AAA vs State Farm

State Farm is the largest auto insurance company in the U.S. Although initially specialized for farmers, the company now offers a broad array of insurance products. Its auto insurance coverage options, digital tools and positive customer satisfaction scores helped it earn our 2023 Bankrate Award for best car insurance company for high-risk drivers.

The American Automobile Association (AAA) also offers a variety of coverage options and discounts, but coverage availability may vary by region. AAA is perhaps most well known for its robust roadside assistance coverage.

	AAA	State Farm
Bankrate score	2.9	4.2
Tier 1	2.5	4.2
Tier 2	2.5	4.0
Tier 3	4.7	4.7

AAA vs State Farm comparison

When comparing AAA vs. State Farm auto insurance, comparing pros and cons may help you decide which company could best meet your needs. Below we’ve compiled some of the potential perks and drawbacks of State Farm and AAA car insurance.

AAA pros and cons

Pros	Cons
Local AAA clubs may have coverage options tailored for their region Variety of coverage options and discounts available Offers non-insurance services like notary services, DMV transactions and travel planning	Average full and minimum coverage rates are higher than the national average Membership may be required for many perks J.D. Power claims satisfaction score is below average NAIC Complaint Index may vary by region

State Farm pros and cons

Pros	Cons
Receives high scores with J.D. Power for claims and customer satisfaction AM Best financial rating of superior (A++) Offers competitive average rates Local agents are available for face-to-face service	Customer service is not available 24/7 Gap insurance and accident forgiveness are not available Coverage is not available nationwide

Is AAA cheaper than State Farm?

Average auto insurance rates may help drivers determine which company could offer them the most competitive rates for their situation. However, personal rates will vary widely based on personal rating factors like driving record, age (in most states), vehicle type and more. The rates listed below are national average rates provided by Quadrant Information Services.

Car insurance company	Average annual premium for full coverage	Average annual premium for minimum coverage
AAA	$2,562	$681
State Farm	$1,480	$464

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  Methodology

State Farm is generally cheaper for drivers with poor credit

Your credit score may impact your auto insurance rates in most states. California, Hawaii, Michigan, and Massachusetts do not allow credit scores as rating factors. State Farm has cheaper rates on average than AAA for all credit score levels.

Credit Score	AAA	State Farm
Poor	$5,470	$3,813
Average	$5,470	$1,712
Good	$2,562	$1,480
Excellent	$2,162	$1,173

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  Credit score methodology

State Farm is generally cheaper for young drivers

In most states, car insurance companies can consider your age or years of experience behind the wheel when determining your rates. In general, young drivers and seniors tend to have the highest premiums. Teens may see especially high rates due to their high accident rate and relative inexperience on the road. The following rates are for young drivers on their parents’ policy.

	AAA	State Farm
Age 16	$5,339	$3,139
Age 17	$4,932	$2,874
Age 18	$4,640	$2,689
Age 19	$4,197	$2,489
Age 20	$4,008	$2,361

State Farm is generally cheaper for adult drivers

As drivers age, their rates typically decrease, until a certain age, as long as they maintain a clean driving record. As the table shows, State Farm is generally less expensive for adult drivers than AAA. The following rates are for drivers insured on their own policy.

	AAA	State Farm
Age 18	$6,706	$4,066
Age 25	$3,067	$1,742
Age 30	$2,620	$1,522
Age 40	$2,562	$1,480
Age 60	$2,246	$1,363

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  Age and gender methodology

State Farm is generally cheaper for high-risk drivers

Your driving record may be one of the most impact factors in determining your rates. Drivers with clean records generally see lower premiums than those with accidents or speeding tickets. Different carriers may weigh infractions differently, but DUIs are generally considered some of the most severe incidents. Some carriers may not extend coverage to drivers with a DUI on their record. Below you can see average rates from AAA and State Farm following potentially high-risk incidents. Rates for these offenses do not guarantee that the insurers will offer coverage to drivers with these violations on their records. The following rates are for full coverage policies.

	AAA	State Farm
Clean driving record	$2,562	$1,480
Speeding ticket conviction	$3,131	$1,704
At-fault accident	$3,717	$1,876
DUI conviction	$5,569	$2,431

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  Driving record methodology

AAA vs State Farm: discounts

Most auto insurance companies offer at least a handful of potential discounts. Common discounts most providers offer include those for insuring multiple cars or for bundling home and auto policies. AAA and State Farm have these as well, plus a few more that are designed to assist new customers and to retain existing policyholders. Below are some of the more unique discounts each carrier offers.

AAA unique discounts

• Member discounts: AAA members may earn discounts and deals for more than just auto insurance. Members may save on gas, rental cars and much more.
• Advanced shopping discount: Drivers may be eligible for this discount if they purchase a policy more than seven days before the coverage begins on a vehicle that was previously covered by another policy for at least six continuous months.
• Loyalty discount: Policyholders may save if they have had a continuous AAA auto insurance policy for a set number of years.

State Farm unique discounts

• Accident-free discount: Insureds may receive a discount for remaining accident free for a set period of time. Savings may increase for every year without an accident.
• Steer clear program: This discount is linked to a telematics program and designed for drivers under the age of 25. Those who participate in the program complete driver education courses and use a telematics app to potentially reduce their rate.
• Defensive driving discount: Drivers who complete a designated driver safety course may earn a discount.

Usage-based insurance comparison: AAA vs State Farm

Telematics programs have become increasingly available from insurers in recent years. These usage-based programs may allow drivers to earn discounts based on their safe driving habits. Both AAA and State Farm offer telematics programs. We’ve highlighted State Farm’s Drive Safe & Save program, but it also offers its Steer Clear program for drivers under 25.

	AAADrive	State Farm Drive Safe & Save
Telematics device	App	App and eligible connected cars
Monitored driving factors	Start and end time, location, acceleration and mobile phone use	Acceleration, braking, cornering, speed and mobile phone use
Potential impact on rates	Decrease	Decrease
Potential discount	Up to 25%	Up to 30%
Availability	Select states	App is available in all states where coverage is offered except for California and North Carolina

AAA vs State Farm: customer experience comparison

Customer service and satisfaction may be a key metric for many drivers choosing a car insurance company. Mobile app ratings may help drivers determine how easily they can access digital tools and file claims. We also analyzed the 2022 J.D. Power Auto Claims Satisfaction study to see how satisfied customers may be with each company’s service. For reference, the segment average in the J.D. Power study was 873/1,000.

	AAA	State Farm
Apple store	4.5 out of 5	4.8 out of 5
Google play	4.4 out of 5	4.7 out of 5
J.D. Power	847 / 1,000	882 / 1,000