AAA vs. State Farm: Which Is Best? (2025)
State Farm’s high customer satisfaction, financial strength, and quality coverage options earn it an Insurify Quality (IQ) Score of 9.3 out of 10.
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Written bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Edited byKatie Powers
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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Table of contents
Two different companies you can consider when looking for quality auto insurance are the American Automobile Association (AAA) and State Farm.
AAA is a not-for-profit organization offering roadside assistance to its members. The company doesn’t underwrite insurance and instead partners with regional auto insurance partners like CSAA.
State Farm is the largest auto insurance company in the United States by market share. The company offers many insurance products in addition to car insurance, like home and property insurance and life insurance.
When shopping for car insurance policies, it’s a good idea to compare rates, coverage options, and discounts to find the best plan for your needs.
Quick Facts
AAA and State Farm advertise the same number of available discounts.
State Farm is available across the U.S.
AAA coverage varies by region.
AAA vs. State Farm: The verdict
AAA isn’t a car insurance company and doesn’t offer insurance directly, so rates, discounts, and coverage depend on the regional insurance partner. State Farm, on the other hand, is one of the largest auto insurance companies in the U.S. and may be a better choice for people looking for more coverage options, including rideshare insurance.
But if you’re looking for gap insurance, you’ll have to choose AAA, because State Farm doesn’t offer this protection. Both State Farm and one of AAA’s regional insurers CSAA have much cheaper average rates than the national average, but State Farm’s rates are the cheapest between the two.
Both insurance companies score high for customer satisfaction, with State Farm and some of AAA’s regional insurers consistently ranking in the top 10. And the different companies each offer about the same amount of discounts, although options vary slightly.
Factor  | AAA | State Farm |
|---|---|---|
| IQ Score | 8.5 | 9.3 |
| J.D. Power customer satisfaction score | 820 out of 1,000 | 833 out of 1,000 |
| Average quote: liability only | $129 | $56 |
| Number of available discounts | 10 | 10 |
| Number of states where it operates | 24 | 50 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
- Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
- Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
- Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
- Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
- Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
AAA
AAA uses regional partners to offer insurance, so customer satisfaction can vary depending on the insurance company. Though some of AAA’s regional insurers consistently rank in the top 10 for customer satisfaction.
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 666 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | NR |
Best For
Best For
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
666NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.28A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NRWhy we picked this company
The American Automobile Association (AAA) is a members-only organization known for roadside assistance — the not-for-profit company partners with regional insurance companies to offer auto insurance coverage. You must have an AAA membership to qualify for coverage, but AAA doesn’t underwrite its policies.
AAA membership perks include travel discounts, extensive roadside help, and access to exclusive DMV locations. But membership perks aren’t a selling point for AAA insurance since you can become a member without buying insurance coverage.
Pros
Unique membership perks
Standard extra coverage
High customer satisfaction
Cons
Can’t choose a company
Must buy membership
Different coverage based on location
State Farm
State Farm has the largest market share for private passenger auto policies, according to the National Association of Insurance Commissioners (NAIC). The company ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power 2023 U.S. Auto Insurance Study.[1]
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $56/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $108/mo |
4.1
Best choiceBased on 12,985 verified guest reviews and ratings
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (6,633)
James
Verified Review
Rising Prices
Reviewed in Florida on December 2025
They are fairly good at communicating, but raising prices twice this year—15% last February and 25% this December—is ridiculous. The only explanation is that it's across the board.
Nancy
Verified Review
Too High
Reviewed in Tennessee on December 2025
Too high. I have car and home insurance with State Farm. I'm 77 years old and pay a mortgage. No accidents, only drive once or twice a week.
Andrew
Verified Review
Insurance Should Cost Less
Reviewed in New York on December 2025
Customer service is excellent. Insurance premiums are better than average, but not as low as they should be.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.
Pros
High rates of customer satisfaction
Rideshare insurance available
Savings for bundling auto with home, renters, condo, or life insurance
Cons
No gap insurance offering
May not be the cheapest choice for drivers with violations
Accident forgiveness limited to longtime customers with clean driving records
AAA SMARTtrek vs. State Farm Drive Safe & Save
Both AAA and Start Farm offer safe driving apps. People who have AAA insurance can download SMARTtrek to their smartphone and save up to 10% off their initial policy term, but discounts vary by state.[2]
State Farm’s Drive Safe & Save telematics mobile app works in a similar manner but can save you up to 30%. The company will adjust your discount every renewal period. People who drive eligible 2020 or newer Ford or Lincoln vehicles can also use their car’s built-in technology to connect to Drive Safe & Save.[3]
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AAA vs. State Farm: Which is the cheapest?
AAA average car insurance costs representative of all regional insurers aren’t available at this time, but CSAA policyholders pay $129 per month for liability coverage and $183 for full-coverage insurance.
State Farm offers cheaper average monthly rates of $56 for liability and $108 for full coverage. Rates from both CSAA and State Farm can vary based on factors like your age, location, ZIP code, driving history, vehicle type, and credit history.
When checking to see which company has the most competitive rates, it’s also a good idea to keep national average auto insurance rates in mind. On average, U.S. drivers pay $99 per month for liability coverage and $176 for full-coverage insurance.
State Farm: Cheapest for drivers with a clean driving record
People with clean driving records typically earn the lowest average rates. Compare liability quotes from CSAA and State Farm below.
Driver Type | CSAA | State Farm |
|---|---|---|
| Clean driving record | $129 | $56 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for drivers with a speeding ticket
Drivers with one or more past speeding tickets will typically face increased insurance rates.
Driver Type | CSAA | State Farm |
|---|---|---|
| Drivers with a speeding ticket | $166 | $71 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for teen drivers
Due to a lack of driving experience and increased risk of accidents, young drivers usually face the most expensive rates by driver age.
Driver Type | CSAA | State Farm |
|---|---|---|
| 18-year-old | $196 | $114 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for drivers with bad credit
Drivers with poor credit can expect higher car insurance rates in the states that allow insurers to consider credit-based insurance scores.
Driver Type | CSAA | State Farm |
|---|---|---|
| Drivers with bad credit | $148 | $90 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for senior drivers
Before turning 70, senior drivers face some of the lowest car insurance rates by driver age.
Driver Type | CSAA | State Farm |
|---|---|---|
| Senior drivers | $94 | $40 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Compare coverages: AAA vs. State Farm
AAA and State Farm offer liability coverage, which most states require. When you file a claim, liability insurance can include coverage for bodily injury and property damage to help pay for the other party’s medical expenses or property repairs. Personal injury protection (PIP) can also help cover medical expenses regardless of fault.[4]
With both AAA and State Farm, you can add collision coverage, which can help you repair your car after an accident, no matter who caused the accident. For even more protection, you can add comprehensive coverage to your insurance policy to cover events not related to a car accident, like fire, flood, or theft.
Here’s a closer look at how some extra coverage options compare between AAA and State Farm.
Coverage | AAA | State Farm |
|---|---|---|
| Gap insurance | Yes | No |
| Replacement cost | Yes | No |
| Rental reimbursement | Yes | Yes |
| Travel expenses | No | Yes |
| Medical payments | Yes | Yes |
| Rideshare coverage | No | Yes |
| Emergency road service | Yes | Yes |
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Compare discounts: AAA vs. State Farm
AAA and State Farm offer about the same amount of discounts, but options vary. For example, with AAA you can save just for being a loyal customer, and State Farm offers discounts for having an anti-theft device. Neither company has military discounts available.
Here are the different available discounts from AAA and State Farm.
Discount | AAA | State Farm |
|---|---|---|
| Clean driving record | Yes | Yes |
| Defensive driving course | Yes | Yes |
| Multi-policy | Yes | Yes |
| Multi-car | Yes | Yes |
| Low mileage | No | No |
| Telematics (safe driving app) | Yes | Yes |
| Anti-theft device | No | Yes |
| New car | No | No |
| Military | No | No |
| Good student | Yes | Yes |
| Loyalty | Yes | No |
| Auto pay | No | Yes |
| Student away at school | Yes | Yes |
| Homeowner | Yes | Yes |
| Alternative fuel | No | No |
AAA vs. State Farm FAQs
If you’re comparing car insurance from AAA and State Farm to find the best car insurance company for your needs, you should consider the information below to make an informed decision.
Which company is State Farm’s biggest competitor?
State Farm is the largest insurance company, according to the NAIC. Some of its biggest competitors include other national auto insurers like Progressive, Allstate, Liberty Mutual, and GEICO.
What is the downside of AAA?
AAA uses regional insurance partners to provide auto insurance coverage to its members, so auto insurance rates, coverage options, discounts, and customer service can vary depending on where you live.
Does AAA or State Farm have higher customer satisfaction?
State Farm consistently ranks highly among insurance providers for customer satisfaction, but many of AAA’s insurance partners are, too. To check AAA’s customer satisfaction rankings, you’ll have to know which regional partner underwrites your plan.
What are the differences between AAA and State Farm in terms of insurance policies?
AAA and State Farm insurance policies differ in a few ways, including availability, coverage options, and discounts. For example, State Farm offers coverage nationally, while AAA sells coverage through regional insurance companies. With AAA, you can get gap insurance, but State Farm doesn’t offer this coverage. State Farm provides discounts for anti-theft devices, but AAA rewards loyal customers.
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Sources
- J.D. Power. "Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds."
- CSAA Insurance. "AAA Insurance with SMARTtrek."
- State Farm. "Be rewarded with Drive Safe & Save discounts."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
)
Sarah Archambault
Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare.
Sarah has been a contributor at Insurify since December 2022.
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.