Pssst! I want to let you in on a big secret in the insurance industry. It’s a common misconception that finding affordable insurance to suit your unique needs is a tough process. The secret that most carriers and agents don’t want you to know is this: it is surprisingly simple to find the best company for you! I’ve started a series of reviews to help you in your research. If you have any questions, leave them in the comments below or give me a call today!
|Company Name:||INTERINSURANCE EXCHANGE
OF THE AUTOMOBILE CLUB
|Address:||3333 FAIRVIEW ROAD
COSTA MESA, CA 92626
|California Company ID #:||0392-1|
|Date Authorized in California:||10/01/1912|
|Company Type:||Property & Casualty|
|State of Domicile:||CALIFORNIA|
AAA: An Overview
The American Automobile Association, also known as AAA, was founded on March 4, 1902 in Chicago, Illinois.
Roughly 1500 members across nine motor clubs in the Chicagoland area established AAA as a response to a lack of suitable roads and highways for automobiles. Two years later, the company merged with the American Motor League, the very first motor club in the United States.
The company began printing road maps in 1905 and, throughout the decades, established several traffic and pedestrian safety foundations. Of the many programs the company pioneered, arguably the most influential was the 1935 Sportsmanlike Driving publication, which provided a curriculum for modern driver’s education courses.
AAA was also a key player in assisting the United States on the home front during World War II, monitoring tire and gasoline rationing and cooperating with the Red Cross to establish a driver training program for veterans with artificial limbs.
AAA’s history of providing roadside assistance and travel services have made them a go-to for motorists in need of assistance, although the company has since expanded to offer other products, such as:
- Term, whole and universal life insurance options
- Flood insurance
- Home Insurance
- Pet health insurance
- Medical Insurance
- RV Insurance
- Renter’s insurance
AAA: Pros and Cons
Because AAA is a federation of motor clubs, a membership is necessary. These membership dues vary, depending on the level of membership: Classic, Plus or Premier.
A membership with AAA does come with its perks, including:
- An A+ rating from the Better Business Bureau
- M. Best rating of A-
- 10% discount at AAA-approved repair shops
- Towing to the nearest gas station or repair shop
- Discounts on car rentals, hotels and more
- Access to travel agents
|One-stop shopping for a variety of insurance products.||Not known for competitive pricing.|
|Personal service from local agents.||Average customer satisfaction for auto insurance claims.|
|Auto quoting tool shows rates from major competitors.||Does not offer its own homeowners or renters insurance.|
|Allstate’s Rewards program offers merchandise, gift cards and more for good drivers.||Customer service does not stand out.|
The perks and benefits of membership also vary depending on the level of membership you purchase. While these perks – which include discount programs – are all great reasons to consider AAA, there are a few downsides to AAA policies.
For example, the roadside service options available through AAA might also be available through your car insurance company. The prices might be more competitive through your insurance company, as well. Additionally, using roadside assistance options too frequently might increase your car insurance rates.
One upside to choosing AAA is access to a well-designed, user-friendly website that allows policyholders to pay their memberships and premiums, manage accounts and provides access to resources and information on AAA’s extensive driving programs.
Discounts and Deals
Here’s the thing about discounts and deals offered through AAA: they aren’t necessarily what you may think.
With normal insurance companies, you can earn discounts for being a safe driver, for bundling your policies and may be eligible for cheaper service options by using approved repair shops or companies.
AAA works a bit differently. Instant AAA discounts extend beyond the usual, to discounts at restaurants, entertainment deals, attraction discounts and discounts for shopping, travel and automotive needs.
|Discount Description||Discount Amount|
|Airbag Discount||Up to 10.5%|
|Anti-Theft Devices||Up to 8.3%|
|Drivers Training||Up to 4.7%|
|Good Student||Up to 14.3%|
|Group Program Credit||Up to 9.3%|
|Mature Driver Course||Up to 1.8%|
|Multi–Car||Up to 27.3%|
|Multi-Policy Credit||Up to 15.6%|
|Persistency Credit||Up to 5.6%|
Additionally, the company offers something called AAA Dollars. AAA Dollars help pay toward membership renewal. Whenever a member purchases something online or in select stores, or dines out at certain restaurants with an AAA Membership Card, the AAA are automatically applied to an AAA member account. In this way, the discounts and deals offered by AAA work more like those offered by a credit card company.
In addition to the above, members may be eligible for discounts on prescriptions with a prescription savings card.
One possible downside to choosing this type of insurance is the $16 enrollment fee first-time members are required to pay on top of their regular membership costs.
AAA Complaint Information
Like other companies, AAA comes with a mixed bag of reviews. Across the board, the company deserves its stellar reputation for providing roadside assistance to members.
to be without Merit.
The negative reviews run the gambit, but most seem to point to poor customer service. A few of these complaints reported in Consumer affairs detail mysterious increases in the costs of the service, as well as the timeliness of the roadside assistance services.
According to life insurance reviews, customer complains mostly addressed the lack of options available and smaller policy sizes.
How Does AAA Compare to Other Insurance Companies?
See how AAA compares to other top insurance providers in California:
State Farm ranks among the top 10 property, casualty and life insurance companies in the US and ... Read Review
|$837||Rated 4 stars|
Compared to big name insurers like Allstate and State Farm, which have over 80 years under their ... Read Review
|$814||Rated 4 stars|
AAA’s history of providing roadside assistance and travel services have made them a go-to for ... Read Review
|$687||Rated 3.5 stars|
Allstate serves over 16 million people, and is best known for its auto insurance options. The ... Read Review
|$812||Rated 3.5 stars|
Infinity currently clocks in as the third largest provider of “nonstandard” car insurance ... Read Review
|$1012||Rated 3 stars|
If you are a driver with poor credit, a spotty driving record or a history of suspended/revoked ... Read Review
|$594||Rated 2.5 stars|
Farmers has become a household name and carries with it a good reputation. The company has an A.M. ... Read Review
|$973||Rated 2.5 stars|
AAA has been assisting motorists for over a century, and the customer reviews generally reinforce AAA’s status as a top company for roadside assistance.
For your auto, home and other insurance needs, you may want to consider other options, depending on your needs. Prior to purchasing a AAA policy, you should be sure to ask how much your coverage will cost, if there is a limit to the free service calls you can make with your membership and if you will need to purchase any additional coverage in order to be eligible for roadside assistance.
Sometimes it helps to have an expert by your side when asking these questions, so that you can see how this coverage option stacks up to other available options.
If you are looking for comprehensive roadside assistance and a rewards program, then AAA is a good option for you; however, you may want to turn to other companies for more traditional insurance offerings.
Give me a call today to see how I can help you determine if AAA is right for you.
High Average Cost
Summary: AAA’s history of providing roadside assistance and travel services have made them a go-to for motorists in need of assistance, although the company has since expanded to offer other products, such as…