AAA is a well-known auto club that provides roadside assistance, travel planning, discounts, and insurance services. While AAA auto insurance tends to cost more than many other popular insurers, there are some valid reasons for the higher rates.
Below we’ll explore why AAA premiums are expensive on average and what factors cause costs to rise:
AAA Insurance Rates Are Above Average
On average, a full coverage AAA insurance policy costs about 42% more than the national average premium.
For example, a typical married 35-year-old driver would pay:
$2,856 per year with AAA
$2,008 per year nationally
Several factors contribute to AAA’s above-average auto insurance costs:
Regional Club Model
AAA is not one national insurer, but a collection of independent regional auto clubs
Each local AAA club partners with different insurance carriers to provide policies
This fragmented structure makes consistency in pricing difficult
Some AAA clubs operate in areas with higher accident rates and loss costs
Urban regions like Los Angeles see more claims, leading to expensive premiums
- Strong name recognition allows AAA to charge slightly higher rates in many markets
While AAA is one of the more expensive options on average, it offers competitive pricing in certain states and situations. Drivers should always compare quotes.
Factors That Increase Your AAA Insurance Costs
AAA premiums can get expensive based on your unique driver profile and coverage selections. Here are some of the main factors that raise your costs:
Teenage drivers pay an average of $2,608 per year with AAA, compared to $529 for older adults. Due to inexperience, teen rates are high with all insurers.
AAA rates go up 24% on average after a driver causes an accident. Higher risk means higher insurance prices.
Choosing extra coverages like collision and comprehensive makes your policy more expensive than just basic liability.
Drivers with low credit-based insurance scores pay more for AAA coverage on average.
High-Risk ZIP Code
AAA will factor in accident rates, crime, and claims costs in your area when pricing policies. Some regions have pricier premiums.
Insuring a luxury or sports car costs more due to higher repair expenses and theft risk.
As you can see, many common driver and vehicle factors influence what you’ll pay with AAA. Your personal profile and choices determine if rates are affordable or not.
How To Save on AAA Insurance
While AAA premiums might seem expensive upfront, you may be able to reduce your costs. Consider these money-saving steps:
Take advantage of every AAA discount you qualify for. Common options include:
Multi-policy (for bundling home or life with auto)
Ask your agent for a full list of discounts in your state. Even 10% off can provide big savings over time.
Opting for higher collision and comprehensive deductibles lowers premiums. Just be sure you can afford the out-of-pocket cost if you need to file a claim.
Dropping comprehensive and collision (not advised) or choosing lower limits can cut costs substantially. But it leaves you exposed to more risk.
Work on increasing your credit-based insurance score before policy renewal for lower AAA rates.
Regularly compare AAA quotes with other top insurers to make sure you have the best deal. Their algorithms differ, so one may offer you cheaper rates.
With smart strategies, you can reduce expensive AAA premiums. But avoid simply choosing minimum coverage to save money, as you’ll regret it after an at-fault accident.
Is AAA More Expensive for Young Drivers?
Yes, AAA car insurance tends to be very expensive for teen drivers compared to adults:
Teens pay an average of $2,608 per year with AAA
Adult drivers average just $529 per year
There are a few reasons why AAA insurance costs so much more for teens:
Teen crash rate is 4 times higher than older drivers
AAA factors driver experience heavily into premium calculations
All insurers view young drivers as high risk, so teen rates are elevated industry-wide
Full coverage required for teen drivers adds to costs
To save, teens should take AAA’s driver training discount, maintain good grades, drive safely, and compare rates regularly as they get experience. Rates drop significantly once teens move into the adult pricing at around age 25.
Is AAA Insurance Worth the High Cost?
Whether expensive AAA premiums are “worth it” depends on your situation:
AAA Might Be Worth Higher Cost If:
You qualify for multiple discounts to reduce the rate
You want excellent roadside assistance coverage
You value bundling home or life insurance with auto
You have a long history as a AAA member
AAA offers the best rate after comparing quotes
AAA Might NOT Be Worth Higher Cost If:
You can find much cheaper full coverage elsewhere
You don’t need add-ons like premier roadside assistance
You don’t qualify for discounts to offset high base rates
You have factors like an accident that make AAA very expensive
You are a teen or other high-risk driver
Drivers who only need basic liability coverage can likely find cheaper options than AAA’s higher rates. But AAA can be competitive for some demographics and worth paying more for the convenience, benefits, and excellent financial strength.
Is It Easy to Get AAA Insurance Quotes?
Getting AAA insurance quotes is straightforward, either online or through a local agent.
To Get AAA Quotes Online:
Visit the AAA website and find your regional club
Click on “Get a Quote” and choose auto insurance
Enter your basic personal and vehicle details
Select desired coverages and coverage amounts
AAA provides estimated premium rates based on the details provided
To Get AAA Quotes From an Agent:
Find your local AAA office using the club locator
Call or visit an agent and explain you want a car insurance quote
Provide information on all household drivers and vehicles
Discuss options like bundling home insurance
The agent will use your details to produce customized AAA quote options
AAA makes it simple to get quotes through whichever channel you prefer. Make sure to compare their rates with other top insurers as well.
The Bottom Line
While premiums are expensive relative to competitors, AAA remains a strong insurance choice for many drivers who can take advantage of its benefits and discounts.
Weigh your options carefully if you find AAA unaffordable. Reducing key coverages like collision or uninsured motorist to save money can be risky. Often, you can find another insurer that offers full protection at a better price.
Use online quotes and an independent insurance agent to explore both AAA and alternatives rates in your area. Find the optimal balance of value, quality service, and price. Don’t overpay, but don’t sacrifice important coverage to save either.
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