AAA vs Travelers
The American Automobile Association (AAA) was founded in 1902 and provides auto and homeowners insurance policies as well as roadside assistance and driver education materials. Insurance policies for AAA members are underwritten by different companies depending on the region and AAA club.
Travelers Insurance issued the first auto insurance policy in the U.S. in 1898. Travelers remains one of the largest auto insurance carriers in the country, holding 2 percent of the market share. Travelers offers a wide range of insurance products, with some specialty coverage options like gap insurance and new car replacement.
AAA | Travelers | |
|---|---|---|
Bankrate score | 2.9 | 4.0 |
Tier 1 | 2.5 | 3.8 |
Tier 2 | 2.5 | 4.0 |
Tier 3 | 4.7 | 4.6 |
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
Both AAA and Travelers offer a range of auto insurance products that are available in most states. That said, Travelers does tend to have lower average rates and may include more coverage options depending on which AAA club you are in. Still, Travelers has a somewhat more limited range of coverage than AAA does as a whole.
AAA vs Travelers comparison
When comparing AAA vs. Travelers, it may be helpful to consider the pros and cons of each. Below, we compare some key perks and drawbacks of each carrier.
AAA pros and cons
Pros | Cons |
|---|---|
Extra perks and discounts may be available to members | Membership is required for some services and discounts |
Travelers pros and cons
Pros | Cons |
|---|---|
Extensive potential policy customization options | Not available in every state |
Is AAA cheaper than Travelers?
Travelers offers cheaper average premiums than AAA for full and minimum coverage, according to 2023 rate data provided by Quadrant Information Services. Average rates may help you determine which carrier could offer you cheap rates, but actual rates vary by individual and may vary greatly based on several factors including driving record, vehicle type, location and more.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
|---|---|---|
AAA | $2,562 | $681 |
Travelers | $1,551 | $495 |
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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Travelers is generally cheaper for drivers with poor credit
In most states, credit-based insurance scores are often incorporated into auto insurance underwriting to help insurers determine potential risk levels for drivers. California, Hawaii, Massachusetts and Michigan all forbid the use of credit ratings by insurance companies.
Credit Score | AAA | Travelers |
|---|---|---|
Poor | $5,470 | $2,423 |
Average | $5,470 | $1,672 |
Good | $2,562 | $1,551 |
Excellent | $2,162 | $1,374 |
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 as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
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Travelers is generally cheaper for young drivers
Along with your credit score, insurance carriers in most states may also determine your rates based on your age. Certain age groups are considered riskier to insure than others — especially teenagers and senior citizens. Teen drivers have a car accident rate roughly four times the rate of other age groups. For this reason, teenage drivers will usually pay much higher rates. The following table outlines how rates from AAA and Travelers compare for young drivers. These rates are full coverage premiums for young drivers on their parents’ policy.
AAA | Travelers | |
|---|---|---|
$5,339 | $3,813 | |
$4,932 | $3,300 | |
$4,640 | $2,936 | |
$4,197 | $2,493 | |
$4,008 | $2,388 |
Travelers is generally cheaper for adult drivers
As drivers age, they tend to see progressively cheaper auto insurance rates until their 60s. Below are annual average rates for full coverage policies from AAA and Travelers across various age groups. Rates are for adults on their own policy.
AAA | Travelers | |
|---|---|---|
Age 18 | $6,706 | $5,932 |
$3,067 | $1,765 | |
$2,620 | $1,647 | |
$2,562 | $1,551 | |
$2,246 | $1,407 |
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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Travelers is generally cheaper for high-risk drivers
Your driving record is one of the most significant factors that may affect your insurance premium. Traffic violations, like speeding tickets and at-fault accidents, are penalized differently by different providers, with more serious infractions typically resulting in more severe penalties. The table below illustrates how average rates differ between AAA and Travelers after different infractions. Depending on the violation, insurers may not offer coverage. For instance, insurers may refuse to cover drivers with DUIs on their records. Rates listed for violations do not guarantee that that company will offer coverage to a high-risk driver.
AAA | Travelers | |
|---|---|---|
Clean driving record | $2,562 | $1,551 |
$3,131 | $2,019 | |
$3,717 | $2,149 | |
$5,569 | $3,038 |
Rates were calculated by evaluating our 2023 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 Travelers: discounts
AAA and Travelers both offer several potential discounts for policyholders, although available AAA discounts may vary widely by club. Both carriers advertise bundling discounts for buying multiple policies from the same company, and both offer variations of safe driver and good student discounts. We’ve highlighted some of the more unique discounts from each carrier that may help you save on your premium.
AAA unique discounts
Multi-vehicle discount: By insuring two or more vehicles with AAA auto insurance, you might save on your premium.
Multi-policy discount: Carrying more than one policy with AAA, like auto, home, life or watercraft insurance, could save you money on your car insurance premium.
Good student discount: Students who maintain a “B” average or higher may save on select auto insurance coverage through AAA.
AAA membership discount: AAA members may be eligible for automatic discounts.
Travelers unique discounts
Multi-policy discount: When car insurance policyholders also carry home or condo insurance through Travelers, they might save on their auto insurance policy.
Continuous insurance discount: If you don’t have any gaps in your coverage history, you may be eligible for a discount.
New car discount: Travelers rewards drivers of newer, safer vehicles by providing them with potential savings on their premium.
Hybrid and electric car discounts: Drivers of hybrid and electric vehicles may be eligible for a discount.
Usage-based insurance comparison: AAA vs Travelers
Both AAA and Travelers offer telematics programs that may allow drivers to save based on their real-life driving patterns. These usage-based programs monitor driving, often in real-time, and use that data to evaluate the relative safety of drivers. Below you can find a brief comparison of the two programs: AAADrive and Travelers IntelliDrive.
AAADrive | Travelers IntelliDrive | |
|---|---|---|
Telematics device | App | App |
Monitored driving factors | Start and end time, location, accelerometer data, mobile phone use | Time of day, speed, acceleration, braking, phone use |
Potential impact on rates | Decreased | Decreased or Increased |
Potential discount | Up to 25% | Up to 30% |
Availability | Select states | Select states |
AAA vs Travelers: customer experience comparison
For many drivers, customer service is as important as price when it comes to choosing an auto insurance company, and mobile tools may be a big factor in the modern customer experience. For this reason, we’ve pulled comparisons of Google Play and iOS mobile app ratings for each carrier as well as J.D. Power scores from the 2022 J.D. Power Auto Claims Satisfaction study. For reference, the segment average for the J.D. Power study is 873/1,000.
AAA | Travelers | |
|---|---|---|
Apple store | 4.5 out of 5 | 4.7 out of 5 |
Google play | 4.4 out of 5 | 3.8 out of 5 |
J.D. Power | 847 / 1,000 | 854 / 1,000 |
Frequently asked questions
The best car insurance company may vary between drivers based on individual priorities when it comes to coverage. Premium rates may vary depending on the carrier and your personal details, such as geographic location, driving record and, in some states, age and credit score. As such, you may want to research the providers in your region thoroughly and get quotes from your favorites before purchasing a policy.
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There are a few strategies you might use to save on your car insurance. Most auto insurance carriers offer at least a few car insurance discounts to policyholders. Reviewing potential discounts before your policy renews may ensure you are qualifying for as many as you can. Maintaining a safe driving record may also help keep your rates low. As driving record is a key factor in determining rates, avoiding violations like speeding tickets and accidents could keep your premium low. Lastly, you may be able to raise your deductible to lower your premium, but keep in mind that your deductible should not be so high that you cannot pay it out of pocket in the event of a claim. You may want to speak with a licensed insurance agent before adjusting your deductible.
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Both companies offer homeowners insurance policies. Policy options through AAA may vary significantly between states and AAA clubs, and Travelers’ home insurance is not available in all states. If bundling your home and auto policies is your goal, you may want to compare home and auto quotes from each carrier before buying policies.
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