AAA vs. State Farm: Which Is Best? (2024)

State Farm’s high customer satisfaction, financial strength, and quality coverage options earn it an Insurify Quality (IQ) Score of 4.5 out of 5.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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.

Updated March 26, 2024

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Two different companies you can consider when looking for quality auto insurance are the American Automobile Association (AAA) and State Farm.

AAA is a not-for-profit organization offering roadside assistance to its members. The company doesn’t underwrite insurance and instead partners with regional auto insurance partners like CSAA.

State Farm is the largest auto insurance company in the United States by market share. The company offers many insurance products in addition to car insurance, like home and property insurance and life insurance.

When shopping for car insurance policies, it’s a good idea to compare rates, coverage options, and discounts to find the best plan for your needs.

Quick Facts
  • AAA and State Farm advertise the same number of available discounts.

  • State Farm is available across the U.S.

  • AAA coverage varies by region.

AAA vs. State Farm: The verdict

AAA isn’t a car insurance company and doesn’t offer insurance directly, so rates, discounts, and coverage depend on the regional insurance partner. State Farm, on the other hand, is one of the largest auto insurance companies in the U.S. and may be a better choice for people looking for more coverage options, including rideshare insurance.

But if you’re looking for gap insurance, you’ll have to choose AAA, because State Farm doesn’t offer this protection. Both State Farm and one of AAA’s regional insurers CSAA have much cheaper average rates than the national average, but State Farm’s rates are the cheapest between the two.

Both insurance companies score high for customer satisfaction, with State Farm and some of AAA’s regional insurers consistently ranking in the top 10. And the different companies each offer about the same amount of discounts, although options vary slightly.

FactorAAAState Farm
IQ Score3.54.5
J.D. Power customer satisfaction score820 out of 1,000833 out of 1,000
Average quote: liability only$91$53
Number of available discounts1010
Number of states where it operates2450
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.

    Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

AAA

AAA uses regional partners to offer insurance, so customer satisfaction can vary depending on the insurance company. Though some of AAA’s regional insurers consistently rank in the top 10 for customer satisfaction.

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
830
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
Not rated

The American Automobile Association (AAA) is a members-only organization known for roadside assistance — the not-for-profit company partners with regional insurance companies to offer auto insurance coverage. You must have an AAA membership to qualify for coverage, but AAA doesn’t underwrite its policies.

AAA membership perks include travel discounts, extensive roadside help, and access to exclusive DMV locations. But membership perks aren’t a selling point for AAA insurance since you can become a member without buying insurance coverage.

Pros
  • Unique membership perks

  • Standard extra coverage

  • High customer satisfaction

Cons
  • Can’t choose a company

  • Must buy membership

  • Different coverage based on location

State Farm

State Farm has the largest market share for private passenger auto policies, according to the National Association of Insurance Commissioners (NAIC). The company ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power 2023 U.S. Auto Insurance Study.[1]

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
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.
$53/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.
$116/mo

State Farm has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Craig - March 26, 2024
Verified

I called three times to talk with an agent, but he never called back. It was a very disappointing experience!

I called three times to talk with an agent, but he never called back. It was a very disappointing experience!

David - March 26, 2024
Verified

Considering Expanding Coverage

I was never informed that my rate would increase every month for some reason. No one told me about it. I received a notice in the mail stating that what I was supposed to pay that month was always 10 or 20 dollars more than it was the previous month. I would have liked to have been informed about this.

Beverly - March 26, 2024
Verified

Unsatisfactory Experience

A kid threw a rock through my window and I was blamed for the claim. What is the purpose of having insurance?
Read our State Farm review

AAA SMARTtrek vs. State Farm Drive Safe & Save

Both AAA and Start Farm offer safe driving apps. People who have AAA insurance can download SMARTtrek to their smartphone and save up to 10% off their initial policy term, but discounts vary by state.[2]

State Farm’s Drive Safe & Save telematics mobile app works in a similar manner but can save you up to 30%. The company will adjust your discount every renewal period. People who drive eligible 2020 or newer Ford or Lincoln vehicles can also use their car’s built-in technology to connect to Drive Safe & Save.[3]

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AAA vs. State Farm: Which is the cheapest?

AAA average car insurance costs representative of all regional insurers aren’t available at this time, but CSAA policyholders pay $91 per month for liability coverage and $145 for full-coverage insurance.

State Farm offers cheaper average monthly rates of $53 for liability and $116 for full coverage. Rates from both CSAA and State Farm can vary based on factors like your age, location, ZIP code, driving history, vehicle type, and credit history.

When checking to see which company has the most competitive rates, it’s also a good idea to keep national average auto insurance rates in mind. On average, U.S. drivers pay $103 per month for liability coverage and $212 for full-coverage insurance.

State Farm: Cheapest for drivers with a clean driving record

People with clean driving records typically earn the lowest average rates. Compare liability quotes from CSAA and State Farm below.

Driver TypeCSAAState Farm
Clean driving record$91$53
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with a speeding ticket

Drivers with one or more past speeding tickets will typically face increased insurance rates.

Driver TypeCSAAState Farm
Drivers with a speeding ticket$113$59
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for teen drivers

Due to a lack of driving experience and increased risk of accidents, young drivers usually face the most expensive rates by driver age.

Driver TypeCSAAState Farm
18-year-old$143$87
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with bad credit

Drivers with poor credit can expect higher car insurance rates in the states that allow insurers to consider credit-based insurance scores.

Driver TypeCSAAState Farm
Drivers with bad credit$104$83
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for senior drivers

Before turning 70, senior drivers face some of the lowest car insurance rates by driver age.

Driver TypeCSAAState Farm
Senior drivers$66$38
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: AAA vs. State Farm

AAA and State Farm offer liability coverage, which most states require. When you file a claim, liability insurance can include coverage for bodily injury and property damage to help pay for the other party’s medical expenses or property repairs. Personal injury protection (PIP) can also help cover medical expenses regardless of fault.[4]

With both AAA and State Farm, you can add collision coverage, which can help you repair your car after an accident, no matter who caused the accident. For even more protection, you can add comprehensive coverage to your insurance policy to cover events not related to a car accident, like fire, flood, or theft.

Here’s a closer look at how some extra coverage options compare between AAA and State Farm.

CoverageAAAState Farm
Gap insuranceYesNo
Replacement costYesNo
Rental reimbursementYesYes
Travel expensesNoYes
Medical paymentsYesYes
Rideshare coverageNoYes
Emergency road serviceYesYes

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Compare discounts: AAA vs. State Farm

AAA and State Farm offer about the same amount of discounts, but options vary. For example, with AAA you can save just for being a loyal customer, and State Farm offers discounts for having an anti-theft device. Neither company has military discounts available.

Here are the different available discounts from AAA and State Farm.

DiscountAAAState Farm
Clean driving recordYesYes
Defensive driving courseYesYes
Multi-policyYesYes
Multi-carYesYes
Low mileageNoNo
Telematics (safe driving app)YesYes
Anti-theft deviceNoYes
New carNoNo
MilitaryNoNo
Good studentYesYes
LoyaltyYesNo
Auto payNoYes
Student away at schoolYesYes
HomeownerYesYes
Alternative fuelNoNo

AAA vs. State Farm FAQs

If you’re comparing car insurance from AAA and State Farm to find the best car insurance company for your needs, you should consider the information below to make an informed decision.

  • Which company is State Farm’s biggest competitor?

    State Farm is the largest insurance company, according to the NAIC. Some of its biggest competitors include other national auto insurers like Progressive, Allstate, Liberty Mutual, and GEICO.

  • What is the downside of AAA?

    AAA uses regional insurance partners to provide auto insurance coverage to its members, so auto insurance rates, coverage options, discounts, and customer service can vary depending on where you live.

  • Does AAA or State Farm have higher customer satisfaction?

    State Farm consistently ranks highly among insurance providers for customer satisfaction, but many of AAA’s insurance partners are, too. To check AAA’s customer satisfaction rankings, you’ll have to know which regional partner underwrites your plan.

  • What are the differences between AAA and State Farm in terms of insurance policies?

    AAA and State Farm insurance policies differ in a few ways, including availability, coverage options, and discounts. For example, State Farm offers coverage nationally, while AAA sells coverage through regional insurance companies. With AAA, you can get gap insurance, but State Farm doesn’t offer this coverage. State Farm provides discounts for anti-theft devices, but AAA rewards loyal customers.

Sources

  1. J.D. Power. "Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds." Accessed November 29, 2023
  2. CSAA Insurance. "AAA Insurance with SMARTtrek." Accessed November 29, 2023
  3. State Farm. "Be rewarded with Drive Safe & Save discounts." Accessed November 29, 2023
  4. Insurance Information Institute. "Auto insurance basics—understanding your coverage." Accessed November 29, 2023
Sarah Archambault
Sarah Archambault

Sarah Archambault enjoys helping people figure out smarter ways to use their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. She’s created and edited content for Credit Karma, Experian and Sound Dollar, along with banks, financial institutions, and insurance companies.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

media logomedia logo
Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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.

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