Is AAA Car Insurance Worth It? A Comprehensive Review

When it comes to car insurance, finding the right provider can be a daunting task. One company that often comes to mind is AAA. With its long-standing reputation and extensive membership benefits, AAA is a popular choice for many drivers. But is AAA car insurance worth it? In this comprehensive review, we will delve into the pros and cons of AAA insurance, explore its coverage options, analyze customer satisfaction ratings, and provide an overview of its pricing. By the end, you’ll have a better understanding of whether AAA car insurance is the right fit for you.

AAA Insurance: An Overview

AAA, also known as the American Automobile Association, has been a trusted brand for over 100 years. Originally founded as an advocacy organization for driver and passenger rights, AAA has grown to offer a range of services, including insurance. It is important to note that AAA car insurance is only available to AAA club members, and membership comes with an annual fee. However, the perks of membership, such as roadside assistance, vacation planning services, and retail discounts, may make it worthwhile for some individuals.

AAA Car Insurance Ratings and Reviews

Before diving into the specifics of AAA car insurance, let’s take a closer look at the company’s ratings and reviews. According to The Zebra, a leading insurance comparison site, AAA insurance has garnered a rating of 4.0 stars out of 5. This rating is based on factors such as price, customer service, coverage, and financial strength. AAA receives praise for its membership perks, positive customer satisfaction ratings, and high ratings from young drivers. However, there are also areas of concern, such as an above-average number of consumer complaints and low claims satisfaction scores.

Customer Satisfaction and Complaints

When it comes to customer satisfaction, AAA performs relatively well. According to J.D. Power, a renowned consumer insights company, AAA is rated as above average in overall auto customer satisfaction. However, in terms of claims satisfaction, AAA falls below average in J.D. Power’s auto claims satisfaction study. It is worth noting that the National Association of Insurance Commissioners (NAIC) has received above-average customer complaints for AAA. These complaints often revolve around poor customer service and delayed claims payments.

Coverage Options Offered by AAA

AAA offers a comprehensive range of coverage options to meet the needs of its members. Like most insurance providers, AAA provides the essential coverage required by state laws, including liability coverage, collision coverage, and comprehensive coverage. Additionally, AAA offers uninsured/underinsured motorist protection, medical payments coverage, and other optional coverage options. Some unique coverage options offered by AAA include gap insurance, OEM exterior repair coverage, new car replacement, better car replacement, and rideshare insurance.

Pricing and Average Rates

One crucial factor to consider when choosing an insurance provider is pricing. Currently, the national average for a 6-month car insurance policy is $880. However, AAA car insurance tends to be more expensive, with an average cost of approximately $1394 for the same duration. This makes AAA roughly 59% more expensive than the average policy. It is important to note that pricing can vary based on factors such as age and location. For example, younger drivers may face higher rates compared to older, more experienced drivers.

Discounts and Savings Opportunities

While AAA car insurance may be pricier than average, the company offers several discounts and savings opportunities for its members. These discounts can help offset the higher costs and make AAA more affordable for some individuals. Some common discounts offered by AAA include advanced purchase discounts, longevity discounts for remaining with AAA for an extended period, paid-in-full discounts, original owner discounts, good student discounts, and multi-policy discounts. Taking advantage of these discounts can help lower your overall insurance costs with AAA.

AAA Car Insurance vs. Other Providers

To give you a better sense of where AAA stands in the car insurance market, let’s compare it to other top providers. AAA is often compared to companies like Allstate, State Farm, Progressive, USAA, and GEICO. Each of these providers has its own strengths and weaknesses when it comes to pricing, coverage options, customer satisfaction, and discounts. By comparing AAA to these competitors, you can make a more informed decision about which insurance provider aligns best with your needs and preferences.

AAA Car Insurance for Different Age Groups

Insurance premiums can vary significantly depending on age. As such, it is important to consider the specific rates for different age groups when evaluating AAA car insurance. On average, AAA premiums for teens tend to be around $462 per month, while individuals in their 20s can expect to pay around $216 per month. As drivers enter their 30s, 40s, 50s, and 60s, the average monthly premiums decrease gradually, with individuals in their 60s paying around $147 per month. These rates are subject to change based on individual factors and location.

AAA Car Insurance: Pros and Cons

To summarize the pros and cons of AAA car insurance, let’s take a closer look at what sets AAA apart and where there may be areas for improvement.

Pros of AAA Car Insurance:

  • Membership perks: AAA offers a range of benefits to its members, including roadside assistance, retail discounts, and vacation planning services.
  • Positive customer satisfaction: AAA receives above-average ratings for customer satisfaction and overall customer experience.
  • Discounts and savings opportunities: AAA provides various discounts that can help members save on their car insurance premiums.
  • Unique coverage options: AAA offers additional coverage options, such as gap insurance, OEM exterior repair coverage, and rideshare insurance.

Cons of AAA Car Insurance:

  • Above-average number of consumer complaints: AAA has received more customer complaints compared to the average car insurance provider.
  • Low claims satisfaction scores: AAA falls below average when it comes to claims satisfaction, according to J.D. Power ratings.

Conclusion

In conclusion, AAA car insurance offers a range of coverage options and benefits to its members. While the company has received positive ratings for customer satisfaction and offers unique coverage options, it is essential to consider the potential drawbacks, such as the higher-than-average number of consumer complaints and lower claims satisfaction scores. Additionally, pricing is a significant factor to consider, as AAA car insurance tends to be more expensive than the national average. By assessing your individual needs, comparing quotes, and considering the pros and cons outlined in this review, you can make an informed decision about whether AAA car insurance is worth it for you