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Is car insurance from the AAA or car insurance from the USAA better? You must always carefully consider what sort of coverage you are trying to buy when selecting an insurance provider. To get the best price, the best way to find a new company is to get quotes from all the big companies.

Often, though, paying a little extra cash is worth it.

USAA has a long and established history in this nation that gives it the edge when acquiring new customers. Perhaps their lack of a proper marketing strategy is the most profound thing about USAA. Since they gain clients on a word-of-mouth or inheritance basis, you seldom see a USAA ad on TV. USAA auto insurance is also only applicable to those who have served in the military and their families or are currently serving in it.

USAA was such a hegemonic and well-established company that, from the early 1900s onwards, it dominated home and auto insurance. This has not stopped USAA from updating its policies or rates, and they have an updated website and a robust e-marketing campaign in the works.

Typically, USAA has more robust policies than AAA insurance. However, when it comes to auto insurance, AAA still has an overall higher consumer satisfaction score, which is possibly a roadside assistance program.

AAA car insurance origins

On March 4, 1902, 1,500 members from 9, automobile clubs across the country founded the American Automobile Association (AAA) in Chicago. The AAA launched driver safety services in the early 1920s and later included roadside assistance and automobile insurance. Their interests were focused on helping car owners, and their power lies in a committed dedication to customer service. The AAA Company is a group of 69 different automobile clubs throughout the country, while AAA Auto Insurance seems like a single brand. They all travel under AAA's flag, but they're controlled by regions locally.

USAA car insurance origins

A party of officers in the U.S. in 1922, In response to being refused auto insurance because of being perceived as too big a risk, the Army created USAA. USAA has since expanded to provide for all U.S. service personnel and their families. To drive direct sales, USAA relies more on word of mouth. Like big insurance firms, they don't use mass ads. Instead, their primary form of advertisement has been direct response marketing. Initially, the primary form of contact was mail. USAA relied on the 800 number from 1978 to 1999.

USAA is only open to the armed forces. If you're only searching for the minimum premium to satisfy your state's auto insurance requirements, then USAA will save you more cash.

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AAA vs USAA: Credit score

You might want to choose USAA if you have poor credit. For those that have a credit score that is 580 or lower, USAA continues to provide higher insurance rates compared to AAA. On the other hand, if you have excellent credit, then the better choice is USAA. For drivers who have good credit, USAA consistently beats AAA by almost $2000 annually.

Credit level USAA annual premium AAA annual premium
Very Poor $2683 $6562
Fair $1245 $4020
Good $1056 $3729
Very Good $912 $3006
Exceptional $848 $2815

AAA vs USAA: Rates post driving violation

USAA would probably be your best choice for situations such as a reckless-driving, at-fault crash, or a DUI. Different auto insurance firms deal differently with infractions.

Violation USAA premium AAA premium
At-Fault Accident (❮ $1,000 in Damages) $1306 $4076
At-Fault Accident (❯ $1,000 in Damages) $947 $4000
DWI/DUI $1951 $5537
Reckless Driving $1475 $5535
Speeding ticket $1128 $4074

AAA vs USAA: Rates by age

Your age is one significant factor that defines your car insurance premium. Charges for young drivers are typically more costly and are most affordable for 25 or older consumers. If you're a teen driver, then the best choice is possibly USAA. You will save over $7000 a year easily.

Age bracket USAA premium AAA premium
Teens $2866 $10252
20s $1267 $4645
30s $960 $4649
40s $956 $3190
50s $882 $3081
60s $848 $2884

For both the Auto Club (AAA) and USAA, affordability, add-ons, discount schemes, financial security, and client satisfaction vary. Before buying a policy, you'll want to compare these aspects of each company.

USAA vs AAA car insurance: Additional discounts

USAA has many discounts offered. There is a discount for cars with daytime running lights, storage vehicles, and a discount for members under 25 with USAA car insurance from their parents.

As well as a garage parking discount, AAA provides a variety of incentive schemes for members.

USAA roadside assistance vs AAA roadside assistance

You may want to choose AAA for automobile insurance when it comes to AAA insurance versus the well-established USAA. AAA has a long history of customer loyalty and has a popular roadside assistance service with car insurance policies. The roadside assistance service of the USAA is not quite as reliable and has over the years had a lot of concerns.

Both firms provide a broad range of full-coverage plans and everything in between. USAA is a well-established corporation with a proven track record. USAA, like AAA, has branches all over the U.S. AAA usually provides decent auto insurance options at lower premiums and offers a roadside assistance service based on membership.

All of USAA's Extended Vehicle Safety plans come with 24-hour roadside assistance, but the price will differ from plan to plan. The service pays $100 per example due to a flat tire repair, towing service, locksmith service, battery jump, and emergency gas delivery. Up to $250 per instance would be covered for replacement transportation and up to $300 reimbursement for travel/lodging.

AAA provides three levels of roadside assistance; Premier, Plus, and Classic. Battery service, towing, emergency starting, locksmith service, winching service, and fuel delivery comprise all three plans. The membership, not your vehicle, protect you, but you can use the facility, whether you're in a friend's car, your own, or a rental. You can use four roadside assistance service calls a year, as long as you're a cardholder.

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AAA vs USAA: Which is better for you?

Still, both businesses have very competitive car insurance rates. That said, even with only a limited number of car insurance discounts, USAA insurance rates appear to be some of the lowest in the country. The restriction is that USAA Auto Insurance is limited to military members, spouses, and many other individuals. This limitation also prevents many drives from benefiting from the well-known customer service USAA.

Although USAA and AAA are highly regarded car insurance companies, the possibility of comparing car insurance rates for drivers should never be limited to only two companies. Many national insurance providers, such as Amica Mutual, State Farm, Auto-Owners Insurance, and even more local car insurance companies, have competitive rates for outstanding customer service. While you eventually select AAA or USAA as a car insurance provider, always try to compare at least 5 or 6 businesses before making a decision. You should look at what other businesses also have to say before you narrow down to only USAA and AAA. Shop around to find the best auto insurance rates, and you might end up saving more than $100 annually.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with

Frequently Asked Questions

Is AAA better than USAA?

USAA performs higher than AAA in the following areas: coverage & incentives, financial power, pricing & promotions, and satisfaction & consumer service with claims. However, on Financial Stability, AAA scores higher.

Is USAA really cheaper?

USAA is the cheapest of the national companies we have researched, with an estimated total study cost of $885 for automobile insurance.

What service is better than AAA?

Progressive and USAA are a couple of insurance services that provide a better service than AAA.

Does AAA have a military discount?

For all service veterans, both past and present, most AAA military discounts are eligible. This involves Air Force, Army, Navy, Marines, and Coast Guard members who participate in Active Duty, Reserve, or National Guard. Veterans and former military members will usually have access to it.

Why is AAA insurance so expensive?

Your final premium is dependent on several variables, such as your driving record, history of insurance, the type of vehicle you drive, and more, and all insurance providers will not provide the same rate.

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