2023 AAA Drive Review

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. AAA may also raise your premiums for reasons that are beyond your control, such as recent natural disasters, increasing repair and healthcare costs, and crime trends.

Top Reasons Why AAA Raises Rates 

• Recent claims
• New driver or car added to a policy
• Moving violations
• At-fault accidents
• Increased coverage
• Lower deductible
• Recent switch to an expensive car
• Relocation to a high-risk zip code
• Decline in creditworthiness

How to Lower Your AAA Insurance

If you're struggling to afford your AAA premium, there are a few steps that you can take to lower your rate. You can start by looking for AAA discounts that you can qualify for, such as the multi-vehicle or driver training discount. You can also make changes to your policy, including raising your deductible and reducing your coverage.

Another option is to switch insurance companies. Each insurer calculates rates differently, so you may be able to get the same amount of coverage elsewhere at a lower price. As a general rule, you should get quotes from at least three different companies every 6-12 months to make sure that you're still getting the best deal. 

Yes, AAA uses telematics through AAA Drive, a program that tracks a customer's driving habits using the AAA mobile app. Customers can sign-up for AAA Drive and receive a discount of up to 30% if they consistently practice safe driving.

What AAA Telematics Tracks

• Speed
• Acceleration
• Braking
• Distracted driving
• The time of day that you drive

In order to use AAA Drive, drivers need to install the mobile app and enable location services, which will allow the app to automatically log a trip when it detects driving activity. After you start logging trips, the discount will be applied when you renew your policy. You will be able to keep your discount as long as you continue using the program. If you practice bad driving habits while using AAA Drive, AAA will not raise your base premium. But you probably won't get much of a discount, if any. AAA Drive is not available in all states, so check with your regional club to see if you can sign up.

To learn more, check out WalletHub's guide to usage-based insurance.

No, AAA does not offer pay-per-mile insurance. The closest thing AAA has to pay-per-mile insurance is AAA Drive, a usage-based insurance program that calculates customers' premiums based on driving habits, but it does not take mileage into account.

Pay-per-mile insurance is a type of car insurance that charges customers a flat rate plus a fee for each mile driven. It's a good choice for customers who are retired, telecommuting, or driving infrequently. Notable pay-per-mile insurance programs include MileWise from Allstate, ByMile from Liberty Mutual, and SmartMiles from Nationwide.

You can get a AAA safe driver discount by signing up for AAA Drive, the company telematics program. With AAA Drive safe drivers in certain states can save  up to 30% on their rate by allowing AAA to track their habits on the road. Specifically, AAA Drive tracks speed, acceleration, braking, distracted driving, and the time of day that you drive.

If you can't sign up for AAA Drive, AAA offers other ways for you to save on your premium.   

To learn more, check out WalletHub's guide to AAA discounts.

The amount of AAA's good driver discount varies between regional clubs, and some do not even offer such a discount at all. For example, the AAA club for Northern California, Nevada and Utah offers a 20% good driver discount, while the Southern California club does not have any good driver discount.

Even if your regional AAA club does not have a good driver discount, you can still find other ways to save. You can see if your club offers other discounts for things like opting for paperless billing or completing a defensive driving course. Or, depending on your state, you may be able to save up to 30% on your coverage by allowing AAA to track your driving habits through AAADrive.

To learn more, check out WalletHub's guide to AAA discounts. 

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 struggling to afford your AAA insurance, 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 review.

You can lower your AAA car insurance costs by taking advantage of AAA discounts, opting for a higher deductible, and reducing your coverage, among other things. AAA considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.

How to Lower the Cost of Car Insurance from AAA

Use AAA's auto insurance discounts

AAA offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 27% if they insure two or more vehicles with AAA . Or you can save up to 14% on your premium if there is a student on your policy with a 3.0 GPA or higher.

Raise your car insurance deductible 

Opting for a higher deductible on any of your insurance policies from AAA can lower your premium. But if you decide to go this route, it's important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage 

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state.

Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it's important to approach coverage decisions with caution.

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. AAA even offers a 5% discount to drivers who take an approved defensive driving course.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, AAA uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your AAA premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from AAA to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for AAA Drive

AAA Drive, the AAA telematics program, rewards you for good driving with a discounted premium. Specifically, AAA Drive tracks speed, acceleration, braking, distracted driving, and the time of day that you drive. By using AAA Drive, drivers can save up to 30% on their rate.

Finally, if you're still struggling to afford your AAA policy, you should consider switching insurers. Even if you're not actively looking for a new policy, it's generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub's guide to switching car insurance companies.

Yes, AAA offers a defensive driving course discount for drivers who have successfully completed an approved driver education course. By voluntarily taking an approved defensive driving course, AAA car insurance customers in eligible states can get a discount of up to 5%. Once the discount expires, drivers can renew it by taking another course.

Defensive driving courses improve your driving skills by teaching you how to handle difficult situations on the road. For example, common traffic school topics include DUI/DWI laws, the consequences of different moving violations, and how to share the road. Specific details vary between states and classes, but online defensive driving courses typically cost up to $40 and take 4-12 hours to complete.

To learn more, check out WalletHub's guide to AAA discounts.

AAADrive works by tracking your driving habits through a a smartphone app and rewarding safe driving with lower rates. AAADrive monitors things like speeding and phone usage, and AAA will not raise your rates for poor driving habits.

Key Things to Know About AAADrive

• Customers who sign up for Drive will automatically get an initial discount of 5%.
• AAA customers who drive safely can save up to 30% while using Drive.
• AAADrive monitors your acceleration, speed, braking, phone usage, what time of day you typically drive, and the routes you often travel.
• In addition to speeding and hard braking, things like driving late at night or being in heavy traffic often may reduce the liklihood of a discount.
• AAADrive has a 4/5 rating from WalletHub's editors.
• Customer reviews for the AAADrive app average 4.4/5.
• Drive is not available in every state.

To learn more, check out WalletHub's full review of AAADrive.

Yes, AAADrive tracks location for things like underwriting purposes, helping to speed up claims processes, and to give you accurate details of your trips. Your location information does not directly determine your premium or discounts, though.

Additionally, your location information is not accessed in real-time except to provide emergency services in the event of an accident. To understand how AAA collects, stores, and uses your data, be sure to read the privacy policy in the Drive app or contact AAA directly.

Why AAADrive Tracks Location

• Drive tracks your location using a smartphone app to measure speed, time of day you typically drive, and how long you drive without a break more accurately.
• Location information can be used to determine how far you travel on each trip, as well as your average speed.
• Stored location data may be used during the claims process to better analyze the details of the incident, such as speed and location layout.

To learn more, check out WalletHub's review of AAADrive.