AAA vs. State Farm: Home Insurance Comparison

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Updated: November 21, 2024

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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: 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

mglogo icon
COMPARE AAA TO OTHER HOME INSURANCE COMPANIES

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

homeInsurance
AAA

Average Annual Premium

$1,762
homeInsurance
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 FarmAK$1,176
State FarmAL$1,482
State FarmAR$1,680
AAAAZ$2,205
State FarmAZ$1,224
AAACA$1,656
State FarmCA$1,681
State FarmCO$2,833
State FarmCT$1,665
State FarmDC$2,216
State FarmDE$817
State FarmFL$2,200
State FarmGA$2,883
State FarmHI$1,013
State FarmIA$1,052
State FarmID$2,020
State FarmIL$1,787
State FarmIN$1,037
AAAKS$2,012
State FarmKS$1,726
State FarmKY$1,168
State FarmLA$940
State FarmMA$1,705
State FarmMD$1,509
State FarmME$1,088
State FarmMI$2,518
State FarmMN$2,497
AAAMO$1,917
State FarmMO$2,279
State FarmMS$1,782
State FarmMT$3,186
State FarmNC$2,404
State FarmND$2,703
State FarmNE$3,464
State FarmNH$982
State FarmNJ$1,107
State FarmNM$1,548
State FarmNV$1,186
State FarmNY$994
State FarmOH$783
AAAOK$4,456
State FarmOK$2,582
State FarmOR$965
State FarmPA$1,662
State FarmRI$765
State FarmSC$1,368
State FarmSD$2,847
State FarmTN$2,230
State FarmTX$3,994
State FarmUT$1,055
State FarmVA$1,191
State FarmVT$1,068
State FarmWA$1,250
State FarmWI$1,323
State FarmWV$955
State FarmWY$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.

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.

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.

Home Insurance
Calculator

MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — it’s free, no personal information required, no spam.

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Rates updated:

Nov 21, 2024

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About Mark Fitzpatrick

Mark Fitzpatrick headshot

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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