State Farm vs AAA: Which is Better for You?

Read on to see which company is best for you.

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Renata Balasco

Senior Content Strategist

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Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

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Ross Martin

Insurance Writer

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Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

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

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

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

State Farm car insurance

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State Farm is the largest auto insurance company in the U.S. with a market share of 16%. With State Farm's network of agents, customers can expect a personalized experience. This popular insurance company also boasts good ratings from reputable third parties and customers alike, with positive assessments of its customer satisfaction and financial outlook, and one of the best ratings for car insurers overall in The Zebra's independent customer satisfaction survey.

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4.5 stars Rating from The Zebra
Ratings based on price, customer service, coverage, and financial strength.
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Pros Cons
  • Lower than average rates
  • Wide range of coverage types
  • Great customer satisfaction scores
  • Local agents across the U.S.
  • Bad for drivers with poor driving records
  • Fewer add-on coverages for those with specialized needs
  • Much more expensive for drivers with poor credit

AAA car insurance

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Perhaps best known for its roadside assistance programs, AAA also offers car insurance to its members. In most cases, coverage is not provided by AAA themselves, but through partner companies. AAA simply acts as an intermediary, meaning that coverage options and experiences can be vastly different based on location. 

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3 stars Rating from The Zebra
Ratings based on price, customer service, coverage, and financial strength.
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Pros Cons
  • Many bundling options
  • Additional membership benefits
  • Numerous discount opportunities
  • Lack of robust coverage options
  • Customer satisfaction scores are low

Which company comes out on top?

State Farm


State Farm inches ahead of AAA in a few categories, including The Zebra's Customer Satisfaction Survey where it placed third overall for both auto and home insurance. 


State Farm vs. AAA: car insurance rate comparison

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

To give you a better sense of how State Farm and AAA rates stack up, we've gathered average rates based on a few different factors. Take a look at the figures below to get a sense of which company could be most affordable for you.

Cheapest average rates medal
Cheapest average rates

State Farm has the cheaper rates at $122 per month. AAA comes in considerably higher at $151 per month.


State Farm vs. AAA: pricing by credit score

For those with very poor credit, State Farm could be preferable to AAA, with a premium difference of a whopping $3,047. Insurance shoppers with exceptional credit — a score of 800 or better — should consider also consier State Farm, which typically beats AAA by $1,554 annually. Check out typical insurance rates by credit level for AAA and State Farm below.

 
RATES BY CREDIT LEVEL: AAA VS. STATE FARM
Credit level State Farm avg. annual premium AAA avg. annual premium
Very Poor (300-579) $3,522 $6,569
Fair (580-669) $2,003 $4,023
Good (670-739) $1,613 $3,723
Very Good (740-799) $1,451 $3,004
Exceptional (800-850) $1,260 $2,814

The Zebra’s auto insurance data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

State Farm vs. AAA: rates for high-risk drivers

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

 
RATES BY CITATION: AAA VS. STATE FARM
Citation State Farm avg. annual premium AAA avg. annual premium
At-fault accident (damage < $1,000) $2,849 $4,078
At-fault accident (damage > $1,000) $1,524 $4,002
DUI/DWI $3,854 $5,530
Reckless driving $2,895 $5,530
Speeding ticket $1,983 $4,078
 

State Farm vs. AAA: rates by age

Insurance companies use age as an estimator of risk, pricing premiums accordingly. An auto insurance policy is typically most expensive for teen drivers — thanks to their inexperience — and more affordable for drivers aged 25 or older. Because every insurance company rates ages in a different way, it's smart to shop around and find the perfect policy for you.

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

 
RATES BY AGE: AAA VS. STATE FARM
Age bracket State Farm avg. annual premium AAA avg. annual premium
Teens $5,820 $10,256
20s $2,379 $4,644
30s $1,585 $4,644
40s $1,587 $3,195
50s $1,558 $3,083
60s $1,485 $2,887
 

Affordability aside, State Farm and AAA each carry 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.

Compare rates and start saving today!

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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'll find the compiled results of many of these most recent ratings. Included are scores for financial strength, customer complaints, and overall customer satisfaction.

State Farm VS. AAA
Ratings comparison State Farm AAA
Financial strength (A.M. Best) Excellent Superior
JD Power (claims satisfaction) Above average Below average
JD Power (customer satisfaction) Above average Average
NAIC rating Above average Poor
The Zebra's editorial review score 4.5/5 3/5
The Zebra's Customer Satisfaction Survey 4.5/5 4.2

Which company scores best?

State Farm


While AAA has a stronger financial presence, State Farm outperforms AAA in every other category. 


The Zebra's Customer Satisfaction Survey

To get a better sense of how the overall customer experience, The Zebra conducted an independent survey taking a look at many different factors. Below you'll find the results for each company.

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State Farm

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

  • Scored well among younger drivers
  • Second place for claims satisfaction
  • Third place for easecustomer servicetrust and willingness to recommend
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AAA

Among the carriers on our survey, AAA ranked 13th (out of 15) with a score of 4.2. In general, the company placed near the bottom in almost every category.

  • Younger respondents had a more favorable view than older drivers
  • Best scores came in the trust category

The Zebra Customer Satisfaction Survey methodology

Methodology:

These results are based on a survey of 2,722 U.S. insurance policyholders assessing satisfaction with their car and homeowners insurance providers. The survey was conducted using Survey Monkey and designed by our in-house team. It aimed to collect detailed insights from a census-balanced sample reflecting age, gender, and region.

Questionnaire

The questionnaire included demographic questions about age and gender identification and detailed inquiries into insurance experiences. Key topics:

  • Duration with insurance provider and coverage specifics, including teen drivers.
  • Claim filing experiences and satisfaction with claims handling.
  • Customer service interactions, trust in providers, and likelihood of recommending their insurance.
  • Use and satisfaction with digital tools and usage-based insurance programs.

Respondents rated their satisfaction on a Likert scale from 1 to 10 and provided qualitative feedback.

Data Analysis

Data were analyzed focusing on descriptive and inferential statistics to identify satisfaction trends and demographic impacts. Data cleaning and weighting were applied to ensure accuracy, alongside strict confidentiality protocols to protect data security.


State Farm vs. AAA: discount comparison

Discounts are a great way to bring down the costs of your car insurance. See how each company's available discount options stack up below.

STATE FARM VS. AAA: DISCOUNT COMPARISON
Discount comparison State Farm AAA
Good student
Multiple policies
Multiple vehicles
Anti-theft device(s)
Anti-lock brake system
Air bags
Good driver
Defensive driver
Student away at school
Driver training
Green vehicles
Affinity membership alum
Advanced purchase
Pay in full
Home owner
eSign or ePay
Telematics
New Vehicle
Annual Mileage
Military

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


Telematics options: State Farm vs. AAA

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

State farm telematics
State Farm Drive Safe & Save

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

AAA logo
AAA OnBoard

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

Zebra Tip: Explore State Farm for telematics offerings


While AAA's telematics app offers a good percentage of possible savings, it is not available to everyone. State Farm's app is more 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's Emergency Road Service offers the following:

  • Mechanical labor at the place of breakdown
  • Towing of your vehicle to a repair facility,
  • Removal of a stuck vehicle
  • Delivery of gas or oil
  • Assistance with changing a tire or a jumpstart
  • Locksmith services

 

AAA

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

  • Jumpstarts
  • Towing
  • Fuel delivery
  • Vehicle lockout
  • flat tire service
  • Stuck vehicle services

AAA offers different levels of membership that apply to roadside assistance. Those in higher tiers are often reimbursed for larger amounts or eligible for towing for longer distances. The highest tier even offers trip interruption coverage.

tow truck

State Farm vs. AAA: home insurance

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

State Farm homeowners insurance review

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State Farm has a number of great options for add-on coverage, making them a great option for customers looking for flexible or with unique coverage needs. However, State Farm's average rates tend to be higher than average. Also, the company suffers from a lack of available homeowners discounts — only four discount options at present. State Farm's home insurance options enjoy good ratings from third-party agencies, and the company ranked fifth place overall in The Zebra Customer Satisfaction Survey. Still, homeowners looking for basic insurance with no bells or whistles may wish to look for an alternative.

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

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4 stars Rating from The Zebra
Ratings based on price, customer service, coverage, and financial strength.
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  • The Zebra Customer Satisfaction Survey — 4.4/5: State Farm was given an above-average rating among the top 15 home insurance providers surveyed.
  • Claims satisfaction (J.D. Power Rating) — Below average: J.D. Power's most recent study rated State Farm as just shy of the industry average for property claims satisfaction.
  • Customer satisfaction (J.D. Power Rating) — Above average: State Farm was awarded an above-average rating for customer satisfaction in J.D. Power's Home Insurance Study.
  • Financial strength — Excellent: A.M. Best rated State Farm as having excellent financial viability, signaling its ability to pay for claims.
  • NAIC Rating — Average: State Farm's home insurance received an average amount of complaints as logged by the National Association of Insurance Commissioners (NAIC).

AAA homeowners review

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Rating from The Zebra Question mark icon

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

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4 stars Rating from The Zebra
Ratings based on price, customer service, coverage, and financial strength.
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  • The Zebra Customer Satisfaction Survey — 4.2/5: AAA ranked 14th in the overall homeowners carrier category of The Zebra Customer Satisfaction Survey.
  • Customer Service (J.D. Power) — Below Average: The average J.D. Power ranking of CSAA and Auto Club of Southern California Insurance group comes in just shy of the average for customer satisfaction. 
  • Financial Strength (AM Best) — Excellent: With a financial rating of “excellent,” you can rest assured AAA will be able to handle your claims.
  • Claims Satisfaction (NAIC) — Fewer complaints than average: The average number of complaints across different branches of AAA homeowners insurance companies is fewer than average.

Which company comes out on top?

State Farm


Despite its higher-than-average rates, State Farm still comes out on top over AAA for homeowners insurance. State Farm's robust coverage options and positive third-party ratings outrank AAA's structure.


State Farm vs. AAA: home insurance rate comparison

State Farms average homeowners insurance rate is $1,356 per year. The average rates for AAA come in slightly cheaper at $1,212 annually. It's important to note that every company has its own underwriting methods, meaning that prices can vary one company to another. This is even true amongst AAA partner companies. 

Home insurance rates are comprised of both individual and environmental factors. This can include things such as your claims history, area crime and your proximity to fire fighting services. For this reason, it's important to shop around when looking for home insurance quotes.

Cheapest average rates
Cheapest average rates

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

The Zebra’s homeowners insurance data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.


State Farm vs. AAA: homeowners discount comparison

Discounts can be enticing to prospective insurance shoppers. See how the homeowners discount options from State Farm and AAA compare below.

STATE FARM VS. AAA: HOMEOWNERS DISCOUNT COMPARISON
Discount comparison State Fram AAA
Claims free
Recent home buyer
Multi-policy
Early signing
Newer/more durable roof
Protective devices (smoke/burglar alarms, etc...)
Paid in full
Early signing
Auto pay
Newer home
Renovated home
Senior citizen

Zebra tip: Check out AAA is you are seeking home insurance discounts


AAA offers more discounts than State Farm for qualifying customers, but keep in mind this doesn't necessarily mean that they'll be cheaper for everyone.


Other insurance products and bundling options

State Farm and AAA both offer multiple lines of insurance that can be bundled together. This can streamline your insurance policies and also lead to potential savings. Along with auto and home, customers may be able to add life, pet, or even small business coverage from State Farm and AAA. Take a look at the additional coverage types available from each company below.

STATE FARM VS. AAA: OTHER INSURANCE PRODUCTS
Other products State Farm AAA
Boat insurance
Condo insurance
Life insurance
Homeowners insurance
Renters insurance
RV insurance
Motorcycle insurance
Mobile home insurance
Umbrella
Offroad vehicles and ATVs
Classic car
Small business
Farm and ranch
Pet

Find the best insurance policy for your needs.

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.