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AAA Insurance Review 2016

Credit Sesame

From travel insurance in Texas to life coverage in California, AAA has a wide range of products on offer. Many people know AAA for its emergency breakdown assistance, but the federation of motor clubs also has a comprehensive catalog of insurance products. AAA insurance is a collection of branded products, with home and auto insurance provided by various companies in different territories, and life insurance underwritten by AAA Life Insurance Company.

AAA Life Insurance Company Overview

The American Automobile Association founded AAA Life Insurance Company in 1969. It’s now the 61st largest life insurance company based on direct premiums.

Credit Rating

When you’re taking out any kind of insurance, it’s reassuring to know the company you’re using has the financial strength to remain in business. A good indicator of financial strength is the company’s credit rating. AAA Life Insurance Company has a rating of A- (excellent) with A.M. Best.

BBB Accreditation

AAA isn’t accredited by the Council of Better Business Bureaus, where it holds a B rating on a scale of A+ to F. Accreditation is voluntary, so the lack of accreditation may not reflect poorly on a company.

NAIC Complaints

The number of complaints a company generates indicates whether consumers feel that the company acts in a fair manner. The recent complaint trend report for AAA Life Insurance Company is available on the National Association of Insurance Commissioners (NAIC) website.

YearTotal ComplaintsPercentage Change
20152082%
20141122%
20139-

Note that state insurance departments voluntarily supply data for the NAIC. Not all states provide data, so the database doesn’t hold a complete record of all filed complaints. Information is for reference only and shouldn’t be the sole basis for making a decision.

AAA Auto Insurance

Adequate insurance for your vehicle is essential. Although liability insurance is mandatory, you may also wish to purchase collision coverage and comprehensive coverage so you’re protected against everything from a traffic accident to the theft of your vehicle. It’s easy to compare auto insurance quotes using an online tool to find out whether AAA car insurance is the right choice for you.

Cover Options

  • Liability
  • Collision
  • Comprehensive
  • Pet protection

Advantages

  • AAA member discounts
  • Discounts based on education, occupation, driver history and more
  • Additional coverage options for tailoring your policy
  • Variable deductible for collision and comprehensive cover

AAA Motorcycle Insurance

AAA offers insurance for recreational vehicles, including motorcycles, ATVs, snowmobiles and golf carts. Options include liability, comprehensive and collision coverage. Discounts are available for having more than one specialty vehicle on the same policy.

AAA Life Insurance

AAA offers whole life insurance, which, as its name states, covers your whole life span and does pay out as long as you pay your premiums in full. Another option is term life insurance, which runs for a fixed period and pays no benefit if you outlive the term. AAA also provides annuities. It’s simple to get an instant online AAA insurance quote for term life coverage. For other types of insurance, you simply complete an online form, and an agent contacts you with a quote.

Advantages

  • AAA member discounts
  • Some policies are available without a medical exam
  • Some products accept online applications

Disadvantages

  • Whole life insurance has maximum benefits of $25,000
  • Large term life insurance products require a medical exam

Complaint Ratio

According to figures from the NAIC, AAA’s life insurance has a complaint ratio that is below the national median of 1, although the ratio has increased year on year since 2013.

YearRatio
20150.57
20140.43
20130.38

The complaint ratio is the company’s U.S. Market Share of closed complaints compared to the company’s U.S. Market Share of premiums for a specific policy type. A value lower than 1 indicates the company receives relatively few complaints for its size.

AAA Home Insurance

AAA homeowners insurance covers your home, garage and outbuilding against direct physical losses. AAA auto insurance customers, and customers with new homes and enhanced security features that reduce the risk of making insurance claims, are eligible for discounts. Enhanced coverage options are available, with additional products for condo owners and renters.

AAA Renters Insurance

Renters insurance protects your personal possessions that don’t fall under your landlord’s building insurance. Discounts are available for existing AAA insurance customers and AAA members, with additional benefits for renters with qualified alarms and fire extinguishers.

AAA Health Insurance

AAA’s medical insurance products include long-term care, major medical, individual and family health, medicare supplement, and travel and international medical. It’s easy to learn which products suit your age, lifestyle and budget by consulting with an AAA agent.

Complaint Ratio

AAA’s complaint ratio for health insurance policies is significantly higher than the national median of 1. The ratio almost doubled from 2014 to 2015:

YearRatio
20152.62
20141.4
20131.45

Other Types of Insurance Provided by AAA

AAA offers many other products, such as AAA travel insurance. These policies are often underwritten by insurance partners, such as Allianz Global Assistance and New Hampshire Insurance Company. Additional products that may be available include:

  • Flood insurance
  • Small business insurance
  • Watercraft insurance
  • Personal umbrella

Summary

AAA furnishes a range of insurance products covering everything from homes to vehicles. Purchasing several different types of insurance often qualifies you for a discount, and having all of your policies in one place makes it easier to manage them. With many other insurers providing competitive products, AAA may not be the ideal choice for you based on your lifestyle, budget and personal requirements. Take time to research the options before committing to any purchase.

You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved.
Published September 7, 2016
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