AAA life insurance review and ratings 2024

AAA ranks No. 14 in Insure.com’s Best Life Insurance Companies rankings, with the majority of its customers saying they would renew their coverage with the company.

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Our take

AAA Insurance ranks among Insure.com’s Best Life Insurance Companies with a 3.87 star rating out of a possible 5 stars. In an Insure.com survey of insurance consumers, almost all of AAA’s customers – 90% – say they will renew their coverage with the insurer and 74% of its policyholders said the company is trustworthy. 

AAA is owned by some of the larger groups in the AAA organization, which is best known for its emergency roadside assistance.

Below is Insure.com’s review of the company. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.

AAA Life Insurnace Company
AAA Ratings
Overall Rating: 3.9
Ease of service: 3.8
NAIC: 1.05
Customer Satisfaction: 3.9
AM Best Rating: A

Pros and Cons

Pros:
  • Most AAA customers would renew their life insurance policy
  • A majority of AAA customers find the insurer trustworthy
Cons:
  • The insurer received a lower score than some competitors for ease of service
  • AAA’s rates are higher than most other companies in our ranking

How AAA scores on customer satisfaction

AAA customers surveyed gave the company a score of 66%. Pacific Life led this category among the companies we ranked.

Insurance companyPercent of customers that are satisfied
AAA66%
Pacific Life86%
State Farm78%
life-insurance

QuickTake

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How much does AAA cost?

Term life insurance offers coverage for 10-40 years and tends to be the cheapest type of life insurance coverage. Insure.com used premiums collected by CompuLife to evaluate AAA’s term life offerings. AAA’s average annual premium is $440.

AAA’s term life insurance rates are almost 23% higher than the industry average of $358. Of the insurers we ranked, only Farmers, at $508, cost more. 

Insurance companyAverage annual premiums
AAA$440
Lincoln Financial$297
AIG$278

How AAA scores on ease of service

For ease of service – a metric that looks at how easy it is for customers to access services –  63% of AAA customers gave it a high mark. Pacific Life led this category.

Insurance companyPercent of respondents that are satisfied
AAA63%
Penn Mutual84%
Prudential75%

How AAA scores on policy offerings

Consumers typically want a company to offer a broad range of policies so that they can find the one that fits their needs. In the survey, 67% of AAA customers said they were satisfied with AAA’s policy offerings. Allstate came out on top in this category.

Insurance companyPercent of respondents satisfied with the company’s policy offerings
AAA67%
Allstate85%
State Farm83%

How trustworthy is AAA?

Policyholders should be able to trust their insurer — a life insurance policy protects their family’s financial health, after all. Almost three-quarters of AAA’s customers rank it high in this category. Penn Mutual is the most trusted of the surveyed companies. 

Insurance companyPercent of survey respondents who find the company trustworthy
AAA74%
Penn Mutual84%
Northwestern Mutual71%

Do AAA customers plan to renew?

Loyal customers tend to stick with their insurer year after year. 

In all, 90% of AAA customers say they would renew their policy. That’s a high ranking, but it’s worth noting that many other companies scored 100% in this category.

Insurance companyPercent of survey respondents who find the company best for renewing a policy
AAA90%
State Farm100%
Lincoln Financial100%

AAA life product details

Other services offered

  • Accident insurance
  • Annuities

States where AAA offers coverage

Graph
Table
States where AAA offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
Available
Not available

Company background

AAA Life Insurnace Company

AAA Insurance became a part of the American Automobile Association family in 1969. It offers both life insurance products and annuities and is headquartered in Livonia, Michigan.

Resources & Methodology

Sources:

AAA Insurance Company. “Life is for less worrying and more living.” Accessed January 2024.

AAA Insurance Company. “Who we are.” Accessed January 2024.

J.D. Power. “Individual Life Insurance Study.” Accessed January 2024.

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 people with auto, home, life and health insurance (1003 with life insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best Life Insurance Companies ranking. Insure.com needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses.

Respondents were first asked to grade their insurer in the following categories – customer satisfaction, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

In addition, the editors also created star rankings for each company. Respondents were asked to pick their insurer’s top three attributes out of the more than the dozen presented – again including categories such as customer satisfaction and policy offerings. The number of responses for each of those attributes was totaled and then divided by the number of each company’s customers who responded to that survey question to create the star ranking.

Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.

They also were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The editors identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in our calculations. If more than one underwriting company was identified for a line, we used a weighted average of the NAIC complaint index scores.

The team also gathered AM Best data, which measures financial strength.

They also collected insurance rate data from Quadrant Information Services (for auto and home insurance), Compulife (for life insurance) and the public health marketplace (for health insurance).

With the help of Prof. David Marlett, Ph.D., managing director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For life insurers, we used the following weights to calculate the overall score for each company:

  • AM Best: 25% of total score
  • NAIC: 15% of total score
  • Survey: 60% of total score (10% customer satisfaction, 10% recommended, 10% renewal rate, 10% ease of service, 10% trustworthiness and 10% policy offerings)

To find the industry average annual premium, insure.com weighed the rates from 9 companies: AAA, Farmers, Guardian Life, John Hancock, Lincoln Financial, MassMutual, New York Life, Northwestern Mutual and Transamerica. Rates are based on premiums for 35-year-old males and females who are non-smokers and in good health. Rates are for a 20-year-term policy that provides $500,000 in coverage.

No insurer in our ranking received less than half a star and the highest possible ranking is 5 stars.

On company review pages, the editors compared the profiled insurers in various categories against the leaders in that category or against other top insurers that match up well against the profiled company in terms of size and/or coverage area.

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Nupur Gambhir
Managing Editor

 
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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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