The Automobile Association of America, or AAA, is most commonly known for its roadside assistance services for its 58 million members.
Established in 1902, the AAA is widely recognized for the work it’s done in establishing driver safety programs around the country.
However, it’s also one of the largest auto insurance providers in the world.
This AAA Auto insurance review discusses what you should consider before choosing them as your insurance carrier.
AAA Auto Insurance Review for 2018
It’s important to know what car insurance coverage is right for you.
Some of the many types available from AAA are:
- Comprehensive: This coverage helps pay to replace or repair your vehicle if it’s stolen or damaged in an incident that’s not a collision.
- Liability Insurance: If you’re at fault in an accident and need to pay property damage or medical costs for injuries to another person, this coverage pays your obligations.
- Uninsured Driver: This option offers coverage if you’re hit by a driver who has no insurance of their own or a limited policy that can’t cover the entire costs of the accident.
- Medical: This policy add-on covers the cost of physical injuries incurred in an accident that you caused.
One of the driving forces behind an insurance company’s high level of customer satisfaction is in its claims servicing. Aside from the initial contact, claims servicing is one of the primary ways in which consumers interact with their insurance providers.
Aside from just helping keep customers happy, an efficient claim servicing process also increases the likelihood that a customer will then recommend the insurance company to people they know.
There are three key performance indicators that can determine whether a client is satisfied with the claims servicing process of a company. One of the categories focuses on communication, and AAA Auto insurance gets high marks due to the ease of contact with local agents.
The other two categories are comprised by timeliness and ease of interaction with the service. AAA Auto scored low in both the insurer website and call center representative section, which suggests that these areas could do with some improvement.
In the 2017 J.D. Power claims satisfaction report the Californian subsidiary of the AAA, the Auto Club of Southern California Insurance Group, finished mid-range.
In the overall categories of satisfaction, first notice of loss (FNOL), claim servicing, repair process, and settlement, the AAA achieved a rating of 3 out of 5, or “about average.”
In the estimation process and rental experience categories, the company scored a rating of 2 out of 5, resulting in the company finishing around the middle of the market.
Overall Customer Satisfaction Review
Handling claims quickly, efficiently, and fairly is a vital component of a positive customer experience.
However, there are many other factors that also help forge a positive relationship, including a streamlined purchase experience that does away with form after form and instead enables a relatively straightforward process.
Some questions to ask yourself are how well the company answers questions and communicates important information; whether they have agents available over the phone and online live chats or if there are just generic FAQs on their website?
How complaints are handled plays a big part in overall customer satisfaction, and issues being dealt with promptly are a sure-fire way to ensure long-term customer happiness.
The 2018 J.D. Power insurance shopping study found that the satisfaction levels of customers of the Auto Club of Southern California Insurance Group were among the highest in the industry, achieving a rating of 4 out of 5, or “better than most”, in all categories. Those categories were: overall satisfaction, policy offerings, price, billing process and policy information, interaction, and claims.
In the J.D. Power auto claims satisfaction study based in California (the most populous state), the Auto Club of Southern California was ranked around the median of the industry.
In the overall satisfaction, policy offerings, and pricing categories; a score of 3 out of 5 was awarded , or “about average.” “Better than most,” or 4 out of 5, was awarded in the local agent category.
In the call center representative and insurer website categories the company scored 2 out of 5. Overall, the AAA Auto insurance ratings show that the company fares well against its competitors.
Since the AAA Auto club manages its insurance by state there is not a national complaint ratio. According to The National Association of Insurance Commissioners, ” Not all states provide complaint data to the Consumer Information Source.”
Two states that did provide data showed complaint ratios much lower than the national median, with Florida at 0.44 and Michigan at 0.22.
The price of an insurance quote is shaped by a myriad of factors, including but not limited to, age, location, and car type.
For this AAA Auto insurance review, analysis of the company’s pricing structure is based on the following:
- Single Female (licensed 9 years): One car (Toyota Camry), one violation, and one no-fault accident in the preceding 3 years, with a work driving use of 12,000 miles per year, living in San Francisco County, California.
- Single Male (licensed 9 to 15 years): One car (Toyota Camry), no violations, with work driving use of 12,600 to 15,000 a year, also living in San Francisco County, California.
AAA Auto provides basic insurance for the female with one violation at an annual rate of $1,016. This is a relatively low figure for this scenario, as only a couple of insurers offer rates below that range.
Most companies’ rates are more in the $1,400 range, with Liberty Mutual reaching $1,860.
For scenario two involving a male with no violations, AAA Auto had a base rate of $664, one of the lowest. The highest of its competitors was Viking at $1,990.
As you can see, driving history has an outsized role in determining insurance rates, but your geographical location is another factor that also influences premiums.
Therefore, the same two scenarios played out in Florida could have significantly different results.
It is important to provide all the necessary details to your agent to get a true picture of the potential costs of your insurance policy.
When choosing the insurance company that’s right for you there is a lot to consider. An often-overlooked factor that should play a part in your decision making is the financial strength of the company.
Can your company pay its claims if or when disaster strikes?
Insurance analysts at A.M. Best give AAA Auto Insurance a superior mark on its Financial Strength ratings so drivers can rest assured that the insurance they’re buying is solid and that AAA will be there for them if needed.
There are four other independent rating agencies that may provide information on your particular state/region AAA office.
- Kroll Bond Rating Agency (KBRA)
- Moody’s, and
- Standard & Poor’s
When choosing your car insurance, it’s important to base your choice on good information and reliable facts.
A quality analysis such as this AAA Auto insurance review helps you make a knowledgeable decision that benefits you in both cost and service.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.