Is AAA a good insurance company?
UPDATED: Sep 26, 2011
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Asked September 26, 2011
AAA Insurance was founded in the early 1990's by the American Automobile Association. The company sells both auto and home insurance, and is available through dedicated AAA agents. Unlike most insurance companies, AAA insurance limits the policies they write to members of the auto club. The total assets of the company are estimated at around $425 million, and total amount of existing premiums is around $234 million.
A.M. Best, the financial ratings company, gives AAA insurance a B++ rating. This rating indicates that the company has suffered a recent economic setback, but not one that is expected to escalate. For insurance buyers, the B++ rating should not create any concerns, but investors would be well-advised to research the company carefully before committing to long-term large investments.
AAA insurance has received mixed ratings from current and former customers. The single largest complaint is with claims handling, and shows an unfavorable response of 46%. And while only 22% of those responding said they would recommend the company to others, it is of some interest to note that more than 60% of those participating in the reviews have had one or more policies with the company for 3 years or longer.
AAA Insurance ReviewsCompany Availability
AAA insurance is currently only available in 5 states, DE, MD, NJ, PA and VA. This reason for this limited availability is because only the Central Atlantic region of the AAA is currently participating in the insurance sales program. Over time, other regions are expected to begin selling insurance as well, but the Central Atlantic region was organized as the initial test bed, with 80% of their customers located in Pennsylvania and New Jersey.
The Bottom Line
AAA is a name that motorists trust, but the insurance offering has yet to gain a favorable reaction. With a low financial rating and mediocre consumer ratings, the company may be a suitable insurer but new customers should approach the idea with caution. Despite poor online reviews, which are often questionable in nature, the company boasts a high rate of customer loyalty which may indicate that customer service and claims handling are better than they at first appear.
Answered September 26, 2011 by Anonymous