Southern California Automobile Club Insurance Review
The Auto Club of Southern California is a regional division of the American Automobile Association motor club which is commonly referred to as AAA or Triple-A. Founded in 1902 in Chicago, Illinois, the auto club was created with an aim to improve roads, facilitate new traffic laws, and promote automobile travel in general. The Auto Club of Southern California joined in 1912.
Today, AAA provides members with roadside assistance, travel destination information such as maps and route highlights, and a library of information on all things concerning driving and travel. There are 51 independently operated, regional motor clubs that also sell auto insurance. The Auto Club of Southern California is the largest AAA regional club as well as one of the largest providers’ of insurance in the state of California.
Car Insurance Offered by Southern California AAA
The Auto Club of Southern California provides typical auto insurance coverage throughout the southern half of California. They provide bodily injury liability and property damage liability, which provides coverage for damages to another driver’s car or property such as fences and telephone poles in an accident. They also provide Personal Injury Protection (PIP), which covers medical expenses that an insured driver suffers because of an accident regardless of fault.
Optional coverage includes collision to cover the damages to an insured driver’s vehicle from an accident and comprehensive coverage to cover loss from fire, vandalism or natural disaster damages. A deductible usually applies to these forms of coverage.
Further protections consist of coverage to rent a vehicle during auto collision repairs and coverage in the event of an accident with an at-fault driver who is uninsured or underinsured. They also offer umbrella liability insurance, insurance for boats and other watercraft, homeowner’s, and life insurance.
Benefits of Getting Car Insurance through AAA
The Auto Club of Southern California doesn’t just offer auto insurance. They have a range of other services that are offered to members and policyholders. They primarily provide roadside assistance in the event of a breakdown, empty fuel tank, or flat tire. These services are most commonly associated with the AAA motor clubs.
Furthermore, the auto club provides trip planning and advising. They provide maps, driving directions and exclusive deals for members. An additional bonus is that many businesses such as hotels and car rental agencies provide additional discounts for AAA members.
Moreover, the auto club assists members with additional actions such as buying a new or used vehicle and finding a repair shop. They also offer driving resources such as traffic school, teen driving programs, and DMV vehicle registration. Discounts are also given for bundling different types of insurance, such as auto and home insurance.
Additionally, the Southern California Automotive Club lists other perks for members in the lower half of the state. For instance, auto policies are in effect for a year; most auto insurance policies last for six months, which allows for more frequent rate increases. They also offer lifetime warranties on repairs completed at approved garages. Lastly, new policyholders can receive a $100 travel voucher that can be used on a cruise or other approved vacation package.
Market Shares and Financial Information
The Auto Club of Southern California offers auto insurance to club members from the Interinsurance Exchange of the Automobile Club. According to the California Department of Insurance, the Interinsurance Exchange was the second largest provider of private auto insurance in the state with 8.1506% of the market share in 2010. The company had over $800 million in private automobile insurance premiums. The National Association of Insurance Commissioners listed the company’s total direct written business at over $2 billion in California in 2010.
The largest provider was State Farm with almost 13% of the market, but the Northern California AAA affiliate insurance provider was the fourth largest provider with a 6.4818% share. While they are not part of the same company, the Southern and Northern AAA affiliates for the American Auto Association account for over 14% of the private automobile insurance premiums in California.
Furthermore, the Auto Club for South California is licensed by the California Department of Insurance to provide insurance on behalf of over ten different insurance underwriters; According to data collected by the Department, all of the insurance providers that partner with the club make up approximately 9.4% of the private automobile insurance market in California.
Ratings and Awards
The Automobile Club of Southern California has a strong financial rating from A.M. Best, a ratings company that is nationally designated by the U.S. Securities & Exchange Commission. A.M. Best rated the company at an A+, or Superior, the highest rating offered by A.M. Best.
Another ratings company, Standard & Poor’s, rated the Interinsurance Exchange of the Automobile Club at an AA, or Very Strong. Both ratings indicate that the company has a strong likelihood of being able to honor its financial commitments. Accordingly, the insurance company has a stable outcome with little risk for default in the near future.