When you’re looking at getting AAA insurance, there’s one additional expense that you should know about before comparing the different quotes: since AAA insurance usually involves a separate requirement to become a member, this will vary according to where you live and the particular AAA club that you have. This means that when you’re comparing premiums you’re not just looking at one insurance premium against another insurer’s premium, you’re also having to pay for a membership which can provide roadside assistance and other benefits.
Then, is it really worth having an AAA membership?
For people who frequently drive and place importance on roadside assistance, the membership may well be worth considering even before you look at the insurance; but if your only aim is to get the lowest possible price for insurance, you should compare the total cost of the membership plus insurance with that of other insurers in your state.
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What Is AAA Insurance?
Although AAA is most famous for its roadside assistance service, it is in fact a federation made up of regional automobile clubs and not a single insurance company operating in the same way throughout the country.
AAA insurance products may cover cars, homeowners, renters, condos, life, umbrella, and other kinds of insurance. The exact types of products, the insurers involved, the discounts, and the eligibility conditions and availability will vary according to the AAA club and the state.
It is important to bear this in mind if you are looking up AAA insurance reviews or prices on line, since a policy that is available through one AAA club might not be offered in the same way by another.
AAA also has arrangements with various insurance companies in different states; for instance, according to AAA’s official information there are several different underwriting companies in its various operating regions.
In practice, the AAA organisation in your area is more important than the national average you may come across online.
Is it necessary for you to be a member of AAA in order to obtain insurance?
Yes, in many AAA markets.
The insurance information provided by AAA says that in most cases a separate AAA membership is needed both to get and to renew AAA insurance, even though the requirements may vary from one location to another, and some AAA clubs make it clear that at least one driver in the household should have an active membership.
Membership and insurance are therefore two products that are related but not the same.
For example, you might have:
- A AAA membership with roadside assistance
- A AAA auto insurance policy
- A AAA homeowners policy
- Additional member discounts and services
The amount you pay as a membership fee is in addition to your insurance premium.
If you are going to switch, ask the local AAA agent for the full annual cost instead of just looking at the quoted insurance premium.
What benefits does being a member of AAA provide?
The main reason why people think about joining an AAA membership is because of the roadside assistance it provides.
Membership in AAA offers a range of services, including towing, assistance with batteries, help in the case of a flat tire, the delivery of fuel in an emergency, aid when your vehicle is locked out, and other services available on a roadside basis. The specific limits will vary according to the level of membership and the local club.
A useful point is that roadside assistance comes with the member instead of being linked to just one particular vehicle. According to AAA, members are able to ask for help whether they are driving or travelling in a different vehicle.
This is something that would be beneficial for a person who frequently drives a family member’s car, hires vehicles, or travels as a passenger.
AAA membership also involves travel services, discounts, and other benefits, but the specific benefits differ according to the club and the level of membership.
Is AAA Roadside Assistance to be distinguished from Insurance Roadside Coverage?
That’s right, and that does represent an important distinction.
Roadside assistance can, at times, be included in a car insurance policy as an optional type of coverage, the service being then linked to your insurance policy.
AAA membership is unlike other types. Roadside assistance is one of the benefits of having a membership and it is not necessary to purchase AAA auto insurance in order to make use of it. AAA itself makes it clear that you can have an AAA membership without at the same time having AAA insurance.
For a person who is already satisfied with their present car insurance company, a membership in AAA might therefore seem appealing because of the dedicated roadside assistance it provides.
You shouldn’t suppose that all roadside assistance plans offer the same towing distance, the same number of service calls, or any other benefits. Make it a point to check the terms of the particular plan you are looking at.
For instance, the membership details of one AAA club allow each cardholder to make four roadside service calls or get reimbursements during each membership year, after which any further calls will be charged. Other AAA clubs may have different terms.
What kind of insurance coverage does AAA provide?
The AAA insurance will cover a number of areas, according to where you are located.
Auto insurance
AAA auto insurance can offer the kind of coverage that drivers usually require, but the specific coverage options and the limits available will vary according to state regulations, the underwriting decisions, and the local AAA insurance company.
The type of policy available may include liability coverage, collision coverage, comprehensive coverage, protection against claims by uninsured or underinsured motorists, medical payment coverage, and other options.
Liability coverage will pay for any injuries to people or damage to property that you cause to someone else.
Collision coverage will pay for any damage to your vehicle which is caused by a covered collision.
Comprehensive coverage usually includes some losses that are not the result of collisions, for example theft, vandalism, or damage caused by specified events.
Since your actual policy determines what is covered, the descriptions should not be regarded as a replacement for reading the policy documents.
Homeowners insurance
AAA provides homeowners’ insurance in certain markets as well. Generally, the homeowners’ coverage will cover the house itself, the contents, liability, and additional living expenses if a covered loss makes the home temporarily uninhabitable.
The specific protections, exclusions, deductibles, and limits will differ according to the policy and the state.
Renters insurance
AAA also offers renters insurance in certain areas. Usually, a renters policy covers a person’s possessions and gives liability coverage, the building itself being insured by the owner of the property.
Life insurance and other products
AAA makes life insurance and other financial or insurance products available through a number of its AAA organisations and companies. Whether or not these products are available depends on where you are and on your eligibility.
Should the cost of AAA insurance be higher due to the membership?
Not necessarily.
What you should look at is your entire annual cost, not just the insurance premium.
Imagine that another insurance company offers you $1,600 a year for your car insurance. AAA could offer you $1,550 for the insurance, but you would also have to pay for the membership.
In that case, AAA isn’t automatically the cheaper option just because the insurance quote is $50 less.
In contrast, if the AAA policy is competitive and you are going to use roadside assistance, travel discounts, or some of the other membership benefits anyway, the membership fee might offer sufficient extra value to make the entire package worthwhile.
The amount you actually pay as a premium can vary considerably depending on a number of factors such as where you live, your driving record, the type of vehicle you have, the level of coverage, the deductible, your claims history, insurance based on credit factors where these are allowed, and other underwriting considerations.
It is pointed out by AAA that prices, the extent of coverage, discounts, and eligibility may differ from state to state and depending on the individual circumstances.
What concerning AAA insurance discounts?
In certain markets AAA provides a number of discounts, these including possible cost reductions according to factors like package deals, driving habits, having more than one policy, and other eligibility requirements.
You can’t expect that all discounts are available everywhere or that they are always combinable.
AAA makes it clear that the amount of the discount depends on where you live, on your eligibility, the particular policy, and on other conditions.
When you’re asking for a quote, request the agent to show you the specific discounts that are actually included in your price instead of just accepting a general list of the advertised discounts.
It then becomes easier to compare AAA with its competitors on an equal footing.
The Biggest Advantage: Membership and Insurance Can Work Together
You can see the advantage of joining AAA if you actually take advantage of the membership.
Picture a driver who covers several hundred miles each month; a dead battery, a flat tire, a lockout, or a breakdown could become a costly and stressful situation.
Roadside assistance is included in the benefits of having an AAA membership, provided that the terms and limitations of the plan apply.
Now compare that with a person who doesn’t drive very often, obtains advice about roadside assistance from a car manufacturer or some other service, and mainly wishes to get cheap liability insurance.
The individual might derive less benefit from paying for an AAA membership.
The reply is not actually simply “Is AAA worth it?”
Will the amount that I use from what AAA offers be enough to warrant the full cost?
Pros and Cons of AAA Insurance
Pros
- Roadside assistance is one of the main benefits of membership and this can be helpful for people who travel often.
- Coverage and membership can be bundled together and, in some cases, you can arrange to have both your insurance and your roadside assistance looked after by the same AAA organisation.
- A number of insurance products can be obtained. Whether or not you are in a particular area, AAA might provide you with auto, home, renters’, life and other types of insurance.
- Member discounts and the travel benefits can provide value, but how useful they are will depend on the benefits that you actually use.
- In many markets there are local agents and AAA carries out its operations via regional clubs, which means that customers can get local insurance and membership support.
Cons
- Joining involves incurring an extra annual expense. This should be taken into account when looking at the different quotes.
- The availability depends on the state; not all AAA insurance products are available in every location.
- The benefits offered by AAA clubs are not the same. AAA is made up of regional motor clubs, and the membership benefits differ.
- A low insurance quote doesn’t always mean that the total cost is the lowest, as the membership fees and any optional coverage will also have to be taken into account.
- The benefits available on the roadside are subject to limitations; the limits regarding service calls, towing distances, waiting periods, and other conditions vary according to the membership plan and the local club.
Who is most likely to find their AAA membership worthwhile?
AAA membership may make the most sense for people who:
- Drive frequently or take long road trips
- Want roadside assistance that can follow them into different vehicles
- Prefer having access to local agents
- Can use AAA travel or member discounts
- Receive a competitive insurance quote from their local AAA insurer
- Want to bundle auto and home or renters insurance where available
The offer might not be so attractive if you already have a similar roadside assistance service and AAA’s insurance quote is much higher than that of the other policies which have comparable coverage.
A Simple Way to Compare AAA With Other Insurers
Limit yourself to comparing just the monthly premium.
Ask each insurer for the same coverage limits and deductibles, then compare the following:
| Cost or benefit | AAA | Other insurer |
| Annual insurance premium | $___ | $___ |
| Annual membership fee | $___ | $___ |
| Roadside assistance | Included/Optional | Included/Optional |
| Home/renters bundle | $___ | $___ |
| Available discounts | $___ | $___ |
| Total annual cost | $___ | $___ |
Now think about the advantages that actually have value for you.
The extra cost of AAA might be acceptable since it includes roadside assistance which you would otherwise have to buy separately.
If you don’t need the benefits of membership and some other insurance company offers similar coverage at much less cost, then the AAA package might not be worth the extra expense.
What questions should you ask before purchasing AAA insurance?
Before signing up, ask the local AAA agent:
- What is the annual cost of the insurance, including the membership that is required?
- So which insurance company will actually give me the policy?
- What coverage limits and deductibles does the quote include?
- What discount am I currently getting?
- Yes, can the discounts be combined?
- What benefits for roadside assistance are included in my membership?
- How many service calls are there?
- Is there a limit on towing distance or a waiting period?
- Is there a home, renters’, or other type of policy available in my state?
- What effect will there be on my insurance if I fail to renew my AAA membership?
Such questions can show the difference between a package that is actually useful and one that just looks attractive since the cost of membership wasn’t taken into account at the beginning.
Frequently Asked Questions
Is AAA insurance exclusively available to AAA members?
In most places it is necessary to be a member of AAA in order to get AAA insurance, but the precise requirement will vary according to the local AAA club and the insurance product in question. Therefore, you should contact your local AAA organisation before applying.
Is the AAA membership separate from the AAA insurance?
Correct, the AAA membership and the AAA insurance policy are two different products; the membership offers benefits like roadside assistance, and the insurance provides financial protection in accordance with the terms of the policy.
Is it possible to get AAA roadside help if I don’t have AAA insurance?
Correct, for AAA it is stated that you do not need AAA insurance in order to become a member of AAA and still get the membership benefits such as roadside assistance.
Is AAA insurance offered in all the states?
No. AAA insurance products and coverage availability vary by state and regional AAA club. Some products may not be available in certain states or throughout an entire state.
Is AAA insurance cheaper than other insurers?
There isn’t a single answer. Insurance prices depend on your location, driver profile, vehicle, coverage choices, discounts, and other factors. The most useful comparison is a quote for equivalent coverage, with the AAA membership fee included in the total cost.
The Bottom Line
AAA insurance can be worth it if you value the membership benefits, particularly roadside assistance, and the insurance quote is competitive for the coverage you need.
The key is not to judge AAA solely by its insurance premium. Add the membership cost, compare identical coverage with several insurers, and consider whether you’ll actually use the roadside, travel, and other member benefits.
For a frequent driver who wants dependable roadside assistance and finds a competitive insurance quote, AAA can be a practical package. For someone who already has roadside coverage and is focused primarily on lowering insurance costs, comparing alternatives may make more sense.
Because AAA operates through regional clubs, coverage, pricing, discounts, eligibility, membership benefits, and insurance availability can vary by state and individual circumstances. Check the terms offered by your local AAA club before making a decision.
