maintain good grades in high school and in college and you will easily be able to save with their good student discount.
AAA discounts
Membership Discount – Rewards members are able to save up to 7% on auto insurance.
Multiple-Car Discount – When you insure multiple qualifying household cars with AAA, you will be able to save on auto insurance.
Multiple car – Two or more qualifying household cars insured through AAA with mandatory coverage will result in an insurance discount.
Bundle – It is rare to find an insurance company that does not offer an auto and home insurance bundle. AAA allows you to save 10% or more when you bundle your policies.
Pay-in-Full Discount – When you pay your premium in full you will be able to save with AAA.
Other discounts – With AAA you will be able to save on places such as Denny’s, Marriot, AMC Theatres, PetMeds, Columbia Sportswear, Big City Tavern, and more. AAA offers amazing deals that their customers can take advantage of.
Reduce Mileage – AAA has a reduced mileage policy of their own. As I said in my MetroMile and GEICO auto insurance comparison, you will be able to save if you drive less than 12,000 miles a year.
Mobile app comparison
USAA Mobile helps you to easily manage your auto insurance policy. You will even be able to manage your finances, investments, and more through the app. The app is straightforward compared to other insurance apps. You will be able to get an auto ID card, request roadside assistance, report claims, review accident checklist, and more. Other features include buying or selling a car, getting real-time stock quotes, place trades, watching helpful videos, pay bills, and more.
AAA offers a convenient mobile app for iPhone and Android users. You will be able to find hundreds of discounts at your fingertips. You can access roadside assistance, AAA Maps, My Savings, My AAA, and more.
Roadside assistance comparison
Triple AAA is best known for their roadside assistance coverage. However, there are many drawbacks of their roadside assistance coverage that you should know about. With AAA you will not be able to call more than 4 times for roadside assistance in one year. After the 4th roadside assistance call you will be charged a fee. AAA’s roadside assistance covers towing, emergency fuel service, battery testing, battery replacement, tire replacement, fixing minor mechanical issues, locksmith services, and you will be able to save up to 10% on car parts and labor with AAA.
USAA offers 24/7 roadside assistance for any emergencies that you will have. USAA’s roadside server will deliver gas, change your car battery, unlock your vehicle, or tow your car to the nearest repair shop. There are certain coverage restrictions.
Bottom line
USAA and AAA are two awesome companies, but remember two things. With USAA you are going to need to have some type of military affiliate through yourself or your family. With AAA you are going to need to be a member before you can enjoy their rates. I strongly recommend that you compare rates today to receive the best pricing.