Most people can afford the rates offered by State Farm, but AAA’s regional insurers offer special benefits to members.
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When it comes to car insurance, two of the biggest names in the game are State Farm and AAA. But which one offers better rates and coverage for drivers? I compared these auto insurance giants side-by-side across key categories to see how they stack up. Read on to see whether State Farm or AAA is the superior insurer for your needs.
Company Overview
First let’s take a quick look at the history and reputation of each company
State Farm
- Founded in 1922, now the #1 auto and home insurer in the U.S.
- Known for local agents, discounts, and strong financial ratings
- Services over 84 million policies across banking, insurance, and more
AAA:
- Started in 1902, now the fifth largest auto insurer nationwide
- Focus is roadside assistance and travel services in addition to insurance
- Over 60 million members across North America
Both companies have been fixture in insurance for over a century and are known for good customer service. When it comes to reputation, State Farm and AAA are pretty evenly matched.
Cost of Coverage
For most drivers, getting the lowest possible rate is the priority. So which company offers cheaper car insurance rates?
State Farm car insurance rates
- Average monthly full coverage cost: $135
- Average monthly minimum coverage cost: $69
- Average yearly rate with discounts: $1,612
AAA car insurance rates:
- Average monthly full coverage cost: $125
- Average monthly minimum coverage cost: $78
- Average yearly rate with discounts: $1,512
Based on these national rate estimates, AAA comes in around $100 lower than State Farm per year for the average driver. However, costs can vary significantly locally.
To find your cheapest rate, be sure to compare personalized State Farm and AAA quotes side by side. Minor differences in pricing shouldn’t be the only factor in your decision.
Discounts Offered
Both companies offer a wide array of discounts to help lower your car insurance rates. Here are some common discounts to ask about:
State Farm discounts:
- Multi-policy: Up to 17% off
- Good driver: Up to 30% off
- Defensive driving: Up to 15% off
- Student away at school: 25% off
- Anti-theft device: Up to 25% off
AAA discounts:
- Multi-policy: Save up to 15%
- Anti-theft device: Up to 20% off
- Good driver: 10% off for 5 years claim-free
- Young driver training: Up to 20% off
- Loyalty: Up to 29% off for long-term customers
As you can see, both companies offer hefty discounts for things like bundled policies, being a safe driver, and having anti-theft protections. Be sure to ask about every possible discount when getting your quotes.
Coverage Options
In addition to standard coverages like liability, collision and comprehensive, good insurers also offer a range of optional coverages. Here are some to look for:
State Farm extras:
- Rental reimbursement
- Rideshare coverage
- Roadside assistance
- Custom parts & equipment value
- Gap insurance
AAA extras:
- OEM parts coverage
- Roadside assistance
- Rental reimbursement
- Rideshare coverage
- Road hazard tire coverage
Both providers have rideshare and rental coverage for Uber drivers or trips, plus roadside assistance. AAA also offers coverage for original manufacturer parts. Evaluate your needs to pick the right add-ons.
Technology Offerings
Insurance technology is making policies more convenient and customized. Here are some of the tech features offered:
State Farm technology:
- State Farm app to manage your policy
- Pay premiums by phone 24/7
- Start a claim by phone or online
- Usage-based Drive Safe & SaveTM program
AAA technology:
- AAA app with digital ID card & roadside help
- Pay bills online or via mobile app
- Start a claim online or by phone
- Usage-based SmartDriver program
The companies are neck-and-neck when it comes to tech. Both offer mobile apps, online payments and claims filing, and usage tracking to earn discounts. These conveniences can enhance the insurance experience.
Customer Satisfaction
Great rates and features are important, but you also want an insurer that delivers on customer service. Here’s how policyholders rate each:
State Farm reviews:
- Trustpilot: 2.5 out of 5 stars based on 715 reviews
- Better Business Bureau: 1 out of 5 stars based on 133 reviews
AAA reviews:
- Trustpilot: 1.6 out of 5 stars based on 665 reviews
- Better Business Bureau: 1.15 out of 5 stars based on 132 reviews
Looking at these reviews, neither insurer scores terribly high on customer satisfaction. State Farm edges out AAA slightly based on these ratings, but take online reviews with a grain of salt. Checking with friends and family may provide a better idea of service quality.
The Bottom Line
When comparing State Farm and AAA overall, it’s a close race:
State Farm pros:
- Competitive technology offerings
- Usage-based discounts available
- Broad coverage options and discounts
AAA pros:
- Slightly lower average rates
- Long list of discounts to save
- Excellent roadside assistance service
To choose the best insurer for you, get personalized quotes from both State Farm and AAA. Look beyond just price to find the right mix of rate, coverage, technology, and service. Comparing quotes annually also keeps insurance affordable as your needs change.
Whether you pick State Farm, AAA, or another top insurer, following these steps ensures you get the best rate for the right protection. Drivers who invest time comparing quotes benefit from hundreds in potential savings every year.
State Farm pros and cons
- Above-average J. D. Power scores for claims, customer satisfaction and digital experience.
- Average rates for full and minimum coverage below national average
- Extensive network of exclusive local agents
- Customer service live chat not available
- Accident forgiveness not available
- Gap coverage only available to State Farm auto loan customers
- Not available in Massachusetts
AAA pros and cons
- Robust roadside assistance coverage
- Access to extra member benefits, such as discounts on travel and monitoring for identity theft
- Banking and financial planning services
- The free Triple Check service looks for deals and discounts to help you save money.
- Full and minimum coverage rates are higher on average than in the rest of the country.
- Paid membership may be required for many perks
- J. D. Power says that some of AAA’s biggest auto clubs have below-average satisfaction scores.
- Customer service varies based on underwriting company
Allstate vs. State Farm: Which Car Insurance WINS for 2024?
FAQ
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