AAA vs. American National: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, American National offers significantly more affordable rates than AAA
• AAA may help you save more money -- they offer more discounts than American National Insurance Company
• American National offers cheaper average prices for single people who will be the only person on the car insurance policy

AAA or American National: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering hefty savings. But exactly how much can you save by switching?

You might have narrowed it down to AAA or American National as your top options, but between the two, which one has less expensive rates for insurance?

Looking at the national average rates for both carriers, American National is quite a bit cheaper than AAA, with premiums averaging $87 a month compared to $314 with AAA.

But American National may not be the lowest or best option for every single driver out there. Auto insurance companies vary their rates depending on things like how good your credit score is, where you live, how clean your driving record is, how old you are, and tons of other factors. So, at the end of the day, premiums from every company will differ quite a bit from person to person.

So, if you want to find out which of AAA or American National is really the best for you, keep reading to see average prices for each carrier broken down by a range of different rate factors.

AAA vs. American National: Average Car Insurance Rates by State

AAA and American National only compete against each other in one states, with American National offering more affordable rates to the average driver in all of them. Nebraska has the most noticable difference, where American National prices are $279 less expensive than car insurance premiums at AAA.

But there's more to auto insurance than just the state you live in. As we mentioned above, there's a lot of things that go into how insurance carriers determine your prices. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for auto insurance compared to older drivers. That's usually because teen drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

However, that doesn't mean that teen drivers have to just accept sky-high car insurance premiums. For example, 18-year-old drivers pay an average of almost 70% less per month by choosing American National over AAA.

Even so, both companies will lower rates by the time you turn 25. American National offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. AAA's average premiums reduce nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable rates you'll ever find.

But who has the best prices for retired drivers between AAA and American National? American National gets the edge, with rates for drivers 65 and older $172 cheaper than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that auto insurance prices are normally less expensive for married drivers than they are for single drivers? That's because policies for married couples generally cover more than one vehicle, which many carriers will give you a discount for.

For those who are single, the difference in average premiums between these two companies is significant, with American National rates coming in at around a quarter of AAA's. The advantage for married policyholders with American National is also obvious, where drivers save about $200 a month.

AAA or American National: Average Rates by Gender

Men are statistically more likely than women to get into accidents and get speeding tickets. That means when it comes to car insurance men will usually end up paying a little more.

On average, women see premiums almost $35 per month more affordable with AAA, and around $1 cheaper with American National when compared to their male counterparts.

Looking at overall affordability, American National comes out on top for both men and women. On average, women save about $210 a month and men save about $243 with American National compared to the average AAA policyholder.

AAA vs. American National: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, insurance can be pretty complicated. There are so many different limits and coverages that it can make it pretty confusing to find the right policy for you.

That being said, most policies that drivers look at fall into two categories -- liability coverage (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability).

Looking specifically at state minimum liability limits, American National has the significant edge, with average monthly prices coming in at $52. If you want a full coverage policy with the same state minimum limits, American National again has the edge, with policies averaging around $123 per month to AAA's $459.

Is AAA or American National Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that speeding tickets and at-fault collisions lead to higher premiums, but which company -- AAA or American National -- has the cheapest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can typically expect their monthly bill to go up about 29% after getting a speeding ticket. American National policyholders can expect a less drastic increase of around 20%.

But American National is generally the cheaper option for both drivers who have clean records and those with a recent ticket, offering prices that are 69% and 72% less expensive, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

AAA drivers who get in an accident can expect to see their premiums rise by just under $150, while those who have insurance through American National will see about a $30 increase.

At the end of the day, drivers who use American National end up with the cheaper prices after an accident, with average rates coming in at $95 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your car insurance bill. On average, AAA will increase your prices around 47% after a DUI, while American National's average premiums climb by more than 35%.

But if you end up with a DUI charge and are looking for more affordable prices, American National tends to be cheaper for the average driver, with monthly premiums coming in at about $104 to AAA's $403.

How does Credit Score Impact AAA and American National Rates?

You may not realized it, but your credit score can come into play when carriers calculate your monthly bill. This isn't true for everyone (Massachusetts, for example, has banned the use of credit score as an auto insurance factor) but it might come into play for a lot of policyholders.

The reasoning insurance companies use is that drivers with bad credit will be less likely to pay their bills on time; so normally, they'll be asked to pay more, while those with good credit will be rewarded with more affordable rates.

So, which carrier offers the best prices for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, American National will typically reward you the most. For drivers with "excellent" credit scores, American National comes in over 72.43 cheaper. Drivers with "good" credit scores normally save around 73% with American National compared to average premiums from AAA.

Which Company is Best for Drivers with Bad Credit?

American National typically offers lower rates than AAA when it comes to drivers with a below average credit score. Drivers with "fair" credit pay about 72% a month less with American National compared to AAA, and those with "poor" scores usually save an average of around 73% per month.

Is AAA or American National Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a big impact on your monthly auto insurance cost? Generally, the more milage you put on your vehicle each year, the more you can expect to pay for car insurance.

For both remote workers and those taking short commutes, American National offers more affordable prices than AAA. American National's average rates for drivers with 6,000 annual miles come in about 73% less expensive than AAA. Those who drive 12,000 miles yearly can expect to pay around 71% less with American National over AAA.

AAA or American National: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a considerable role in how much you pay for insurance. Typically, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers since there are a lot fewer cars on the road where they live, which reduces the chances of an accident.

When comparing these two carriers side-by-side, American National normally comes out as the lowest option for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to pay about $73 monthly with American National and $256 with AAA. People in suburban areas pay a monthly rate of around $85 with American National compared to $301 with AAA. In urban areas, American National's average premiums are about $104 while AAA offers prices around $384.

AAA vs. American National Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many auto insurance discounts as possible.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you can take advantage of.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and American National so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

AAA blows American National away when it comes to the sheer amount of discounts available, offering 33 different discounts to American National's 14.

Both companies offer quite a few of the same discounts -- like COVID-19 relief discount, distant student discounts, discounts for getting driver training, and mature driver discounts -- but AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, American National has a few proprietary discounts of their own for things like claim free discounts, excess vehicle discounts, and new business discounts.

Final Thoughts: Is AAA or American National Best for You?

You've seen the role certain variables have on your car insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, which insurance carrier is the right carrier for you and your specific driver profile?

American National might be best for you if....

• You've been pulled over for speeding recently.
• You're looking for the best rates on liability only coverage.
• You drive fewer than 6,000 miles each year.

AAA might be best for you if...

• You want to save extra money with discounts.

Hopefully, this guide helps you get a better idea of the difference between AAA and American National. We also hope we've given you the information you need to make the best decision about your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from a handful of companies, not just AAA and American National. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top car insurance carriers in your area, all in just a few minutes.

AAA vs. American National FAQs

Is AAA or American National cheaper?

American National is the cheaper of the two companies when looking at national average prices, with policies averaging $87 per month with American National and $314 for AAA. However, that doesn't mean American National will be the cheapest company for every driver, since there are a variety of different factors that come into play when it comes to your insurance payment.

Who is better, AAA or American National?

Unfortunately, the answer truly is "it depends.". Neither carrier is necessarily "better" for each policyholder -- it all depends on the makeup of your unique auto insurance profile.

Why do AAA and American National offer me different rates?

Insurance carriers use quite a few different variables when determining the premiums they charge. Factors such as your driving record, age, where your home is, gender, and sometimes even things like your credit score can all be used. Both AAA and American National calculate prices differently, so it's likely they'll offer different premiums. The best way to determine which company is the most affordable for you is by comparing personalized quotes from multiple different companies.

How do I know if AAA or American National is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top car insurance companies for free. With those, you can guarantee you're getting the cheapest premium. And maybe you'll find that the best company for you isn't AAA or American National at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.