AAA Home Insurance Review
The nonprofit American Automobile Association has been around for nearly as long as there have been automobiles, and its influence on our roads, businesses, and traffic safety over the last 118 years is profound.
As far as insurance, the AAA also offers home, renters, auto, and life insurance. While all AAA “motor clubs” sell homeowners insurance, they don’t all offer the same coverage options, discounts, or customer service. In fact, some AAA clubs outsource their home insurance policies to other providers. That’s why we didn’t consider AAA in our review of the best homeowners insurance companies — because the experience will vary wildly based on location. But that doesn’t mean AAA isn’t worth looking into, especially if you’re already an AAA member (non-members are eligible for coverage, but members will qualify for more discounts).
Auto Club of Southern California a leader
Well-established and reputable nonprofit parent organization
Customer service ranges from great to poor depending on local club
Options may be limited in some areas
The Home Insurance Factors We Analyzed
In general, club members are likely to find discounts that will help lower the price of their home insurance. But, of course, prices vary widely by location and your personal profile. It’s best to get quotes from at least two or three competitors for comparison.
Most AAA clubs are too small for J.D. Power and Consumer Reports to consider in their home insurance customer satisfaction surveys, with a few exceptions. The largest AAA club — Auto Club of Southern California — ranked third in J.D. Power’s 2019 survey, behind only Amica and Erie with four out of five stars. The second-largest AAA club — Auto Club Group, which serves 11 states — didn’t fare nearly as well with J.D. Power, scoring three out of five, well below the home insurance industry average.
Most AAA policies typically meet the HO-3 standards, which cover the home and related structures on the homeowner’s property, including more than a dozen of the most common risks. The policy also covers liability and medical payments if someone is injured on the property, as well as “loss of use” if the home is rendered uninhabitable.
An HO-3 will also cover the homeowner’s personal property in some cases. A good way to determine the value of an asset is the replacement cost minus the asset’s depreciation.
Deals, discounts, and add-ons
Almost every AAA club offers a discount on home insurance for AAA members, though the exact savings will vary from club to club. If you’re already a AAA member, it’s absolutely worth checking to see if the club offers home insurance, whether it sells its own policies or is referred (you’ll still qualify for a member discount through referral), and what its coverage options and discounts are like. If you’re not a AAA member, the home insurance discount alone isn’t reason enough to join, though there are certainly plenty of unrelated benefits.
AAA Home Insurance Overview: Financial Strength, Availability, and History
As one of America’s most enduring brands since its founding in 1902, the parent nonprofit organization is very reputable and has over 1,000 locations nationwide, with most members also subscribing to its roadside service. However, when it comes to home insurance, the company’s track record in terms of benefits and customer service greatly varies depending on location.
- In business since: 1902 (first club)
- S&P Global financial strength rating: Varies by club
- Moody’s financial strength rating: Varies by club
- AM Best financial strength rating: Varies by club
- States served: 50
*Rating for Auto Club of Southern California Insurance Group, AAA’s largest club
All information accurate as of January 22, 2020.
The Bottom Line
AAA members should definitely check the coverage options, discounts, and customer service ratings for their auto club’s home insurance. It might be a great addition to the existing membership benefits, especially when bundled with an auto policy. However, non-AAA members may be better off going with one of our review of the best homeowners insurance companies. Ultimately, it never hurts to get a quote from AAA and compare.
AAA Homeowners Insurance FAQ
While the precise offerings vary depending on the club, nearly all of them support renters, auto, and life insurance plans with competitive coverage options. Bundling plans together, particularly for club members, could offer additional savings. But again, this varies by club.
The value of the home and the value of the personal possessions within it usually determine home much home insurance someone needs. However, there are many, many more factors to consider before signing up for a plan. Our homeowners insurance FAQ gives a detailed rundown on helpful questions to ask.
AAA home insurance can only be purchased from the AAA club that covers the homeowner’s region. To find out which club to ask, check out the AAA website and enter the home’s ZIP code. Note that some states are covered by multiple clubs depending on county, city, or ZIP code, and some clubs cover multiple states.
Again, this varies by club. Some AAA clubs outsource their home insurance policies to other providers.
Most AAA policies cover basic foundational issues like mold and plumbing, but there can be significant differences between local clubs.
AAA Carolinas, for instance, offers “certain endorsements on your standard homeowners policy that other insurance companies might not recommend,” including replacement cost value, comprehensive perils, refrigerated goods, and sewer backup. Auto Club of Southern California, on the other hand, doesn’t include sewer backup in its standard policies, but it does offer green home coverage.