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Car Insurance: State Farm vs. AAA

state farm vs aaa car insurance
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State Farm and AAA are two of the biggest players in the auto insurance game. If you’re looking for coverage, you’ve likely encountered both of them. Since there are so many insurance plans available, it can sometimes be challenging to pick the right one for you and your family. Here is a quick comparison of car insurance offerings from State Farm and AAA to make the process a little simpler.

State Farm vs. AAA Car Insurance

AAA and State Farm are some of the largest auto insurance providers in the United States. Out of the two, State Farm has a larger market share, making it the single biggest insurer in the country. Unlike State Farm, which maintains a large network of agents throughout many states, AAA mediates between a network of partner companies and their customers. This means that State Farm’s coverage is more uniform across its service area than AAA’s although both companies have excellent reputations for customer service.

Prices

For many customers, price is one of the most important considerations when choosing an insurance policy for their vehicle. Insurance rates vary widely based on the background and credit score of the policyholder as well as the car they drive. While this can make it challenging to predict individual rates, there are some clear pricing differences between the two companies.

Customers with poor credit may have trouble purchasing vehicles and finding affordable insurance policies. In this area, State Farm has a clear advantage, offering significantly lower premiums to customers with low credit scores. This trend continues all the way to customers with excellent credit scores. Bad driving histories are another factor that can prevent customers from finding affordable insurance, and in this area, State Farm comes out ahead again. State Farm also offers lower premiums for teen drivers and a greater range of low-cost options for drivers overall.

Coverage Options

Both AAA and State Farm offer a wide range of coverage options to serve the unique needs of their customers. This includes personal injury protection, comprehensive and collision insurance, liability insurance, and roadside assistance, which AAA is especially known for. Both companies also offer rental car insurance and travel reimbursement options. Uniquely, AAA offers identity theft coverage, while rideshare insurance is available for State Farm customers.

Bundles

Many insurance companies offer special bundles that allow customers to purchase multiple coverage plans for a reduced price. Both AAA and State Farm offer multiple bundle options to suit the unique needs of their customers. These are some of the plans that both AAA and State Farm customers can bundle with their car insurance:

  • Life insurance
  • Boat insurance
  • Renters insurance
  • Homeowners insurance
  • RV insurance
  • Motorcycle insurance
  • Classic car coverage
  • Small business insurance
  • Off-road vehicle/ATV insurance
  • Pet insurance
  • Umbrella insurance

Aside from these options, State Farm allows customers to bundle their auto insurance with mobile home and farm and ranch insurance, which AAA doesn’t offer AAA. The wide range of bundles offered by both companies should be adequate for most customers, although some may prefer State Farm for its extra perks.

Discounts

Many insurance companies offer a range of discount options to help their customers save on their insurance. Both State Farm and AAA offer multiple discount options, although State Farm offers discounts in more categories than its competitor. These are some of the discounts that State Farm customers are eligible for:

  • Multiple policies
  • Multiple vehicles
  • Good driver
  • Airbags
  • Good student
  • Anti-theft devices
  • Student away at school
  • Defensive driver
  • Driver training
  • Affinity membership alum
  • Telematics
  • Annual mileage

Here are the discounts that eligible AAA members can earn:

  • Multiple policies
  • Multiple vehicles
  • Good student
  • Student away at school
  • Affinity membership alum
  • Advanced purchase
  • Driver training
  • Telematics
  • Pay in full
  • Annual mileage

Roadside Assistance

Many drivers have experienced sudden mechanical issues while driving, which can make a comprehensive roadside assistance program appealing. These programs allow an insurance company to quickly send assistance to their customers when they experience accidents or mechanical failures. AAA is well-known for its roadside assistance programs, which are quite extensive. However, State Farm also offers a range of roadside assistance features for its customers. Here are some of the features of State Farm’s roadside assistance service:

  • Towing
  • Roadside mechanical labor
  • Gas and oil delivery
  • Jump starts
  • Locksmithing
  • Tire change assistance
  • Suck vehicle removal

AAA offers an expansive roadside assistance program with multiple tiers for members and policyholders. Higher tiers are eligible for more features, although the availability of certain services can vary based on your location. Here are some of the roadside assistance features that AAA customers may be eligible for:

  • Towing
  • Jump starts
  • Fuel and oil delivery
  • Locksmithing and vehicle lockout services
  • Flat tire service
  • Trip interruption compensation
  • Stuck vehicle removal

Telematics

Telematics-driven insurance is a newer innovation that allows companies to monitor the driving behaviors of their customers in order to adjust their rates. This allows customers to reduce their payments by driving safely and building good habits. Insurance companies use tracking devices installed in customer vehicles to monitor factors like speed, drive time, and mileage to help them gauge driver safety. Both State Farm and AAA have telematics programs that offer their policyholders greater flexibility.

AAA OnBoard

OnBoard is AAA’s telematics-powered insurance program. Like AAA’s other features, access to OnBoard depends on your location and local insurance provider. The company uses a mobile app to track its customers’ driving habits and offers savings of fifteen to thirty percent for qualifying policyholders.

State Farm Drive Safe & Save

State Farm’s Drive Safe & Save program offers customers the ability to reduce their payments through telematics. Available in most states, the program rewards safe drivers and can offer exceptional savings for low-mileage drivers.

That’s a brief overview of some of the auto insurance options that AAA and State Farm offer. Hopefully. it will make it easier to find great coverage at an affordable price. Things can change quickly, and it’s important to keep up with AAA and State Farm online. This allows you to see the most recent offers available for your automobile.

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

We’re here to help you simplify car care and save, so this post may contain affiliate links to help you do just that. If you click on a link and take action, we may earn a commission. However, the analysis and opinions expressed are our own.

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About the Author

FIXD Research Team

FIXD Research Team

At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.

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