What Does AAA Insurance Stand For?

What Does AAA Insurance Stand For?
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What Does AAA Insurance Stand For?

What is the meaning of AAA insurance? AAA stands for “American Automobile Association.” It is a private, non-profit automobile club serving North America, and anyone can join for a nominal fee. The organization originated in 1902, initially providing maps, hotel guides, and driving curricula for high school students. Presently, it boasts over 1000 venues, including restaurants, hotels, and lodges.

AAA operates through various auto groups across the country to offer automobile insurance. The Auto Club of SoCal serves numerous states such as Alabama, California, and Texas. The Automobile Club Group covers states like Florida, Michigan, and Tennessee. Meanwhile, CSAA Insurance Group extends its services to states including California, Colorado, and New York. However, availability may vary by region, and if AAA insurance isn’t available locally, affiliated clubs might offer coverage through partner providers.


As for coverage options, AAA’s offerings differ based on location due to collaboration with multiple insurance organizations. Nevertheless, basic coverage options are typically available across the board. Some regions may also offer additional, more specialized coverage options. To determine the precise coverage available in your area, it’s advisable to consult with a local AAA representative.

Common coverage types provided by AAA insurance include:

  • Bodily Injury Liability
  • Property Damage Liability
  • Collision Coverage
  • Comprehensive Coverage
  • Uninsured and Underinsured Motorist Coverage
  • Personal Injury Protection
  • GAP Insurance
  • Rental Reimbursement
  • Rental Car Insurance
  • Non-owners Insurance
  • Pet Coverage
  • Accident Forgiveness
  • OEM Exterior Repair

These coverages cater to various needs such as medical expenses, property damage, rental car expenses, and specialized services like pet coverage or OEM exterior repair.


AAA Automobile Insurance Rates

Auto insurance costs with AAA can vary significantly based on your location, as AAA operates as a federation of auto clubs, each tailored to specific states. Generally, AAA offers competitive rates compared to other major insurance companies. According to WalletHub, here are the average annual rates for several prominent insurers compared to AAA:

  • State Farm: $1337
  • Progressive: $985
  • Geico: $1060
  • AAA: $961

AAA’s rates remain affordable across all age groups, with 55-year-olds enjoying the lowest monthly premiums and 18-year-olds facing the highest. Here’s a breakdown of monthly charges by age group for AAA:

  • 18 years old: $143
  • 21 years old: $75
  • 45 years old: $48
  • 55 years old: $45
  • 65 years old: $51

AAA insurance offers various discounts to further reduce insurance costs. Motor1 found that switching to AAA saved drivers an average of $749. Discount offerings vary by state but include:

  • Membership tenure: Discounts based on the duration of AAA membership.
  • Safety inspection: Discount for allowing AAA to evaluate your vehicle.
  • AAADrive or AAA OnBoard: Mobile apps that reward safe driving habits.
  • Safe Driver: Up to 20% discount for completing an approved defensive driving course.
  • Multiple Car: Up to 27% reduction for insuring multiple vehicles.
  • Bundling: Savings when combining auto with other insurance policies.
  • Pay-in-full: Reduced cost for paying the entire year upfront.
  • Paperless billing: Discount for opting for electronic billing.
  • Loyalty: 5% discount after one year with AAA.
  • Safety features: Discounts for vehicles equipped with safety features.
  • Homeownership: Up to 37% savings on auto insurance for homeowners.
  • New Car: 30% savings for AAA policyholders with cars less than three years old.
  • Professional: 7% discount for certain professions like scientists, doctors, engineers, CPAs, or professors.

Having served customers for over a century, AAA Insurance continues to offer quality auto insurance. You can obtain a free online quote today from the original American Automobile Association.



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