State Farm vs AAA: Which is better for you?

State Farm or AAA: Which company is better for you?

State Farm and AAA are two very popular insurance options, but each company has its own unique features. Eligibility and availability set AAA apart from most other major insurance providers, meaning some customers may not even be able to find a policy through this company. Still, both companies have coverage options that meet the needs of many customers.

Take a look at our in-depth comparison to see which company comes out on top.

State Farm Auto Insurance

State Farm is the largest auto insurance company in the US with a 16% market share. With State Farm's agent network, customers can expect a personalized experience. This popular insurance company is also highly rated by both third-party and accredited customers, with positive evaluations of customer satisfaction and financial prospects, and one of the best ratings for auto insurers overall in the independent satisfaction survey. from The Zebra customer.

AAA auto insurance

Perhaps best known for its roadside assistance programs, AAA also offers auto insurance to its members. In most cases, coverage is not provided by AAA itself, but through partner companies. AAA simply acts as a middleman, meaning coverage options and experiences can be very different depending on location.

Which company emerges victorious?

State farm

State Farm is slightly ahead of AAA in some categories, including The Zebra Customer Satisfaction Survey, where it ranked third overall in both auto and home insurance.

State Farm vs AAA: Car Insurance Rate Comparison

Affordability is an important consideration when purchasing an auto policy. Your rates are determined by many factors, including your driving record, state regulations, and your credit score, at least in most states.

To give you a better idea of how State Farm and AAA rates compare, we've compiled average rates based on a few different factors. Take a look at the figures below to get an idea of which company might be more affordable for you.

Cheaper average rates

State Farm has the cheapest rates at $122 per month. AAA costs considerably more, at $151 per month.

State Farm vs. AAA: Pricing by Credit Score

For those with very bad credit, State Farm might be preferable to AAA, with a premium difference of a whopping $3,047. Insurance buyers with exceptional credit (a score of 800 or better) should also consider State Farm, which typically beats AAA by $1,554 a year. See typical insurance rates by credit level for AAA and State Farm below.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of The Zebra State of Insurance's auto insurance price analysis. This analysis of more than 83 million insurance rates covers all US ZIP codes, using a sample user profile: a 30-year-old single driver with a Honda Accord, good credit, and full coverage at these levels:

  1. $50,000 per person/$100,000 per incident for bodily injury liability
  2. $50,000 per incident for property damage liability
  3. $500 collision and comprehensive deductibles
To generate prices for particular rating factors, we adjust the driving profile based on common pricing factors used by major auto insurance companies. These factors include credit score, level of coverage, driving history, and others.

In some cases, Liberty Mutual's average rates were derived from internally sourced sales data.

State Farm vs AAA: Rates for high-risk drivers

If you have an at-fault accident, speeding violation, reckless driving violation, or DUI on your driving record, State Farm offers lower premiums than AAA. Each car insurance company will handle traffic violations differently, so don't be afraid to shop around and get quotes to find out which insurance company fits your needs.

State Farm vs AAA: Fees by Age

Insurance companies use age as an estimator of risk and price premiums accordingly. An auto insurance policy is typically more expensive for teen drivers (thanks to their inexperience) and more affordable for drivers age 25 and older. Because each insurance company rates ages differently, it's smart to shop around and find the perfect policy for you.

Overall, teen drivers should choose State Farm over AAA: State Farm offers average annual savings of $4,436, compared to AAA.

Affordability aside, State Farm and AAA have pros and cons, including their discount programs, add-ons, customer satisfaction ratings, and financial stability. Be sure to get quotes and compare rates before purchasing a policy.

Ratings Comparison: State Farm vs. AAA

Both State Farm and AAA are widely known companies, each with a long history of third-party ratings and customer satisfaction scores. Below you will find compiled results for many of these most recent ratings. Financial strength scores, customer complaints, and overall customer satisfaction are included.

Which company gets the best score?

State farm

While AAA has a stronger financial presence, State Farm outperforms AAA in all other categories.

The Zebra Customer Satisfaction Survey

To get a better idea of the overall customer experience, The Zebra conducted an independent survey looking at many different factors. Below you will find the results for each company.

State farm

State Farm came in third overall with a score of 4.5. Find more highlights from the survey below.

  • Good score among younger drivers
  • Second place in claims satisfaction
  • Third place for ease, customer service, trust and willingness to recommend.


Among the operators in our survey, AAA ranked 13th (out of 15) with a score of 4.2. Overall, the company ranked near the bottom in almost every category.

  • Younger respondents had a more favorable opinion than older drivers
  • The best scores were obtained in the trust category.

The Zebra Customer Satisfaction Survey Methodology

The findings are based on a quantitative online survey of 4,794 current U.S. auto and home insurance customers, with census-balanced sampling by age, gender, and region. Categories with n=<20 responses are considered an insufficient sample size and are not reported. This survey was developed by The Zebra and conducted by independent research firm Maru/Blue in 2023.

State Farm vs AAA: Discount Comparison

Discounts are a great way to reduce your auto insurance costs. See how each company's available discount options compare below.

Due to AAA's partnerships with other auto insurance companies to provide policies, some of these discount options may not be available in some locations. Always ask what discounts you are eligible for when purchasing your policy.

Telematics Options: State Farm vs AAA

State Farm and AAA offer telematics programs that can help measure your driving habits and calculate the level of risk you pose. Take a look at our summary of available options from both carriers below.

State Farm Drive Safely and Save

State Farm Drive Safe & Save is a good option for safe, low mileage drivers. The company claims it can save customers up to 50% on premiums, although these types of savings are more likely to be seen by drivers with lower mileage. The program is available in most states.

AAA on board

Depending on the state in which they reside, some customers will be able to register for OnBoard, AAA's telematics option. The company boasts 15% savings when you sign up, with total savings of up to 30% possible for eligible drivers. However, as of this writing there is no separate app, meaning all participants must download the AAA mobile app.

Zebra Tip: Explore State Farm for Telematics Offers

While AAA's telematics app offers a good percentage of possible savings, it is not available to everyone. The State Farm app is most widely available and best for low mileage drivers.

Roadside Assistance: State Farm vs. AAA

No one wants to be stuck on the side of the road. If you ever find yourself in that situation, you'll want a roadside assistance program that can get you back on the road quickly. Take a look at each company's roadside assistance options below.

State farm

State Farm Emergency Roadside Service offers:

  • Mechanical work at the breakdown site.
  • Towing your vehicle to a repair center,
  • Removal of a stuck vehicle
  • Gas or oil delivery.
  • Assistance with changing a tire or jump start
  • Locksmith services


Perhaps no other company is more closely associated with roadside assistance than AAA. For that reason, it's no surprise that the company has a wide selection of options available to members and policyholders alike. Below is a list of available options:

  • Impulses
  • Trailer
  • fuel delivery
  • Vehicle lock
  • flat tire service
  • Stuck Vehicle Services
AAA offers different membership levels that apply to roadside assistance. Those in higher tiers often receive refunds for larger amounts or are eligible to be towed for longer distances. The highest level even offers trip interruption coverage.

State Farm vs AAA: home insurance

Both State Farm and AAA have popular home insurance options to accompany your auto coverage. Below, we take a look at how the two companies compare.

State Farm Homeowners Insurance Review

State Farm has a number of great options for additional coverage, making them a great option for customers looking for flexible or unique coverage needs. However, State Farm's average rates tend to be higher than average. Additionally, the company suffers from a lack of discounts available to homeowners: there are currently only four discount options. State Farm's home insurance options enjoy good ratings from third-party agencies, and the company ranked fifth overall in Zebra's Customer Satisfaction Survey. Still, homeowners looking for basic, no-frills insurance can look for an alternative.

Learn more about the company's home insurance in our detailed review below.

  1. Zebra Customer Satisfaction Survey: 4.4/5 – State Farm received an above-average rating among the top 15 home insurance providers surveyed.
  2. Claims Satisfaction (J.D. Power Rating) — Below Average: Most Recent J.D. Power Rating Study Power rated State Farm just below the industry average in property claims satisfaction.
  3. Customer Satisfaction (J.D. Power Rating): Above Average: State Farm received an above-average rating for customer satisfaction in the J.D. Power Home Insurance Study. Power.
  4. Financial strength - Excellent: A.M. State Farm is rated highest for having excellent financial viability, indicating its ability to pay claims.
  5. NAIC Rating – Average: State Farm home insurance received an average number of complaints recorded by the National Association of Insurance Commissioners (NAIC).

AAA Homeowner Review

As with AAA's auto insurance offering, the company partners with several affiliated insurers to provide coverage to homeowners. These companies include CSAA and Auto Club Indemnity Company. AAA's home insurance offering ratings are a combination of these companies in an effort to give a broad idea of what customers can expect.

  1. Zebra Customer Satisfaction Survey: 4.2/5 – AAA ranked 14th in the overall homeowner operator category of the Zebra Customer Satisfaction Survey.
  2. Customer Service (J.D. Power): Below Average: J.D. Power's average rating Power from CSAA and the Auto Club of Southern California insurance group is just below average in customer satisfaction.
  3. Financial Strength (AM Best): Excellent – With a financial rating of “excellent,” you can rest assured that AAA will be able to handle your claims.
  4. Claims Satisfaction (NAIC) – Fewer Complaints Than Average – The average number of complaints across different branches of AAA homeowners insurance companies is lower than average.

Which company emerges victorious?

State farm

Despite its above-average rates, State Farm still beats AAA in homeowners insurance. State Farm's strong coverage options and positive third-party ratings outperform the AAA structure.

State Farm vs AAA: Home Insurance Rate Comparison

The average State Farm homeowners insurance rate is $1,356 per year. AAA's average rates are slightly cheaper: $1,212 a year. It is important to note that each company has its own subscription methods, which means that prices may vary from company to company. This is true even among companies associated with AAA.

Home insurance rates are made up of both individual and environmental factors. This can include things like your claims history, crimes in the area, and your proximity to firefighting services. For this reason, it is important to compare prices when searching for home insurance quotes.

Cheaper average rates

AAA has cheaper rates than State Farm on average, with annual savings of $144.

Home Insurance Data Methodology

The homeowners insurance rates published in this guide are based on The Zebra's analysis of the cost of homeowners insurance in each U.S. ZIP code. These rates are based on a sample user profile: a homeowner 45-year-old married who lives in a 2,500-square-foot, single-story home built in 2011 with these coverage levels:

  1. $200,000 for housing
  2. $20,000 for other structures
  3. $100,000 for personal property
  4. $100,000 for personal liability
  5. $1,000 deductible
To generate prices for particular rating factors, we adjust the homeowner profile based on common pricing factors used by major home insurance companies. These factors include location, coverage limits, claims history, and others.

State Farm vs. AAA: Homeowner Discount Comparison

Discounts can be attractive to potential insurance buyers. See how State Farm and AAA homeowner discount options compare below.

Zebra Tip: Check out AAA if you're looking for home insurance discounts
AAA offers more discounts than State Farm for qualified customers, but keep in mind that this doesn't necessarily mean they will be cheaper for everyone.

Other insurance products and package options

State Farm and AAA offer multiple lines of insurance that can be combined. This can optimize your insurance policies and also generate potential savings. In addition to auto and home coverage, customers can add life, pet, or even small business coverage from State Farm and AAA. Take a look at the additional types of coverage available from each company below.

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