AAA insurance clients--is their "dividend" real?

[paulri]

I am pricing out car ins policies because I am getting a new driver on our policies, plus we have a new vehicle. So far, AAA is fairly competitive with our current carrier. The guy (and I've heard this before from previous quotes from AAA), they told me at the end of the year, that I would get a "dividend" from them, because AAA is a not for profit organization. I don't think I would change policies based on this, but I'm wondering how this works in real life. The guy said that it might be in the form of a rate reduction, or a cash payout.

Is there anyone here who has AAA car insurance, who has gotten a dividend at the end of the year? Is it a percentage of the cost of the policy? How often does this happen?

 

[methusaleh]

I used their auto insurance for about ten years, ending perhaps four years ago. I don’t recall that detail, nor did I ever receive any sort of “dividend”.

 

[paulri]

Not even a rate reduction? The sales rep said that it might be applied as one.

I used their auto insurance for about ten years, ending perhaps four years ago. I don’t recall that detail, nor did I ever receive any sort of “dividend”.

 

[methusaleh]

Not even a rate reduction? The sales rep said that it might be applied as one.

My mistake— I indeed saw a very fair rate reduction each year.

I did get a good deal and had excellent customer service experiences with them. Then again I’m a boring, incident-free driver.

The only reason I left was because I was able to consolidate my collector cars’ insurance with my daily drivers’ insurance with a different vendor.

AAA (dba “Interinsurance Exchange of the Automotive Group”) wouldn’t cover one collector car at all, and on the other car they wanted massive annual mile restrictions.

 

[CKN]

Not even a rate reduction? The sales rep said that it might be applied as one.

I got a real good rate for AAA against my previous carrier for 5 different insurance policies. Every subsequent yearly renewal was a 10% to 15% increase in premiums despite no claims history. Since it's a MAJOR HASSLE to change I allowed this for three years and was finally forced to look elsewhere. I saw a small refund which was not a dividend but a COVID rebate they gave everyone for less driving.

 

[paulri]

Interesting, I've not had rate creep, in fact 2 years ago I got a $2K check for a stolen car and no rate increase (I know that wasn't the biggest payout ever, just saying).

I got a real good rate for AAA against my previous carrier for 5 different insurance policies. Every subsequent yearly renewal was a 10% to 15% increase in premiums despite no claims history. Since it's a MAJOR HASSLE to change I allowed this for three years and was finally forced to look elsewhere. I saw a small refund which was not a dividend but a COVID rebate they gave everyone for less driving.

 

[MHartfield]

I have AAA/Auto Club of Southern Cal .. there might be differences around the country, but my "dividend" shows up as a credit when I renew. Everyone is different, depending on your driving record, and what you drive... you need to shop every other year or so. I switched to them for home and auto, and no reputable insurance company has come close (i.e., AAA is about 20% less.)

Insurance companies' actuaries are constantly trying to balance risks, age-wise, area wise, probably by type of car. I know California's premiums are going up by 10% a year because there's less enforcement on the roads, and the PI attorneys have a blank check.

 

[paulri]

Could you estimate about what percentage of the monthly premiums, your dividend is? Are we talking about 1%, 10%...?

I have AAA/Auto Club of Southern Cal .. there might be differences around the country, but my "dividend" shows up as a credit when I renew. Everyone is different, depending on your driving record, and what you drive... you need to shop every other year or so. I switched to them for home and auto, and no reputable insurance company has come close (i.e., AAA is about 20% less.)

Insurance companies' actuaries are constantly trying to balance risks, age-wise, area wise, probably by type of car. I know California's premiums are going up by 10% a year because there's less enforcement on the roads, and the PI attorneys have a blank check.

 

[PandaBear]

I remember reading AAA used to be a co-op and now is privately owned. Yeah no more dividend but they are still cheaper than other options for me.

 

[CKN]

Interesting, I've not had rate creep, in fact 2 years ago I got a $2K check for a stolen car and no rate increase (I know that wasn't the biggest payout ever, just saying).

Every one's situation can be different depending on what they drive, where they live, and claim numbers in the state they reside. Utah for one has a large amount of speeding and distracted driving-not good. Whether this was the cause of rate creep or not I do not know. All I know is that after three years I was paying 30%plus over the first years rate.

 

[paulri]

That would make me a little ticked off, esp. because I have no real complaints about my current carrier, Mercury.

Every one's situation can be different depending on what they drive, where they live, and claim numbers in the state they reside. Utah for one has a large amount of speeding and distracted driving-not good. Whether this was the cause of rate creep or not I do not know. All I know is that after three years I was paying 30%plus over the first years rate.

 

[CKN]

That would make me a little ticked off, esp. because I have no real complaints about my current carrier, Mercury.

When I lived In So Cal I had Mercury for several years without any issues.

 

[bdcardinal]

They sent me a check a couple months ago.

 

[PandaBear]

They sent me a check a couple months ago.

Is that because you drive less and everyone gets a reduced premium?

 

[alarmguy]

www.esurance.com

 

[ET16]

Amica does the same.

 

[paulri]

A few have reported rate reductions/dividends with AAA.

Can you give me a ballpark figure as to what percentage of your insurance payments, this annual dividend was?

 

[bdcardinal]

Is that because you drive less and everyone gets a reduced premium?

Honestly I have no idea. I think the letter did mention something about that. Considering I will have my Mustang 8 years in August and am at around 58K I guess you could say I don't drive it a lot.

 

[RitcheyRch]

Been with AAA for years and no issues. They are cheaper than any other insurance carrier in my area.

 

[bdcardinal]

Been with AAA for years and no issues. They are cheaper than any other insurance carrier in my area.

The times I have had to use the insurance they have been a breeze to deal with. Working where I do I see how a lot of the insurance companies are when it comes to repairs and AAA is one of the best.