When it comes to auto insurance, State Farm and AAA are two of the biggest names in the industry. But which provider is the better choice for your needs? This guide provides an in-depth comparison of State Farm vs AAA car insurance across key factors like cost, discounts, coverage, customer service and more.
State Farm Overview
As the largest auto insurer in the U.S., State Farm has helped over 87 million policyholders since 1922. It offers affordable insurance and a suite of digital tools through its 19,000+ agents nationwide.
State Farm Pros
- Competitive average rates
- Superior (A++) financial strength rating from AM Best
- High customer satisfaction scores with J.D. Power
- Usage-based Drive Safe & SaveTM program offers discounts up to 30%
- Large network of local agents for personalized service
State Farm Cons
- Online quotes and policy management only available in some states
- No gap insurance or accident forgiveness offered
- Not available in Massachusetts or Rhode Island
AAA Insurance Overview
AAA is best known for its emergency roadside assistance and travel services through regional clubs. But it also offers a range of insurance products from property coverage to identity theft protection.
AAA Pros
- Offers auto and home insurance nationwide
- Well-known brand with emergency roadside assistance
- Variety of coverage options and discounts
- Ridesharing coverage and disappearing deductibles available
AAA Cons
- Customer satisfaction scores below industry average
- Rates higher than competitors in most states
- Insurance services vary by location
Cost Comparison: State Farm vs AAA
Pricing is a major factor for most drivers shopping for coverage. When comparing State Farm vs AAA insurance rates, State Farm comes out cheaper on average both for minimum and full coverage policies.
Average Annual Premiums
| Type | State Farm | AAA |
|---|---|---|
| Full Coverage | $1,480 | $2,562 |
| Minimum Coverage | $464 | $681 |
State Farm also has lower rates than AAA across most driver profiles including young drivers, drivers with poor credit, and those with incidents like speeding tickets on their record. Overall, State Farm is the more affordable option for the majority of drivers.
Discounts: State Farm vs AAA
Both companies offer common auto insurance discounts like:
- Multi-car
- Multi-policy
- Safe driving
- Good student
AAA members can save on insurance and other services. State Farm has more discounts aimed at new and younger drivers like:
- Steer Clear® program for drivers under 25
- New vehicle
- Driver training
- Accident-free
Also, State Farm’s Drive Safe & Save usage-based program provides the largest potential savings at up to 30% off premiums.
Coverage: State Farm vs AAA
State Farm and AAA both offer standard coverages like:
- Liability
- Collision
- Comprehensive
- Uninsured/Underinsured Motorist
- Medical Payments
AAA offers a few optional coverages State Farm does not:
- Gap insurance
- Rideshare coverage
- Disappearing deductibles
But overall, State Farm has strong coverage offerings for most drivers’ needs. AAA may be a better choice if you want specialty options State Farm lacks.
Customer Service: State Farm vs AAA
In J.D. Power’s claims satisfaction survey, State Farm scored higher than AAA and the industry average. State Farm also edges out AAA slightly in mobile app ratings. However, both companies excel in customer service accessibility through local agents and 24/7 support centers.
Customer Service Scores
| Metric | State Farm | AAA |
|---|---|---|
| J.D. Power Claims Satisfaction | 882/1,000 | 847/1,000 |
| Mobile App Rating | 4.8/5 stars | 4.5/5 stars |
Availability: State Farm vs AAA
AAA operates regionally through affiliated clubs rather than on a national level. So insurance availability varies. State Farm has a presence in nearly every U.S. state. But it does not offer policies in Massachusetts or Rhode Island.
The Bottom Line: State Farm vs AAA
For most drivers, State Farm comes out ahead due to its competitive pricing, broad coverage options, and stellar industry reputation. AAA is also a solid choice but better for drivers who prioritize specialty coverage add-ons or have specific regional availability needs.
To find the best match, compare customized State Farm and AAA quotes side by side. Also look at customer reviews and feedback in your local area. Analyzing the pros and cons of each company can ensure you select the right auto insurance provider for your situation.
Frequently Asked Questions
Which is cheaper, State Farm or AAA?
Based on average rate data, State Farm offers significantly cheaper car insurance pricing than AAA in most states and across nearly all driver profiles.
Does AAA have better roadside assistance than State Farm?
AAA is primarily known for its stellar emergency roadside assistance program. State Farm also offers robust roadside assistance benefits but AAA is the leader in this department.
Is AAA insurance available nationwide?
No. AAA auto insurance is only available regionally based on where local AAA clubs operate. It does not provide nationwide availability like State Farm.
Does State Farm have accident forgiveness?
No, State Farm does not offer accident forgiveness. This perk helps prevent premium increases after your first at-fault accident. It is one advantage AAA provides that State Farm lacks.
Can I get a State Farm quote online?
You can get an online quote for State Farm insurance in most states through their website. But in some states like Texas, State Farm only offers quotes through local insurance agents.
Does AAA offer usage-based insurance?
Yes, AAA has a telematics program called AAA Drive in select states. It provides up to a 25% discount based on safe driving habits monitored through a smartphone app. State Farm’s Drive Safe & Save program offers slightly higher potential savings of up to 30% off.
How to Choose AAA or State Farm
Follow these steps to determine if State Farm or AAA is the better auto insurer for your needs:
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Compare quotes – Get personalized State Farm and AAA estimates to see which offers cheaper pricing for your situation.
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Review coverage options – Make sure each company has the types of insurance policies and add-ons you want.
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Look at customer reviews – Check feedback from current policyholders in your area to evaluate customer satisfaction.
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Consider discounts – Find out which discounts you qualify for to lower your insurance costs.
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Assess availability – Verify AAA operates locally since it is not nationwide.
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Contact local agents – Discuss your insurance needs with agents from both companies.
Analyzing these key factors will help you determine if State Farm or AAA insurance is the best fit. Be sure to reassess your options during each policy renewal period.
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