AAA, formally known as the American Automobile Association, is another top auto insurance company, positioned as the 11th-largest provider by market share. The company was founded in 1902 and similar to USAA, has eligibility requirements for its insurance offerings. While membership is available to anyone, only those in the states the company operates in have access. AAA offers memberships at annual fees between $59-$119 based on your selected plan. As part of the association, members gain access to the company’s insurance options as well as several other benefits, such as savings on rental vehicles. Bankrate assessed both of these insurers based on rates, coverage, discounts and features for drivers further interested in how USAA vs. AAA compares.

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  Bankrate Score methodology

   

   

USAA vs. AAA: comparison

Because both USAA and AAA are membership-based companies, you may be wondering how either of their offerings stack up against each other. While each company has its strengths and weaknesses, comparing their pros and cons side-by-side may provide a clearer picture of which carrier best suits your individual needs.

USAA pros and cons

Pros

• Unique military-geared discounts
• Average policy rates are below the national average
• Consistently high-scoring in J.D. Power auto insurance customer satisfaction studies

Cons

• Coverage not available to civilians who are not immediate family of a military member or veteran
• No local agents available for members who prefer a direct agent experience
• Customer service is not available 24/7

AAA pros and cons

Pros

• Membership comes with additional benefits, such as vehicle rental discounts
• Regional clubs may have tailored coverage options
• Local agents available

Cons

• Coverage limited to the states AAA is available in
• Average rates are above the national average
• Membership comes at an annual fee

Is USAA cheaper than AAA?

To help drivers compare AAA vs. USAA, Bankrate’s insurance editorial team analyzed annual quoted premiums from Quadrant Information Services for each company across several driver profiles and situations. On average, USAA offers coverage at cheaper rates for both full and minimum coverage, coming in below the national average. On the other hand, AAA offers more expensive coverage with rates higher than both USAA and the national average for full and minimum coverage.

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  Car insurance rates methodology

   

   

USAA is generally cheaper for drivers with poor credit

On average, USAA offers coverage at a lower premium than the national average for drivers across all credit tiers. Average rates for AAA are unavailable, but it may be helpful to see how USAA compares to the national average. USAA policyholders with poor credit pay nearly $1,000 less for full coverage than the national average, for example. Keep in mind that four states do not permit insurers to use credit as rating factor: California, Hawaii, Massachusetts and Michigan.

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  Rates by credit score methodology

   

   

USAA is generally cheaper for young drivers

Young drivers typically face higher insurance premiums because of their lack of extensive driving history and increased likelihood of accidents and claims. While parents who are adding a teen driver to their policy will see increased premiums regardless of the company they choose, USAA has average rates significantly cheaper than AAA. For drivers in Hawaii or Massachusetts, age is not a contributing factor for rates.

USAA is generally cheaper for adult drivers

For adult drivers on their own policy, rate differences between USAA and AAA aren’t as steep across the different age groups, but USAA’s rates are still cheaper on average. Based on average premiums, 18 year old drivers on their own policy will see the biggest difference between the two providers, where AAA is nearly double the cost of USAA.

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  Rates by age methodology

   

   

USAA is generally cheaper for high-risk drivers

Drivers with one or more incidents on their driving record typically face higher insurance rates, and insurers may even categorize them as high risk. Based on average premium data collected, USAA policyholders pay significantly less for coverage after a single speeding ticket, at-fault accident or DUI conviction than AAA policyholders, although rate differences for those with a clean driving record are less drastic. Keep in mind that being labeled a high-risk driver by having multiple incidents on your record or even a single DUI conviction — the most serious driving offense — may make you ineligible for coverage from standard providers in some cases.

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  Rates by driving record methodology

   

   

USAA vs. AAA: discounts

Both USAA and AAA have robust discount offerings based on a strong commitment to their membership bases. AAA is perhaps best known for its discounts relating to roadside assistance and available trip planning tools, but there are other generous member discounts as well. USAA has several discounts aimed at savings for active military members.

USAA unique discounts

• Vehicle storage: Policyholders who are deployed or who choose to store their vehicles long-term for another reason could save up to 60 percent on their policy.
• Garaging a vehicle on base: Policyholders live and garage their vehicle on base could save up to 15 percent on comprehensive coverage.
• New car: Drivers with a car less than three years old could earn a discount on their policy due to the vehicle’s modern safety features.

AAA unique discounts

• AAA membership: Drivers could save up to 10 percent on their auto policy because of their AAA membership.
• Professional/association: Policyholders within certain professions or educational associations may receive an extra discount on their car insurance.
• Loyalty: Drivers who maintain their AAA auto insurance for more than a year may be eligible for a special loyalty discount.

Usage-based insurance comparison: USAA vs. AAA

Both USAA and AAA offer usage-based telematics insurance programs that policyholders can choose to participate in for potential discounts. Both USAA SafePilot and AAADrive track your driving habits and provide feedback on how safe you’re driving, as well as ways to improve.

USAA vs. AAA: customer experience comparison

USAA scores highly in the 2022 J.D. Power Auto Claims Customer Satisfaction Study, with 890 out of 1,000 points. AAA does not score as well in customer satisfaction, with a score of 847 out of 1,000 points, which is below the industry average of 873 and may indicate that its claim processing is lacking in some areas. However, both companies have highly-rated mobile apps in both the App Store and Google Play Store, with above-four-star ratings. In addition to insurance account and claims handling access, the USAA app also provides access to its banking and investment services while the AAA app provides access to other membership benefits like AAA Approved restaurants, hotels and auto repair centers.