State Farm vs. AAA Car Insurance

Compare car insurance for State Farm vs AAA by looking at average rates and ratings. AAA has higher customer satisfaction ratings with J.D. Power, while State Farm offers more insurance coverage options.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Jun 2, 2022

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Here's what you need to know...

  • Both State Farm and AAA are popular in the U.S.
  • State Farm offers more insurance coverage options
  • AAA has higher customer satisfaction ratings with J.D. Power

There are so many auto insurance company advertisements online and on television, that comparing State Farm vs. AAA can become quite confusing.

If you know more about each company, it can help you choose better protection for yourself and your family.

Below is information to help you contrast the two companies.

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Table of Contents

State Farm vs. AAA Car Insurance: Which is better?

State Farm and AAA are two of the largest car insurance companies in the U.S. and each auto insurance provider has its pluses and minuses.

AAA has higher customer satisfaction ratings with J.D. Power, and substantial discounts while State Farm offers more insurance coverage options. Let’s take a look at what each company has to offer.

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State Farm Car Insurance

How did State Farm become so well-known?

State Farm is the biggest insurance provider in the United States. In 2005, they had 40 million automobile policyholders.

Most people know State Farm Mutual Insurance by its jingle, “Like a good neighbor, State Farm is there.” An American singer and songwriter, Barry Manilow, wrote this commercial jingle for State Farm in 1971.

In 1922, it first grew popular with farmers after its founder, George J. Mecherle, designed it around the belief that farmers should not have to pay as much as city drivers for their automobile insurance.

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What does State Farm offer?

State Farm has expanded from being a mutual automobile insurance company to several companies that offer:

  • Homeowners insurance
  • Life insurance
  • Banking consumer services
  • Financial products
  • Investment services
  • Fire and casualty insurance
  • Life and accident insurance

State Farm Nationwide Rating

In 2015, J.D. Power and Associates performed a nationwide consumer survey on how State Farm’s service was rated when compared to other companies.

On a scale of 1 being “poor” to 5 meaning “among the best,” the results showed:

  • Overall Satisfaction – 3
  • Policy Offerings – 3
  • Pricing – 3
  • Local Agent – 3
  • Call Center Representative – N/A
  • Insurer Website – 2

While State Farm may not have the best ratings, as one of the largest insurers, the company will definitely have policies to meet all of your needs.

AAA Auto Insurance

What is AAA?

American Automobile Association (AAA) is a nonprofit organization automobile service and lobbying group. Known for their roadside assistance program, AAA Auto Club also have multiple insurance products.

AAA services include:

  • Automobile insurance
  • Life insurance
  • Homeowners insurance
  • Travel insurance

On March 4, 1902, 1000 automobile enthusiasts in Chicago, Illinois, joined as charter members of the brand new AAA.
Their goal was to have new roads built and to repair the current highways and connecting roads — completed primarily for the safety of the drivers.

How does AAA rate in customer service?

The AAA automobile insurance company has attained an excellent customer service reputation.

However, service may be different in various states. For example, an affiliate of AAA, the Automobile Club of Southern California (ACSC), has a high rating for customer pricing, policies provided, and customer experiences.

Yet Auto Club Group (ACG), the main AAA insurance company, had higher ratings on the J. D. Power and Associates 2015 consumer survey than State Farm.

Using a scale from “poor” as 1 to “among the best” as 5, these were the results:

  • Overall Satisfaction – 4
  • Policy Offerings – 4
  • Pricing – 4
  • Local Agent – 3
  • Call Center Representative – 3
  • Insurer Website – N/A

With a decent financial strength rating and customer satisfaction rating, AAA can set you up with an affordable auto policy.

Unique AAA Member Discounts

AAA offers especially big discounts to its members when they buy their life, auto, and homeowners insurance exclusively through AAA.

Also, if a policyholder experiences a car collision accident with a fellow AAA member, AAA will lower the deductible of the policyholder by $250.

AAA vs. State Farm Car Insurance: The Choice is Yours

As you can see, both State Farm and AAA offer car insurance policies that will fit your need. To make the best decision, compare the types of insurance you need, the auto insurance discounts each one offers, and the auto insurance rates available in your area. With a little research, you can find an affordable auto insurance policy to cover you and your car.

Before you make your decision between AAA or State Farm for car insurance, be sure to use the free tool on this page to compare quotes from many different companies.

Enter your zip to get a better insurance quote from major insurance companies near you and see how much you could save!

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