

Verdict
State Farm offers cheaper policies for the average driver, while AAA receives fewer customer complaints. Both companies have similar ratings for customer satisfaction — though AAA’s are slightly higher — and offer similar types of additional coverage.
State Farm is cheaper for drivers in more states than AAA and tends to be more affordable for drivers with special circumstances, like poor credit, tickets, accidents and DUIs.
State Farm is good for drivers looking for affordable insurance coverage, especially if they have negative marks on their driving record.
AAA is good for customers looking for an insurer with excellent customer service and high customer satisfaction.
Is State Farm or AAA Cheaper Overall?
State Farm offers cheaper car insurance policies than AAA overall, with an average annual cost of $1,235. AAA costs an average of $1,412. However, rates can vary based on several different factors. The state you live in is particularly important, as are driver characteristics like age, driving record and credit score.
The above quotes are based on a sample driver with a safe driving record, a full coverage policy and 100/300/100 liability limits. You can use the MoneyGeek auto insurance cost calculator to get a personalized quote based on your driving record, age, coverage details and more.
Is State Farm or AAA Cheaper in Your State?
State Farm is cheaper than AAA in more states. Because the average cost of car insurance rates can be very different at a state and national level, be sure to compare insurers on a state-by-state basis, not just nationally.
Of the 11 states MoneyGeek has sample rates for both companies, State Farm is cheaper than AAA in eight, and AAA is cheaper than State Farm in three.
State Farm writes policies in all 50 states and Washington, D.C. AAA policies are issued by separate regional insurance companies, so you should check to make sure that AAA auto insurance is available in your area.
Average Cost Per State
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- StateState Farm Annual PremiumAAA Annual Premium
- Alabama$1,235Not Available
- Alaska$954Not Available
- Arizona$1,253Not Available
- Arkansas$1,012$1,456
- California$1,526$1,319
- Colorado$1,158Not Available
- Connecticut$1,324Not Available
- District Of Columbia$1,161Not Available
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Is State Farm or AAA Cheaper for Your Age and Driving History?
Besides location, other factors like age, credit score, and driving history can all influence the cost of your car insurance policy. State Farm tends to be less expensive for drivers across the board, including drivers with tickets, accidents, and DUIs, and drivers with poor credit.
- State Farm is cheaper for a driver with a ticket.
- State Farm is cheaper for a driver with an at-fault accident.
- State Farm is cheaper for a driver with a DUI.
- State Farm is cheaper for a driver with poor credit.
However, just because State Farm tends to be cheaper on average doesn’t mean that it will be cheaper for you. Be sure to get a personalized quote from both insurers to determine who has the better rates for your situation.
Average Car Insurance Rates by Driver Profile
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- Driver ProfileState Farm Annual PremiumAAA Annual Premium
- 18-Year-Old Student$3,083Not Available
- Driver With a Ticket$1,360$2,039
- Driver With an Accident$1,434$2,115
- Driver With a DUI$2,222$3,974
- Driver With Poor Credit$2,531$3,474
State Farm vs. AAA: Which Is Better for Discounts?
Insurance companies typically offer similar discounts, so when comparing discount options between two insurers, it’s a good idea to focus on how much you’ll save overall. Typically, the most significant types of discounts are home and auto bundle discounts and behavior and usage-based discounts. Overall, State Farm has better discounts for both bundling and usage. Our analysis shows State Farm as one of the cheapest home and auto insurance companies as well.
State Farm offers up to 25% off for customers that bundle home and auto policies. AAA also offers discounts for bundling home and auto, which can vary depending on your circumstances. State Farm also has a great behavior-based discount for their Drive Safe & Save program of up to 50%. AAA offers a behavior discount, but the amount can vary depending on your location.
Available Discount by Company
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- DiscountAvailable With State Farm?Available With AAA?
- Safe driving✔
- Defensive driving✔
- Good student✔
- Driver's education✔
- Distant student✔
- New vehicle✔
- Air bag✔
- Anti-theft system✔✔
State Farm vs. AAA: Which Has Better Customer Service?
MoneyGeek measures customer experience based on how satisfied customers are, according to J.D. Power, and how often they lodge complaints tracked by the National Association of Insurance Commissioners (NAIC). The best car insurance companies have high customer satisfaction and few complaints.
AAA has a better rating when it comes to customer complaints and a slightly higher customer satisfaction rating, making it the winner in this category.
State Farm vs. AAA: Customer Satisfaction Rating
AAA receives more points from J.D. Power for customer satisfaction with a score of 842 out of 1,000. However, State Farm isn’t far behind, with a score of 837. AAA gets high scores for estimation of process, repair process and claims servicing.


State Farm vs. AAA: Customer Complaint Ratio
AAA has a lower complaint ratio than State Farm according to the NAIC — .58 compared to 1.28. The average score across all insurers is 1, so anything higher means a company receives fewer than average complaints. AAA’s score means it receives nearly half the complaints of the average provider and generally does an excellent job of keeping its customers happy.
State Farm
AAA
State Farm vs. AAA: Coverage Options
All car insurance companies offer standard types of coverage like liability insurance, comprehensive and collision insurance, uninsured motorist insurance and personal injury protection. However, some auto insurance providers offer additional types of coverage, like accident forgiveness and roadside assistance.
Overall, State Farm and AAA are about equal when it comes to additional coverage options. Both companies offer roadside assistance, rental car and travel coverage. Additionally, State Farm has rideshare insurance, and AAA has identity theft coverage. The best company in this category will vary depending on your specific needs.
Coverage Options by Company
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- CoverageAvailable With State Farm?Available With AAA?
- Rental Car and/or Travel Reimbursement✔✔
- Roadside Assistance✔✔
- Rideshare Insurance✔
- Identity Theft Coverage✔
State Farm vs. AAA: Which Is More Financially Stable?
With an A++ AM Best rating, State Farm has a slightly higher stability score than AAA’s A score. However, both companies are very stable. Financial stability is an essential factor to consider when choosing an insurance company since it can affect an insurer’s ability to pay out when you file a claim.
State Farm vs. AAA: Online Tools
Both AAA and State Farm offer a variety of online tools. State Farm has a slight edge for online tools, with a mobile app and an easy online quote process. Because AAA is administered by a variety of regional clubs around the country, its online tools are less centralized and consistent from state to state.
Methodology
Data on car insurance rates comparing State Farm and AAA are for a 40-year-old male with a full coverage car insurance policy, unless otherwise noted. The policy includes:
- $100,000 on bodily injury liability insurance per person
- $300,000 on bodily injury liability insurance per accident
- $100,000 on property damage liability insurance per person
- Comprehensive and collision insurance with a $1,000 deductible
To evaluate available coverages, discounts and online tools, MoneyGeek collected information from insurer websites and quote tools. To score insurance companies on customer satisfaction and customer complaints, MoneyGeek referenced publicly available data from J.D. Power and the National Association of Insurance Commissioners (NAIC). Financial stability was measured using financial strength ratings from A.M. Best, a leading insurance credit rating agency.
About Margaret Wack

sources
- State Farm. "Browse Nearby Insurance Agents in Your State." Accessed October 8, 2021.
- State Farm. "Have Drive Safe & Save™ Questions? We've Got Answers." Accessed October 8, 2021.
- State Farm. "Auto, Life Insurance, Banking, and More. Get a Free Quote." Accessed September 30, 2021.