AAA Auto Insurance

Formerly known as the American Automobile Association, the AAA has been in business for nearly as long as the personal automobile has. Founded in 1902, the AAA came together to lobby for better roads and investment in automotive technology. Today, this non-profit has more than 51 million members and brings together car owners to car enthusiasts into one central membership program.

AAA has a number of geographically targeted “clubs” that members can join. There are both state organizations and regional organizations that help bring members together to offer discount financial services much like a credit union.

You probably recognize AAA from the number of different products they offer to their members. From the popular AAA roadside assistance, to travel assistance, and a multitude of other automotive and travel products, AAA practically covers it all. AAA now offers affordable auto insurance for their members, too.

AAA Auto Insurance
AAA offers automotive insurance from the most inexpensive state minimum coverage to full coverage and low deductible comprehensive coverage. The AAA auto insurance is most often marketed to current AAA members who receive discounts of up to 10% on their auto insurance premiums simply for being registered members of the association.

AAA premiums are usually far lower than other insurance companies because the organization is not for profit. While not for profits can show profits in a calendar year, they are encouraged to break even as frequently as possible. Compare that to other automotive insurers whose profits are at interest to both shareholders and owners, and whose premiums are quick to rise when profits run thin.

Liability Coverage
This portion of your insurance policy is intended to cover medical damages that occur from a vehicular accident that is the result of your own fault in a at-fault state, and that is a result of any driver's fault in a no-fault state.

Many states require minimum bodily injury coverage to drive. This figure is typically under $50,000, and that level of coverage costs only a few dollars per month. You'll want a solid amount of bodily injury, as an accident that causes injury is costly and often brings about lawyer and legal fees.

Property Damage Liability
This is the second most important piece of the insurance puzzle because it covers damage done to vehicles as well as other surroundings. Property damage liability is most useful in collisions that do not include another car, and instead things like lightposts, signage, or at the worst, buildings.

These accidents can cause lots of property damage, and this is exactly why you'll want a significant amount of property damage liability written into your contract. Consider that with the amount of commercial and municipal property now lining the streets it would be very easy to strike another car then do thousands in property damages before your car comes to a hault.

Insuring Your Car
Besides injury and damages, there are a few pieces to the car insurance pie that are required to protect you from damages to your car, and rented cars.

Comprehensive coverage is usually excluded from minimum coverage, but is a good investment if you'd like all around protection of your car. Comprehensive covers fire, vandalism, glass breaks, winds, wrecks with animals, and theft. This kind of insurance is most often required on financed cars, but can be dropped as soon as the loan is paid off.

Collision is also frequently required for financed cars and covers damages that result from a collision with another car or any other large object.

Uninsured Motorist
Uninsured motorist insurance is a practical catch-all, designed to protect against financial loss in a at-fault state where the at-fault driver is either uninsured or, in some cases, underinsured. Since uninsured drivers do exist, and are statistically more accident-prone than other drivers, this kind of insurance is worth the small price it costs.

Rental Reimbursement

This insurance will pay for a rental car while your car is under repair. This is generally low return insurance, and highly profitable for the insurance company. Consider that car repairs are few and far between, and having coverage solely for the time it takes to get a car fixed might not be the best investment. However, for the small cost and peace of mind, it may be worth the expenditure for some drivers.

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