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Updated May 14, 2024
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Deciding between AAA and Allstate hinges on specific needs and preferences. Allstate generally offers more affordable minimum coverage options, making it an attractive choice for budget-conscious drivers. AAA, with its mandatory membership, includes a suite of benefits that go beyond just insurance, such as discounts on travel and services that might be more appealing to those who value added perks. Each company stands out in facilitating resources for young drivers, enhancing their appeal to families seeking comprehensive benefits and educational opportunities for their new drivers.
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- AARP vs AAA comparison
- Is AARP cheaper than AAA?
- AARP vs AAA: discounts
- Usage-based insurance comparison: AARP vs AAA
- AARP vs AAA: customer experience comparison
- Frequently asked questions
- Methodology
TheAmerican Association of Retired Persons (AARP) was founded in 1958, and membership is specialized for, and only available to, people aged 50 and older. AARP auto insurance policies are underwritten by The Hartford. The Hartford auto insurance includes a variety of optional coverage add-ons and discounts, but the eligibility requirements mean that coverage may not be available for everyone.
AAA auto insurance is available through various AAA clubs spread across the country. Founded in 1902, AAA is perhaps most famous for its roadside assistance coverage, but it has a handful of other optional coverage types for a more robust auto policy. Like AARP, AAA also has a more exclusive approach to its policies, and only active AAA members can purchase coverage.
AARP/The Hartford | AAA | |
---|---|---|
Bankrate Score | 3.9 | 3.4 |
Tier 1 | 3.7 | 3.5 |
Tier 2 | 4.5 | 2.5 |
Tier 3 | 3.7 | 4.3 |
Our verdict
When considering AARP vs. AAA, it’s important to note that both have membership restrictions for some coverage options. Of the two, AARP is more restricted, with coverage only extended to AARP members over the age of 50. AARP offers unique coverage options, like RecoverCare, tailored to their customer demographics, while AAA is known for extensive roadside assistance coverage. AARP has cheaper average rates in most circ*mstances, but AAA may be a more affordable option for drivers with high-risk incidents on their record.
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AARP vs AAA comparison
When deciding between two companies, making a pros and cons list may help you narrow down your options. We’ve compiled several comparisons highlighting the differences between AAA vs. AARP.
AARP pros and cons
Pros
Wide variety of potential endorsem*nts
Local agents are available for in-person service
Underwriter, The Hartford, has A+ (Superior) financial strength rating from AM Best
Average minimum coverage premiums are lower than the national average
Cons
The Hartford, AARP’s underwriter, scores just below the segment average for claims satisfaction in the 2023 J.D. Power Auto Claims Satisfaction Study
Coverage access requires paid membership to AARP
Only AARP members over the age of 50 are eligible for coverage
Average full coverage car insurance rates are above the national average
AAA pros and cons
Pros
Offers extensive roadside assistance services
Non-insurance perks like notary services and travel planning are available for members
Mobile app is highly-rated by Google Play and iOS users
Cons
Coverage options and availability may vary by region
Membership may be required for coverage and certain services
Average full and minimum coverage rates may be higher than the national average, depending on underwriting club
Two of AAA’s largest auto clubs scored below the segment average in the 2023 J.D. Power Claims Satisfaction Study
Is AARP cheaper than AAA?
According to average rate data provided by Quadrant Information Services, AARP has cheaper average rates than AAA. While your personal rates will differ from average rates, this information may help you to get a sense whether AARP or AAA is the cheaper company. The rates provided for AARP are based on The Hartford, as that is the insurer that underwrites AARP auto policies.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
---|---|---|
AARP | $2,104 | $595 |
AAA | $2,562 | $681 |
AARP is generally cheaper for drivers with poor credit
Most states permit auto insurers to use drivers’ credit-based insurance scores when pricing car insurance policies. However, a number of states ban this practice, including California, Hawaii, Michigan and Massachusetts. Based on average rates, AARP is generally more forgiving than AAA in increasing premiums for drivers with poor credit.
Credit tier | AARP/The Hartford | AAA |
---|---|---|
Poor | $2,871 | $5,470 |
Average | $2,213 | $2,822 |
Good | $2,104 | $2,562 |
Excellent | $1,200 | $2,162 |
AARP is generally cheaper for young drivers
In every state except Hawaii and Massachusetts, car insurance providers are permitted to use your age as a rating factor to determine your insurance premium. Car insurance premiums are generally the highest for teens and slowly decrease until about the age of 70, when rates may begin to creep up again. Young drivers typically pay more for their car insurance because statistics show that young drivers are involved in more accidents. The rates listed below are averages based on young drivers on their parents’ full coverage policies.
AARP is generally cheaper for adult drivers
On average, based on the profiles assessed, AARP tends to be cheaper for adult drivers than AAA. The differences vary between the ages with the biggest savings potential being at age 18 and the smallest being at age 30. The annual average rates listed below are specific to drivers who are on their own full coverage auto insurance policy.
AAA is generally cheaper for high-risk drivers
Car insurance rates typically increase after an incident like an accident or speeding ticket. Usually, the more serious the offense, the more your rates will increase. High-risk driving incidents, such as DUIs, may cause significant increases in your premiums and may result in insurers refusing to cover you. Based on the data below, AAA is generally cheaper for high-risk drivers, but those with a single speeding ticket may still see lower rates with AARP.
Driving record | AARP/The Hartford | AAA |
---|---|---|
Clean driving record | $2,104 | $2,562 |
Speeding ticket conviction | $3,009 | $3,131 |
At-fault accident | $3,857 | $3,717 |
DUI conviction | $5,901 | $5,569 |
AARP vs AAA: discounts
AARP offers several benefits and discounts exclusively for its senior member base. AAA also caters to its members with many discounts and benefits that go beyond car insurance, including a strong focus on assisting members with travel plans and reservations. Both carriers provide standard discounts, including potential savings for vehicle safety features, bundling and paying your premium in full.
AARP unique discounts
- Vehicle fuel type discount: Hybrid and electric vehicles may earn policyholders a discount.
- AARP membership discount: The Hartford underwrites AARP auto insurance policies and offers a discount of up to 10 percent to AARP members.
- Online quoting discount: Getting a quote online may save you money on your premium, but this discount is only available in select states.
AAA unique discounts
- AAA membership discount: AAA members may be eligible for automatic discounts.
- Loyalty discount: This discount is for policyholders who maintain continuous AAA car insurance for a designated period of time.
- Advanced shopping discount: You may save with AAA if your auto insurance quote is initiated at least a week before the effective date.
Usage-based insurance comparison: AARP vs AAA
It has become increasingly common for auto insurers to offer discount-based incentives to good drivers using usage-based tools.Telematics programs allow insurers to base these discounts on real data specific to each driver. As The Hartford underwrites for AARP, its usage-based program, TrueLane, is compared to AAADrive.
The Hartford TrueLane | AAADrive | |
---|---|---|
Telematics device | Mobile app | Mobile app |
Monitored driving factors | Time, speed, mobile phone usage, acceleration and location | Start and end time, location, accelerometer data, mobile phone use and how long you drive without taking a break |
Potential impact on rates | Decreased | Decreased |
Potential discount | Up to 25% | Up to 25% |
Availability | Select states | Select states |
AARP vs AAA: customer experience comparison
Customer satisfaction is a priority for many drivers when looking for auto insurance. For many, two of the most important factors are handling of claims and how viable an insurer’s digital tools are. We’ve compiled app ratings from the App Store and Google Play Store, along with insurance claims satisfaction scores the 2023 J.D. Power Auto Claims Satisfaction Study Data under AARP is from The Hartford app and J.D. Power rating, and we have included ratings for three of AAA’s largest auto clubs that were included in the study.
AARP/The Hartford | AAA | |
---|---|---|
App Store | 3.7 out of 5 | 4.6 out of 5 |
Google Play Store | 2.7 out of 5 | 4.5 out of 5 |
J.D. Power | 877 / 1,000 | Automobile Club Group: 848/1,000,CSAA Insurance Group: 874/1,000,Auto Club of Southern California Insurance Group: 889/1,000 |
Frequently Asked Questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 18-21 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Bankrate Scores
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
5
Rating: 5 stars out of 5
Overall Score
Cost & ratings50%
Coverage & savings30%
Support20%
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.
Joshua Cox-Steib has two years of experience in writing for insurance domains such as Bankrate, Coverage.com, The Simple Dollar, Reviews.com, and more. His work has also been featured on such sites as MSN and BBB (Better Business Bureau). His insurance writing career has spanned across multiple product lines, with a primary focus on auto insurance, life insurance, and home insurance.
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