AAA vs. State Farm Auto Insurance 2024

If you’re debating whether to sign up with AAA or State Farm, there are a few things to consider before making your decision. Generally, if you look at a State Farm auto insurance review compared to an AAA review, State Farm is the better choice for the majority of drivers, as it tends to offer cheaper car insurance rates than AAA. 

State Farm also offers more consistent coverage options and customer service than AAA, as it is a larger car insurance company with a more firmly established customer base. AAA is more known for its roadside assistance program and perks than for its auto insurance policies. 

To help guide you through all the differences between AAA and State Farm, both positive and negative, we will go over everything you need to know about the companies. 

In our analysis of State Farm vs. AAA car insurance, we will cover everything from how the companies operate to their discounts. 

AAA vs. State Farm Auto Insurance Company Operations 

State Farm and AAA operate very differently as companies, so we want to make sure you understand the differences between the two and how they might affect your auto insurance service and rates. 

AAA Foundation and Operations 

The American Automobile Association (AAA) has been around since 1902 when several small auto clubs came together to advocate for safer roads and transportation and form the AAA. 

Today, the AAA is still made up of numerous auto clubs rather than just one consolidated car insurance company, which means your auto insurance rates and services will depend upon your local club.

In addition, if you choose to buy auto insurance from AAA, you would purchase it from one of their affiliates, such as the CSAA Insurance Group, Automobile Club Group, or Automobile Club of Southern California. So, make sure to look up the sub-companies of AAA for auto insurance reviews. The AAA subsidiary company in your state may not be as highly rated as an AAA subsidiary company in another state. 

State Farm Foundation and Operations  

State Farm was founded in 1922 by a farmer who wanted to provide better auto insurance to rural customers. State Farm is one company rather than a collection of independent subsidy clubs, which means you’ll receive more consistent coverage options and car insurance rates. 

State Farm also has a larger market share than AAA. This means that it has a wider sales base, making it more likely to attract new customers with lower prices than AAA. 

While AAA is well known for its roadside assistance program, its home and auto insurance companies are lesser-known, making it less likely to attract new customers and keep rates as low. 

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AAA vs. State Farm Auto Insurance Rates 

Price is a big factor when it comes to choosing between two companies. When we compared average car insurance rates between AAA and State Farm, we found that State Farm has cheaper car insurance rates for most drivers. 

Of course, remember that the actual rate you get from either company will depend upon your driving record, vehicle, ZIP code, and more. The rates we go over are just a general guideline of the average car insurance rates usually charged by these companies. Your auto insurance quotes may be higher or lower, so find out the average car insurance cost per month before you start shopping for coverage.

To get a general idea of rates between these two companies, compare quotes by the different driving factors below. 

AAA vs. State Farm Auto Insurance Rates by Coverage 

There are generally two types of car insurance coverage that most drivers pick. Minimum liability insurance, which is the basic car insurance coverage required by each state, or full coverage car insurance, which is liability car insurance combined with collision and comprehensive coverage. 

Generally, we recommend most drivers carry full coverage auto insurance unless they have an old car that is greatly depreciated in value. 

See below the average car insurance rates at AAA and State Farm for both minimum liability car insurance and full coverage car insurance. 

Full Coverage vs. Liability-Only Auto Insurance Monthly Rates

For both minimum liability car insurance coverage and full coverage car insurance, State Farm’s average rates are cheaper than AAA’s average rates. This means that in the majority of situations, State Farm will offer you a cheaper rate than AAA for auto insurance. 

As well, we want to note that you usually have to join AAA and pay an annual membership fee in order to sign up for car insurance. This means that you can calculate at least another $60 per year for an AAA membership, raising the cost of AAA car insurance even more. 

AAA vs. State Farm Auto Insurance Rates by Driver Credit Score 

In some states, your credit score impacts auto insurance rates. Car insurance companies will charge drivers with poor credit more than drivers with higher credit scores. 

Car insurance companies justify these increases by claiming drivers with poor credit scores are more likely to miss payments and have their insurance canceled. Car insurance companies also state that data shows that drivers with poor credit scores are more likely to file claims than drivers with good credit scores, making drivers with poor credit riskier to insure. 

However, not all companies will raise car insurance rates the same for different credit scores, as you can see from the table below. 

Full Coverage Auto Insurance Monthly Rates by Credit Score

AAA charges more on average than State Farm for drivers with poor credit scores. Therefore, State Farm will likely be the cheaper auto insurance company if you have bad credit.

Choosing an auto insurance company that offers cheaper auto insurance rates for poor credit is also beneficial in helping drivers get their credit scores back on track. This will help lower auto insurance rates over time. 

AAA vs. State Farm Auto Insurance Rates by Driver Age 

A driver’s age greatly affects how much they pay for auto insurance. Young drivers in their teens will see the highest car insurance rates at most companies, especially if they buy their own auto insurance rather than joining a parent’s policy as a named driver.

Choosing the right company is important if you are in one of the age brackets with naturally higher auto insurance rates. Below, you can see how AAA’s average rates compare to State Farm’s average rates for various ages of drivers. 

Auto Insurance Monthly Rates by Age and Gender

Driver	Allstate	American Family	Farmers	Geico	Liberty Mutual	Nationwide	Progressive	State Farm
30-Year-Old Male	$177	$137	$160	$87	$200	$136	$136	$103
30-Year-Old Female	$168	$116	$154	$90	$174	$124	$131	$94
45-Year-Old Male	$160	$117	$133	$80	$174	$115	$105	$86
45-Year-Old Female	$162	$115	$134	$80	$171	$113	$112	$86
55-Year-Old Male	$152	$111	$126	$76	$165	$109	$100	$82
55-Year-Old Female	$153	$109	$127	$76	$162	$107	$106	$82

On average, State Farm has cheaper auto insurance rates for all age groups compared to AAA. Of course, your rates will vary from the national averages shown above, but in general, State Farm will always be the more economical choice over AAA.

Depending on your age bracket, AAA can sometimes cost a thousand dollars more than State Farm for a car insurance policy. Find out more about the average car insurance rates by age.

AAA vs. State Farm Auto Insurance Rates by Driver Record 

Besides age and credit score, another factor that will significantly affect your car insurance rates is your driving record. Auto insurance companies check driving records, so any tickets, at-fault accidents, and DUIs will always raise your rates. 

However, rate increases will vary among car insurance companies.

The table below shows what you can expect for auto insurance rates between AAA and State Farm. 

Auto Insurance Monthly Rates Based on Driving Record

Auto insurance rates increase at both companies for different driving infractions. If you have a DUI, at-fault accident, or ticket on your driving record, you will have to pay higher car insurance rates at both companies for a few years. However, costs tend to be slightly cheaper at State Farm than at AAA. 

The best way to get cheaper auto insurance rates is to keep a clean driving record after the ticket or accident. Showing that you are consistently a safe driver in the future will go a long way in reducing your car insurance rates.

AAA vs. State Farm Auto Insurance Coverages 

We’ve established that State Farm is the cheaper car insurance company, but we want to touch base on what auto coverages AAA and State Farm offer. This will help you to see which insurer offers more complete policy options, as price should only be one deciding factor when comparing companies. 

Both auto insurance companies offer all the basics of an auto insurance policy. However, AAA has more add-on coverages that aren’t offered in every state. If some of the extras are important to you, this could be a dealbreaker if you live in a state where AAA doesn’t offer that coverage. 

AAA Auto Insurance Coverages 

AAA offers a few add-on coverages and benefits that may interest drivers, such as:

• Accident forgiveness. Your car insurance rates won’t go up after your first at-fault accident. However, AAA only offers accident forgiveness at a few of its club providers, so availability depends upon where you live.
• Gap insurance. Gap car insurance pays the difference between what is left on your loan and what you received for the total value of your car in a covered claim for total loss. 
• Non-owners insurance. If you don’t own a car but drive on a regular basis, non-owner auto insurance provides liability coverage for when you drive another’s car. 
• Pet coverage insurance. If your pet is injured in a covered car accident claim, pet coverage will pay for some or all of its medical costs at the vet up to the policy limit. 
• Rental car reimbursement insurance. If your car is in the shop for repairs, rental car reimbursement will cover the cost of the rental until your vehicle is road-worthy again. 
• Rideshare insurance. AAA rideshare car insurance provides coverage for drivers who work for companies like Uber or Lyft. It is meant to be sold in conjunction with your normal auto insurance policy and covers you when you drive passengers. 

Bear in mind that the availability of these coverages is not guaranteed everywhere. 

For example, AAA insurance for rideshare drivers may not be available in your state. Some states may not sell the other additional coverages, while others may offer some or all of the coverages we’ve discussed. Shop around and speak with an agent to confirm the policy options you want are available before you buy.

State Farm Auto Insurance Coverages 

State Farm offers the same coverage as AAA listed above, such as non-owner car insurance or Gap coverage. However, State Farm’s coverages aren’t limited to certain states like with AAA, making it easier to find the add-on coverages with State Farm.

State Farm’s rental car reimbursement insurance coverage will also cover some travel expenses if you get into an accident away from home, compared to just coverage for the cost of the rental car. 

AAA vs. State Farm Roadside Assistance Coverage 

Roadside assistance is a great coverage offered at both AAA and State Farm. If your car breaks down under a covered event, roadside assistance will help get the car fixed or give you a tow to the repair shop. 

Does auto insurance include roadside assistance? Not usually, but it’s not that expensive to add. Generally, it costs less than $20 per month to add roadside assistance to your policy, which can more than pay itself off after one or two covered incidents. 

At State Farm, adding this coverage to your car insurance policy usually costs less than $10. It’s also fairly cheap at AAA, and you can get more complete roadside assistance beyond just the basic policy add-on offered for car insurance. 

AAA’s roadside assistance program comes with multiple perks, like travel assistance. 

One noticeable difference is that State Farm will deliver tires. This can be a great service if you don’t have a spare. AAA won’t, which means that AAA will just replace your tire with your spare tire so that you can drive to the shop and get a new tire. AAA also won’t deliver oil, whereas State Farm will. 

However, unlike State Farm, AAA will help move cars stuck in the snow, mud, or other similar weather conditions. So, if you are stuck at the end of your driveway because the snow has piled up too high, AAA can help pull you out onto the road. 

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AAA vs. State Farm Auto Insurance Discounts 

We’ve already established that State Farm has cheaper car insurance on average than AAA, but auto insurance discounts may help reduce your average AAA insurance rates. 

Both companies offer the standard auto insurance discounts offered at most insurance companies, such as good driver and multi-policy discounts. However, there are variations between State Farm and AAA discounts when it comes to less common discounts. For example, AAA doesn’t offer a defensive driving discount, but State Farm does. 

AAA Auto Insurance Discounts 

One of the biggest AAA car insurance discounts is the low-mileage discount, which rewards drivers for driving less. Drivers will need to verify their mileage by providing odometer readings but can save up to 9.1% off their auto insurance policy, which is a significant amount. 

AAA also offers a loyalty discount of up to 10% for customers that have been with AAA for at least two years. 

Its bundling discounts are also high if you purchase a combination of auto insurance with another type of insurance like home or renters. For example, buying home insurance from AAA in addition to auto insurance could get you up to 14% off your auto insurance policy. 

State Farm Auto Insurance Discounts 

State Farm also has some great discounts that can help reduce customers’ auto insurance rates. One of its biggest discounts is its State Farm Drive Safe & Save program. Depending on how well they drive, drivers could earn up to 30% off of their auto insurance policy. 

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State Farm also offers a Steer Clear program for young drivers under 25 who have been free of at-fault accidents and traffic violations for three years. Successful completion of the program can earn young drivers up to 15% off of their policy, which is a great discount considering young drivers have some of the highest insurance rates. 

Parents who have children joining their auto insurance policy should therefore consider having their young drivers participate in the program in order to save money on their policy. 

AAA vs. State Farm Auto Insurance Mobile Experiences 

An important aspect of an auto insurance company’s service that most customers don’t consider is how easy it is to navigate and use their mobile apps and websites. We found that both companies have fairly easy-to-navigate websites, making it easy for customers to look up information about coverages and discounts. 

However, when it comes to each company’s mobile app reviews, the ratings vary, with State Farm’s mobile app scoring slightly better. We will go over the mobile app ratings in more detail in the sections below. 

AAA Mobile Experience 

AAA offers an app that can be downloaded on either Google Play or the Apple Store. AAA’s mobile app received the following ratings on these two sites: 

• Google Play. 4.4 stars out of five based on over 50 thousand reviews. 
• Apple Store. 4.5 stars out of five based on over 47 thousand reviews. 

The app is more limited in what you can do on it, as it isn’t intended to service auto and home insurance customers. Instead, you can request roadside assistance and view your AAA membership. Any further changes you want to make to your auto insurance policy will have to be done online at the AAA website.  

State Farm Mobile Experience 

The State Farm mobile app can be downloaded on either Google Play or the Apple Store, depending on what type of mobile phone you own. The app has received slightly higher ratings than AAA’s mobile app, as you can see from the ratings below. 

• Google Play. 4.7 stars out of five based on over 130 thousand reviews. 
• Apple Store. 4.9 stars out of five based on over 619 thousand reviews. 

The State Farm mobile app allows you to view and manage your auto insurance policy, such as paying bills or tracking a claim. You can also request roadside assistance through the app. Therefore, it is easier to access information with State Farm’s mobile app than AAA’s app, making it the better choice for drivers. 

AAA vs. State Farm Customer Service Rating 

Customer service is another important aspect of choosing between two auto insurance companies. Good customer service means the company handles claims quickly, is communitive, and readily assists customers with problems and concerns. Reading customer service reviews and ratings will give you a good idea of a company’s reputation. 

We recommend always checking a company’s reviews and ratings before signing up with a company. While you will always see negative reviews no matter how good an auto insurance company is, a high number of dissatisfied customers is a red flag. If there is a lack of good reviews mixed with bad reviews, is an indication that the company has poor customer service. 

J.D. Power’s 2022 customer satisfaction rating showed that State Farm was above the regional average for satisfaction in all regions except for the state of California. This an excellent sign, as it shows State Farm has solid customer service across the U.S., and most customers are happy with the service they have received. 

AAA, on the other hand, has less consistent ratings. Because there are three companies ranked under AAA, the CSAA Insurance Group, Automobile Club Group, and Automobile Club of Southern California, these companies vary from region to region in ratings. 

For example, the CSAA Insurance Group tends to rank below average in customer satisfaction in most regions, whereas the Automobile Club Group ranks higher. Therefore, the rankings for AAA’s affiliate car insurance companies are much less consistent across the U.S. than State Farm’s ratings. 

Based on this, State Farm seems to have better customer service compared to AAA, as its rankings are higher and more consistent than AAA’s in JD Power’s latest study. 

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The Final Word on AAA vs. State Farm Auto Insurance 

State Farm is the better company when you look at average car insurance rates, coverage options, mobile experience, and customer service. 

While AAA has some great discounts and roadside assistance, most drivers will be better off sticking to the perks of their AAA membership rather than buying an auto insurance policy from AAA. 

Auto insurance rates will vary depending on your individual needs and driving history, but State Farm should be cheaper than AAA for the majority of drivers. If you find that State Farm isn’t the company for you, we recommend shopping around for quotes in your area. 

You can use our free quote comparison tool to start comparing quotes and find the cheapest auto insurance rates in your area based on your coverage needs and driving record.

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