AAA offers affordable rates and no-nonsense coverage for club members
While you might think of AAA as the guys who come to rescue you when your car breaks down on the side of the road, they’re actually a lot more than that. Did you know they can also help you out if your home is damaged by a natural disaster or if someone is injured on your property?
FYI: AAA was formed in Chicago in 1902. Since then, it has grown to over 60 million members in the U.S. and Canada.
It’s true. The well-known auto club actually offers insurance on top of their famous roadside assistance. It’s pretty good, too. If you read our review of AAA homeowners insurance, you’ll find it’s comprehensive and affordable.
It’s important to note, though, AAA is not one cohesive organization. Each state runs individual clubs under the AAA banner, so the coverage available to you might be different from the one your cousin has who lives on the other coast. Also, since their insurance is underwritten by third parties, your premiums can vary significantly. This is similar to what I saw with Geico’s insurance, as well.
We’ll get into all of that in just a bit, but before we do, let’s take a look at what AAA’s homeowners insurance covers.
The majority of AAA’s homeowners insurance policies are HO3, meaning they protect against all perils except for those specifically listed in your policy.
Pro Tip: There are three main types of homeowners insurance: HO1, HO2, and HO3. Generally speaking, HO3 has the best and most liberal coverage. For more information, check out our homeowners insurance guide.
A typical AAA homeowners insurance policy will include:
So that means if your home is broken into, your TV can be replaced, and if a delivery person breaks their leg on your front steps, you won’t lose your shirt. However, these are pretty big categories, so let’s take a closer look at what a typical AAA homeowners insurance plan covers, and what it won’t.
Before we start, keep in mind that every homeowners insurance policy is different — particularly with AAA. Since coverage options and providers vary state by state, it’s important to check with your agent to make sure you’re adequately covered by your area’s specific threats.
|Threat||Does AAA Typically Cover?|
|Water damage from plumbing||Yes|
|Earthquakes, sinkholes, landslides||No|
|Off-site power failure||No|
Keep in mind, though, your individual AAA agent can work with you to customize your policy to your liking. If you need more or less coverage, they can likely help.
Did You Know: Most homeowners insurance will not protect you from a flood, but that doesn’t mean you shouldn’t take it seriously. FEMA estimates 15 million U.S. homes are at risk of flood damage.
Once you understand whether or not something is covered, the second piece of the puzzle is to understand what your potential for reimbursement might be. Again, keep in mind that your specific policy will vary and that these limits can be adjusted based on your unique circumstance.
|Type of Coverage||Percentage of Reimbursement|
|Primary dwelling||Total rebuild cost|
|Other structures||10 percent of total coverage|
|Personal property||50 percent of total coverage|
|Loss of use||10 percent of total coverage|
|Personal liability||Varies by policy|
|Medical payments||Varies by policy|
Now that you have a good understanding of what’s going to be covered and for how much, let’s talk about the all-important question: How much will this cost you?
The fortunate answer is not all that much. Market research shows AAA has some of the most affordable policies in the industry. Again, keep in mind, your mileage may vary based on your state and the type of coverage you’ll need, but generally speaking, here’s what you can expect to pay.
|Value of Home||Estimated Annual Rate|
Looks pretty reasonable, right? But how does it stack up against the competition? By looking at the same average rates for Allstate and State Farm, we can extrapolate a general cost savings by going with AAA.
|Value of Home||Average Competitor Rate||Estimated Annual Savings|
Now it’s important to mention this here — you must be a member of AAA in order to purchase their homeowners insurance. This can cost anywhere from $40 per year for an annual package to nearly $200 annually. However, members who bundle their insurance packages — say, home, auto, and life — will realize significant savings.
As we mentioned at the top of the article, AAA offers far more than your standard roadside assistance. They are actually one of the larger insurers in the country, specifically for auto policies. However, there are plenty of other types of insurance offered, including policies for:
If you bundle your homeowners insurance with these other types of policies offered by AAA, you’re likely to see savings across the board. It’s difficult to pin a dollar figure to it, but your AAA membership will end up paying for itself in most cases.
FYI: If you’re looking to bundle homeowners insurance with your car insurance, you might want to check out my review of Travelers homeowners insurance. They’re another provider known for their auto policies.
If you’re looking to save on your homeowners insurance policy, however, there are several ways you can do that.
As with most homeowners insurance policies, the less of a risk you pose to the insurer, the less your premium will be. With that in mind, there are several easy ways you can knock a couple of bucks off the overall bill. These might include:
There are also a few factors that play into how much your premium will be, including your age and the age of your home. The newer your home and the older you are, the less you’ll end up paying.
So. With all of this in mind, what’s the final word on AAA homeowners insurance? Is it worth it?
Depending on your specific situation, AAA might be a great option for you. That said, they’re best for folks with modest homes who are looking to bundle different types of insurance with one provider. If your mortgage is south of $2,000 per month and you want to protect your family’s cars, AAA is likely a great option. If you’re paying more and have specific valuables you need to protect, there might be a better option out there.
Everyone’s situation is unique, though. We always recommend shopping around for homeowners insurance and doing your homework. Get quotes from at least five providers and compare them closely. While the bottom line price is important, it’s certainly not everything.
With that in mind, it might be helpful to head over to our list of the 10 best homeowners insurance providers of 2022. You’re certainly going to find an insurer there that’s going to fit your needs.
AAA’s homeowners insurance is comprehensive. Most plans meet HO3 standards and are offered at competitive prices.
Market research shows AAA’s homeowners insurance is among the most affordable in the industry. Keep in mind though, most policies require purchasing a AAA membership at an additional cost.
It’s difficult to say with any accuracy what your homeowners insurance premiums will be with AAA — there are simply too many factors at play. However, getting a quote online is a relatively simple process and only requires a few pieces of information about yourself and the property you’re looking to insure.
If you have other forms of insurance — like life, auto, or motorcycle — you can likely bundle them all through AAA and save a substantial amount.
Filing a homeowners insurance claim with AAA is a relatively simple process. Start by calling 1-800-67-CLAIM or visit your local AAA chapter’s website. There you’ll find simple, state-specific instructions.