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State Farm and AAA are both established and reliable companies offering car insurance. State Farm is a well-known name available in 48 states and Washington, D.C. It generally costs less than the national average and has a lot of discounts.
AAA is known for its roadside assistance and membership perks. However, it also offers car insurance through a network of independent motor clubs that partner with regional car insurance carriers. While its coverage is only available in 14 states and Puerto Rico, it may be worth getting a quote to compare against other carriers if coverage is available in your state.
Although both companies have pros and cons, when it comes to AAA vs. State Farm, I find that State Farm is best for most people. AAA might have more policy options depending on your zip code, but State Farm offers decent coverage options and some of the lowest rates available. It also has a lot of discounts, especially for teen drivers.
How we evaluate products
FinanceBuzz researches a number of factors in each auto insurance provider to create our reviews. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also gather information from sources such as Insurify, J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau to ensure we provide the most useful information to our readers.
AAA pros and cons
- AAA has multiple discount options depending on where you live.
- It earned an A+ from AM Best, indicating financial stability.
- It has multiple membership perks, including discounts on dining and travel.
- AAA insurance is only available in 14 states and Puerto Rico.
- You need to purchase an AAA membership to get the most discounts.
- It had slightly below average claim satisfaction scores.
Learn more in our AAA review.
State Farm pros and cons
- State Farm has multiple discounts, especially for young drivers.
- It is available in 48 states, including Washington, D.C.
- State Farm's telematics program could save you up to 30%.
- It does not offer car insurance in Massachusetts or Rhode Island.
- High-risk drivers may pay more with State Farm than some competitors.
- You must work with an agent to finalize your quote and policy.
Learn more in our State Farm review.
Which company is better?
| AAA | State Farm | |
| AM Best | A+ (Superior) | A++ (Superior) |
| J.D. Power claims satisfaction | 692 out of 1,000 | 710 out of 1,000 |
| BBB | A+ | F |
| NAIC complaints (private passenger) | N/A | 0.84 (Private Passenger) |
Both State Farm and AAA earned high ratings from AM Best, a credit rating agency that measures an insurance company's ability to pay claims. While State Farm was ranked A++, AAA earned a slightly lower A+ score.
In the J.D. Power 2024 Claims Satisfaction survey, State Farm earned a slightly higher score than AAA. State Farm earned 710 out of 1,000 points while AAA earned 692. For context, the national average was 697, so both companies are similarly ranked.
AAA earned an A+ rating from the Better Business Bureau (BBB) while State Farm earned an F for unresolved customer complaints. However, State Farm is not accredited with the BBB, meaning it hasn't paid a fee and gone through the BBB's vetting process, so it likely resolved the complaints through other channels.
According to the National Association of Insurance Commissioners (NAIC), State Farm earned a 0.84 on the 2024 complaint index. The complaint index tracks how many customer complaints a company receives based on marketwide data. The complaint index is always 1.00, so State Farm's score of 0.84 indicates fewer complaints than expected for a company of its size in 2024.
NAIC data for AAA is unavailable since it's not an insurance company but partners with regional insurance companies.
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Which company is cheaper?
I am already a State Farm customer, and I have found that their rates are either cheaper or about the same as other companies when I have searched for better rates.
Because I live in Colorado, I am eligible for AAA insurance, but I can't get a quote or even compare coverage options without speaking with an agent. People in other states may be able to complete a quote online.
I would likely need a membership to get the best rates and discounts from AAA car insurance. In Colorado, that's an additional $65 annually for a Classic membership on top of the insurance cost. Other areas have different membership levels and prices, making it challenging to compare the two companies.
| Driver type | State Farm liability-only monthly premium | State Farm full-coverage monthly premium |
| Clean driving record | $53 | $115 |
| Speeding ticket on driving record | $63 | $136 |
| At-fault accident on driving record | $66 | $143 |
| DUI on driving record | $86 | $186 |
| Teen driver | $98 | $212 |
| Senior driver (60s) | $38 | $83 |
| Senior driver (70s) | $34 | $74 |
| Data sourced from Insurify | ||
Clean driving record
People with a clean driving record will likely find some of the lowest rates with State Farm. State Farm averages $53 monthly for liability-only coverage, but the national average is around $102. Full coverage car insurance with State Farm costs an average of $115 a month, compared to the national average of $193 a month.
Average rate:
Speeding ticket on driving record
While one speeding ticket probably won't increase your insurance rate, having multiple speeding tickets on your record could lead to higher car insurance prices. State Farm charges a monthly average of $63 for liability-only insurance with a speeding ticket and $136 for full coverage. The national average is $140 for liability-only and $264 for full coverage.
At-fault accident on driving record
Similarly, if you have an at-fault accident on your record, you can expect to pay more for car insurance. State Farm charges an average of $66 monthly for liability-only coverage for drivers with an at-fault accident. Unlike some other carriers, State Farm does not offer accident forgiveness. AAA may offer accident forgiveness, depending on your location and policy options.
DUI on driving record
Drivers with a DUI typically pay some of the highest prices for car insurance. State Farm charges an average of $86 monthly for liability-only and $186 for full coverage.
Teen driver
If you're wondering how to get cheaper car insurance for your teenage driver, get a quote from State Farm. State Farm's liability-only coverage averages $98 monthly for teen drivers and $212 monthly for full coverage. The national average is $195 for liability-only and $366 for full coverage, so State Farm may offer significant savings.
Senior driver
Senior drivers will likely find that State Farm's rates are lower than the national average. Drivers in their 60s can expect to pay an average of $38 a month with State Farm for liability-only coverage and $83 for full coverage. The national average for seniors in their 60s is $80 and $150 for similar coverage.
Discounts
Both State Farm and AAA offer discounts to help you save money on car insurance. Although State Farm has several discounts, AAA may have more in some areas, making it a more appealing option. For example, in some places, AAA offers discounts you don't usually see with other carriers, like offering up to 5% off your premium if you belong to a qualifying car club.
However, the amount you save with AAA may vary based on location and membership type, so you'll need to work with your local AAA to get a quote specific to your zip code.
| Discount | Does AAA have it? | Does State Farm have it? |
| Loyalty | Yes | Yes |
| Multi-policy/bundling | Yes | Yes |
| Multiple vehicle | Yes | Yes |
| Airbag | Yes | Yes |
| Anti-lock brakes | Yes | Yes |
| Anti-theft | Yes | Yes |
| Safe driver | Yes | Yes |
| Good student | Yes | Yes |
| Away-from-home student | Yes | Yes |
| New car | Yes | No |
| Pay in full | Yes | Yes |
| Automatic payments | Yes | No |
| GAP insurance | No | No |
| Senior | No | No |
| Military | No | Yes (select states) |
| Defensive driving course | Yes | Yes |
Drive Safe & Save vs. AAADrive
Like many of the best car insurance companies, State Farm and AAA have telematics programs to help safe drivers save more. State Farm's Drive Safe & Save offers a 10% discount for signing up. State Farm tracks your driving habits through its app, and you may qualify for an additional 20% discount, bringing your total savings to 30%.
AAA offers a similar program called AAADrive with a 25% discount. Drivers log their trips in the AAA mobile app, and the program will assign them a driving score.
Privacy is important to me, so if I were interested in a telematics program, I would consider AAA insurance closely because it doesn't require constant access to my phone.
Coverage
State Farm and AAA provide standard insurance coverages found with most carriers, like liability, collision, and comprehensive. They also offer specialty coverages like roadside repair and car rental reimbursement. In addition, AAA also provides GAP coverage and a disappearing deductible. State Farm doesn't offer either of those policy options.
| Coverage | Does AAA have it? | Does State Farm have it? |
| Liability | Yes | Yes |
| Collision | Yes | Yes |
| Comprehensive | Yes | Yes |
| Medical Payments coverage (MedPay) | Yes | Yes |
| Personal Injury Protection (PIP) | Yes (in some states) | Yes |
| Uninsured or underinsured motorist coverage | Yes | Yes |
| Emergency roadside service | Yes (through AAA membership) | Yes |
| Car rental reimbursement | Yes | Yes |
| Rideshare insurance | No | Yes |
| No-fault accident coverage | Yes | No |
| GAP insurance | Yes | No |
FAQs
How do I contact AAA?
You can call AAA customer service at 1-888-883-8417 for a quote or 1-800-67-CLAIM (1-800-672-5246) to report an insurance claim.
How do I contact State Farm?
Customers can file a claim with State Farm by logging in to its app or website or calling 1-800-SF-claims (800-732-5246).
Who is better than State Farm Insurance?
Finding the right car insurance policy for you depends on multiple factors. Some companies may offer more coverage options or discounts than State Farm. However, State Farm generally offers lower pricing than its competitors and received above-average claims satisfaction ratings from J.D. Power and Associates in 2024.
Is AAA good at paying claims?
AAA is not an individual insurance company. Instead, it is a network of local auto clubs that partner with insurance carriers to offer car insurance. However, AAA has an A+ rating for financial stability from AM Best. It also earned 692 out of 1,000 in J.D. Power and Associates' 2024 Claim Satisfaction survey, just slightly behind the national average of 697. These ratings imply AAA is good at paying claims.
Bottom line
So, which is better, AAA or State Farm? I think getting a quote for AAA insurance is worth it to ensure you aren't overpaying. Ultimately, State Farm is a better choice for most people. It has lower pricing for liability-only and full coverage car insurance and above-average claims response.
As you hunt for new car insurance, get quotes from multiple companies. Compare pricing, customer satisfaction ratings and reviews, coverage options, and available discounts to ensure you aren't paying more than you need to.
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