Our take

AAA Insurance has lower than average rates and almost all its customers say they would renew their policies with the insurer. It ranks sixth overall in the Insure.com Best Life Insurance Companies rankings with a 2.9 star rating out of a possible 5 stars.

AAA is owned by some of the larger groups in the AAA organization, which is best known for its emergency roadside assistance.

When surveyed by Insure.com, 80% of policyholders said they were happy with its customer service and 73% said AAA is trustworthy. 

Below is Insure.com’s review of the company. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.

AAA Ratings

Ranked No. 6 Overall

Overall Rating: 2.9

Ease of service: 4.2

NAIC: 1.39

Customer Satisfaction: 4.0

AM Best Rating: A

Pros and Cons

How AAA scores on customer satisfaction

Eight out of 10 AAA customers surveyed gave the company high marks for customer satisfaction. The company did better than many companies in this category, but a few scored higher. State Farm led this category among the companies we ranked.

How much does AAA cost?

Term life insurance offers coverage for 10-40 years and tends to be the cheapest type of life insurance coverage. Insure.com used premiums collected by CompuLife to evaluate AAA’s term life offerings. 

AAA’s term life insurance rates are on par with most other insurers evaluated in the Insure.com survey. Most insurers provided coverage for under $500 a year for 35-year-old non-smokers purchasing $500,000 in coverage for a 20-year term, and AAA falls in that category with an average annual premium of $473. While it’s not the cheapest insurer, it’s also not the most expensive.

The industry average annual premium is $481. Compared to the annual average premiums of life insurers surveyed by Insure.com, AAA rates are about 2% lower.

How AAA scores on ease of service

For ease of service – a metric that looks at how easy it is for customers to access services –  83% of AAA customers gave it a high mark, which put it solidly in the middle of the companies we ranked. State Farm led this category.

How AAA scores on policy offerings

Consumers typically want a company to offer a broad range of policies so that they can find the one that fits their needs. In the survey, 78% of AAA customers said they were satisfied or highly satisfied with AAA’s policy offerings. State Farm came out on top in this category.

How trustworthy is AAA?

Policyholders should be able to trust their insurer — a life insurance policy protects their family’s financial health, after all. Almost three-quarters of AAA’s customers rank it high in this category. State Farm is the most trusted of the surveyed companies. In many cases, 70% to 80% of an insurers’ customers said they trusted their insurer.

Do AAA customers plan to renew?

Loyal customers tend to stick with their insurer year after year. 

In all, 98% of AAA customers say they would renew their policy. That’s a high ranking, but it’s worth noting that many other companies scored 100% in this category.

AAA life product details

• Term life insurance
• Whole life insurance
• Universal life insurance

Other services offered

• Accident insurance
• Annuities

Company background

AAA Insurance became a part of the American Automobile Association family in 1969. It offers both life insurance products and annuities and is headquartered in Livonia, Michigan.

Today, there are more than 1.5 million active policies in force. It has an AM Best rating of A.

Resources & Methodology