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Who has the best car insurance, State Farm or AAA?

State Farm vs AAA car insurance

Updated

Fact checked

State Farm and AAA are well-known companies. But not everyone is aware that AAA also provides auto insurance, not just travel discounts and roadside assistance.

State Farm is the largest insurance company in the country, and it’s good at what it does. It is well-liked by its customers, earning a B+ from the Better Business bureau and an A++ rating from AM Best. And you’ll need to be a member to get insurance through AAA, which isn’t free. Memberships range from $57 to $100 annually. But with that membership you’ll get perks like emergency check cashing, 24 hour concierge services, entertainment discounts and more.

Our top pick: Progressive

Get unlimited discounts and score a lower deductible every 6 months you don't make a claim.

  • Top-rated insurer with 80 years of experience.
  • Easy online sign-up and reporting.
  • Multiple discounts available.
  • Transparent quoting.
  • Top-rated insurer
  • Online quotes & claims
  • Bundle and save
 

State Farm

AAA

OVERVIEW

OVERVIEW
About the provider
About the brand Get personalized, one-on-one support to build your policy with your local agent. Start your policy today at 877-745-0232. Member benefits extend beyond car insurance to offer discounts, bike coverage and more.
States served
States served All 50 states All 50 states

COVERAGE

COVERAGE
Roadside assistance
Roadside assistance Optional Included free
New car protection
New car protection Yes Yes
Accident forgiveness
Accident forgiveness Yes Yes
Rideshare coverage
Rideshare coverage Yes No
SR-22 insurance
SR-22 insurance Yes
Yes
Claims methods
Claims methods online
email
phone
in-person
online
email
phone
Payment schedule
Payment schedule 6 months
monthly
12 months
6 months
monthly

DISCOUNTS

DISCOUNTS
Anti-theft device discount
Anti theft device discount Yes Yes
Bundling discount
Bundling discount Yes Yes
Home owner discount
Home owner discount Yes Yes, up to 37%
Military discount
Military discount No No
Multi car discount
Multi car discount Yes, Up to 20% Yes, up 27%
Paid in full discount
Paid in full discount Yes Yes
Safety device discount
Safety device discount Yes, up to 40% Yes
Safe driver discount
Safe driver discount Yes Yes, up to 20%
Special employment discount
Special employment discount No No
Student discount
Student discount Yes, Up to 25% Yes, up to 14%
Usage based discount
Usage based discount No No
Learn more
Learn more


* Based on Better Business Bureau’s company rating
** Based on the 2016 U.S Auto Claims Satisfaction Study

Bottom line

If you want the perks that come with a AAA membership and you’re prepared to pay the annual fee, then AAA is a great option. But if you’re not interested in paying an annual membership fee, then State Farm is the way to go. If neither is right for you, compare other car insurance options to find the best deal.

Compare alternatives to State Farm and AAA

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
Progressive
Optional
30%
All 50 states
Get unlimited discounts and score a lower deductible every 6 months you don't make a claim.
Clearcover
Optional
Yes
AZ, CA, IL, LA, OH, TX, UT and WI
Find basic coverage and low rates through its easy online or app-based experience.
Assurance
Optional
Yes
All states except AK & HI
Your broker is your one-stop shop for comparing any coverage you need.
Car Insurance Finder
Optional
Optional
Yes
All 50 states
Get your customized online car insurance quote from top brands near you. Answer 3 easy questions to see your top picks in seconds.
The AARP Auto Insurance Program from The Hartford
Optional
Yes
All 50 states & DC
Enjoy exclusive savings and benefits designed for experienced drivers over the age of 49.
Esurance
40%
All states except AK, DE, HI, MT, NH, VT, WY
Convenient online quotes, coverage and claims for tech-savvy drivers.
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Compare up to 4 providers

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