AAA vs. State Farm 2025
State Farm’s insurance juggernaut may offer affordable rates to most customers, but AAA’s regional insurers bring unique member perks.
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Founded in Chicago in 1902 to advocate for the construction of a cross-country highway system, the American Automobile Association (AAA) is a not-for-profit member association of 32 regional motor clubs across the U.S. In addition to top-rated roadside assistance and other member benefits, AAA also sells auto and home insurance in all 50 states — but it’s underwritten by a number of different companies.
State Farm specialized in cheap auto coverage for farmers when founded in 1922, but it’s since expanded to become the largest car insurance company in the U.S., with over 18 percent of the market share for private passenger auto. State Farm’s auto insurance, which is generally priced below the national average, is just one of a wide range of insurance and financial services products offered by the company.
Our verdict
While AAA auto insurance comes with some unique member perks and other services, especially for policyholders who take a lot of road trips, State Farm tends to score better in customer satisfaction and claims handling studies. However, rates and availability of both coverage and discounts may vary by state, especially for AAA customers, so a careful AAA vs. State Farm insurance review is warranted in every individual case.
AAA vs. State Farm comparison
Before you purchase a policy, you might want to consider the benefits and drawbacks of each carrier.
AAA
3.9
Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings
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State Farm
4.2
Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings
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OVERVIEW
Bankrate identified key carrier features, coverage offerings, discounts and more
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AAA is a large insurance carrier offering affordable auto insurance options, as well as membership perks. Those who like convenience may also appreciate that some of AAA’s offices also offer services like DMV transactions, notary services and travel planning.
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Policyholders who value a personalized experience through a local agent, bundling insurance policies with the same company and highly rated customer service might consider State Farm as their company of choice.
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STANDOUT FEATURES
These features are some of the carrier’s most impressive
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Geographic-focused coverage
Local agents available
Access to additional AAA perks
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Two safe driving programs
Banking and investment products
Local agents available
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AVG FULL COV. AUTO RATE
Average national annual cost of a full coverage auto insurance policy
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$2,316 |
$2,910 | |
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J.D. POWER AUTO SCORE
J.D. Power’s Auto Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
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| 701/1000 |
710/1000 |
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AVG HOME RATE
Average national annual cost of a home insurance policy with $300K in dwelling coverage
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$1,956 |
$2,088 | |
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J.D. POWER HOME SCORE
J.D. Power’s Property Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
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| 616/1000 |
661/1000 |
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AM BEST RATING
AM Best ratings assess companies’ financial strength based on historical ability to pay out claims, among other financial obligations
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| A(Excellent) |
A++(Superior) |
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AAA pros and cons
Pros
- Robust roadside assistance coverage
- Access to additional membership perks, like travel discounts and identity theft monitoring
- Banking and financial planning services
- Free Triple Check service checks for discounts and other savings opportunities
Cons
- Average full and minimum coverage rates are higher than the national average
- Paid membership may be required for many perks
- Might be required to purchase roadside assistance
- Customer service varies based on underwriting company
State Farm pros and cons
Pros
- Above-average J.D. Power scores for claims, customer satisfaction and digital experience for service
- Average rates for full and minimum coverage below national average
- Extensive network of exclusive local agents
Cons
- Customer service live chat not available
- Accident forgiveness not available
- Gap coverage only available to State Farm auto loan customers
- Not available in Massachusetts or Rhode Island
Is AAA cheaper than State Farm?
Actual car insurance rates from AAA and State Farm vary widely based on personal rating factors, location and, in the case of AAA, the company underwriting the coverage. However, looking at average auto insurance rates for both carriers may help you determine which company might fit better with your profile. Bankrate’s insurance editorial team compiled the latest rates available from Quadrant Information Services in the table below to give the big picture of AAA car insurance vs. State Farm costs.
| Driver profile | AAA avg. full coverage premium | State Farm avg. full coverage premium |
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| Young driver (age 25) | $2,785 | $3,415 |
| Senior driver (age 70) | $2,274 | $2,748 |
| Good driver, good credit | $2,316 | $2,910 |
| Good driver, poor credit | $4,823 | $10,483 |
| Speeding ticket with good credit | $3,151 | $3,358 |
| At-fault accident with good credit | $3,233 | $3,706 |
Bankrate's take
It is important to mention that our comparison table usually includes rates for drivers with a DUI on their record. State Farm typically does not write auto insurance policies for drivers with a DUI, so rates have not been included. Finding affordable auto coverage after a DUI conviction is a serious challenge, as some carriers will decline to write policies for customers with previous DUIs and others may quote exorbitantly high rates. If you’re struggling to find insurance with a DUI on your driving record, you may need to seek quotes from multiple companies to find one willing to work with you.
As you can see, AAA’s average rates are cheaper than State Farm’s in most situations. However, it’s important to keep in mind that rates are subject to change and may vary considerably based on your individual profile. It’s also worth noting that State Farm plans to raise rates in certain states and may continue to institute rate hikes in various locations.
AAA vs. State Farm: discounts
Most auto insurance companies offer at least a handful of potential discounts. Common car insurance discounts most providers offer include bundling discounts, safe driving discounts and telematics programs. Before you decide on a carrier, it’s worth looking into the ways each company allows policyholders to save on car insurance.
Discounts available from both carriers
Both State Farm and AAA offer discounts for:
- Bundling home and auto insurance: Customers who purchase both home and auto insurance from AAA are eligible for discounts, while State Farm offers bundling discounts to auto customers who are the named insured on a home, renters, life, health or condo policy.
- Insuring multiple vehicles: If two or more vehicles in your household are insured by AAA or State Farm, you may earn a discounted rate.
- Good students: Full-time high school or college students with at least a B average or a 3.0 GPA may be eligible for discounts from both AAA and State Farm.
- Defensive driving: AAA and State Farm both offer discounts in some states to drivers who complete an approved defensive driving course.
- Teen driver education: State Farm’s Steer Clear and AAA’s teenSMART allow young drivers to complete driver training programs in exchange for insurance discounts. Note that AAA’s teenSMART availability may vary based on club region.
- Distant student: If your household includes a college student studying at least 100 miles from home without a car, you might be eligible for a discounted rate from either carrier.
- Vehicle safety: Both State Farm and AAA offer some discounts for vehicle safety equipment like airbags and antilock brakes.
- Anti-theft discount: If your vehicle has an anti-theft device like an alarm, you may qualify for a discount from either AAA or State Farm.
- Good drivers: Eligibility details vary, but both State Farm and AAA advertise discounted rates for good drivers who stay accident- and violation-free for a certain period.
AAA discounts
AAA discounts may vary depending on your regional club’s offerings and the company underwriting the coverage. To help drivers understand which discounts they’re eligible for, AAA offers a free Triple Check policy review program.
- Member discounts: AAA members can earn a discount of up to 10 percent discount on auto insurance, along with discounts and deals for gas, rental cars and much more.
- Advanced shopping discount: Drivers may be eligible for a discount of 5 percent 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.
- Payment discounts: Policyholders who set up paperless billing or pay their premium in full may be eligible for discounted rates from AAA.
State Farm discounts
- Accident-free discount: Policyholders may receive a discount for remaining accident-free for a set period of time. Savings may increase every year without an accident.
AAA and State Farm telematics programs
In recent years, most major auto insurers have adopted smartphone-based telematics programs, which allow drivers to earn potential discounts based on safe driving data tracked by an app. Both AAA and State Farm offer telematics programs. We’ve highlighted State Farm’s Drive Safe & Save program, but it also offers a Steer Clear program for drivers under 25. Depending on their location, AAA customers may be eligible for one of a few different telematics programs, including AAADrive, AAA OnBoard and SMARTtrek. We’ve highlighted AAADrive here.
| AAADrive | State Farm Drive Safe & Save | |
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| Device | Mobile app | Mobile app and Bluetooth beacon |
| Can it raise your rate? | No | No |
| Availability | Select states | All states where coverage is offered except CA, MA and RI (limited availability in NC) |
| Discount | Up to 30% (5% for enrolling) | Up to 30% in most states (unspecified discount for enrolling) |
| What it monitors | Mobile phone interactions, smooth driving, speed, time of day, trip duration, fatigue | Annual mileage (in some states), acceleration, braking, cornering, phone distraction, speed |
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 J.D. Power 2024 U.S. 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 is 697/1,000.
| AAA | State Farm | |
|---|---|---|
| App Store | 4.7 out of 5 | 4.8 out of 5 |
| Google Play | 4.6 out of 5 | 4.6 out of 5 |
| J.D. Power |
Auto Club of Southern California: 706/1,000 CSAA Insurance Group: 704/1,000 Automobile Club Group: 692/1,000 |
710/1,000 |
Customer complaints
The National Association of Insurance Commissioners (NAIC) tracks customer complaints for U.S. insurers and assigns a score to each company based on its rate of complaints relative to market share. The resulting score, known as an NAIC Complaint Index, gives a general indication of how satisfied (or dissatisfied) policyholders are with a particular company. Scores above the baseline of 1.00 suggest overall dissatisfaction, while scores below 1.00 indicate that the company’s customer service may be better than most.
AAA auto insurance customer complaints
Because AAA auto insurance policies are underwritten by multiple companies, we looked at NAIC scores for three of the largest AAA insurers: Auto Club Property-Casualty Insurance Company, Automobile Club Group and CSAA General Insurance Company. CSAA and Automobile Club Group’s scores are the most consistently positive.
Auto Club Property Casualty Insurance Company NAIC Complaint Index
State Farm auto insurance customer complaints
Despite its large size, State Farm receives a below-average rate of complaints, with a 2023 NAIC Complaint Index of 0.78. However, the past few years have seen a small but steady increase in complaints from State Farm private passenger auto customers.
Frequently asked questions
Methodology
methodologyRates
Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied:
Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
If otherwise specified, the base profile has been modified with the following driver characteristics:
Other profiles
Bankrate Score
Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
