AAA insurance, Everything you need to know

AAA insurance, Everything you need to knowq

Review of AAA insurance, car and home insurance

The AAA (American Automobile Association) has been insuring Americans since 1902 and operates more than 50 independent branches across the country. Since its creation, the company has been known for its insurance services for cars and drivers. In addition to car insurance, it offers home, health, and life insurance, among others. It also offers insurance add-ons and policy packages.

AAA car insurance comes from different regional insurance companies that operate under similar names and logos. Membership in the AAA club works the same way, and you may have to join your regional club to get insurance on your car. That comes with a fee, but the resulting discount on your auto insurance may make it worth it.

Coverage and benefits of the AAA car insurance

As we have noted above, there are numerous AAA car clubs throughout the United States, and many of them sell and offer car insurance through different regional companies.

For example, drivers in Northern California, Arizona, and parts of Pennsylvania, among others, can purchase insurance from the California State Auto Association (CSAA) Insurance Group. But AAA members in southern California, Texas, and northern New England are covered by the Auto Club Enterprise Group.

AAA offers a variety of coverage options, including collision, comprehensive, liability, rental car change, and more.

This means that the exact coverages, benefits, and discounts offered will vary based on your location. However, all AAA insurance agencies offer the most common coverages, which include

  • Bodily Injury and Property Damage Liability: Liability coverage pays for the other party’s medical care and property damage when you are at fault in an accident.
  • Collision: Collision coverage pays for damage done to your car in an accident.
  • Comprehensive coverage: Comprehensive coverage covers non-collision damage to your car, as well as damage from a collision with an animal.
  • Uninsured or underinsured motorist: Uninsured or underinsured motorist coverage compensates you for medical and car repair expenses when the other driver is at fault and does not have adequate car insurance.
  • Medical Payments/Personal Injury Protection: Medical Payments and Personal Injury Protection (PIP) coverage cover the cost of medical care for people who are in your car in an accident, regardless of who is at fault.

AAA has a mobile app that offers some insurance-related features, like digital proof of insurance in case you’re in an accident or stopped. In some places, you can also get an insurance quote and pay your bill through the app.

There are also several auto insurance coverages and benefits worth mentioning and limited to certain areas. Please note that these are sometimes included in a standard policy or added for an additional fee:

  • Gap insurance, Damage coverage insurance: If your car suffers a breakdown, gap insurance covers the cost difference between the replacement cost of your car and the amount you owe on your lease or loan.
  • Rental Car Reimbursement Coverage: Rental reimbursement coverage pays for a rental car while your vehicle is being repaired after an accident. Some providers also allow you to use rideshare credit instead of a rental car.
  • Car rental coverage: Rental car coverage covers you if you damage a car that you have rented.
  • Non-owners insurance: Non-owners insurance provides liability coverage for people who do not own a car if they drive at all.
  • Pet coverage: Pet coverage pays for your pet’s medical care costs if he or she is injured in a car accident.
  • Accident forgiveness: Accident forgiveness prevents an accident from increasing your insurance premium if you are a safe driver.

Is AAA Automobile Club Membership mandatory?

AAA agencies often require you to be a car club member to purchase insurance. In a way, the benefits and features of AAA car club membership are included in car insurance. The highlight of AAA membership is roadside assistance, which includes jump-starting, towing, emergency fueling, and minor roadside repairs.

AAA members also receive additional compensation when they have an accident more than 100 miles from home, which covers the costs of a rental car, hotel room, or other accommodations until they can continue their trip.

AAA negotiates discounts on behalf of its members at thousands of businesses across the country, including hotels, car rental companies, and airlines. This may be one of the biggest benefits of being a AAA member for people who travel often. If you buy your trip through AAA, you’ll be covered by AAA’s travel accident insurance, which covers you for loss of life or limb in the event of an accident.

Discounts at AAA Insurance in Spanish

Another advantage of choosing AAA for your car insurance is the wide range of discounts that you are eligible for. These include everything from multi-policy discounts for purchasing other types of insurance to incentives for customer loyalty and safe driving.

Discounts on insurance packages at AAA

BundleMaximum car discount maximum another discount

auto and home 15.7% 20% discount at home

car and condo 11.2% 20% discount on a condo

Cars and renters 3.7% 10% discount for renters

Car, home, and life 19.4% 20% discount at home

As the discounts demonstrate, there are strong incentives to consolidate your insurance with AAA, and despite the auto-focused name, the organization is also a reputable provider of these other types of insurance. For example, we discovered that AAA life insurance offers competitive coverage in its own right.

Even if you’re interested in nothing more than AAA auto insurance, there are plenty of other discounts to consider:

  • Discount for multiple vehicles: Save up to 27.3% when insuring two or more vehicles.
  • Select Professional/Alumni Associations: Save up to 7.4% for eligible professions.
  • Loyalty discount: Save up to 5.6% with at least one year of continuous coverage.
  • Good driver discount: Save up to 20% on all coverage for safe habits.
  • Verified Mileage Discount: Save up to 19.1% (based on annual vehicle mileage) for providing current odometer reading when requested.
  • Absentee Student Discount: Save up to 46.7% on select coverages when your student of driving age is away from school more than 100 miles from home without a vehicle.
  • Driver Training Discount: Save up to 4.7% on select coverages when you complete an approved course.
  • Car Club Discount: Save up to 5% if you belong to an eligible car club.

How much does AAA car insurance cost?

The cost of car insurance with the AAA varies depending on the state in which you are. Since AAA is a federation of auto clubs from various states, coverage advertised as “AAA car insurance” is offered through several state-specific insurers.

Each of these state insurers has its underwriting process and local market conditions that will impact your auto insurance quote. For example, let’s look at California. Keep in mind that if you live somewhere else, your rates will likely be slightly different.

Monthly car insurance premiums in California

Insurance carrierTotal coveragewith accident

AAA $158 $250

Geico $145 $236

progressive $159 $328

StateFarm $197 $377

In California, AAA auto insurance rates are close to the state average, costing just under $160 a month, or less than $1,900 a year, for a fully covered auto insurance policy. Of the three other insurance companies, we also examined, only Geico offered lower rates.

It is also worth noting that AAA was one of the most generous insurers when it came to accidents. Both the graph and the table above indicate that, compared to AAA, Progressive and State Farm raised their rates much more for a driver with at least one recent accident on their record. This can be an advantage if you are worried that a recent incident will affect your car insurance premium.

What does AAA home insurance cover?

AAA’s home insurance isn’t as widespread or feature-rich as its auto insurance policies. As with AAA auto insurance policies, several insurers sell insurance under the AAA brand. But, in general, homeowners can expect to find the standard coverages associated with home insurance. This includes coverage for the structure and roof of your home, your personal property, and liability coverage in the event someone is injured inside your home.

Some AAA home insurance providers also offer extended coverages for an additional cost. Among the most common options is the additional protection of valuables, such as jewelry and furs, risk protection insurance, coverage of living expenses if the home is uninhabitable, and insurance against natural catastrophes, such as earthquakes.

AAA home insurance discounts

The discounts available on AAA home insurance differ considerably across the country, but there are some common ways to save. Providers often offer a discount on your home insurance premium if you are a AAA member or purchase AAA car insurance. But keep in mind that AAA car insurance is often required to purchase AAA home insurance.

Some homeowners, including those in southern California, Texas, and northern New England, can find deeper discounts on their homeowner’s policies:

  • No claims: Discount of up to 13% for not having filed any claim for three or more years
  • Protection devices: Up to 15% discount for smoke detectors or a burglar alarm
  • Retirement: 10% discount if you are retired and you are 55 years old or older
  • Home age: Up to 40% discount based on the age of your home (newer homes get bigger discounts)
  • Home renovations: Up to 23% off for recent renovations, like new plumbing
  • Hail resistant roof: Savings of up to 35% for a roof resistant to hail damage

AAA Home Insurance Quote Comparison

To understand what homeowners can expect to pay for AAA home insurance, we collected a series of sample quotes from AAA and three of its competitors. We discovered that AAA offered great rates on all of our sample homes in the Austin, Texas area. Affordable homeowners save the most, as AAA’s rates were 40% cheaper than average and often the lowest we found overall. As coverage amounts increase, the difference narrows, but AAA was in the top two for all the quotes we collected.

We also haven’t taken any discounts into account when collecting rates, so you may be able to lower your premiums further, depending on discounts available in your area.

By aamritri

Leave a Reply

Your email address will not be published.

Related Posts