AAA vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for car insurance, State Farm offers significantly cheaper prices than AAA
• AAA may help you save more money -- they offer more discounts than State Farm
• State Farm tends to be a much less expensive option for single people who will be the only person on the auto insurance policy

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AAA or State Farm: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering huge savings. But exactly how much can you save by switching?

You might have narrowed it down to AAA or State Farm as potential options, but which one will offer you more affordable premiums?

Looking at nationwide averages, State Farm has average rates that are around 50% a month cheaper than those from AAA.

Even so, that doesn't necessarily mean State Farm will be the less expensive option for each driver. Insurance carriers use all sorts of complex algorithms to determine prices, so depending on where you live or how clean your driving record is (among a bunch of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of AAA or State Farm is really the best for you, keep reading to see average rates for each company broken down by many different rate factors.

AAA vs. State Farm: Average Car Insurance Rates by State

AAA and State Farm compete against each other in 10 states, with State Farm offering more affordable premiums to the average driver in all of them. If you live in, undefined is the less expensive of the two companies when looking at the overall average prices, but State Farm is the cheaper option in most of the others.

But there's more to calculating car insurance rates than just the state you live in. Keep reading to find out more.

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Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for auto insurance compared to older drivers. It's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of almost 50% less per month by choosing State Farm over AAA.

That being said, with both carriers, you'll see your premiums reduce significantly by the time drivers turn 25. State Farm offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. AAA's average prices decrease nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the lowest car insurance rates out there. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for insurance.

When looking at AAA and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge, with prices for drivers 65 and older $127 more affordable than the national average for AAA.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly cheaper car insurance rates than those who are single. That's normally because married couples tend to own and insure several vehicles, which can often earn you a discount.

For single policyholders, the difference in average prices between these two companies is significant, with State Farm rates coming in at about half of AAA's. For married drivers, the advantage is clear again - State Farm has the edge when it comes to average premiums.

AAA or State Farm: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to auto insurance men will typically end up paying a little more.

Generally, women see prices over 10% a month less with AAA, and around 7% less with State Farm when compared to their male counterparts.

Looking at overall affordability, State Farm offers the cheapest average rates for both men and women, with average premiums $167 less for men and $145 cheaper for women.

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AAA vs. State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, insurance can be pretty complicated. Everyone needs car insurance, but there are so many different limits and coverages that it can be hard to find the right policy for you.

However, most policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, alongside liability coverage).

Looking specifically at state minimum limits for liability insurance, State Farm has the significant edge, with average monthly prices coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging about $216 per month to AAA's $459.

Is AAA or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance carriers offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Speeding tickets and at-fault collisions will most likely raise your rates, but is AAA or State Farm more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can usually expect their monthly bill to go up around 29% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of about 14%.

That being said, State Farm tends to offer the best prices for drivers both with a ticket and with a clean record. With State Farm, drivers with a clean record can save around $79 a month and drivers with a speeding ticket can save about $144 per month.

Which Company is Best for Drivers After an Accident?

AAA drivers who get in an accident can expect to see their prices climb by just under $150, while those who have insurance through State Farm will see around a $30 increase.

At the end of the day, drivers who use State Farm end up with the cheaper prices after an accident, with average premiums coming in at $163 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even a collision. For example, AAA increases average rates by nearly $200 a month -- that's more than a 45% increase.

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How does Credit Score Impact AAA and State Farm Rates?

Did you know many auto insurance companies take into account your credit score when determining premiums? This isn't true for everyone (California, for example, has banned the use of credit score as an auto insurance factor) but it will come into play for lots of policyholders.

Car insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which decreases the risk involved on their end, while the opposite is true for those with bad credit.

So, which company offers the best rates for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is AAA or State Farm Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much insurance companies will charge for coverage. Typically, those who drive less will end up with less expensive prices since there's less of a chance of causing an accident and filing an insurance claim.

State Farm tends to be the cheaper option for both remote workers and those taking short commutes. State Farm's average rates for drivers with 6,000 annual miles come in about 51% more affordable than AAA. Those who drive 12,000 miles annually can expect to pay around 49% less with State Farm over AAA.

AAA or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for auto insurance, but the type of area you live in can have a substantial impact as well. Normally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because of the number of vehicles that are on the roads where they live.

State Farm boasts the cheapest average premiums for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, State Farm's average rates are about $199 less than AAA Insurance. People who live in suburban areas pay around $140 less with State Farm compared to AAA. Those in rural areas can expect to save about $129 with State Farm compared to AAA.

AAA vs. State Farm Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can. That's where auto insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be difficult to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by AAA and State Farm so that you can see which company can save you the most money each month.

AAA knocks State Farm out of the park when it comes to the sheer number of discounts available, offering 33 different discounts to State Farm's 23.

A couple of those are overlapping for things like discounts for being a defensive driver, discounts for getting driver training, discounts for being a good driver, and mature driver discounts. AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, State Farm has a few proprietary discounts of their own for things like ABS discounts, annual mileage discounts, drive safe & save discounts, and more.

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Final Thoughts: Is AAA or State Farm Best for You?

So, you've seen how different variables can affect your car insurance prices. We've broken down the different discounts each carrier offers, too. But, when it comes down to it, is AAA or State Farm the right fit for you?

State Farm might be best for you if....

• You've received a ticket for speeding recently and don't want to see your premiums rise.
• Your credit is below-average.
• You're of retirement age and want to take advantage of lower prices.

AAA might be best for you if...

• You're looking for discounts -- Aaa has the most.

Hopefully, this guide helps you get a better idea of the difference between AAA and State Farm and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from a handful of carriers, not just AAA and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top insurance companies in your area, all in just a few minutes.

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AAA vs. State Farm FAQs

Is AAA or State Farm cheaper?

State Farm is the less expensive of the two carriers when looking at national average premiums, with policies averaging $158 per month with State Farm and $314 for AAA. However, that doesn't mean State Farm will be the most affordable company for each policyholder, since there are a range of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, AAA or State Farm?

Unfortunately, the only answer we can give you is "it depends.". No single carrier is "better" for every policyholder -- it all depends on the makeup of your unique auto insurance profile.

Why do AAA and State Farm offer me different rates?

Car insurance companies use many different variables when calculating the rates they charge. Things like gender, age, your driving record, where you park your car, and sometimes even things like your credit score can all be taken into consideration. Both AAA and State Farm calculate premiums using different factors, so it's likely they'll offer different prices. The best way to determine which company is the lowest for you is by comparing personalized quotes from multiple different carriers.

How do I know if AAA or State Farm is right for me?

The only way to find the insurance carrier that's right for you is by getting quotes from multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't AAA or State Farm at all, but another you hadn't even thought of!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.