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

Quick Facts

• Based on national averages for insurance, State National offers significantly more affordable prices than AAA
• AAA offers more affordable rates for drivers who have less-than-stellar credit
• State National tends to be a much less expensive option for people who are single and purchasing auto insurance by yourself

AAA vs. State National: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering large discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to AAA or State National as your top options, but which one has cheaper prices for car insurance?

As you can see, AAA is quite a bit more expensive than State National, with premiums averaging $314 per month compared to just $159 with State National when looking at the national average rates for auto insurance.

But that doesn't mean State National will necessarily be more affordable than AAA for every single driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your age, your driving record, your credit score, or even where you call home (among other things), so rates will differ quite a bit from person to person.

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

AAA or State National: Average Car Insurance Rates by State

AAA and State National only compete against each other in California, where State National offers the cheaper average rates. For California residents, State National offers car insurance for $159 monthly on average. AAA's average premiums come out to be over 30% more expensive, at $215 a month.

There are plenty of other factors that go into your auto insurance bill than just your home state. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. Usually, that's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. Just look at the table above -- where 18-year-old drivers who have State National for their insurance pay more than $350 less than those who use AAA.

That being said, both carriers will offer you dramatically lower rates by the time you turn 25. State National offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. AAA's average premiums decrease nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest prices you'll ever see.

But who has the best rates for retired drivers between AAA and State National? State National gets the edge, with premiums for drivers 65 and older over 50% less expensive than the national average for AAA.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance prices tend to be more expensive for single policyholders than they are for married drivers. That's because policies for married couples normally cover more than one car, which a lot of companies will offer you a discount for.

When it comes to relationship status, State National is the clear winner for single drivers, with rates about $188 a month more affordable than AAA, on average. For married policyholders, the advantage is clear again - State National has the edge when it comes to average premiums.

AAA vs. State National: Average Rates by Gender

Men tend to pay more for auto insurance than women. This is because men are statistically more likely than women to get into an accident or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

Women typically pay almost $35 per month less than men with AAA; and with State National, both genders end up paying the same monthly price.

Looking at overall affordability, State National comes out as the lowest option for both genders, with average rates $172 less for men and $138 cheaper for women.

AAA or State 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.

It's no secret that car insurance can be a complicated subject for most people. Everyone needs insurance, but there are so many different limits and coverages that it can be hard to find the right policy.

However, most policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers and their passengers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with liability).

If you're looking for state minimum liability insurance, State National generally offers significantly less expensive premiums of $79 compared to AAA's $169. When it comes to full coverage policies with similar limits, State National again has the edge, with policies around $200 a month cheaper than AAA, on average.

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

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

Tickets and accidents will most likely raise your rates, but is AAA or State National less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

AAA policyholders can expect their prices to go up an average of $86 per month if they get a ticket, while State National normally raises premiums about $40 a month, on average.

That being said, State National has more affordable rates for drivers in both categories. Drivers with a clean record can save around $111 per month and drivers with a speeding ticket can save about $157 a month with State National.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through AAA can expect to see around an $126 -- or about 37% -- increase in their insurance premiums. Drivers who use State National for their car insurance will see a monthly bill around $40 (or 28%) more expensive after reporting an accident to their auto insurance company.

Overall, the cheaper prices come from State National, with monthly rates averaging $142 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly insurance bill -- typically a lot more than a collision or ticket. AAA drivers usually see a 47% climb in their car insurance premiums after a DUI charge, while State National will usually increase prices by about 60%.

If you have a DUI on your record and are looking for more affordable premiums, State National tends to be the much less expensive option with average prices of $252 per month compared to $403 from AAA.

How does Credit Score Impact AAA and State National Rates?

Did you know that many auto insurance carriers take into account your credit score when calculating rates? Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for quite a few drivers.

Insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with cheaper prices.

So, which carrier offers the most affordable premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Typically, if you have excellent credit, you can expect to be rewarded. Improving your "good" credit score to an "excellent" one will generally save AAA Insurance customers around $60. undefined, on the other hand, doesn't have data available for credit scores, which means they most likely don't use credit to calculate your rates.

Which Company is Best for Drivers with Bad Credit?

Having bad credit can cost you with AAA Insurance. If your credit score is in the "poor" range, at AAA Insurance, you may pay about 45% more per month compared to those with "fair" scores (and even more compared to drivers with good or excellent scores). On the other hand, undefined doesn't have data available for credit scores, which means drivers with bad credit may find better rates with undefined over AAA Insurance.

Is AAA or State 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 prices? Usually, those who drive less will end up with more affordable rates since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure, State National tends to be the less expensive option. AAA average premiums for drivers with 6,000 annual miles come in around $166 more expensive than State National. Those who drive 12,000 miles annually can expect to pay about $142 more with AAA over State National.

AAA vs. State National: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a substantial impact as well. Typically, those who live in urban areas will pay more than policyholders in rural areas because there are a lot more cars on the roads in those areas.

State National tends to offer the lowest premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable prices from both companies, but State National comes out on top with average rates around $143 monthly. State National also has cheaper average premiums for policyholders in urban and suburban ZIP codes -- a $211 and $138 a month respective difference when compared to AAA drivers in similar areas.

AAA vs. State National Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by utilizing as many insurance discounts as you can.

The hard part is finding all of the discounts you can take advantage of, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

In the section below, we've compared all of the different discounts offered by AAA and State National so that you can find the company that has the most discounts and, therefore, the biggest savings.

AAA blows State National away when it comes to the sheer amount of discounts available, offering 33 different discounts to State National's 10.

There are a couple discounts both carriers offer, but AAA also offers AAA discounts, academic discounts, advance quote discounts, and more that State National does not.

On the flip side, State National has a unique discount of its own -- a auto-pilot discounts.

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

You've seen the role certain factors have on your car insurance and the different discounts companies offer. But, when it comes down to it, which company is the right one for you and your specific needs?

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

• You have received a ticket within the last few years.
• Your home is located in the suburbs.
• You are purchasing your auto insurance with a spouse.

AAA might be best for you if...

• Your credit is less-than-stellar.
• You already have a great credit score.
• You care about discounts (Aaa offers the most).

We hope this guide helps you get a better idea of the difference between AAA and State National. We also hope we've given you the information you need to make the best decision about your car 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 several carriers, not just AAA and State National. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP code below and get free quotes from dozens of the top auto insurance companies in your area, all in just a few minutes.

AAA vs. State National FAQs

Is AAA or State National cheaper?

Looking just at the national average prices, State National is the more affordable of the two carriers, offering average rates of $159 per month compared to $314 for AAA. However, State National won't necessarily be the lowest carrier for every policyholder, since there are a variety of different variables that come into play when it comes to your car insurance cost.

Who is better, AAA or State National?

Sadly, the only answer we can give you is "it depends.". No single company is necessarily "better" for everyone -- it all comes down to what your unique auto insurance profile looks like. For example, State National offers less expensive rates for policyholders with an at-fault accident on their record, while AAA is cheaper for drivers who have less-than-stellar credit scores.

Why do AAA and State National offer me different rates?

Insurance companies take a look at many different factors when determining the premiums they charge drivers. Variables such as gender, where you park your vehicle, your driving record, age, and sometimes even things like your credit score can all be taken into consideration. Both AAA and State National use different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from lots of different carriers.

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

The only way to find the car insurance company that's right for you is by getting quotes from multiple companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the cheapest rate. And who knows, the best carrier for you might not be AAA or State National at all!

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.