State Farm was established in 1922 as an auto-only provider. The company currently holds 16.19% share of the private passenger car market. All of their underwriting takes place within the company. Although their customer base was initially local farmers, they now serve all age groups across the country. State Farm is a specialist in auto, life and home insurance.
AAA was founded in 1902. Their current share of the private passenger car market is 1.22% (under the name “CSAA”). AAA relies on several companies to underwrite its auto and home policies. These are based on geographical region. Auto Club Insurance Association, MemberSelect Insurance Company are two examples. Its customers include members of AAA clubs as well as its affiliated clubs. The company’s auto division is now known as CSAA, rather than AAA. This abbreviation was used previously to indicate AAA’s presence throughout California and the region.
Comparison of car insurance rates between State Farm and AAA
Bankrate compared these providers on face value. Bankrate evaluated each provider on the basis industry-recognized agencies for customer satisfaction, financial strength, and each company’s average annual premiums. Bankrate gave each company a Bankrate score based on these factors. These factors are a good starting point for comparing and reviewing providers, but your individual circumstances could make one provider more advantageous than the others. Your rate will be different depending on your unique situation.
Rates based on credit score
Below is a breakdown of the average premium each company pays for full coverage, based on credit scores. California, Hawaii, and Massachusetts don’t allow credit scores to be used as rating factors. Washington will also place a temporary, 3-year ban on credit scores being used as a determining factor when deciding rates.
Rates based on age
Car insurance companies often consider age when setting rates. Quadrant Information Services’ 2021 average annual premiums indicate that State Farm’s rates tend to be more affordable than the national average. However, AAA and State Farm see a decline in standalone policyholder rates over time. These are national average rates. Your own rates may differ. Getting quotes directly from different providers will help you determine which provider offers the best rate for you.
Driving record rates
Below is the average annual premium each company charges for full coverage, based on driving records. The AAA and State Farm average annual full coverage premiums have a marked increase for drivers who have been convicted. AAA’s annual average premiums rose more than twice when a DUI conviction was added to them. These providers can help you determine whether your rates are lower if you have an incident on your record. They will also be able to tell you about any discounts that may be available.
Discounts: State Farm vs AAA
Insurance companies offer discounts that are industry-standard, but there are often unique discounts for each provider. Most providers offer standard discounts for multiple vehicles or bundling auto and home policies. These discounts are offered by both AAA and State, as well as a few others that are intended to help new customers and retain policyholders. AAA offers exclusive member discounts, as well as an incentive to switch customers. State Farm also has discounts that are specifically for safe driving habits.
AAA
- AAA Dollars — Members can get discounts and special deals on insurance. Members can save gas and rent cars, among other things.
- Paid in full — Insurance policyholders get a discount on premiums if they pay in full.
- Advance shopping discount — This discount is great for new members. Drivers may be eligible if they buy a policy within seven days of the start date for coverage on a vehicle that has been covered by another policy for at most six consecutive months.
State Farm
- Accident-Free — Insurance policyholders get a discount for being accident-free. The longer the customer is without an accident, the greater the discount.
- Be careful — Drivers under 25 years old are not eligible for this discount. Participants in the program will learn how to be a better driver, and also save money on their premium.
- Drive Safely and Save — This discount is based on drivers’ driving habits. How much they can save will depend on how many miles they drive and other factors.
Comparison of AAA and State Farm online and mobile experiences
Customers can navigate both AAA and State Farm’s websites as well as their mobile apps easily with both AAA and State Farm. Both sites provide useful information about understanding and managing policies, and both apps offer similar functions for policy management. App feedback from users shows that State Farm’s iOS app has received the best scores.
AAA
- Rating of Apple stores: 4.2 — Provides easy roadside assistance. Members can also view a list of policies and local perks.
- Google Play rating: 4.2% — The Android version has the same functionality as the iOS version. However, the display might differ slightly for Android devices.
State Farm
- Rating: 4.8 for Apple stores — Provides a snapshot of policy information and alerts to the insured to help them manage their policy. It makes it easy to file a claim and allows customers to check their status.
- Google Play rating: 4.6% — Although the Android app shares many of the same functionality as iOS, the ratings show that the Android experience has not been as well reviewed. An app with a score of 4.5 or higher is considered excellent.
Questions frequently asked
Which insurance company is best?
State Farm is rated higher and has lower average annual premiums. However, this does not necessarily mean that it is the best provider. It is best to compare rates and coverage options between both companies to determine which one is the best.
Are AAA members able to insure drivers?
No. No. After obtaining a quote, an agent will help you to sign up for a membership. Additional discounts may be available to AAA members who are policyholders.
State Farm offers memberships
State Farm, a mutual insurance company, does not offer insurance to anyone. State Farm insurance is available to anyone who meets the underwriting requirements.
