AAA vs. State Farm: Home Insurance Comparison

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Updated: May 22, 2024

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AAA and State Farm are among the most affordable, financially stable and customer-friendly insurance companies in the United States. They tied for customer satisfaction, but AAA is slightly more affordable, while State Farm scored better for stability.

AAA charges $2,889 annually for 500K in dwelling coverage, while State Farm charges $5,666 annually. Factors like customer satisfaction, coverages, discounts and availability should also be considered.

Read on to learn more about how these two companies compare overall.

Comparison Overview: AAA vs. State Farm

The table below summarizes AAA and State Farm’s scores for different categories to help you compare both companies' home insurance.

Our analysis found that State Farm and AAA have comparable overall MoneyGeek scores, but State Farm ranks higher. Both companies tied for customer service, but AAA ranks higher for affordability.

State Farm is more financially stable and has a wider reach in terms of the number of available states. Additionally, it provides more add-on coverage and discount options.

State Farm

Total Score












Average Annual Premium



MoneyGeek ranked companies based on nationally recognized data from leading consumer reporting agencies, including J.D. Power for customer service, AM Best for financial stability and Quadrant Information Services for affordability. Learn more.

Which Company Is Cheaper Overall?

MoneyGeek’s analysis of insurance quotes from both insurance companies found that AAA is cheaper than State Farm. On average, AAA charges $1,762 per year for home insurance, while State Farm home insurance costs around $2,138 per year.

Average Annual Homeowners Insurance Premium of AAA vs. State Farm


Average Annual Premium

State Farm

Average Annual Premium

State Farm’s homeowners insurance costs on average: $2,138:$376 more

This is 21% more expensive.

While home insurance companies consider various factors when calculating your premiums, the major factors that could affect your premium costs are your dwelling coverage amount and your home’s location.

Which Company Is Cheaper Based on Dwelling Coverage Amount?

Your selected dwelling coverage amount affects your home insurance cost. MoneyGeek recommends that you calculate your dwelling needs, which includes the cost of rebuilding your home after a disaster.

MoneyGeek data shows that AAA is cheaper than State Farm for all dwelling coverage amounts, ranging from $100K up to $3 million. Use the table below to evaluate the impact of dwelling coverage on the cost of homeowners insurance.

Average Premiums for AAA vs. State Farm
State FarmDwelling Coverage Amount$100,000Average Annual Premium$1,917
AAADwelling Coverage Amount$100,000Average Annual Premium$698
AAADwelling Coverage Amount$250,000Average Annual Premium$1,602
State FarmDwelling Coverage Amount$250,000Average Annual Premium$2,427
AAADwelling Coverage Amount$500,000Average Annual Premium$2,889
State FarmDwelling Coverage Amount$500,000Average Annual Premium$5,666
AAADwelling Coverage Amount$750,000Average Annual Premium$4,391

How Much Does Each Company Cost by State?

The cost of homeowner's insurance can differ from state to state. State Farm’s cheapest premiums are in Rhode Island at around $765 annually, while it is the most expensive in Texas at around $3,994 annually. AAA policies are most affordable in California, costing approximately $1,656, but it is the most expensive in Oklahoma at around $4,456.

MoneyGeek's table below can help you determine the cost of AAA and State Farm policies in various states.

Average Premiums for AAA Vs. State Farm
State FarmStateAKAverage Annual Premium$1,176
State FarmStateALAverage Annual Premium$1,482
State FarmStateARAverage Annual Premium$1,680
AAAStateAZAverage Annual Premium$2,205

Which Company Has Better Customer Service?

While most homeowners focus on the cost of home insurance, a company’s service quality is also important. Companies with good customer service pay claims faster and respond to customers’ inquiries efficiently.

MoneyGeek analysis of AAA and State Farm found that both companies are equal in terms of customer satisfaction. However, data from AM Best shows that State Farm has a slight edge over AAA in terms of financial stability, while AAA rewards its policyholders with cheaper premiums.

AAA vs. State Farm: Customer Service Scores
State Farm

MoneyGeek Score



Satisfaction Score



Stability Score



Affordability Score



Optional Coverages Offered by AAA vs. State Farm

In addition to the standard homeowner's insurance coverages such as dwelling coverage, personal property coverage and liability coverage, AAA and State Farm offer a variety of optional coverages that provide added protection for you and your home.

State Farm offers 12 add-on coverages, while AAA offers only four optional coverages. Depending on the company, the policy and your location, the availability of these coverages may vary.

State Farm

Sewer backup coverage
Covers the cost of
water damage from
a sump pump,
drain or sewer overflow.

Identity theft coverage

Covers some of the
costs incurred due to
identity theft or fraud.

Extended reimbursement

Extends your limits for
certain coverages.

Scheduled personal property coverage

Covers the cost of
valuable items like
jewelry, furs, fine art, etc.

Building ordinance or law coverage

Covers the cost to
rebuild or upgrade a
home so that it
meets the most up-to-date
building codes after a
covered loss.

AAA offers some coverages that are not offered by State Farm, like extended reimbursement and flood. These can help you expand your dwelling coverage and protect you financially in case of a flood.

State Farm also offers add-on coverage options not available with AAA, including sewer backup, identity theft, building ordinance or law, mold, loss assessment, energy efficient upgrade, home systems, service line, home rental and vacancy coverage. The variety of these options gives homeowners more ways to customize their policies.

We found this data by reviewing each insurer’s website. They may have a wider range of coverages not advertised.

Discounts Offered by AAA vs. State Farm

Discounts are an important factor to consider when choosing an insurance provider. They help lower the overall cost of insurance coverage, making it more affordable. AAA wins in this category as it offers more discounts on home insurance than State Farm.

State Farm

Protective device discount

Discount for having
theft or fire protection
devices, such as alarms
or sprinklers.

Insurance bundling discount

Discount for bundling
your homeowners insurance
policy with another product,
like auto insurance.

Claims-free discount

Discount for going
several years without
filing a claim.

New home discount

Discount for homes that
have been recently constructed.

Home renovation discount

Discount for homes that
have been recently renovated.

AAA offers a senior discount that is not offered by State Farm. This can be beneficial for older homeowners who want to save money on their premiums. State Farm does not offer any advertised discounts that homeowners would not also be able to get from AAA.

MoneyGeek collected this data manually by checking each of the company’s websites. Both companies may have other discounts that are not advertised or that vary from state to state.

How Much Could Your Homeowners Insurance Premium Cost?

If you are still unsure if AAA or State Farm is better for you, researching homeowners insurance companies is wise. Keep in mind that the cost of homeowners insurance can vary depending on factors such as how much it would cost to repair.

If you want to get an estimate of your premium, MoneyGeek’s homeowners insurance cost calculator to help.

Home Insurance

MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — it’s free, no personal information required, no spam.


Rates updated:

Jul 15, 2024

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About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.