AAA is so expensive because it doesn't write its own insurance policies. Each regional AAA club operates independently and sells insurance policies underwritten by different agencies, so rates can vary widely. At $795 per year, the average AAA car insurance policy is more expensive than the national average of $720 for a policy with minimum coverage.
AAA insurance is even more expensive for drivers with certain characteristics, including young drivers and drivers who have recently caused an accident. For example, teenagers pay an average of $2,549for AAA insurance, compared to $807 for older drivers. Additionally, drivers who have recently had an at-fault accident pay an average of $1,265 for AAA coverage, which is 59% more than drivers with a clean record.
Factors That Can Make AAA Insurance More Expensive
- Underwriting agencies setting their own pricing criteria
- 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 struggling to afford your AAA policy, there are ways for you to lower your rate. 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 AAA is charging you a high premium, you may be able to find a cheaper policy with another insurer.
To learn more, check out WalletHub’s AAA insurance review.
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