AARP vs. AAA | The bank rate
In 1984, The Hartford became the exclusive auto and home insurance provider for members of the American Association of Retired Persons (AARP). Hartford was founded in 1810 and according to market data for 2020 released by the National Association of Insurance Commissioners (NAIC), Hartford is the 19th largest auto insurer in the country. AARP is a particular favorite among seniors.
AAA auto insurance is only available to AAA members at various clubs across the country. Two of these AAA clubs were listed in the 2020 NAIC market share survey at locations 11 and 20, together accounting for 2.16% of the overall US market. AAA was established in 1902 in related club formats by early car enthusiasts. Today it is one of the most famous auto insurers for, among other things, its roadside assistance and travel planning for its members.
AARP vs AAA: Comparison of Auto Insurance Rates
These two major member-based auto insurers have similar rankings in reporting groups. AARP has a modest lead in financial strength and a favorable customer satisfaction rating from JD Power. While AAA has a lower full and minimum average annual premium than AARP, close attention to the many discounts available through AARP is likely to lead to competitive options with The Hartford as well.
|Auto insurance company||Bank rate score||AM Best Financial Stability Rating||JD Power Customer Satisfaction Score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|AARP||3.8||A +||888/1000||$ 754||$ 2,270|
|AAA||3.8||A-||858/1000||$ 602||$ 1,990|
Rates by credit score
Most states allow auto insurers to use driver credit scores in drafting and pricing auto insurance policies. A number of states restrict this practice, however, including California, Hawaii, Maryland, and Massachusetts. AARP is more forgiving than AAA in increasing premiums on average for drivers with bad credit, while AAA imposes a higher average cost on those with bad credit scores.
|Auto insurance company||Poor||Average||Good||Excellent|
|AARP||$ 2,507||$ 2,450||$ 2,270||$ 2,432|
|AAA||$ 3,706||$ 2,146||$ 2,003||$ 1,645|
Rates by age
The AARP and AAA take age into account when determining premiums. The result is consistent with the industry’s general belief that teenagers are the most at-risk drivers on the road. Once a driver turns 25, premiums tend to level off for subsequent years.
|Auto insurance company||Age 16 *||18 years old||25 years||30 years||40 years||60 years|
|AARP||$ 1,864||$ 5,802||$ 3,112||$ 2,816||$ 2,270||$ 2,134|
|AAA||$ 3,210||$ 5,446||$ 2,317||$ 2,034||$ 2,003||$ 1,808|
* Cost for 16 year olds when added to parent policy
Rates per driving record
The graph below illustrates the dramatic impact that accidents and serious traffic violations can have on car insurance premiums. AARP and AAA premiums increase significantly with more serious offenses, especially with a DUI on a driver’s record. The very high cost of an AARP policy in this situation makes this coverage prohibitive for most drivers with a DUI conviction on their records.
|Auto insurance company||Clean driving record||Speeding||Accident||DUI conviction|
|AARP||$ 2,270||$ 3,715||$ 5,010||$ 8,697|
|AAA||$ 1,990||$ 2,947||$ 3,057||$ 5,613|
AARP vs AAA: reductions
AARP offers a number of benefits and discounts exclusively for its senior membership base. AAA also caters to its members with many discounts and perks that go beyond auto insurance, including a strong focus on helping members with travel plans and reservations. Both companies offer many options to improve the affordability of policies through discounts.
- Vehicle discounts: This is for safety functions such as anti-lock brakes or more than one airbag; efficiency and environmental improvements with hybrid or electric cars.
- Driver training discounts: This category includes discounts for defensive driving lessons and some training for young drivers.
- Grouping: You can get a discount for buying home and auto insurance with AARP.
- Loyalty discount: This discount is intended for policyholders who are constantly renewing their automobile insurance policies.
- Companion discount: This is a reduction for the combination of home and auto insurance with AAA.
- Discounts on multiple vehicles: Insuring more than one vehicle with AAA can save money.
AARP vs AAA: comparison of online and mobile experience
AARP receives high marks for the overall customer experience with a popular mobile app, the Hartford App. Secure with a fingerprint login, the Hartford app allows members to quickly organize roadside assistance and submit complaints. It is rated 4 out of 5 on iTunes and 3.9 out of 5 on Google Play.
AAA Mobile extends the reach of its members beyond policy management. AAA Mobile offers travel, accommodation, and entertainment options to help AAA members create detailed plans for daily shopping, vacations, and errands. On Apple and Google, it is rated 4.2 out of 5.
Frequently Asked Questions
What are the best auto insurance companies?
There is no one best auto insurance company for everyone. As individual needs, age, driving history, and other factors vary, so does the best transporter to meet those needs. The right approach is to seek advice and get quotes from some of the best auto insurers and compare to find the one that’s best for your situation.
How can I find affordable coverage with a bad driving record?
There are auto insurance companies that can offer more affordable coverage than others in these circumstances. It pays to research the market and ask questions directly about this challenge, as well as find out how best to improve your driving record. Most auto insurance companies will advise you on other discounts available that can help offset a bad driving history.
Does Cheap Auto Insurance Offer Inadequate Coverage?
Not necessarily. There are a host of factors that determine the cost of auto insurance, including driver characteristics, vehicle history, location, and discounts, to name a few. Thorough research for the best policy and the best price by comparing a number of quotes will help you find the most affordable policy to meet your needs.
Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states and Washington, DC Rates shown are based on a 40 year old male and female driver with a clean driving record , good credit and the following. coverage limits:
- $ 100,000 of civil liability per person
- Civil liability of $ 300,000 per accident
- Liability for property damage of $ 50,000 per accident
- $ 100,000 of uninsured bodily injury by a motorist per person
- $ 300,000 in uninsured bodily injury by a motorist per accident
- $ 500 collision deductible
- Full $ 500 deductible
To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our basic profile drivers own a 2019 Toyota Camry, commute five days a week, and cover 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
Credit: The rates have been calculated based on the following insurance credit levels assigned to our drivers: “poor, average, good (basic) and excellent”. Insurance credit levels are factored into your official credit scores, but are not solely dependent on this variable. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA
Age: The rates were calculated by evaluating our basic profile with 18-60 year olds (base: 40 years old) applied.
Incident: The rates were calculated by evaluating our baseline profile with the following incidents applied: blank (baseline) record, at-fault accident, single speeding ticket, single DUI conviction, and lapse of coverage.