Why Is AAA Insurance So Expensive? (Top 5 Reasons Explained)

Established in 1902 in Chicago, AAA stands for American Automobile Association in response to a lack of suitable roads and highways for automobiles.

Now, it provides insurances by several regional companies under the membership of the AAA club.

Being a member by a certain amount of subscription fee, you can enjoy its wide coverages and facilities.

Throughout the USA, there are a lot of AAA regional clubs composed of more than 50 business sectors offering a wide range of insurances including auto, home, and personal properties.

With several facilities such as roadside assistance, a strong financial record, high rating, and customer satisfaction, AAA insurance is one of the most distinguished and prominent agencies in the USA and Canada.

As a result, the price of this insurance is much more expensive and exorbitant. 

In the article, I’m here to explore some principal reasons that play a vital role in increasing the price of AAA insurance exceedingly.

Hence, go on with me and find out the causes. 

Why is AAA insurance so expensive?

There are so many reasons that can be responsible for the high price of AAA insurance.

Among them, some significant reasons are mentioned and discussed here which affect it extremely.

They are :

Facility

Facility, benefits, good

The leading reason for which AAA insurance is very expensive is its manifold facilities.

As the insurance contains auto insurance and homeowners insurance, both of them are remunerative.

They come with a huge area of coverage and adaptable benefits. 

In particular, AAA auto insurance primarily overwhelms bodily injury and property damage liability, collision, medical payments, uninsured or underinsured motorists, comprehensive, etc.

It also has some other coverages such as rental reimbursement, roadside assistance, and identity theft coverage.

Along with these, AAA roadside assistance offers these exclusive facilities including tire changes, fuel delivery, lockout services, towing services, winching and extraction, and valet.

Thus, AAA auto insurance is verily favorable for customers. 

What is more, AAA has a mobile app that includes so many features for users for easy instruction.

A user can pay the due through the app as well.

After that, AAA homeowners insurance also provides some noteworthy advantages although it is not widely known as auto insurance.

Nonetheless, it enrolls some coverages such as the structure and roof of the home, personal property, liability cases if someone gets injured inside the home.

Some AAA house insurance includes extended coverage that ensures valuable jewelry and other luxurious treasure. 

In addition, both of these insurances comprise discounts on occasion.

Therefore, considering their approach and movement, it is perceptible that AAA insurance includes so many coverages and offers multiple facilities.

As a result, the insurance is much more expensive and superfluous compared to some other common insurance agencies. 

Popularity

Popularity

Popularity is another dominant factor that has increased the price of AAA insurance.

This association stands for one of the most popular and referable insurance agencies in the USA, predominantly in North America.

Since its appearance in 1902, it has been gradually improving its acceptability and has become successful in its aim.

Now it is a popular and well-known organization among more than 60 million members in America and Canada. 

Apart from its various business sectors, insurance is one of the successful ones.

Roaming on the insurance group websites, it is seen that insurance customers are very happy and satisfied with their insurance.

They have given a lot of positive reviews and feedback about the activities of the insurance.

Thus, AAA insurance has become reliable to the customers and they depend on it.

As a result, insurance has gotten wide recognition.

Hence, the price is costly as a result of its popularity. 

Accurate Service

Responsible service

Customer service is a significant matter that can change the base of any organization.

Therefore, it should be considered with great attention.

And AAA is distinguished as the services of the insurance are much more genuine and meticulous.

It does excellent work regarding consumers’ demands.

Apart from all the services, the roadside assistance service is the most unique and praiseworthy service of AAA insurance. 

AAA cares for its customers affectionately.

The efficiency of AAA insurance is fairly noticeable in its activities.

Since it has some leading coverage, all of them are enacted sincerely.

Its car insurance costs for bodily injuries, death, or any kind of property damage when you get an accident.

It also ensures medical payments regardless of who is at fault.

Besides these services, the AAA club has planned some new and advanced services related to insurance.

It has been thought to provide extra cost for total loss replacement very soon.

Moreover, it has rideshare insurance for you during your ride.

Hence, AAA insurance is replete with accurate and outstanding services provided by the AAA association.

Consequently, it costs more than the average price tag of the other insurance agencies. 

Security

Security, safety

As AAA insurance is a very popular and recognized one in the US, it is so secure and reliable without any suspicion.

It confirms assistance and coverage with ingenuity.

The benefits and obligations composed by AAA are sure to be performed and executed.

The services are sincerely provided and the customer’s concern is earnestly considered.

All the costs of replacement, repair, and medical treatment are instantly delivered by the agency.

Therefore, you can rely upon AAA insurance without worry.

It has an A+ rating from the BB and an A rating from A.M.

Best indicating that its financial condition is secure, satisfying, and stable. 

And because of the security and reliability, AAA insurance is expensive and the price is somewhat extravagant. 

Limitation

Limitation, bound

AAA insurance is not available for everyone.

Only the members of the AAA club can have the facility to open AAA insurance.

Thus, membership is required to purchase AAA insurance.

To buy insurance, you must be a part of the AAA family.

As the AAA club works regionally around the states, you have to be a member of its regional club for being a partner with a minimum amount of subscription fee.

When you are a member of the club, you are capable of buying insurance.

Therefore, as AAA insurance is limited for some specific people, its insurance price is very outrageous. 

Frequently Asked Questions

How much does aaa insurance cost? 

How much does it cost to fix

Before having the facility of buying AAA insurance, one must be a member of the club by purchasing a membership with an annual fee.

The fee ranges from $40 to $200 according to age, gender, marital status, driving history, vehicle model, etc. 

If you become a member, then you can enjoy the insurance facility.

The cost of AAA insurance full coverage ranges from $1100 to $2000 annually, at an average of $1940 per year.

If you have an accident, you have to pay $500 at the end of the year.

Sometimes, you can get discounts on account of education, occupation, good driving record, pay-in-full, etc.

Is aaa insurance worth it?

worth it

If you are a frequent traveler by car, a roadside assistance plan has a beneficial meaning for you.

Accidents, damage, and injury are very common on highways.

Thus, if you have auto car insurance, you can have the cost of replacement, repair, and other services from a responsible agency.

In this way, AAA insurance is a very popular one in the USA.

Although it has a high price, it is worth it indeed because of its committed and reliable services.

Is aaa good insurance?

good

Yes. AAA insurance is not only a good insurance agency but also one of the best associations in America.

It has secured a prominent place among multiple agencies.

Its financial strength is excellent enough.

Its services are sincere and reliable.

It offers a good number of coverages and benefits in favor of consumers.

According to a different point of view, it gives some discounts for the extra convenience of its users.

Overall, the members get a wide range of facilities.

That is why customers are very satisfied with its amenities. 

Due to its reliability, it has gotten an A+ rating from the BBB, and an A rating from A.M. Best. 

Are aaa insurance rates competitive?

competitive

Yeah. AAA insurance rates are competitive.

Some other leading insurance agencies in America compete with AAA in terms of their rates, facilities, coverages, and other services.

Among them, Geico is one of the prominent competitors of AAA insurance.

The rate of Geico ranges from $1000 to $1500 regarding different factors.

There are even some insurance agencies that have more rates than AAA.

Particularly, the Hartford insurance costs nearly $2200, and Farmers insurance $2050.

Besides these, some other notable competitors of AAA insurance are Travelers, Progressive, State Farm, Metlife, Nationwide, and so on. 

What is the difference between AAA and AAA Plus?

Difference

AAA and AAA Plus are two types of insurance provided by AAA clubs or associations.

AAA is the bottom membership product that has an excellent service in roadside assistance providing safety, security, and savings.

It cares for customers to keep their minds peaceful and serene during driving.

On the contrary, AAA Plus is another Classic Membership Product that expands its services for the members who aspire to an enormous level of coverage. 

Which is better AAA or AARP Roadside Assistance?

What, asking anything, reason

With accurate customer service and stable financial records, AARP and AAA are two kinds of insurance provided by The Hartford and AAA club respectively.

AARP stands for American Association of Retired Persons and its insurance can be purchased by the partnership of Hartford.

Between them, AAA roadside assistance is much more advantageous regarding some issues such as coverages and discounts, shopping experience, claims to process, and overall customer satisfaction.

While AAA is superior in coverages, discounts, and customer satisfaction to AARP, the latter one is better in claims processing.

Moreover, AARP is more expensive than AAA.

In short, AAA roadside assistance is better than AARP. 

How to save money on AAA insurance?

save money

Apparently, AAA insurance is very expensive for common people.

But you can save money on AAA insurance by maintaining some strategies.

Most prominently, you can grab the discounts provided by it.

AAA Insurance offers various discounts in different fields such as education, occupation, good student, safe driver, Onboard discount, Low-mileage discount, Loyalty discount, Multi-policy discount, and so on.

Besides, if you pay the full payment, you can get %7 discounts on your annual premium.

Moreover, when you have AAA auto insurance, you will get 25 percent discounts on AAA homeowners insurance. 

There are more options for you to save money on AAA insurance.

By signing up for the program, you can have up to %5 save.

Apart from these, if you can bring your family under the AAA insurance umbrella, then you will earn a %10 discount. 

Is there a senior discount for AAA membership?

discounts for various purpose

No, AAA membership has no official discount for seniors.

If you want to save money, you can have some other membership discounts given by AAA.

If you enable auto-renewal on your membership, you will get a %5 discount.

Besides, when you refer to a friend, you will earn 20 dollars from AAA.

Moreover, if you give someone an AAA membership, you will also get 20 dollars as a reward. 

Why is aaa car insurance so expensive?

car insurance

AAA car insurance is very expensive because of its multiple advantages.

It offers various discounts, Loan or lease gap coverage, and a robust mobile app.

Besides, it also has a great range of coverages including liability coverage, bodily injury, collision, vehicle injury, damages, medical payments, etc.

Moreover, it delivers some other additional coverages such as total loss replacement, gap insurance, exterior repair option, rideshare coverage, and so on.

For this reason, AAA car insurance is so expensive. 

How can you save money on your AAA car insurance?

save money on something

Apart from all other saving options from AAA insurance, you have some ways to save money on car insurance.

Most prominently, having a good driving record and proficiency in driving is the key to get a mentionable discount and save money on AAA car insurance.

Besides, you can take the advantage of Multi-Car Discounts from the insurance.

Some other noteworthy ways of saving money are:

  1. Taking a defensive driving course.
  2. Using mass transit. 
  3. Improving your deductibles. 
  4. Flourishing your credit rating. 
  5. Earning discounts on installing Anti-Theft Devices. 

Why is aaa home insurance so expensive?

home insurance

AAA home insurance is another kind of insurance provided by the AAA association.

Like auto and car insurance along with other insurances, AAA homeowners insurance is also very expensive.

The primary reasons are its wide level of coverage, benefits, and discounts.

It includes liability coverage on the structure and roof of the house, damages, and injuries.

It also ensures personal property as well as precious treasures.

Thus, you can enjoy some other extra facilities for an additional fee. 

Final Lines: 

In the long run, it can be mentioned that AAA insurance is very helpful and favorable although it seems to be very expensive to some users.

Considering its versatile facilities and coverages, it is reliable and secure.

Moreover, it has become a prominent agency in the USA due to its precise services and wide popularity.

On account of these factors, AAA insurance is reasonably expensive.

Since it has limited members by subscription, its price is again exorbitant.