Compare AAA vs. State Farm: Quotes, Discounts (2023)

AAA vs. State Farm: A Summary

Two auto insurance providers you might consider when you compare car insurance providers are AAA and State Farm. Keep in mind that AAA is only a direct insurer in some states, while State Farm sells insurance policies nationwide. Here’s how those two companies compare in terms of average monthly premiums and Insurify Composite Score.

Insurify Composite Score

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

AAA

AAA Auto Club is a group of insurance companies offering auto insurance, homeowners insurance, and other insurance products directly in many states while acting as a broker in others. AAA is known for its roadside assistance memberships, and you’ll typically need to be a member to purchase car insurance from AAA.

You can get all the standard coverage options from AAA, including liability coverage and medical payments coverage, and add-ons like rideshare insurance are available in some regions. AAA also offers plenty of insurance discounts, such as a bundling discount and the usage-based SMARTtrek telematics savings program.

AAA has an excellent financial stability rating from A.M. Best, but its customer satisfaction ratings vary by region. None of AAA’s regional insurers were top-rated in any J.D. Power studies, but some were ranked above average. Overall, AAA received fewer complaints than expected with the National Association of Insurance Commissioners (NAIC) in 2020 given the insurer’s size.

State Farm

State Farm is the largest auto insurer in the U.S. by market share and also provides renters insurance, life insurance, small business insurance, and more. It was the top-rated large auto insurance company, alongside Liberty Mutual, in J.D. Power’s 2022 U.S. Insurance Shopping Study and was ranked above average for claims satisfaction as well.

State Farm offers some of the most affordable car insurance rates in the industry, although it’s often beaten by USAA or GEICO. State Farm also offers attractive discounts, including two telematics programs for usage-based savings. One is specifically designed to train drivers under the age of 25.

In addition to the standard coverages, State Farm offers a few endorsements, including rideshare coverage and rental car reimbursement coverage. You can also get emergency roadside assistance coverage from State Farm. The company has superior financial strength ratings and fewer complaints than expected with the NAIC.

State Farm vs. AAA — Ratings

The Best Car Insurance Companies in 2022

State Farm and AAA are two of the best companies you can choose when buying a car insurance policy. However, State Farm has better financial strength and customer satisfaction ratings than AAA.

Compare AAA vs. State Farm: Which Is Cheaper?

State Farm is cheaper than AAA for all types of drivers on average. No matter your age, driving history, or credit tier, you’ll likely find cheaper insurance premiums at State Farm than at AAA.

The Cheapest Car Insurance Companies in 2022

State Farm is also one of the cheapest insurance companies we compared, with average rates beating the industry average. In fact, State Farm was the cheapest company we reviewed for DUI drivers. AAA rates, on the other hand, are typically higher than the industry average. AAA is not one of the cheapest insurers out there.

Compare AAA vs. State Farm Car Insurance by Age

Young motorists pay the most for car insurance because of their inexperience. Teen drivers are more likely to be in a car accident than any other age group, so insurance companies need to account for that risk when setting rates for teen drivers. Sometimes, you can offset the cost with a good student discount. Drivers in their 50s tend to pay the lowest rates.

Every company will weigh your age a little differently. Here are the average rates you can expect from AAA and State Farm based on your age.

For nearly every age group, State Farm is about half the cost of AAA, or less. Teen drivers and middle-aged drivers are both likely to pay much cheaper rates at State Farm.

Compare AAA vs. State Farm Car Insurance by Gender

In terms of car insurance rates, there are minimal differences between what men and women pay. Women tend to be charged slightly lower premiums over the course of their lives than men. But insurers in most states do consider your gender when setting your rates.

The difference is more pronounced in young drivers because male teens are more than twice as likely to die in a crash as female teens. Here’s what AAA and State Farm are charging men and women on average for car insurance.

Which is cheapest for men?

State Farm is cheaper than both AAA and the industry average for male drivers.

Which is cheapest for women?

Women pay cheaper rates on average at State Farm than at AAA. State Farm rates also beat the industry average premium for women.

Compare AAA vs. State Farm Car Insurance by Mileage

When establishing your car insurance rates, most auto insurance providers assess your estimated annual mileage. Your estimates may not significantly affect your car insurance rates, but low-mileage drivers pay slightly less on average. Bigger savings for low-mileage drivers are available from both AAA and State Farm when you sign up for their usage-based programs.

Here’s what each company is charging drivers with different mileage estimates on average.

Which is cheapest for drivers with high mileage?

State Farm beats both AAA and the industry average in terms of pricing for high-mileage drivers.

Which is cheapest for drivers with low mileage?

Low-mileage drivers pay less on average at State Farm than AAA. State Farm’s rates also beat the industry average for low-mileage drivers.

Compare AAA vs. State Farm Car Insurance by Credit Score

Lower credit scores are correlated with high claims filing, so car insurance companies in most states evaluate your credit-based insurance score when determining your premiums. In some states, like California, the practice is prohibited by law. Here’s what policyholders paid on average at each company based on their credit score.

Which is cheapest for good credit?

State Farm offers the cheapest rates of the insurers we reviewed for drivers with excellent credit. Good credit drivers pay less at State Farm than at AAA, and State Farm rates also beat the industry average.

Which is cheapest for bad credit?

Both AAA and State Farm increase rates for bad credit drivers, but State Farm offers cheaper rates than AAA. Both companies are more expensive than the industry average, however, so drivers with lower credit scores may want to get a quote from Insurify to get a better rate. USAA, GEICO, and Allstate all offer cheaper rates than State Farm for drivers with bad credit.

Compare AAA vs. State Farm Car Insurance by Driving Record

Your car insurance rates are a reflection of the level of risk a car insurance company takes on when writing an insurance policy for you. If you have infractions like speeding tickets on your record, it’s going to look like you’re not taking necessary safety precautions when driving.

Every car insurance provider will weigh the information in your driving history a little differently, however. Here’s what you can expect from AAA and State Farm.

Which is cheapest for good drivers?

State Farm offers significantly cheaper rates than AAA for drivers without any violations. State Farm rates also beat the industry average, while AAA was significantly more expensive than the industry average.

Which is cheapest after a speeding ticket?

Drivers with speeding tickets can get cheaper rates with State Farm than with AAA. State Farm beats out the industry average by $45 a month, while AAA is $41 more expensive than the industry average.

Which is cheapest after an accident?

Drivers who have caused a crash pay significantly less at State Farm than at AAA, with an average quote of just $65, which is a whopping $93 difference. State Farm rates are also cheaper than the industry average.

Which is cheapest after a DUI?

A DUI requires you to have an SR-22 on file with the DMV in most states, and car insurance companies charge more for an SR-22 policy. AAA charges especially high rates to drivers with DUIs, while State Farm is relatively forgiving. In fact, State Farm’s rates for DUI drivers are the cheapest of the companies we compared.

AAA vs. State Farm Car Insurance: What discounts does each offer?

Note that discount availability may vary by state. Ask your local agent for more details.

AAA Discounts

• Multi-policy

• Multi-car

• Professional/alumni

• Loyalty

• Good driver

• Verified mileage

• Good student

• Student away

• Driver training

• Car club

• SMARTtrek telematics program

State Farm Discounts

• Drive Safe & Save telematics program

• Steer Clear telematics program for drivers under age 25

• Accident-free

• Defensive driving course

• Good driver

• Anti-theft

• Safety feature discounts

• Multi-policy

• Multi-car›

• Good student

• Student away

Our Methodology and How We Compared AAA and State Farm

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.

Frequently Asked Questions: AAA vs. State Farm