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Co-authored the book “Future Millionaires’ Guidebook”
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Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Updated
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Table of contents
AAA and State Farm are two of the largest car insurance companies in the country.[1]
AAA is a nonprofit that sells roadside assistance plans and partners with regional insurers to offer car insurance to its members. This allows members to buy car insurance through CSAA Insurance Group and the Auto Club Enterprises Insurance Group. The company has a 1.33% market share.
State Farm is the largest auto insurance company in the nation, in terms of policies written, and offers numerous coverages in addition to car insurance, including home and life insurance.
If you’re considering either of these insurers, this article will show you more about each company’s coverages. Here’s what you should know about their rates, discounts, and customer satisfaction ratings so you can decide if either insurer is right for you.
On average, drivers pay $55 per month for liability coverage from State Farm and $140 from CSAA, which is one of AAA’s partner insurers.
Both State Farm and CSAA earned above-average claims satisfaction ratings from J.D. Power, but CSAA has had many more customer complaints.
State Farm and AAA both have telematics programs that drivers can use to potentially save on coverage, with AAA offering a much larger potential discount.
AAA vs. State Farm: Our verdict
Based on Insurify’s review, State Farm is generally the better car insurance company. State Farm’s average rate for liability-only insurance is about half the amount CSAA Group Insurance charges. CSAA is one of AAA’s partners.
Both companies offer the same basic coverages and several add-on options, though State Farm doesn’t offer gap insurance, while AAA does. AAA also offers a better potential discount when you enroll in its telematics program.
Both companies earned strong customer satisfaction ratings from J.D. Power. But AAA has far more complaints than expected for a company of its size, according to the National Association of Insurance Commissioners (NAIC). State Farm has fewer complaints.
You may choose State Farm if you want competitive rates and strong customer service. AAA might be appealing if you’re looking for comprehensive roadside assistance and want to save money by enrolling in a telematics program.
Because rates depend on several factors, such as your driving history and age, it’s important to compare personalized quotes before choosing a car insurance company.
AAA vs. State Farm
Average price Prices based on average across state-minimum and full coverage car insurance $168/mo* | Average price Prices based on average across state-minimum and full coverage car insurance $81/mo* |
Overall rating 4.5 | Overall rating 4.0 |
Value for money 4.3/5 | Value for money 3.7/5 |
Customer service 4.4/5 | Customer service 4.2/5 |
Claims handling 4.4/5 | Claims handling 4.1/5 |
Special highlight AAA membersAI-generated from 485 user reviews | Special highlight Customer serviceAI-generated from 7021 user reviews |
AAA: Best for telematics
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 666 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | NR |
AAA’s telematics app, SMARTtrek, provides a discount of up to 30% for drivers who enroll in the program and reliably demonstrate safe driving habits. The app is highly rated and offers real-time trip scoring and feedback. Customers in all states except California can enroll in the program for potential discounts.
Telematics program offers a large potential discount
Highly rated for customer satisfaction
Rideshare insurance available
Coverage and customer service depend on your region
Must become a AAA member to buy car insurance
Higher average auto insurance rates than State Farm
State Farm: Best for customer satisfaction
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $55/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $107/mo |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
J.D. Power ranks State Farm above average for customer service in multiple regions, outperforming AAA in most categories. It also rates higher for claims satisfaction and has received fewer complaints from customers compared to other companies of its size.
Above-average customer service
Cheap car insurance rates
Helpful add-ons
Doesn’t offer gap insurance
Not the cheapest for some driver types
Accident forgiveness is limited to longtime customers with clean driving records
State Farm vs. AAA: Which is cheaper?
Average car insurance costs for all AAA regional partners aren’t available at this time, but CSAA policyholders pay an average of $140 per month for liability coverage and $195 for full-coverage insurance.
State Farm offers cheaper average monthly rates of $55 for liability coverage and $107 for full coverage.
Here you can see how rates from the two insurers compare for different driving groups. All rates are for full coverage unless otherwise specified.
Driver Type | AAA (CSAA) | State Farm |
|---|---|---|
| Adult drivers | $212 | $98 |
| Liability-only coverage | $140 | $55 |
| Full coverage | $195 | $107 |
| Drivers with a speeding ticket | $253 | $137 |
| Drivers with a DUI | $290 | $159 |
| Drivers with an at-fault accident | $310 | $141 |
| Drivers with poor credit | $221 | $174 |
| Drivers with good credit | $168 | $85 |
| Teen drivers | $256 | $221 |
| Senior drivers | $144 | $76 |
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AAA vs. State Farm car insurance discounts
You can save money on your car insurance premium by qualifying for discounts. AAA and State Farm each offer several discount types, but they vary with each company. For example, you can save with AAA by having multiple cars on your policy, while State Farm offers discounts for low-mileage drivers.
Here are the different available discounts from AAA and State Farm:
Discount | AAA | State Farm |
|---|---|---|
| Safe driver | ✔ | ✔ |
| Defensive driving course | ✔ | ✔ |
| Multi-policy | ✔ | ✔ |
| Multi-car | ✔ | ✖ |
| Low mileage | ✖ | ✔ |
| Telematics | ✔ | ✔ |
| Anti-theft device | ✖ | ✔ |
| New car | ✖ | ✖ |
| Military/affiliation | ✖ | ✖ |
| Good student | ✔ | ✔ |
| Loyalty | ✔ | ✔ |
| Auto pay | ✖ | ✖ |
| Student away at school | ✔ | ✔ |
| Homeowner | ✔ | ✖ |
| Alternative fuel | ✖ | ✖ |
| Pay in full | ✖ | ✖ |
Compare customer satisfaction and financial strength
A network of regional partners provide AAA car insurance, so specific ratings vary with each company. But it can be helpful to compare State Farm against one of AAA’s partners, CSAA Insurance Group.
Both State Farm and CSAA are known for customer satisfaction, with CSAA Insurance Group and State Farm receiving above-average scores in J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study.[2]
The average score in the study was 700 out of a possible 1,000 points.
When it comes to the companies’ financial strength ratings, State Farm scored slightly higher. But both companies are relatively stable and have shown an ability to pay claims.[3] [4]
Between AAA and State Farm, the latter has far fewer customer complaints filed with the NAIC. Within State Farm’s few customer complaints, most tend to revolve around long wait times and unclear cancellation policies, while AAA’s complaints tend to focus more on the company’s separate roadside assistance services.
Here’s how customer satisfaction and financial strength rankings from AAA and State Farm compare.
Score | AAA (CSAA Insurance Group) | State Farm |
|---|---|---|
| IQ Score | 8.5 | 9.3 |
| Customer reviews | 4.5/5 (2,316 reviews) | 4/5 (14,737 reviews) |
| J.D. Power | 720 | 716 |
| AM Best rating | A (Excellent) | A+ (Superior) |
| NAIC complaint index | 3.92 | 0.84 |
| BBB customer reviews | A- | NR |
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
- Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
- Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
- Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
- Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
- Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
Recent customer reviews of AAA car insurance
Reading customer reviews and ratings can help you understand the level of service an insurer provides and gauge whether it can meet your insurance needs. Take a look at recent verified reviews collected from actual AAA customers.
Recent customer reviews of State Farm car insurance
To assess State Farm’s customer service and determine whether the company will work for your insurance needs, take a look at the verified customer reviews we collected below.
AAA SMARTtrek vs. State Farm Drive Safe & Save
Telematics programs use a mobile app or plug-in device to track information about your driving habits, like how often you drive and brake suddenly. Practicing safe driving habits while enrolled in a telematics program can help you save money on your premium because it shows you’re less of a risk to the insurer.
AAA’s SMARTtrek is available in 49 states and offers savings of up to 30%, while State Farm’s Drive Safe & Save program comes with a discount of up to 15% and is available in only 44 states.
The two programs also use different features to show your progress and offer insights into how you may improve. Drive Safe & Save uses a gamified approach that displays your “driving streaks” and offers safety challenges for you to complete. The program tracks your speed, braking, and phone use.
SMARTtrek provides more straightforward trip scoring and feedback in real time. It uses your phone or OnStar, which is a plug-in device, to track your speed, braking, acceleration, mileage, and phone use as you drive.
Feature | AAA SMARTtrek | State Farm Drive Safe & Save |
|---|---|---|
| Best for | Drivers who want higher savings and broad availability | Drivers who enjoy app engagement and gamified feedback |
| Savings potential | Up to 30% based on driving behavior | Up to 15% on renewals |
| How it works | Uses your phone or OnStar to track speed, braking, acceleration, and mileage | Uses your smartphone’s sensors to track speed, braking, and phone distractions |
| Availability | 49 states (not available in California) | 44 states (limited availability) |
| Data tracked | Speed, acceleration, braking, mileage, phone use | Speed, braking, phone distractions, hard turns |
| App rating (App Store/Google Play) | 4.8/5 4.6/5 | 4.6/5 4.5/5 |
| Average discount for good drivers | 15%–25% | 10%–15% |
| Driver feedback tools | Real-time trip scoring and feedback | “Driving streaks” and safety challenges |
| Gamified rewards | ✖ | ✔ (drivers can earn points and badges) |
| Compatibility | Works with OnStar for GM vehicles or smartphone app | Smartphone app only |
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Compare coverages: AAA vs. State Farm
State Farm and AAA both offer a full menu of coverages. The only notable difference between the two companies is that State Farm doesn’t offer gap insurance, while AAA does.
Because AAA’s coverage options vary by region, some of these options might not be available to you.
Coverage | AAA | State Farm |
|---|---|---|
| Bodily injury liability (BI) | ✔ | ✔ |
| Property damage liability (PD) | ✔ | ✔ |
| Personal injury protection (PIP insurance) | ✔ | ✔ |
| Uninsured/underinsured motorist coverage (UM/UIM) | ✔ | ✔ |
| Medical payments (MedPay) | ✔ | ✔ |
| Collision | ✔ | ✔ |
| Comprehensive | ✔ | ✔ |
| Roadside assistance | ✔ | ✔ |
| Rental reimbursement | ✔ | ✔ |
| Gap insurance | ✔ | ✖ |
| Classic car insurance | ✔ | ✔ |
| Rideshare insurance | ✔ | ✔ |
AAA vs. State Farm FAQs
The following information can help you compare AAA and State Farm as car insurance companies so you can make the best coverage choice for your needs.
Which is cheaper: AAA or State Farm?
State Farm typically offers cheaper car insurance rates than AAA’s regional partners. But because rates depend on many factors and can vary with each company, it’s best to request a quote and compare prices from several insurers.
What is the downside of AAA?
You’ll need to get a AAA membership and renew it periodically to buy coverage through one of its partnering insurers. Coverages, customer service, rates, and other features may vary with each partner.
Who is State Farm’s biggest competitor?
Based on market share, Progressive and GEICO are State Farm’s biggest competitors. All three companies offer cheap car insurance along with discounts, a wide range of coverages, and strong customer service.
Does AAA offer the best roadside assistance insurance?
You can buy roadside assistance through an insurance company or a motor club, like AAA. Among the best roadside assistance providers, AAA offers the most comprehensive range of travel-related services and a generous towing allowance.
Which car insurance company offers the cheapest insurance?
The cheapest car insurance policy for you depends on factors like your driving record, where you live, and your age. Some insurance companies offer significantly lower rates than others. COUNTRY Financial, Auto-Owners, and State Farm offer the cheapest car insurance.
But COUNTRY Financial offers coverage in 19 states, and Auto-Owners operates in 26 states, so you may need to shop around if you don’t live within their coverage footprints.
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- NAIC. "PROPERTY AND CASUALTY INSURANCE INDUSTRY 2024 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM States, U.S. Territories, Canada and Aggregate Other Alien 35-Total All Lines."
- J.D. Power. "Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds."
- AM Best. "AM Best Downgrades Credit Ratings of State Farm Mutual Automobile Insurance Company and Affiliates, Takes Various Credit Rating Actions on Subsidiaries."
- AM Best. "AM Best Revises Issuer Credit Ratings Outlook to Stable for Members of CSAA Insurance Group."
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Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook."
Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.
Since joining Insurify’s freelance team in October 2022, Kim has written hundreds of insurance articles, helping readers feel confident about their home, auto, travel, and pet insurance choices.
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15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
Featured in
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.