Aaa Auto Insurance: Is It Worth The Premium Price Tag?

AAA auto insurance is generally only available to members, but the perks and discounts might make joining worth it. AAA offers car insurance through regional, location-specific clubs throughout the country. Features of AAA car insurance policies can vary depending on where you live. AAA offers standard coverages, such as bodily injury liability, property damage liability, uninsured/underinsured motorist, collision, and comprehensive, as well as additional optional coverages, such as rental car reimbursement and gap insurance. There are also various discounts available for AAA car insurance customers, including a good driver discount, a AAA membership discount, and a multicar discount. AAA also offers other types of insurance, including home, renters, and life insurance, providing opportunities for bundling discounts.

AAA auto insurance discounts

AAA offers a wide range of discounts for its auto insurance policyholders, with savings of up to $376 per year. In addition to membership perks, which include a 5% discount on auto and home insurance, AAA offers bundling, safe driving, and car club membership discounts.

Multi-Policy Discounts

AAA offers savings for bundling multiple policies, such as insuring your car and home with the same company. Here are some examples of potential savings:

• Companion Home Discount: Save up to 12.7% on auto insurance when combined with a home policy.
• Companion Auto Discount: Save up to 12.5% on homeowners insurance when combined with an auto policy.
• Auto + Condo Discount: Save up to 11.2% on auto insurance and 20% on condo insurance when policies are combined.
• Auto + Renters Discount: Save up to 3.7% on auto coverage and 10% on renters insurance when policies are bundled.
• Auto, Home, and Life Discount: Save up to 19% on auto insurance and 22% on homeowners insurance when combining auto, home, and life insurance policies.

AAA Auto Policy Discounts

AAA also provides various auto policy discounts, including:

• Multi-Vehicle Discount: Save up to 15.7% when insuring more than one car on the same policy.
• Science and Engineering Discount: Save up to 5.6% after one year of continuous coverage with the AAA Loyalty Discount for drivers in science and engineering professions.
• Good Driver Discount: Maintain a clean driving record to save up to 20%.
• Verified Mileage Discount: Save up to 9.1% by providing your vehicle's odometer reading when requested.
• Student Away Discount: Save 46.7% on select coverages if your student is more than 100 miles away from school without a vehicle.
• Good Student Discount: Students with a GPA of 3.0 or higher can save up to 10%.
• Teen Smart (New Driver) Discount: Young drivers aged 16 to 26 who take an online safety class can earn a 24% discount.
• Driver Training Discount: Complete an approved driver training class and receive a 10% discount.
• Car Club Discount: Members of qualifying car clubs can earn a 5% discount.

Additional Ways to Save

Outside of specific discounts, there are other ways to save on AAA auto insurance:

• Increase Your Deductible: Raising your deductible can lower your monthly premium.
• Update Your Policy: Life events like marriage, having a baby, or moving can affect your rates, so regularly review your policy to ensure you're getting all applicable savings.
• Maintain a Good Credit Rating: A solid credit rating can lead to lower car insurance premiums.

AAA auto insurance coverage

AAA offers a range of auto insurance coverage options to protect you, your passengers, other drivers, property, and more. Here is a detailed overview of the different types of AAA auto insurance coverage:

Bodily Injury Liability Coverage

This type of coverage is required in most states and is the foundation of any auto insurance policy. It covers injuries to people other than the insured driver, such as pedestrians, passengers in the insured's car, or people in other vehicles, if the insured driver is found to be legally responsible for the accident. It also provides legal defence for the insured driver if necessary. The coverage limit for bodily injury liability is typically stated as the maximum amount paid to each injured person, up to a total limit for all injured parties, and a separate limit for property damage.

Property Damage Liability Coverage

Property damage liability coverage, along with bodily injury liability coverage, is required in most states. It covers the cost of repairs if the insured vehicle damages someone else's property, such as another car, light posts, or buildings. Similar to bodily injury coverage, it also provides legal defence if necessary. However, it does not cover damage to the insured's own property, which is covered under collision and comprehensive coverages.

Collision Coverage

Collision coverage is optional but is required by most lenders as a condition of a loan. It covers the cost of repairing or replacing the insured vehicle if it is damaged in a collision with another vehicle or object, regardless of who is at fault. If the vehicle is deemed a total loss, collision coverage will pay its actual cash value.

Comprehensive Coverage

Comprehensive coverage is also optional and helps pay for damage to the insured vehicle caused by incidents other than collisions. This includes damage due to natural disasters, fire, fallen objects, animal damage, theft, vandalism, and more. Comprehensive coverage does not include medical or legal expenses and typically does not cover personal items stolen from the car.

Medical Payments Coverage

Medical payments coverage helps with the medical bills of the insured driver and their passengers in the event of an accident, regardless of who is at fault. It is required in some states and may be referred to as Personal Injury Protection (PIP) coverage.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage protects the insured driver and their passengers if they are in an accident with a driver who does not have insurance or does not have sufficient insurance to cover the damages. This coverage is especially important as about 13% of motorists nationwide are uninsured.

Rental Reimbursement Coverage

Rental reimbursement coverage pays for a rental car while the insured vehicle is being repaired due to a covered loss. This coverage is typically available if the insured has collision or comprehensive coverage on their vehicle.

Other Coverages

AAA also offers additional coverage options, such as accidental death benefits, new car added protection, custom equipment cost coverage, and more. These coverages can be customized to meet the specific needs and budget of the insured.

AAA insurance companies

AAA auto insurance is generally only available to members of the AAA club, and it is offered by separate, regional insurance companies that operate under similar names and logos. AAA club membership works in the same way, and you may need to become a member of your regional club to get auto insurance. This comes with a fee, but the resulting discount on your auto insurance may make it worth your while.

AAA auto insurance coverage options will depend on where you live, as the company offers insurance through location-specific clubs throughout the country. All insurers are required to offer state-mandated coverage where they operate. Most, including the three AAA affiliates reviewed by NerdWallet, also offer uninsured motorist protection, medical payments coverage, comprehensive coverage, and collision coverage.

AAA auto insurance is a good option for those looking to save by bundling multiple types of insurance. In some locations, policyholders can save by bundling car insurance with homeowners, renters, or condo coverage. It may also appeal to members of its well-known roadside assistance program, as AAA members may qualify for a discount on coverage.

AAA auto insurance pros include the potential for discounts for being a member, multiple insurance products offered, and the possibility of receiving a discount for being a safe driver, having multiple cars insured, or paying your premium in full.

However, cons of AAA auto insurance include the requirement to be a AAA member, and the possibility of having to change insurance providers if you move states.

The three largest AAA auto insurance companies by market share in the U.S. are:

• Automobile Club Group
• CSAA Insurance Group
• Auto Club of SoCal

AAA auto insurance pros and cons

AAA auto insurance is generally only available to members, but the perks and discounts might make joining worth it. AAA offers a range of standard coverages and some optional coverages that can help customize a policy. It also has a number of discounts available, but those will differ according to which local AAA organization covers your state.

Pros

AAA members may be eligible for a discount on car insurance. The company offers a wide variety of discounts that almost anyone can get. There are also discounts available for AAA car insurance customers. Discounts can vary based on where you live, but may include a good driver discount, a multicar discount, and a good student discount, among others.

AAA offers the coverages you’d expect, such as bodily injury liability, property damage liability, uninsured/underinsured motorist, collision, comprehensive, and others. They also offer additional optional coverages, such as rental car reimbursement and gap insurance.

Combining a AAA membership with a car insurance policy may give policyholders access to AAA’s roadside assistance and other benefits. AAA also offers other types of insurance, including home and life.

Cons

Not all discounts are available in all locations. AAA insurance policies are only available to AAA members. The organization offers three membership levels (Classic, Plus, and Premier), giving members special benefits like roadside assistance, vacation planning services, retail discounts, and more. A Classic membership – the lowest level – costs $68 per year in Florida, Georgia, and Tennessee, for example, but prices vary by state.

AAA club membership works the same way, and you may need to become a member of your regional club to get auto insurance. That comes with a fee, but the resulting discount on your auto insurance may just make it worth it.

You may have to change AAA insurance providers if you move states. AAA's insurance products differ depending on where you live.

AAA auto insurance customer satisfaction

AAA auto insurance is generally only available to members, but the perks and discounts might make joining worth it. AAA has an excellent rating for discounts and scores well on complaints and financial stability. However, in terms of affordability and customer satisfaction, AAA’s score is average.

The American Automobile Association (AAA) was founded in 1902 and operates more than 1,000 branch offices across North America. AAA auto insurance is only available in 11 states, and where available, it is moderately priced at an average cost of $1,412 per year. AAA insurance is neither cheap nor expensive for a sample core driver with full coverage, when buying minimum coverage, or as a young driver. However, with a speeding ticket, AAA rates are expensive compared to other providers.

AAA has a high rate of customer complaints, and some regional branches are rated 1-2 out of 5 stars by the Better Business Bureau (BBB). Most complaints refer to poor customer service and response time. The bottom line is that AAA is not the worst company for customer satisfaction, but it also isn’t the best. If great reviews and a consistently good user experience are important to you, look elsewhere.

AAA auto insurance companies have been rated by companies like J.D. Power and the National Association of Insurance Commissioners (NAIC), with average to above-average results, respectively. AM Best looked at the financial strength of AAA and scored it an "A" rating, indicating that it is stable and in a solid position to meet the needs of its customers.

Frequently asked questions