Most folks that own a car are aware of AAA (the American Automobile Association), but many don’t realize that these folks are also known as AAA Auto Insurance.
To some insurance shoppers, it may seem unusual to have to join an auto club to buy their auto insurance, but not when you consider you have to join AARP to buy insurance from The Hartford at their association rates.
It makes perfect sense if you own a car you should always have access to roadside assistance because sooner or later you’re going to break down, have a flat, run out of gas, and need some help.
NOTICE: We are not AAA Auto Insurance. If you would like to contact an AAA Auto Insurance representative, you can contact them about auto insurance at (877) 288-4546.
About AAA Auto Insurance
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Established more than 100 years ago, AAA was not originally designed to be in the auto insurance business. The company’s original mission was to lobby for the rights of vehicle drivers and passengers and to be an advocate organization when it comes to laws and vehicle safety.
To represent its membership more effectively, AAA offered affordable roadside assistance programs and other valuable membership services to assist those who were on the road.
When we consider the dangers associated with operating vehicles on America’s roadways, it’s not surprising that AAA membership has grown to over 50 million and that the company eventually set its sights on the auto insurance industry. It is simply a perfect fit.
The company realized early on that the organization needed to accommodate members across the country that are affected by different laws in different states and took the position that AAA should be a regionally operated company rather than a behemoth that made decisions for every driver. As such, when you search for AAA Auto Insurance online, you’ll find different websites that accommodate the different regions of the country.
In this article, we will drill down into the AAA Auto Insurance product so that we can provide you with the information you’ll need to make an informed decision to purchase or not to purchase.
AAA Auto Insurance Financial Stability
When you are shopping for auto insurance, your rate should be part of the purchase decision but not the only reason to choose one company over another. All insurance policies are simply a promise to pay in exchange for a premium, and in many cases, that promise may have to be fulfilled by the company later rather than sooner.
Knowing this, it’s critical that the insurance company you select is financially stable at the time of the purchase and there are very strong indications that the company will remain stable for the long term.
Low rates have little value if your insurance company fails to keep its promise when a claim is filed. For this reason, insurance shoppers should check out a company’s financial stability rating, customer service ratings, and claim service ratings.
Since AAA Auto Insurance operates on a regional basis, it makes good sense to check into the operation that is handling the region your state is located in. To determine which office is responsible for your state or region click here for more information.
Overall, AAA Auto Insurance ranked in various categories as follows:
- A.M. Best Financial Strength Ratings – Automobile Club Group: A-, Automobile Club of Southern California: A+, and CSAA Insurance Group: A
- Customer Service – The National Association of Insurance Commissioners report that AAA has fewer complaints than other auto insurance companies of comparable size.
- D. Power Customer Satisfaction Survey – Auto Club of Southern California ranked 834 out of 1,000 – just above GEICO, State Farm, and Progressive
The AAA Auto Insurance Personal Auto Policy
Since AAA offers the traditional Personal Auto Policy form, customers are offered a package of coverages that they can choose from. Although every state has minimum coverages that must be purchased in order to register a vehicle, there may be some coverages that the vehicle owner elects not to carry.
| COVERAGE | DESCRIPTION |
|---|---|
| Bodily Injury Liability | Pays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy. |
| Property Damage Liability | Pays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy. |
| Medical Payments | Medical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy. |
| Personal Injury Protection (PIP) | PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states. |
| Uninsured/Underinsured Motorist | Uninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well. |
| Comprehensive Coverage | Comprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible. |
| Collision Coverage | Collision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible. |
| Emergency Roadside Assistance | Roadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy. |
| Rental Reimbursement | Rental reimbursement helps pay for rental expenses if you are in an at-fault accident or hit by an uninsured driver. Most policies will have a limit per-day and per-accident. |
Like many other auto insurance companies. AAA Auto Insurance offers optional coverages that can be purchased to broaden your coverage:
- Loan/Lease Gap Coverage: this optional coverage pays the difference between the actual cash value of a totaled vehicle and the balance of the loan or lease agreement.
- Enhanced Total Loss Vehicle Replacement: this option provides for the insurance company to replace your covered totaled vehicle with a new model provided the loss occurs within the qualifying time period and mileage on the vehicle.
- Transportation Network Coverage: This coverage protects drivers who drive their vehicle for rideshare companies. It is designed to fill the coverage gap when your ridesharing company’s insurance is not active.
- Enhanced Exterior Repair: This option provides for the insurer to provide OEM parts rather than aftermarket parts for exterior repair excluding glass and mechanical parts.
How AAA Auto Insurance Compares with other Popular Companies
Since auto insurance rates are based on various underwriting factors concerning the vehicle(s) and driver(s) listed on the policy, it is difficult to make an apple to apple comparison without all of that information. Additionally, since AAA Auto Insurance operates three separate divisions, gathering the data for a legitimate rate comparison with other carriers is almost impossible.
We were, however, able to locate the average insurance rates for AAA and three competitors on a national basis and found that AAA is very competitive.
| Insurer | AAA | Allstate | GEICO | State Farm |
|---|---|---|---|---|
| Average Annual Premium | $3,322 | $4,949 | $3,546 | $3,925 |
Discounts that will save You Money
There is no doubt that your auto insurance rates are substantially impacted by discounts that you can qualify for and AAA Auto Insurance offers many of them:
| Type of Discount | Qualification |
|---|---|
| AAA Membership | The policyholder receives a discount based on membership years with AAA |
| Paperless | This discount is available for customers who agree to receive documents electronically |
| Advance Purchase | Receive a discount for agreeing to purchase a policy a number of days in advance of the start date |
| Pay-in-Full | A discount for applicants that agree to pay-in-full 7 days prior to the effective date |
| Auto-Pay | A discount for customers who agree to have premium auto deducted from checking account or credit card |
| Safety Inspection Discount | Available for customers who's vehicle passes the AAA Safety Inspection |
| AAADrive Discount | Available to customers who agree to have driving habits tracked using smartphone app |
| Defensive Driver | Customers who complete an approved defensive driver course receive this discount |
| Multi-Product | This discount is available for customers who purchase other insurance products through an eligible company |
| Multi-Car | Insure more than one vehicle on your policy |
| New Young Driver | This discount is available on existing policies where a driver under age 25 is added to the policy |
| Good Student Discount | Available for student drivers who maintain a 3.0 average or higher |
| Student Away Discount | This discount is for policyholders who have a student away at college (more than 100 miles) without a vehicle |
| Prior Coverage Discount | Awarded to customers who switch from another insurer to AAA and have no lapse in coverage with the prior carrier |
| Safety Device Discount | Offered on vehicles with certain safety devices that are factory installed |
| Anti-Theft | Offered on each vehicle is equipped with anti-theft or recovery device |
| New Car Discount | Provides a discount for customers who insure new vehicles |
Conclusion
AAA Auto Insurance is a good fit for insurance shoppers who are looking for a well-established and highly rated carrier that offers very competitive rates, many policy discounts, and has nationwide availability.
