Why Is AAA So Expensive? Top Reasons for 2024 (2024)

FAQs

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.

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.

With increasing costs across various parts of the automotive industry, from higher average repair costs to continuing supply chain issues, auto insurance companies have needed to raise rates to turn a profit.

Negative reviews

AAA insurance has a high rate of customer complaints, and some regional branches are rated 1-2 out of 5 stars by the Better Business Bureau (BBB). Most complaints refer to poor customer service and response time. AAA's service varies by location, so check reviews for your area.

While AAA and the ICSs strive to provide prompt and efficient service at all times, note that: Delays are sometimes unavoidable due to weather, traffic or road conditions, availability, or unusual service demands.

The rise in insurance costs is in addition to historically high prices for new and used vehicles since the coronavirus pandemic, as well as rising costs to repair vehicles.

AAA is so cheap because the company offers a wide variety of discounts that almost anyone can get.

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 made a staggering amount of money in 2022 after paying claims, but this does not take into account their operational costs. Northern California Took The Hit: A 6.9% increase seems like a dream for AAA customers in Northern California. The 28% rate increase that just took effect is surely going to cause upset.

Car insurance costs have been on the rise, leaving drivers searching for ways to save on car ownership costs. In fact, according to a report from Bankrate, the average annual premium of full coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.

Are car rates going down in 2024? ›

After a year of supply shortages and climbing borrowing costs, 2024 is shaping up to be a better time to buy a car. The average transaction price for a new car in the U.S. in February was $47,244, down 2.2% from February 2023. That's also down 5.4% from the market peak in December 2022, according to Kelley Blue Book.

Rate level increases often come about because of trends in the industry towards more expensive vehicle repair and medical costs. Repairs and medical costs are almost always on the rise, so overall rate decreases are a very rare occurrence.

However, if it becomes large, some people may develop a pain or a pulsating feeling in their abdomen (tummy) or persistent back pain. An AAA doesn't usually pose a serious threat to health, but there's a risk that a larger aneurysm could burst (rupture).

AAA members have access to competitive pricing, exclusive discounts, and potential benefits such as shipboard credits, complimentary hotel nights, complimentary sightseeing tours, activity vouchers, special hotel rates with flexible cancellation, free additional driver with Hertz rentals¹, and AAA Best Price Guarantee.

Members can save 5% or more¹ by booking the exclusive AAA rate and still earn loyalty points at most hotels. Join AAA to unlock savings on everything from a budget hotel stay to suites at all-inclusive resorts in popular destinations such as Mexico and Las Vegas.

AAA Membership Plans and Prices

AAA Classic Membership: Our Classic membership plan provides essential benefits, including roadside assistance, accident protection, travel assistance and other perks. AAA Classic Memberships costs only $65 per year or $6.16 per month!