Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

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

Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.

  • Broad coverage, including for custom car parts or ridesharing
  • Transparent pricing tools that help you buy within budget
  • Accident forgiveness on small claims or for staying claim-free
  • Stack a variety of discounts for multiple cars, autopay or homeownership
 

State Farm

AAA

OVERVIEW

OVERVIEW
About the provider
About the brand Work with a dedicated agent to find the right coverage for you, including bundling other policies for the best value. 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
Phone
online
email
phone
Payment schedule
Payment schedule 12 months
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
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
Allstate
13%
All 50 states
Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
EverQuote
EverQuote
Optional
Yes
All 50 states
Roll in a variety of car insurance quotes from top insurers despite a high-risk driving profile, and view possible discounts while you’re at it.
The AARP Auto Insurance Program from The Hartford
Optional
Yes
All 50 states & DC
Drivers over age 50 can enjoy low rates and perks designed for mature drivers, plus freebies and AARP member perks like free replacement cost coverage.
Liberty Mutual
Optional
30%
All 50 states
Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.
Esurance
40%
All states except AK, DE, HI, MT, NH, VT, WY
Take advantage of this online company's low base rates and mobile tools like app-based telematics and teen safe driver programs.
loading

Compare up to 4 providers

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site