Which company is State Farm’s biggest competitor?
State Farm is the largest insurance company, according to the NAIC. Some of its biggest competitors include other national auto insurers like Progressive, Allstate, Liberty Mutual, and GEICO.
Two different companies you can consider when looking for quality auto insurance are the American Automobile Association (AAA) and State Farm.
AAA is a not-for-profit organization offering roadside assistance to its members. The company doesn’t underwrite insurance and instead partners with regional auto insurance partners like CSAA.
State Farm is the largest auto insurance company in the United States by market share. The company offers many insurance products in addition to car insurance, like home and property insurance and life insurance.
When shopping for car insurance policies, it’s a good idea to compare rates, coverage options, and discounts to find the best plan for your needs.
AAA vs. State Farm: The verdict
AAA isn’t a car insurance company and doesn’t offer insurance directly, so rates, discounts, and coverage depend on the regional insurance partner. State Farm, on the other hand, is one of the largest auto insurance companies in the U.S. and may be a better choice for people looking for more coverage options, including rideshare insurance.
But if you’re looking for gap insurance, you’ll have to choose AAA, because State Farm doesn’t offer this protection. Both State Farm and one of AAA’s regional insurers CSAA have much cheaper average rates than the national average, but State Farm’s rates are the cheapest between the two.
Both insurance companies score high for customer satisfaction, with State Farm and some of AAA’s regional insurers consistently ranking in the top 10. And the different companies each offer about the same amount of discounts, although options vary slightly.
AAA
AAA uses regional partners to offer insurance, so customer satisfaction can vary depending on the insurance company. Though some of AAA’s regional insurers consistently rank in the top 10 for customer satisfaction.
State Farm
State Farm has the largest market share for private passenger auto policies, according to the National Association of Insurance Commissioners (NAIC). The company ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power 2023 U.S. Auto Insurance Study.1
AAA SMARTtrek vs. State Farm Drive Safe & Save
Both AAA and Start Farm offer safe driving apps. People who have AAA insurance can download SMARTtrek to their smartphone and save up to 10% off their initial policy term, but discounts vary by state.2
State Farm’s Drive Safe & Save telematics mobile app works in a similar manner but can save you up to 30%. The company will adjust your discount every renewal period. People who drive eligible 2020 or newer Ford or Lincoln vehicles can also use their car’s built-in technology to connect to Drive Safe & Save.3
AAA vs. State Farm: Which is the cheapest?
AAA average car insurance costs representative of all regional insurers aren’t available at this time, but CSAA policyholders pay $98 per month for liability coverage and $136 for full-coverage insurance.
State Farm offers cheaper average monthly rates of $56 for liability and $110 for full coverage. Rates from both CSAA and State Farm can vary based on factors like your age, location, ZIP code, driving history, vehicle type, and credit history.
When checking to see which company has the most competitive rates, it’s also a good idea to keep national average auto insurance rates in mind. On average, U.S. drivers pay $103 per month for liability coverage and $182 for full-coverage insurance.
State Farm: Cheapest for drivers with a clean driving record
People with clean driving records typically earn the lowest average rates. Compare liability quotes from CSAA and State Farm below.
State Farm: Cheapest for drivers with a speeding ticket
Drivers with one or more past speeding tickets will typically face increased insurance rates.
State Farm: Cheapest for teen drivers
Due to a lack of driving experience and increased risk of accidents, young drivers usually face the most expensive rates by driver age.
State Farm: Cheapest for drivers with bad credit
Drivers with poor credit can expect higher car insurance rates in the states that allow insurers to consider credit-based insurance scores.
State Farm: Cheapest for senior drivers
Before turning 70, senior drivers face some of the lowest car insurance rates by driver age.
Compare coverages: AAA vs. State Farm
AAA and State Farm offer liability coverage, which most states require. When you file a claim, liability insurance can include coverage for bodily injury and property damage to help pay for the other party’s medical expenses or property repairs. Personal injury protection (PIP) can also help cover medical expenses regardless of fault.4
With both AAA and State Farm, you can add collision coverage, which can help you repair your car after an accident, no matter who caused the accident. For even more protection, you can add comprehensive coverage to your insurance policy to cover events not related to a car accident, like fire, flood, or theft.
Here’s a closer look at how some extra coverage options compare between AAA and State Farm.
Compare discounts: AAA vs. State Farm
AAA and State Farm offer about the same amount of discounts, but options vary. For example, with AAA you can save just for being a loyal customer, and State Farm offers discounts for having an anti-theft device. Neither company has military discounts available.
Here are the different available discounts from AAA and State Farm.
AAA vs. State Farm FAQs
If you’re comparing car insurance from AAA and State Farm to find the best car insurance company for your needs, you should consider the information below to make an informed decision.
What is the downside of AAA?
AAA uses regional insurance partners to provide auto insurance coverage to its members, so auto insurance rates, coverage options, discounts, and customer service can vary depending on where you live.
Does AAA or State Farm have higher customer satisfaction?
State Farm consistently ranks highly among insurance providers for customer satisfaction, but many of AAA’s insurance partners are, too. To check AAA’s customer satisfaction rankings, you’ll have to know which regional partner underwrites your plan.
What are the differences between AAA and State Farm in terms of insurance policies?
AAA and State Farm insurance policies differ in a few ways, including availability, coverage options, and discounts. For example, State Farm offers coverage nationally, while AAA sells coverage through regional insurance companies. With AAA, you can get gap insurance, but State Farm doesn’t offer this coverage. State Farm provides discounts for anti-theft devices, but AAA rewards loyal customers.
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