AAA Renters Insurance Review 2020

If you are a renter or are considering renting a home, renters insurance is a must. Renters often assume that their landlord’s insurance coverage will also cover them in times of damage, destruction or theft. While that may be the case for the dwelling itself, a landlord’s insurance will not cover your personal property or your personal liability. Imagine losing everything you own in a fire or flood and having to replace it all out of your own pocket. That’s why renters insurance is helpful.

There are lots of renters insurance companies to choose from, so reading in-depth reviews of different options can help you decide which is right for you.

Founded in 1902, the American Automobile Association (AAA) began with a strict focus on automobiles. Today, it provides auto, life, home and renters insurance as well as a number of other products and services. We’ve reviewed AAA’s renters insurance to help you see if it is the right option for you.

The specs

The claim

AAA promises a variety of discounts and added benefits as well as legendary service and the assurance of financial stability.

Is it true?

Our research shows that AAA’s claims are true. If you have a monitored security system or other protective devices (including fire-resistant materials) in the home, you will qualify for a discounted premium. Other discounts include the age of home discount for renters living in a newer unit, the renovated home discount if the unit has been recently renovated, the loyalty discount for long-term customers and the AAA membership discount if you are also a AAA member.

Additionally, AAA offers a variety of additional benefits and perks for policyholders who are also AAA members, like roadside assistance, discounts and rewards, and identity theft protection. Membership costs vary depending on the membership option selected, but AAA promises member savings that total far more than the cost of membership.

Though AAA was not ranked in the 2019 J.D. Power Renters Insurance Study, AAA receives a 3.5 out of 5 in customer reviews on Consumer Affairs, placing AAA above average in customer satisfaction.

Our deep dive

• Replacement cost coverage option: AAA offers the option for replacement coverage on renters insurance policies. This means that no matter how old your personal belongings are, the policy will cover you for what it costs to replace the item with a new one.
• Liability coverage: If someone or their property is damaged and you are held liable, your AAA renters insurance policy provides liability coverage to cover those costs.
• Temporary living expense coverage: If your apartment or rental is damaged and temporarily unliveable, your AAA renters policy will cover living expenses.
• Expensive item coverage: If you have some items (i.e. jewelry) that are unusually expensive, AAA offers additional coverage for those items beyond the standard personal property coverage.
• Discounts: Though we already covered the AAA offered discounts above, suffice it to say that AAA offers a variety of discount options for both AAA members and non-members. One of the better known is the multi-policy discount for renters who also have their car insurance with AAA. Ask an AAA agent what renters insurance discounts you could qualify for.
• Face-to-face service: AAA has over 1000 local branch offices all over the United States. Though some customers prefer a much more digital approach to gaining insurance, AAA places focus on a more face-to-face customer service approach.
• Mobile app: AAA realizes the convenience needs of its customers. This includes the mobile app offering where customers can review policy information, benefits and contact details.
• Underwriters vary by state: Speak with your local AAA agent to find out who underwrites your local AAA renters insurance policies. These policies are not underwritten by AAA themselves. It may be important to do some research on the company underwriting your policy.

Cost rundown

AAA’s renters insurance starts as low as $ 8 per month. Your rate will depend on things like your location, your age, the age of the place you’re renting, the amount of personal property you need coverage for and your credit score. The easiest way to get a quote from AAA is to contact your local branch, though it does offer the option of requesting a quote online. With an AAA renters insurance policy, you also have the option of a $ 250 or $ 500 deductible.

If you choose to add optional coverages to your policy, like medical experience coverage or high-value item coverage, your premium cost will increase.

Compared to the average cost of renters insurance in the United States at $ 16 per month, AAA is competitive and affordable.

Cheaper (or free!) alternatives

AAA’s renters insurance policies are already affordable, but if you are seeking some additional ways to save here are some ideas:

• Install a security system
• Make an inventory of your personal property. While it’s important to be adequately covered, you don’t want to pay for more coverage than you need.
• Find ways to improve your credit score, if needed.
• Ask AAA to quote your other insurance needs too. This could result in savings if you bundle policies.

The competition

• Allstate:We found that Allstate offers some extra discounts that AAA does not seem to offer, or at least does not publish on their website. Things like Allstate’s easy pay plan discount, 55 and retired discount and claim-free discount may give them a cost advantage over AAA.
• Nationwide:Although Nationwide scores below average across the board in the J.D. Powers 2019 Renters Insurance Study, Nationwide is a competitor of AAA in the world of renters insurance. It is a widely recognized name with a variety of policy options and discounts available.
• State Farm:A top competitor, State Farm has been around for many years and earns five out of five ratings in every category on J.D. Power’s 2019 Renters Insurance Study.
• USAA:Among others we’ve placed in our 2020 Best Renters Insurance Companies, USAA is a beacon of light for the insurance needs of military service members (both current and former.) USAA offers some additional coverages, like military uniform and equipment replacement that show true dedication to their customer base. With a five out of five rating with J.D. Power, USAA is a major AAA competitor for military service members.

What others are saying

In the Harris Poll’s 2018 EquiTrend Study, AAA earned the title of Best Multi-line Insurance Brand of the Year, setting it apart from their competitors. The Harris Poll awards brands based on “values, personal connection and their ability to build community.”

Customers who have reviewed AAA on Yelp give them an average of 3.5 out of 5 stars. Though many of the reviews are highly positive, there are several lengthy reviews from unhappy customers as well, usually related to the customers perception of the customer service offered to them during the claims process or incorrect billing.

The bottom line

AAA is an insurance provider worth considering if you’re in the market for renters insurance. Because it also offers a variety of other products and membership benefits, AAA may be a great choice for consumers. As with any insurance selection, we recommend getting quotes from multiple providers, reading customer reviews, seeking referrals from friends and researching the company’s reputation before making your final choice.

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