AAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $529 per year, the average AAA car insurance policy is actually cheaper than coverage from most competitors. In fact, AAA is one of the cheapest car insurance companies nationally.
Even though AAA offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $2,608 per year for AAA insurance, compared to $529 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $658 per year for AAA coverage, which is 24% more than drivers with a clean record.
Factors That Can Make AAA Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your AAA insurance, there are ways for you to lower your premium. For example, you can take advantage of AAA discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if AAAis charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's AAA insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
AAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $529 per year, the average AAA car insurance policy is actually cheaper than coverage from most competitors.
Why is AAA so expensive? ›
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
Why is my AAA quote so high? ›
Not surprisingly, your driving record impacts your rate. If you've had speeding tickets, serious traffic violations, or accidents, your premium may be higher.
Why did my car insurance go up in 2024? ›
Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.
Why did AAA raise prices? ›
Agricultural Adjustment Administration (AAA), in U.S. history, major New Deal program to restore agricultural prosperity during the Great Depression by curtailing farm production, reducing export surpluses, and raising prices.
Why is insurance so expensive right now? ›
It's also become increasingly more expensive to repair vehicles due to supply chain shortages, mechanic wage increases and additional technologies in vehicles such as microprocessors, cameras and other sensors — all of which contribute to higher vehicle and insurance costs.
Why is AAA taking forever? ›
Because it's difficult to recruit an adequate number of drivers: even for AAA, despite the increased demand for tows. Mostly, tow truck drivers are working overtime. As a result, you must wait longer for a prompt response to get your car fixed rapidly.
How to lower AAA bill? ›
Improve your driving record
Practicing safe driving habits and avoiding moving violations can help you qualify for lower AAA insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state.
What is the most expensive AAA membership? ›
AAA Premium Membership: Our Premier membership offers our highest level of coverage. It's perfect for those who frequently drive long distances or are looking for a comprehensive package of roadside and travel assistance benefits. AAA Premium Membership costs $135 per year or $11.74 per month.
Why am I being quoted so high for insurance? ›
Why Is My Car Insurance So High? Your car insurance may be expensive because of your driving history, location, vehicle or credit history. Recent insurance claims and violations can increase your rates for three to five years. On the other hand, it's possible you also just have a more expensive car insurance company.
2024 Auto Insurance Increases Will Hit You Hard! Full coverage costs $212 a month on average, while liability-only coverage costs $103 a month. That prices out to $2541 and $1238 a year, respectively.
Why did my car insurance go up when nothing changed? ›
Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes. Additionally, economic factors, such as inflation and changes in interest rates, can impact insurers' investments, prompting them to adjust premiums to maintain their financial stability.
Why did my car insurance go up 40 dollars? ›
While it can seem arbitrary, there are actual reasons you can see your price go up and down. Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Why is my AAA insurance so high? ›
Your AAA rate could have gone up for many reasons, such as a recent claim or a new driver being added to the policy. Other factors that could cause AAA to raise your rate include getting into an accident, being convicted of a moving violation, and adding coverage to your policy.
Why is AAA so high? ›
AAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $529 per year, the average AAA car insurance policy is actually cheaper than coverage from most competitors. In fact, AAA is one of the cheapest car insurance companies nationally.
What was the problem with the AAA? ›
In 1936 the Supreme Court struck down the AAA, finding that it was illegal to tax one group—the processors—in order to pay another group—the farmers. Despite this setback, the Agricultural Adjustment Act of 1933 had set the stage for nearly a century of federal crop subsidies and crop insurance.
Is it cheaper to travel through AAA? ›
AAA Travel offers discounts on rental cars, hotels, vacation packages, passport photos, other exclusive offers, as well as access to AAA Travel Advisors. We look at the many travel benefits of a AAA membership and how you can save on your next vacation by becoming a member.
Why are AAA games so expensive? ›
AAA is the criterion by which games are classified as technically complex and highly interactive products with top-quality graphics, video, and music. All this leads to high development costs along with high marketing costs to reach a huge audience and generate substantial profits. What makes a game AAA?
How much is the cheapest AAA membership? ›
AAA offers three basic types of Membership, ranging in price from $64.99 to $124.99 per year.
Is it hard to cancel AAA membership? ›
To cancel your membership or discuss options that may better suit your needs, simply give our Member Services team a call at (833) 545-5021. We're available to serve you 24/7/365. To downgrade: Log in to My Account.
