Why is AAA Insurance So Expensive?
AAA insurance may be expensive due to high repair and medical costs, personal factors like age and driving record, and AAA’s formula for calculating premiums.
Written by Jessica Barrett
Edited by R.E. Fulton
The average cost of full-coverage
car insurance
with AAA is $2,074, making it significantly more expensive than the national average. This may be attributed to rising repair and healthcare costs, as well as how the company weighs personal factors like your age, driving record, and the type of car you drive.- On average, full coverage with AAA costs $2,074 per year, which is $402 more than the average among all providers.
- Factors like your age, location, driving history, and vehicle type can significantly impact the cost of your auto insurance—and insurers all weigh these factors differently.
- You must be a member to purchase an insurance policy with AAA.
- To find the best rate, you’ll want to compare car insurance quotes from at least 3-5 different providers.
- On average, full coverage with AAA costs $2,074 per year, which is $402 more than the average among all providers.
- Factors like your age, location, driving history, and vehicle type can significantly impact the cost of your auto insurance—and insurers all weigh these factors differently.
- You must be a member to purchase an insurance policy with AAA.
- To find the best rate, you’ll want to compare car insurance quotes from at least 3-5 different providers.
AAA car insurance costs about $2,074 per year
Compared to other car insurance companies,
AAA insurance
is more expensive. Average full-coverage insurance rates in the U.S. hover around $1,672—so you’ll pay, on average, $402 more to buy full coverage with AAA.Here’s how AAA stacks up against other popular insurance companies:
Insurance company | Average annual cost for full coverage |
|---|---|
USAA | $1,235 |
Erie | $1,343 |
Auto-Owners | $1,437 |
State Farm | $1,477 |
GEICO | $1,536 |
American Family | $1,552 |
Nationwide | $1,712 |
Travelers | $1,793 |
Progressive | $1,824 |
AAA | $2,074 |
Amica | $2,089 |
Farmers | $2,210 |
Allstate | $2,340 |
Methodology
Average minimum and full coverage rates are based on an analysis of 25+ million car insurance quotes retrieved for Jerry customers. Increases for DUI, speeding tickets, teen drivers, and poor credit are calculated based on a comparative analysis of expert third-party sources including ValuePenguin, The Zebra, Forbes, Bankrate, and NerdWallet.
Why your AAA insurance might be expensive
While AAA insurance is high, on average, rates vary widely based on many factors. This means that your rate with AAA could be less (or more) than the average.
Here are some of the key factors that can result in expensive AAA insurance:
- Age: Young and new drivers pay some of the highest auto insurance rates of any age group. Seniors over the age of 75 also pay high car insurance premiums.
- Poor driving record: If you have multiple speeding tickets, at-fault accidents, or even one serious violation (like a DUI or reckless driving) on your record, expect your insurance rates to increase significantly.
- High coverage levels: The more insurance coverage you have, the more you’ll pay. Addingcomprehensive coverageandcollision coveragewill mean higher rates than if you stick withminimum liability coverage.
- Low deductibles: Choosing a low deductible will result in a higher insurance rate. If you want to reduce your premium, increasing your deductible can make a difference.
- Expensive vehicle: More expensive vehicles cost more to insure since they are more expensive to repair and replace. Luxury vehicles and sports cars will also come with higher insurance rates.
To get the best car insurance rates, you’ll want to shop around and compare quotes from at least 3-5 auto insurance companies.
AAA offers 10 car insurance discounts to help you save
If you want to stick with AAA but are seeking lower rates, ask about discounts. The company offers at least 10 car insurance discounts that can help reduce your premium—and you can stack them for greater savings, too!
- Multi-policy (i.e., bundling auto and renters or home insurance)
- Multi-vehicle
- Professional and alumni associations
- Loyalty
- Safe driver
- Low mileage
- Good student
- Student away at school
- Driver training
- Car club
Note that not all discounts are available in all states.
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Is AAA a good insurance company?
AAA is a reputable insurance provider with regional branches across the US. The company offers a variety of insurance coverage options and lots of discounts, but rates for auto insurance policies tend to be high, customer satisfaction is mediocre, and some policyholders have complaints about the claims handling process.
How do you become a member of AAA?
You can join AAA by completing the online registration form or visiting your local AAA office. You’ll have a choice of three membership plans: Classic, Plus, or Premier. Each tier offers different features and benefits, though all include roadside assistance and towing.
