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AAA Insurance 2019 Auto Insurance Review: Rates, Claims Satisfaction, and Coverage

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Summary:  

AAA Insurance, also known as Auto Club of Southern California Insurance Group, is known for its customer service, roadside assistance, years of being in business, and financial stability.  The company offers automobile insurance to its members across the country and has many local agents to service their needs. Its premium prices are such that it should be considered a high-end insurance agency for those who are more concerned about service than cost. AAA also offers home and life insurance. Furthermore, it offers trip and travel planning for members as well.

Pros:

  • AAA is a solid company that has been in business for more than 100 years.
  • It is a financial stable company with an A.M. Best rating of A- to A+
  • The company offers excellent roadside assistance.
  • The company offers 24-hour claims assistance.
  • AAA has more than 50 million members.

Cons:

  • Auto insurance is only available for AAA members.
  • The cost of a AAA auto insurance premium is definitively on the high side.  This is especially true if you need to insure a teen driver.

AAA is a company has been in business for over 100 years and built its name on a superior level of customer service.  It continuously ranks highly on the J.D. Power Auto Claims Satisfaction Survey and it has a superior level of financial strength according to A.M. Best.  

AAA offers the traditional car insurance options and a few add-ons so that you can tailor your coverage to your needs.  The company offers the traditional car insurance discounts as well. Furthermore, its car insurance comes with excellent roadside assistance.  AAA rates, however, are extremely high compared to some other more affordable car insurance companies.

AAA also offers several other types of insurance including property insurance, life insurance, small business insurance, umbrella insurance, and travel insurance.  Furthermore, the company offers several travel assistance perks such as allowing consumers to rent a car or book a trip through its website.

Although you must be a member of AAA to purchase auto insurance from the company, membership in AAA is between $60 and $100.  Thus, if you want to obtain car insurance through AAA, the membership fee is worth paying.

>>MORE: CSAA Auto Insurance Review

The Value Equation ($$$)

One of the primary factors that consumers consider when shopping for automobile insurance is the cost.  Like with other auto insurance companies, your AAA Auto Insurance premium depends on your age, location, coverage choices, driving history, and the type of vehicle you wish to insure among other factors.   It is important not to simply look for the cheapest insurance premium since that may mean that your coverage is the minimum required by the state in which you live, and you may not be sufficiently covered in the event of an accident.

To get a quote from AAA, you can select the ‘get a quote’ button on its website and enter your information, or you can call 800-564-6222.  If you like you quote and wish to purchase insurance, call 877-323-4222 with your quote reference number.

Here’s a glimpse of how AAA Auto Insurance’s average premiums compare to two other large national providers.

AAA offers a high premium in comparison to large competitors such as State Farm and GEICO which are the two largest insurance providers in the US.

 GEICOAAAState Farm
Drivers in their 30s$1,218$4,644$2,379
Drivers in their 40s$1,189$3,195$1,587
Drivers with at-fault accident$1,580$4,002$1,524
Drivers with DUI/DWI$2,550$5,530$3,854
Drivers with speeding ticket$1,395$4,078$1,983

Thus, AAA insurance is significantly more expensive than other national insurance companies and may not be suitable for consumers who are significantly concerned about cost.   AAA Automobile Insurance may be more suitable for people looking for a high-end auto insurance company with a high level of claims satisfaction, excellent roadside assistance, trip planning options, and many extra perks for a significant price tag.

Discounts

Although its rates are on the high side, AAA does offer several discounts to help bring these rates down a little to auto insurance customers who qualify.  The discounts offered fall into these categories:

  • Multi-Policy Discounts – combine AAA auto insurance with another type of insurance that the company offers and get a discount on both premiums.  
  • Auto Policy Discounts – a multi-vehicle discount for having more than one vehicle insured with the company; loyalty discounts after at least one year of continuous coverage; discounts to select professional and alumni associations.
  • Vehicle and Driver Discounts – a good driver discount, verified mileage discount, student away if your college student is more than 100 miles away without the car, good student discount, driver training discount for completing approved courses, and car club discounts for being a member of certain car clubs.

Like with other auto insurance companies, the discounts that you qualify for with AAA Auto Insurance are mostly determined when you obtain the policy; however, you can add discounts you become eligible for later to save on your rate.  Discounts are determined by a variety of personal factors such as age and driving record. Furthermore, you must remain qualified for the discounts throughout the life of the policy to continue to receive most discounts.

Claims Satisfaction

In addition to looking at the cost of insurance, most people searching for car insurance want to find an auto insurance company with a high claims’ satisfaction rating.  According to a study conducted by J.D. Power, AAA’s auto insurance claims satisfaction rating is higher than the national average. Amica Mutual, Auto-Owners Insurance and Farmer’s are the only national car insurance companies open to the general public that had a higher level of claims satisfaction.

How easy is it to file a claim with AAA?

  • Logging into the website.
  • Filing through the mobile app.
  • File a claim by calling: 1-800-672-5246
  • Call your local insurance agent.

What is the average customer experience and satisfaction with AAA?

Each year, J.D. Power surveys an estimated 10,000 consumers who have filed an auto insurance claim in the last six months for its Auto Claims Satisfaction Study.  From these results, insurance providers are ranked on a 1000-point scale based on the results of this survey. Auto Club of Southern California Insurance Group ranks near the top of the list with an 868/1000 which is above the national average of 861/1000.  In comparison, State Farm, the largest insurance company in the US, scored an 864/1000 and GEICO, the US’s second largest insurance company, scored an 857/1000.

Coverage Options

CoverageGEICOAAA InsuranceState Farm
Liability
Physical Damage
Uninsured Motorist
Medical Payments Coverage
Comprehensive
Collision
Roadside Assistance
New Car Replacement
Rental Reimbursement
Custom electronic or extra equipment coverageXX

Other Insurance

AAA insures boats and watercrafts as well as collector cars in addition to the traditional motor vehicles.

AAA also offers property insurance which includes homeowners insurance, and renters insurance which can cover homes, condos, apartments and more.  Some coverage you can get includes loss of use coverage, liability protection, medical payments, personal property coverage, personal liability, and roof surfaces loss settlement.

You can also obtain life insurance through AAA.  Term Life, Whole Life, Universal Life, and Annuities are available.  In its Term Life offering, AAA offers Express Term Life and Traditional Term Life.  Life insurance coverage through AAA can help cover final expenses, educational expenses, emergency fund, mortgage and rent, income replacement, and payment of debt.

AAA also offers personal umbrella insurance to cover claims and lawsuits that exceed home and auto insurance for people who have assets that may be at risk.  

Small business insurance is offered by AAA as well.

AAA also offer travel insurance through Allianz Global Assistance which can cover a number of unexpected incidents that may arise before or during your travels, either in or outside of the United States.  Some incidents that travel insurance can cover are trip cancellation, trip interruption, and emergency medical coverage. Oftentimes, trips are booked month in advance and something may arise that makes the trip infeasible.  Some portions of the trip may be non-refundable, and vacations are often expensive. Travel insurance can reimburse you if you are unable to go on your trip, or something happens after you depart that you did not expect. Travel insurance also cover lost baggage.  Furthermore, if you need emergency medical care, travel insurance has got you covered for that as well.

Website Experience

AAA offers a superior website experience that starts with a potential or current customer entering his zip code so that he can receive area specific information.  Its comprehensive website is one of the best of any automobile insurance company. On the site, you can find out about coverage options, find out what discounts are available to you, and get a quote.  The website also allows users to create an account, obtain proof of insurance, pay the bill, manage their policy, set up automatic payments, and file a claim. Additionally, users can explore other types of insurance AAA has to offer as well as book car rentals, hotel room, plan trips and so much more.  AAA also offers an app that customers can download by texting APP10 to 99000. This convenient to use app allows users to do all these things as well.

The Bottom Line

  • AAA is rated very highly in the areas of customer service and claims satisfaction, beating out most other auto insurance companies of its size in the J.D. Power 2018 U.S. Auto Claims Satisfaction Survey.
  • AAA’s premium rates are very high compared to other insurance companies.  The rate for teen drivers is especially high.
  • AAA requires a membership; however, membership is not restrictive and can cost as low as $60 a year.
  • In addition to auto insurance, AAA offers an array of other insurance options which include homeowners insurance, renters insurance, life insurance, property insurance, umbrella insurance and travel insurance.  Moreover, the company offers a great deal of travel assistance. People who find the auto insurance to be too high and decide to go with another car insurance company may still want to purchase travel insurance through AAA.
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