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Yahoo Finance Plus AAA vs. Allstate
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AAA and Allstate have long-standing reputations as top car insurance companies in the industry. Founded in 1902, AAA has multiple regional club divisions across the country, offering both home and auto insurance policies. Although membership to the Auto Club may be required before you can buy car insurance, membership may also provide other services and benefits.
Allstate was founded in 1931 in Northbrook, Illinois. It is currently the third-largest auto carrier by market share. Allstate offers a full suite of insurance products, which may allow consumers to meet numerous insurance needs with just one company. Coverage is available in every state, but product availability may vary.
AAA | Allstate | |
|---|---|---|
Bankrate score | 2.9 | 3.8 |
Tier 1 | 2.5 | 3.5 |
Tier 2 | 2.5 | 4.0 |
Tier 3 | 4.7 | 4.3 |
Bankrate Scores
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
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Our verdict
AAA and Allstate score similarly in terms of customer service when considering claims satisfaction scores and mobile app ratings. While Allstate is often cheaper, on average, there are several categories where AAA offers lower average premiums. AAA offers robust roadside assistance coverage, but other coverage options and discounts may vary by region. Both carriers may appeal to shoppers with teen drivers on their policy as they both offer driver education resources and potential discounts for young drivers.
AAA vs. Allstate comparison
When comparing AAA and Allstate, Bankrate’s insurance editorial team looked at more than just price. We analyzed each carrier holistically by evaluating customer satisfaction scores from J.D. Power, financial strength ratings from AM Best, coverage options, available discounts, digital tools and more. Below you can see some of the key pros and cons we identified for each carrier.
AAA pros and cons
Pros | Cons |
|---|---|
Regional clubs may have area-specific coverage options | May require membership for coverage |
Allstate pros and cons
Pros | Cons |
|---|---|
Offers multiple programs and discounts for potential savings | Has fewer add-on coverage options compared to many large carriers |
Is AAA cheaper than Allstate?
Based on average rate data from Quadrant Information Services, AAA offers an average full coverage rate that is slightly lower than Allstate’s. However, Allstate is cheaper, on average, for minimum coverage. Both carriers’ full coverage rates are higher than the national average of $2,014 per year, and AAA’s average rate is higher than the national minimum coverage average of $622 per year.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
|---|---|---|
AAA | $2,562 | $681 |
Allstate | $2,630 | $545 |
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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Allstate is generally cheaper for drivers with poor credit
Your credit history can affect your auto insurance rates unless you reside in Massachusetts, Michigan, California or Hawaii, where carriers are barred from setting car insurance premiums based on credit history. Based on average rate data, AAA may be cheaper for drivers with good or excellent credit, but Allstate may be the cheaper choice for drivers with average or poor credit scores.
Credit Score | AAA | Allstate |
|---|---|---|
Poor | $5,470 | $3,496 |
Average | $2,822 | $2,731 |
Good | $2,562 | $2,630 |
Excellent | $2,162 | $2,440 |
Credit score methodology
Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
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Allstate is generally cheaper for young drivers
Younger drivers tend to pay higher car insurance premiums as they have less experience behind the wheel and are more likely to engage in risky driving behavior. If you insure a young driver on your car insurance policy, you may find cheaper rates with Allstate. Both Allstate and AAA offer driver training programs for teens which may help reduce their accident risk. If you live in Hawaii or Massachusetts, carriers are not allowed to consider your age when calculating your auto insurance premium, but Massachusetts does allow companies to consider the number of years you’ve been licensed for.
AAA | Allstate | |
|---|---|---|
$5,339 | $4,461 | |
$4,932 | $4,267 | |
$4,640 | $4,184 | |
$4,197 | $3,997 | |
$4,008 | $3,888 |
*Rates are for drivers added to their parents’ policy with full coverage
AAA is generally cheaper for adult drivers
If you’re an older driver on your own policy, you might find cheaper car insurance rates with AAA. Although rates are close, AAA tends to edge out Allstate based on average rate data. However, your personal auto insurance rates are based on a wide variety of factors, so comparing quotes may show you which carrier is actually cheaper for your personal circumstances.
AAA | Allstate | |
|---|---|---|
Age 18 | $6,706 | $7,089 |
$3,067 | $3,188 | |
$2,620 | $2,641 | |
$2,562 | $2,630 | |
$2,246 | $2,376 |
Age and gender methodology
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.
Teens: Rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married parents’ policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
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Allstate is generally cheaper for high-risk drivers
Your driving record is one of the key metrics considered by companies when determining your auto insurance rate. Safe drivers typically see some of the lowest average rates, while tickets and accidents tend to raise your rates. Serious infractions, like DUIs or multiple speeding tickets, may result in very high rates or even a nonrenewal. Based on average rates, Allstate tends to be cheaper for high-risk drivers, especially those with a DUI conviction. Some carriers may refuse coverage to drivers with a DUI conviction, so you may need to check with a company about their coverage policy for high-risk drivers.
AAA | Allstate | |
|---|---|---|
Clean driving record | $2,562 | $2,630 |
$3,131 | $3,123 | |
$3,717 | $3,397 | |
$5,569 | $3,817 |
Driving record methodology
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
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AAA vs. Allstate: discounts
Most car insurance companies offer at least a few discounts, although the quantity and type may vary drastically between providers. Below are some of the more notable discounts from AAA and Allstate.
AAA unique discounts
TeenSmart: Teen drivers may be able to sign up for an online driver-training program that helps young drivers learn more about defensive driving, pass an online course and save on car insurance.
Good student: Students with a 3.0 GPA or higher might earn a discount.
AAA membership: AAA members may be eligible to save up to 10 percent on their policies.
Education and occupation: Certain educational credentials or employment types may earn you a discount.
Allstate unique discounts
New car: If you are the first owner of a brand new car, you may earn a discount on your insurance.
Early signing: Policyholders who buy insurance from Allstate at least seven days before the effective date of the policy may save.
Good student: Like AAA, Allstate offers a potential discount for students with high GPA who complete the TeenSmart driver education program.
Safe Driving Bonus: Although not technically a discount, Allstate may reward policyholders with a check for every six months without an accident.
Usage-based insurance comparison: AAA vs Allstate
Both AAA and Allstate offer usage-based car insurance options. These telematics programs use real-time data from your driving patterns to determine things like how safely and far you drive. Below, we’ve compared the AAADrive and Allstate Drivewise programs.
AAADrive | Allstate Drivewise | |
|---|---|---|
Telematics device | App | App and in-car device |
Monitored driving factors | Acceleration, speed, braking, phone use, distance, time of day, route traveled | Time of day, speed, braking, distance, idle time, location |
Potential impact on rates | Decrease | Decrease |
Potential discount | Up to 30% | Not specified, but rewards points may be used for travel, magazines, gift cards and more |
Availability | Not available in all states/not specified | In all states except for New York |
AAA vs. Allstate: customer experience comparison
These two companies have strikingly similar ratings for customer experiences. Both AAA and Allstate scored above the industry average for customer satisfaction in the J.D. Power 2022 Auto Claims Satisfaction Study. Allstate scored exactly one point lower than AAA. Both companies also offer well-rated mobile apps to help customers manage policies and claims. It may be important to note that policyholders’ experience with AAA may vary greatly based on the regional club they belong to. For more context, you may want to speak with a policyholder in your area.
AAA | Allstate | |
|---|---|---|
Apple store | 4.5 out of 5 | 4.8 out of 5 |
Google play | 4.4 out of 5 | 3.9 out of 5 |
J.D. Power | 890 / 1,000 | 889 / 1,000 |
Frequently asked questions
AAA or Allstate: Which company is best for you?
The best car insurance company can vary by driver and situation. Depending on the types of coverage you need, the rates you’re willing to pay and the perks you want from your insurer, there may be several different contenders for the best car insurance company. When choosing between companies, it may help to outline what company characteristics are most important to you and compare quotes from carriers that meet your needs.
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How does Allstate’s Roadside Advantage Plan compare to AAA’s roadside plan?
Allstate and AAA’s roadside assistance plans include benefits for towing services, lockout service, fuel delivery, tire change and jump starts. Allstate’s Roadside advantage plan comes with additional features, like trip interruption and road hazard benefits, but AAA offers winching, mobile battery service testing and minor auto repairs on-site. AAA is well-known in the industry for top-notch roadside assistance, but Allstate’s program may be just as beneficial, depending on your area. Speaking with current policyholders may help you decide what roadside assistance program is most robust in your region.
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Do AAA and Allstate both offer homeowners insurance?
Yes, both AAA and Allstate sell homeowners insurance policies. With AAA, policy options and underwriting will vary by region and club. AAA home insurance availability may vary by state. Allstate advertises coverage in every state, although coverage options may vary.
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