AAA is a membership organization that sells car insurance, not an insurance company itself
AAA (American Automobile Association) is a membership club that offers roadside assistance, travel services, and discounts — but it does not underwrite insurance policies. When you buy "AAA car insurance," you are actually buying a policy from one of several insurance companies that partner with AAA. The most common partner is AAA Insurance (a subsidiary of insurance companies like National General Holdings), but the actual insurer depends on your state and which AAA club you belong to.
This matters because your coverage, rates, and claims process are handled by the insurance company, not by AAA itself. AAA's role is to negotiate group rates for members and handle some customer service. If you have a claim, you will work with the insurance company's claims department, not AAA's roadside team.
The confusion is common because AAA advertises insurance heavily and bundles it with membership. But the insurance is a separate product with its own terms, deductibles, and limits — just like any other policy you could buy directly from an insurer.
Key Takeaways
- AAA does not write insurance; it partners with insurance companies to offer policies to members at group rates.
- Your actual insurer varies by state and AAA club, so you need to know which company underwrites your specific policy.
- AAA membership includes roadside assistance (towing, lockout service, fuel delivery), which is separate from your insurance coverage.
- You can buy AAA insurance only if you are an AAA member, and membership costs extra on top of your premium.
- AAA insurance covers the same types of protection as any other policy — liability, collision, comprehensive — with the same kinds of deductibles and limits.
How AAA insurance differs from buying directly from an insurer
When you buy car insurance directly from a company like State Farm or Geico, you are buying from the insurer that will handle your claim. With AAA, you are buying from a partner insurer but through AAA's membership structure. This creates a few practical differences.
First, you must be an AAA member to buy the insurance. Membership typically costs $50 to $150 per year depending on your club and membership level, and that is separate from your insurance premium. Second, AAA negotiates group rates with its partner insurers, so members often see lower premiums than they would buying the same coverage elsewhere — though this is not may provide and depends on your driving record and location. Third, AAA handles some customer service calls, but claims go directly to the insurance company.
The coverage itself is identical to what you would get from any other insurer: liability (bodily injury and property damage), collision, comprehensive, uninsured motorist, and optional add-ons. Your deductible, limits, and exclusions follow the same rules as any policy. The main advantage is the bundled roadside assistance that comes with AAA membership — towing, lockout service, fuel delivery, and jump starts — which you would have to pay separately if you bought insurance from another company.
What roadside assistance covers and how it works
AAA membership includes roadside assistance at no extra cost beyond the membership fee. This covers towing (usually up to 100 miles, depending on your membership level), lockout service, fuel delivery, jump starts, and winch-outs. You call AAA's roadside number, and they dispatch a service provider to your location.
This is separate from your insurance claim. If you are in an accident, you file a claim with your insurance company. If your car breaks down or you lock yourself out, you call AAA roadside assistance. The two services do not overlap, and using roadside assistance does not affect your insurance rates or claims history.
Roadside assistance is one reason people choose AAA insurance over buying directly from another insurer — it is a convenience bundled into membership. However, some other insurers offer roadside assistance as an add-on, so it is worth comparing the total cost of AAA membership plus insurance against the cost of buying insurance elsewhere and adding roadside coverage separately.
Which insurance company actually underwrites your AAA policy
The insurer behind your AAA policy depends on your state. In some states, it is AAA Insurance (a subsidiary of National General Holdings). In others, it may be Infinity Property and Casualty Corporation, Interinsurance Exchange of the Automobile Club, or another regional carrier. Your AAA club will tell you which company underwrites your policy when you buy.
This matters because that company's financial rating, claims process, and customer service record are what you are actually buying into. You can look up the insurer's rating on the National Association of Insurance Commissioners (NAIC) website or with AM Best to see how they handle claims and complaints. If you are unhappy with your coverage or claims experience, you are dealing with that company's policies, not AAA's.
When you get your policy documents, the insurer's name will be on the declarations page. If you are not sure which company it is, call your local AAA club and ask — they can tell you immediately.
AAA insurance rates and how they compare
AAA insurance rates vary by state, driving record, age, vehicle, and coverage choices — the same factors every insurer uses. Because AAA negotiates group rates with its partner insurers, members often see discounts compared to non-members buying the same coverage from the same company. However, this is not automatic, and rates still depend on your individual risk profile.
The best way to know if AAA insurance is cheaper for you is to get a quote from AAA and compare it to quotes from at least two other insurers (Geico, State Farm, Progressive, or others). Use the same coverage limits and deductibles for each quote so you are comparing apples to apples. Some people find AAA is cheaper; others find it is more expensive. The group discount helps, but it does not override the fact that some insurers price certain drivers lower than others.
Keep in mind that AAA membership itself costs money. If AAA insurance is $50 cheaper per year than another insurer but membership costs $100, you are actually paying more overall. Factor in the roadside assistance value when you do the math — if you think you will use towing or lockout service, that has real value beyond the insurance premium.
When to choose AAA insurance and when to look elsewhere
AAA insurance makes sense if you are already an AAA member and value the roadside assistance, or if the group rate quote is genuinely lower than competitors for your situation. It also works well if you want everything bundled in one place — insurance, roadside help, and travel services — and do not mind paying for membership.
You might look elsewhere if you are not an AAA member and do not plan to be, or if your quote from AAA is higher than other insurers. Some people also prefer to buy directly from an insurer rather than through a membership organization, especially if they want to avoid the annual membership fee. If you have a poor driving record or live in a state where AAA's partner insurer has low ratings for claims handling, that is also worth considering.
The key is to shop around. Get quotes from AAA, Geico, State Farm, Progressive, and any regional insurers in your area. Compare the total cost (membership plus insurance plus any roadside coverage elsewhere), the coverage limits, and the insurer's reputation for claims. Then pick the option that costs least and gives you the protection you need.
Frequently Asked Questions
Do I have to be an AAA member to buy AAA insurance?
Yes. AAA insurance is only sold to AAA members. If you are not already a member, you will need to join your local AAA club first, which costs $50 to $150 per year depending on membership level. Some clubs offer a trial membership or discounted first-year rates.
Can I use AAA roadside assistance if I do not have AAA insurance?
Yes. Roadside assistance comes with AAA membership regardless of whether you buy insurance through them. You can be an AAA member with insurance from another company and still call AAA for towing or lockout service.
What happens if I have an accident and I have AAA insurance?
You file a claim with the insurance company that underwrites your policy (not with AAA). AAA will tell you which company that is when you buy. You can file the claim online, by phone, or through the insurer's app. AAA membership does not change the claims process — it just gives you the insurance at a group rate.
Is AAA insurance available in every state?
No. AAA insurance availability varies by state and by which AAA club you belong to. Some states have limited availability or partner with different insurers. Call your local AAA club or check their website to see if AAA insurance is sold in your state.
Can I cancel AAA insurance without canceling my AAA membership?
Yes. Your insurance policy and your membership are separate. You can cancel the insurance and keep the membership, or vice versa. However, if you cancel insurance, you lose the roadside assistance that comes with membership unless your membership level includes it separately.