AAA vs. State Farm: Home Insurance Comparison

AAA and State Farm are two popular home insurance companies. MoneyGeek data shows that AAA ranked 12th nationally and received a MoneyGeek score of 88 out of 100, while State Farm ranked fifth with a MoneyGeek score of 91.

By Mark Fitzpatrick

Edited by Ashley Jacobs

Updated: November 21, 2024

Advertising & Editorial Disclosure

AAA and State Farm are among the most affordable, financially stable and customer-friendly insurance companies in the United States. They tied for customer satisfaction, but AAA is slightly more affordable, while State Farm scored better for stability.

AAA charges $2,889 annually for 500K in dwelling coverage, while State Farm charges $5,666 annually. Factors like customer satisfaction, coverages, discounts and availability should also be considered.

Read on to learn more about how these two companies compare overall.

OUR COMPARISON AT A GLANCE

Comparison Overview
Cost Comparison
Customer Service Comparison
Optional Coverages Comparison
Discounts Comparison

Comparison Overview: AAA vs. State Farm

The table below summarizes AAA and State Farm’s scores for different categories to help you compare both companies' home insurance.

Our analysis found that State Farm and AAA have comparable overall MoneyGeek scores, but State Farm ranks higher. Both companies tied for customer service, but AAA ranks higher for affordability.

State Farm is more financially stable and has a wider reach in terms of the number of available states. Additionally, it provides more add-on coverage and discount options.

Feature	AAA	State Farm
Total Score	88	91
Satisfaction	4.0	4.0
Stability	4.0	5.0
Affordability	4.9	4.7
Average Annual Premium	$1,762	$2,138
Number of optional coverages	4	12
Number of advertised discounts	8	7
State availability	Available in 26 states	Available in 47 states
Link to full review	AAA Full Review	State Farm Full Review

COMPARE AAA TO OTHER HOME INSURANCE COMPANIES

AAA vs Farmers

MoneyGeek ranked companies based on nationally recognized data from leading consumer reporting agencies, including J.D. Power for customer service, AM Best for financial stability and Quadrant Information Services for affordability. Learn more.

Which Company Is Cheaper Overall?

MoneyGeek’s analysis of insurance quotes from both insurance companies found that AAA is cheaper than State Farm. On average, AAA charges $1,762 per year for home insurance, while State Farm home insurance costs around $2,138 per year.

Average Annual Homeowners Insurance Premium of AAA vs. State Farm

AAA

Average Annual Premium

$1,762

State Farm

Average Annual Premium

$2,138

State Farm’s homeowners insurance costs on average: $2,138:$376 more

This is 21% more expensive.

While home insurance companies consider various factors when calculating your premiums, the major factors that could affect your premium costs are your dwelling coverage amount and your home’s location.

Which Company Is Cheaper Based on Dwelling Coverage Amount?

Your selected dwelling coverage amount affects your home insurance cost. MoneyGeek recommends that you calculate your dwelling needs, which includes the cost of rebuilding your home after a disaster.

MoneyGeek data shows that AAA is cheaper than State Farm for all dwelling coverage amounts, ranging from $100K up to $3 million. Use the table below to evaluate the impact of dwelling coverage on the cost of homeowners insurance.

Average Premiums for AAA vs. State Farm


State Farm	$100,000	$1,917
AAA	$100,000	$698
AAA	$250,000	$1,602
State Farm	$250,000	$2,427
AAA	$500,000	$2,889
State Farm	$500,000	$5,666
AAA	$750,000	$4,391
State Farm	$750,000	$8,051
State Farm	$1,000,000	$10,202
AAA	$1,000,000	$6,167
State Farm	$2,000,000	$20,611
AAA	$2,000,000	$12,945
State Farm	$3,000,000	$31,612
AAA	$3,000,000	$18,210

How Much Does Each Company Cost by State?

The cost of homeowner's insurance can differ from state to state. State Farm’s cheapest premiums are in Rhode Island at around $765 annually, while it is the most expensive in Texas at around $3,994 annually. AAA policies are most affordable in California, costing approximately $1,656, but it is the most expensive in Oklahoma at around $4,456.

MoneyGeek's table below can help you determine the cost of AAA and State Farm policies in various states.

Average Premiums for AAA Vs. State Farm


State Farm	AK	$1,176
State Farm	AL	$1,482
State Farm	AR	$1,680
AAA	AZ	$2,205
State Farm	AZ	$1,224
AAA	CA	$1,656
State Farm	CA	$1,681
State Farm	CO	$2,833
State Farm	CT	$1,665
State Farm	DC	$2,216
State Farm	DE	$817
State Farm	FL	$2,200
State Farm	GA	$2,883
State Farm	HI	$1,013
State Farm	IA	$1,052
State Farm	ID	$2,020
State Farm	IL	$1,787
State Farm	IN	$1,037
AAA	KS	$2,012
State Farm	KS	$1,726
State Farm	KY	$1,168
State Farm	LA	$940
State Farm	MA	$1,705
State Farm	MD	$1,509
State Farm	ME	$1,088
State Farm	MI	$2,518
State Farm	MN	$2,497
AAA	MO	$1,917
State Farm	MO	$2,279
State Farm	MS	$1,782
State Farm	MT	$3,186
State Farm	NC	$2,404
State Farm	ND	$2,703
State Farm	NE	$3,464
State Farm	NH	$982
State Farm	NJ	$1,107
State Farm	NM	$1,548
State Farm	NV	$1,186
State Farm	NY	$994
State Farm	OH	$783
AAA	OK	$4,456
State Farm	OK	$2,582
State Farm	OR	$965
State Farm	PA	$1,662
State Farm	RI	$765
State Farm	SC	$1,368
State Farm	SD	$2,847
State Farm	TN	$2,230
State Farm	TX	$3,994
State Farm	UT	$1,055
State Farm	VA	$1,191
State Farm	VT	$1,068
State Farm	WA	$1,250
State Farm	WI	$1,323
State Farm	WV	$955
State Farm	WY	$2,100

Which Company Has Better Customer Service?

While most homeowners focus on the cost of home insurance, a company’s service quality is also important. Companies with good customer service pay claims faster and respond to customers’ inquiries efficiently.

MoneyGeek analysis of AAA and State Farm found that both companies are equal in terms of customer satisfaction. However, data from AM Best shows that State Farm has a slight edge over AAA in terms of financial stability, while AAA rewards its policyholders with cheaper premiums.

AAA vs. State Farm: Customer Service Scores

Score	AAA	State Farm
MoneyGeek Score	88	91
Satisfaction Score	4.0	4.0
Stability Score	4.0	5.0
Affordability Score	4.9	4.7

Optional Coverages Offered by AAA vs. State Farm

In addition to the standard homeowner's insurance coverages such as dwelling coverage, personal property coverage and liability coverage, AAA and State Farm offer a variety of optional coverages that provide added protection for you and your home.

State Farm offers 12 add-on coverages, while AAA offers only four optional coverages. Depending on the company, the policy and your location, the availability of these coverages may vary.

Coverage	AAA	State Farm
Sewer backup coverage Covers the cost of water damage from a sump pump, drain or sewer overflow.
Identity theft coverage Covers some of the costs incurred due to identity theft or fraud.
Extended reimbursement Extends your limits for certain coverages.
Scheduled personal property coverage Covers the cost of valuable items like jewelry, furs, fine art, etc.
Building ordinance or law coverage Covers the cost to rebuild or upgrade a home so that it meets the most up-to-date building codes after a covered loss.
Contents replacement cost coverage Covers the cost to fully replace personal property if it is damaged or destroyed by a covered loss.
Other optional coverages	Earthquake Flood	Mold Earthquake Loss assessment Energy efficiency upgrade Home systems Service line Home rental Vacancy

AAA offers some coverages that are not offered by State Farm, like extended reimbursement and flood. These can help you expand your dwelling coverage and protect you financially in case of a flood.

State Farm also offers add-on coverage options not available with AAA, including sewer backup, identity theft, building ordinance or law, mold, loss assessment, energy efficient upgrade, home systems, service line, home rental and vacancy coverage. The variety of these options gives homeowners more ways to customize their policies.

We found this data by reviewing each insurer’s website. They may have a wider range of coverages not advertised.

Discounts Offered by AAA vs. State Farm

Discounts are an important factor to consider when choosing an insurance provider. They help lower the overall cost of insurance coverage, making it more affordable. AAA wins in this category as it offers more discounts on home insurance than State Farm.

Discount	AAA	State Farm
Protective device discount Discount for having theft or fire protection devices, such as alarms or sprinklers.
Insurance bundling discount Discount for bundling your homeowners insurance policy with another product, like auto insurance.
Claims-free discount Discount for going several years without filing a claim.
New home discount Discount for homes that have been recently constructed.
Home renovation discount Discount for homes that have been recently renovated.
Other advertised discounts	Senior discount Loyalty discount Roofing material discount Senior	Continously insured discount Roofing material discount

AAA offers a senior discount that is not offered by State Farm. This can be beneficial for older homeowners who want to save money on their premiums. State Farm does not offer any advertised discounts that homeowners would not also be able to get from AAA.

MoneyGeek collected this data manually by checking each of the company’s websites. Both companies may have other discounts that are not advertised or that vary from state to state.

How Much Could Your Homeowners Insurance Premium Cost?

If you are still unsure if AAA or State Farm is better for you, researching homeowners insurance companies is wise. Keep in mind that the cost of homeowners insurance can vary depending on factors such as how much it would cost to repair.

If you want to get an estimate of your premium, MoneyGeek’s homeowners insurance cost calculator to help.

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About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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