USAA and AAA are two membership-based car insurance companies. While almost anyone can purchase an AAA membership to access its auto insurance products, USAA is more restrictive: You must be part of the U.S. military community to be eligible.
Here’s what you need to know about USAA and AAA, including how to compare quotes, discounts, coverages, and other key factors.
USAA wins out against AAA because it’s one of the best and cheapest car insurance companies available. It has affordable average rates and top customer satisfaction ratings across the country. However, its restrictive membership requirements make many drivers ineligible for its coverage.
On the other hand, AAA is available nationwide, and while it requires membership, almost anyone can apply and become an AAA member. It’s not as cheap as USAA, according to Insurify data, but its insurance partner, CSAA, scored above average in J.D. Power’s customer satisfaction study.
Here’s how AAA and USAA stack up against each other.
With more than a century of industry experience, AAA offers automotive, insurance, financial, and travel services to more than 61 million members. It has more than 1,000 branch offices in North America, making it a very accessible insurance option. Its insurance partner, CSAA, earned an AM Best financial strength rating of A (Excellent), which indicates its financial security.1
USAA earned an AM Best financial strength rating of A++ (Superior), which is a great sign this company is financially stable enough to pay out future claims.2 Founded in 1922 by Army officers to insure each other’s cars, USAA still serves military members, veterans, and their families.
Both USAA and AAA offer auto insurance customers telematics programs that can help them save on their policies.
AAA’s SMARTtrek can save drivers up to 10% by participating in the program, which rewards drivers for their safe behavior. You can use the mobile app to see how to improve your driving and develop safer skills behind the wheel.
With USAA’s SafePilot program, you get a 10% discount just for signing up and can save up to 30% if you demonstrate consistent, safe driving habits. This app also monitors how you drive and gives suggestions for driving safely. At the end of each policy period, USAA applies discounts based on your driving behavior and resets your driver score to start fresh for the next policy term.
It’s always a good idea to get multiple quotes to see what car insurance company can offer you the best price. The discounts you qualify for, ZIP code, car type, and many other factors can influence how much you spend on car insurance.3
Overall, USAA is the cheaper car insurance company for drivers with a clean record. However, due to its restrictive membership requirements, you may not be eligible for coverage.
Speeding tickets typically cause an increase in car insurance rates, but USAA’s average liability rates are still less than $100 per month for someone with a ticket. It’s cheaper than AAA’s rates after a speeding ticket.
Teen drivers usually pay more for car insurance because they have less experience behind the wheel and are more likely to get in an accident than other age groups.4 USAA has cheaper average rates than AAA for teenagers.
In many states, it’s legal for auto insurance companies to use your credit score when determining premiums.5 Insurance companies believe that drivers’ credit history indicates their likelihood of filing a claim; drivers with good credit pay cheaper rates than drivers with bad credit.
USAA is cheaper than AAA for drivers with bad credit, according to Insurify’s proprietary data.
Senior drivers tend to pay lower-than-average car insurance rates, likely because they drive less frequently and shorter distances than other age groups. However, their rates can still spike around age 70 due to age-related issues that can affect driving capabilities.6
USAA has the cheapest rates for senior drivers compared to AAA’s car insurance rates.
AAA and USAA offer standard car insurance coverages like comprehensive, collision, liability, and uninsured/underinsured motorist insurance. However, both insurers also have a suite of supplementary coverages that you can add to round out your policy.
For example, AAA offers gap insurance, which pays the difference between your insurance settlement and auto loan in case of a total loss. But USAA doesn’t offer gap insurance.
USAA offers a roadside assistance service as a coverage option, whereas AAA sells this as a product separate from your auto insurance policy. Anyone can purchase a AAA membership for roadside assistance services, even if they don’t buy an insurance policy.
Here’s how AAA and USAA’s coverages compare.
When shopping for car insurance, it’s always helpful to ask the insurance agents you’re working with about potential discounts you may be eligible for. Many car insurance companies offer their own sets of discounts.
For example, AAA offers a low-mileage discount, but USAA doesn’t. On the other hand, with USAA, you can qualify for a new-car discount, but AAA doesn’t offer a similar discount.
The table below shows AAA’s versus USAA’s car insurance discounts.
To better understand if AAA or USAA is the best option for you, check out the answers to these frequently asked questions about both insurers.
Yes. USAA’s average rates are cheaper than AAA’s average rates, according to Insurify’s proprietary data. However, the best way to find the cheapest car insurance for you is to compare quotes from multiple insurers.
The main disadvantage of USAA as an auto insurance company is that it isn’t available for everyone. USAA has limited eligibility available only to military personnel, veterans, and their families.
USAA insurance is often worth it for its special benefits for military members. Do some research on pricing, coverage types, and what the customer service experience is like for USAA members to get an idea if USAA is right for you.
AAA has no standout competitor, but any auto insurance company like Allstate or State Farm offering roadside assistance services can compete with AAA.
)
)
Over 3 years of experience producing content on insurance and personal finance.
Key architect of Insurify's quality score.
Featured in
){kind=small}
){kind=small}
)
7+ years experience in data analysis
Ph.D. in Computational Biology
)
)