If you’re shopping for car insurance, AAA and Progressive are two insurers you may consider.
While AAA is known for its roadside assistance services, like jump-starts, flat tire replacement, and fuel delivery, it also offers car insurance in select states. AAA’s car insurance products come from CSAA Insurance Group, which serves AAA members in clubs across the country.
Progressive, meanwhile, is the third-largest insurer in the U.S. It offers a variety of car insurance products, as well as home insurance, boat insurance, condo insurance, and other products.
Here’s a closer look at how AAA and Progressive stack up so you can make the best choice for your unique situation and insurance needs.
If you’re a member of AAA or plan to become one, you can enjoy plenty of perks along with your auto insurance, like robust roadside coverage, car rental benefits, and identity theft protection. However, these perks come at an extra cost, so you have to determine whether they’re worth it for you.
Progressive, which typically offers lower car insurance rates than AAA, is a large insurance company with a variety of coverage levels and discounts. Through its Name Your Price tool, you can quickly learn about coverage options that align with your budget.
When it comes to financial stability, AM Best gave AAA an A (Excellent) rating and Progressive an A+ (Superior) rating.1 In a customer satisfaction study by J.D. Power, AAA scored higher than Progressive.2
The American Automobile Association, or AAA, offers various insurance products through local auto clubs and is well-known for its roadside assistance program and membership perks.
Based in Ohio, Progressive Insurance is one of the nation’s largest insurers. It’s most well known for its car insurance and small-business insurance.
AAA and Progressive both offer telematics-based programs to encourage safe driving. If you download the mobile app and participate in AAA’s SMARTtrek, you’ll automatically save 10% on your policy. And if you demonstrate good driving habits, you may save up to 20%. The app will give you feedback on your driving and also provide tips on how to keep yourself safe on the road.
Progressive Snapshot also tracks your driving behavior and may reward you with an automatic discount just for signing up. However, this depends on where you live. While the total discount you can earn depends on factors like speeding and hard braking, Progressive says that good drivers save an average of $231 on their annual premiums.
In general, Progressive offers lower rates and more affordable car insurance coverage than AAA. However, your premium will depend on a variety of factors, such as your ZIP code, location, age, marital status, driving record, credit score, and previous car insurance history.
Drivers with a clean driving record, free of speeding tickets and DUI violations, can find lower car insurance premiums with Progressive.
Progressive offers cheaper auto insurance coverage for drivers with a speeding ticket.
Teens and young drivers can lock in cheaper car insurance through Progressive insurance.
Not every state allows insurers to review a driver’s credit history during the underwriting process. However, most states do. In states where this is legal, drivers with poor credit scores generally pay higher rates than drivers with good or excellent credit.
In general, Progressive offers better car insurance rates for drivers with bad credit.
Senior drivers can enjoy cheaper auto insurance rates with Progressive.
AAA and Progressive offer a number of main coverage options. These include bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, collision insurance, and comprehensive insurance.
In addition, both car insurance companies allow customers to choose from a variety of optional insurance policies or add-ons. While AAA is known for its roadside assistance plan, you can find a similar option through Progressive roadside assistance.
Both insurers also offer gap insurance to help you if your car is deemed a total loss and you owe more than it’s worth. Progressive calls this coverage “loan/lease payoff coverage.”
New-car added protection is unique to AAA and can pay to repair or replace your car without depreciation if it gets totaled.
Progressive stands out for its pet injury coverage, which can protect your pet if it sustains an injury and you face medical bills after a car accident.
Finally, keep in mind that AAA’s coverage options vary by location, so it’s a good idea to check with your regional club in your home state to find out what your options are.
Discounts can lower your car insurance costs, but remember that not all AAA discounts are available to everyone. You may want to reach out to your local AAA office to determine which discounts members in your area can get.
The table below provides you with an idea of the discounts available from each insurer.
Looking for more information to help you decide between AAA and Progressive? Here are the answers to a few frequently asked questions about these insurers.
Your unique budget, specific needs, and preferences will determine whether AAA or Progressive is better. AAA may be a better choice if you want membership perks to save on various out-of-pocket costs, while Progressive is your best bet for cheaper rates.
AAA offers a variety of car insurance options, as well as a comprehensive roadside assistance program and attractive membership perks. But its rates can be expensive, and you have to become an AAA member to get a policy.
Progressive offers cheap car insurance coverage due to its large market share and plethora of discounts. Note that your exact rates will depend on your ZIP code, age, driving history, and other factors.
Yes, you must join AAA to take advantage of its auto insurance. AAA membership fees vary by location.
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