AAA vs. Progressive: Who Has the Best Coverage & Rates?
AAA and Progressive are two of the biggest insurance providers in the insurance industry. An array of car insurance companies operate under the AAA umbrella, including insurance giants Automobile Club Group and Auto Club of Southern California Insurance Group.
However, while AAA is a massive company that offers insurance policies to drivers all over the United States, Progressive Insurance’s reach is even greater with over 18 million drivers trusting the company with their car insurance coverage.
When comparing AAA vs. Progressive auto insurance rates, obtaining quotes specific to your vehicle from each company will help you determine which coverages and best rates fit your budget.
Also, comparing ratings auto insurers of Progressive vs. AAA will give you an idea of how each serves its policyholders and how reliable its claims process is.
We’ve created this review to help consumers like you compare the two insurance providers based on several factors: coverage and benefits, customer experience, financial strength, cost, and available insurance discounts.
AAA vs. Progressive
When comparing Progressive vs. AAA’s coverage options, it’s clear that Progressive offers more options in this particular area.
Both companies offer standard coverages such as liability, comprehensive, and collision.
- Liability will not cover you any property damage from a collision, only the other driver.
- Comprehensive will protect you from any collision damage as well as any acts of vandalism, fire, hail, or theft.
- Collision coverage provides protection should your car collide with another motorist or object.
However, with the inclusion of towing and labor cost, sound system, and vet bill coverage options, Progressive has a broader range of extras available to its policyholders.
Progressive offers better coverage options for individuals with a lower credit score and a less than stellar driving record.
After drivers meet with an insurance representative to build a policy that works for their vehicle, they typically don’t have further communication with the company.
Except for the occasional call to change minor policy details, most interactions occur when making a claim. For that reason, insurance reviews place great importance on the claims process.
The J.D. Power Claims Satisfaction Report uses honest ratings and reviews from real insurance customers to compare AAA vs. Progressive and their other competitors.
The report uses eight key performance indicators (KPI) to determine ratings.
These KPI categories pertain to the claims process and fall under three main categories: communication, ease of service interaction, and timeliness.
In J.D. Power’s 2017 Auto Claims Satisfaction Study, Auto Club of Southern California Insurance Group, an affiliate of AAA, was rated 3 out of 5 stars in Overall Claims Satisfaction, which equates to an above-average rating.
Progressive was also rated 3 out of 5 stars in Overall Claims Satisfaction and ranked just above Auto Club of Southern California Insurance Group.
|Overall Satisfaction||Satisfaction with Initial Claims Reporting Process||Satisfaction with Representative Handling the Claim||Satisfaction with the Repair Process||Satisfaction with the Rental Car Process|
|Auto Club Southern California||3 out of 5 stars||3 out of stars||3 out of 5 stars||2 out of 5 stars||3 out of 5 stars|
|Progressive||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||4 out of 5 stars||3 out of 5 stars|
Just as these Claims Satisfaction ratings are based on multiple elements, so are ratings of Overall Customer Satisfaction.
These ratings look at the bigger picture and take into account other considerations such as how each company communicates information to its policyholders and how well it handles complaints.
The J.D. Power Auto Insurance Study considers the above elements to create an unbiased comparison of AAA, Progressive, and similar insurers.
It rates the affiliates of AAA vs. Progressive and other major insurance providers to give consumers an idea of how they compare regarding coverage options, customer service, and claims processing.
Auto Club of Southern California and Progressive received an Overall Customer Satisfaction rating of 3 out of 5 stars, which is above average.
Auto Club of Southern California was given 3 out of 5 stars in all five of the individual categories that make up this rating, with the exception of Local Agent, which received a rating of 4 out of 5 stars.
Progressive rated two places below, with 3 out of 5 stars in all five categories except for Call Center Representative, which received a rating of 2 out of 5 stars.
As California is the most populous state in the United States, this review uses the California Complaint Ratio Study to give consumers a better understanding of the number of complaints filed against each company.
This study compares the number of justified complaints against the approximate claims exposure—the number of vehicle policies held by each company—to calculate a complaint ratio.
Neither AAA nor any of its affiliates submitted complaint data to this study, but Progressive did participate. Based on a total claims exposure of 334,840 and 19 justified complaints in 2016, Progressive Insurance has a complaint ratio of 5.7 per 100,000 vehicles.
This is slightly higher than the median ratio for this study, which is 5.6. The National Association of Insurance Commissioners (NAIC) collects data on customer complaints vs. premium dollars on a national level.
It creates complaint ratios based on a national median of 1.0. This means that any company with a complaint ratio over 1.0 has an above-average volume of complaints.
AAA is below the median with a complaint ratio of 0.64, while Progressive is a bit higher at 1.11.
Assessing the financial strength of AAA and Progressive is an important part of choosing an insurance provider.
This measures whether an insurer can honor its policies and payout any claims after a major disaster when many claims are being made at once.
Customers can compare the financial strength of AAA and Progressive by obtaining credit ratings from one of the four major rating agencies: Moody’s, A.M. Best, Standard & Poor’s, and Fitch Ratings.
A.M. Best’s rating of AAA is “A+,” which indicates a strong financial outlook for the company.
Progressive also has a positive credit rating from A.M. Best and Moody’s.
The company has an FCR of “a” from A.M. Best and a credit rating of “A2” from Moody’s, which indicates a positive financial outlook.
Pricing and Discounts
Just as the cost of insurance often depends on a driver’s age, gender, and driving history, so too do discounts depend on a number of factors that increase the likelihood of a policyholder obtaining a better car insurance rate.
Many insurers offer discounts for safe driving, vehicle safety, and paying policies in full. In fact, as an aaa member, you can count on its well-known roadside assistance program. You can rest easy knowing if you need a locksmith, a jump start, or extra gas, AAA auto insurance has you covered.
When comparing Progressive vs. AAA’s discount offerings, Progressive comes out on top with several more options for its policyholders like flat tire, rental reimbursement, good student, and accident forgiveness.
Here’s a rundown of the discounts each one offers:
|Student Away from Home||NO||YES|
|Completed Driver Training Course||NO||YES|
|Completed Safe Driving Course||NO||YES|
|Length of Membership||NO||YES|
|Sign Up Online||NO||YES|
|Receive Online Quote||NO||YES|
|Pay in Full||YES||YES|
AAA vs Progressive: What Other Insurance Services Are Available?
- Life Insurance
- Renters Insurance
- Home Insurance
- Health Insurance
- Vehicle Insurance
- Pet Insurance
- Business Insurance
AAA vs Progressive: Which Company Is Best For You?
After reading the above reviews and ratings comparing AAA vs. Progressive, you should have a better understanding of how each company performs in comparison to other competitors.
Use this information to help make an informed decision regarding the coverages and rates that best suit your insurance needs.
If you want to compare car insurance quotes further, check out our review of the Top 10Auto Insurance Companies