Who is AAA‘s Biggest Competitor? Allstate and Better World Club.
When it comes to roadside assistance and auto club memberships, AAA has dominated the market in the United States and Canada for over 100 years. But recently, competitors like Allstate Motor Club and Better World Club have emerged as the top alternatives to AAA membership. Based on coverage, pricing, and membership numbers, these rivals may have an edge over the established AAA.
As a long-time AAA member myself, I used to believe they were clearly the best choice for roadside assistance and travel perks. But given changes in the competitive landscape, I‘m starting to reconsider if AAA still deserves my loyalty and yearly membership fees. In this article, let‘s take a deeper look at who AAA‘s biggest competitors are, and if the old brand still comes out on top.
Digging Into AAA‘s Main Rivals
Allstate Motor Club and Better World Club both offer roadside assistance and travel benefits that directly rival AAA‘s core offerings. Let‘s analyze them in more detail:
Allstate Motor Club
As an insurance provider, Allstate allows customers to add affordable roadside assistance to existing auto policies. This means you only carry one card for both insurance and breakdown coverage. Allstate has rapidly grown membership by bundling services:
- Over 7 million members currently
- Started offering roadside assistance in 1952
- Coverage ranges from $29 – $139 per year based on plan
Allstate provides extensive towing, lockout service, battery jump starts, fuel delivery, and more through their large network of service providers across North America. Their membership numbers now surpass AAA‘s in many major metro areas.
Better World Club
Founded in 2002, Better World Club has positioned themselves as an environmentally sustainable alternative to AAA. They promote eco-friendly policies like offsetting carbon emissions from roadside assistance vehicles.
Better World Club offers very similar coverage to AAA at competitive rates:
- Estimated over 500,000 members
- Basic membership is $59 per year
- Up to 100 miles towing with basic plan
- Additional travel and auto insurance options
While much smaller than AAA, Better World Club‘s non-profit model and green focus have attracted many millennials and eco-conscious drivers away from the old auto club guard.
Comparing Coverage and Costs
So when it comes to coverage and pricing, how exactly do these AAA competitors stack up? Here‘s a detailed feature comparison:
| Benefit | AAA Basic | Allstate Basic | Better World Basic |
|---|---|---|---|
| Annual fee | $66 | $29 | $59 |
| Towing distance | 5 miles | Up to 100 miles | Up to 100 miles |
| Lockout service | Yes | Yes | Yes |
| Winching | Not included | Included | Included |
| Fuel delivery | Not included | Yes | Yes |
| Trip interruption | $500 max | $750 max | $750 max |
The table reveals that for roughly the same annual membership cost, Allstate and Better World Club offer more robust coverage than the basic AAA Classic plan. It‘s clear AAA will need to improve their basic membership perks to provide better value against these competitors.
Is AAA Still King?
So with viable alternatives now available, is AAA still the undisputed leader in roadside assistance? Let‘s examine some key factors:
Declining Membership
AAA membership in the United States peaked around 2008 with roughly 50 million members. But it has slowly declined over the past decade to under 40 million as of 2022. Competitors have steadily grown membership over the same period.
Reputation Among Millennials
Surveys show younger generations often perceive AAA as outdated and geared towards baby boomers. Hipper brands like Better World Club actively market to millennials focused on values like environmentalism.
High Customer Service Complaints
AAA has fallen behind new competitors when it comes to customer satisfaction and response times. Upstarts like Allstate boast state-of-the-art dispatch technology to get members help faster.
COVID Impacts
The pandemic caused many households to reduce expenses by foregoing AAA in favor of insurance-provided roadside assistance. This shift may persist beyond COVID.
For me personally, as a longtime AAA member, I have become frustrated with lagging customer service and feel my basic membership doesn‘t provide enough value given the lower cost options now available. I am considering making the switch to my insurance provider‘s roadside assistance next year when my AAA membership is up for renewal. The changing competitive landscape shows AAA is not the undisputed leader it once was.
The Future of Roadside Assistance
It‘s clear the old AAA motor club needs to evolve to stay relevant in the 21st century roadside assistance game. Going forward, here are a few factors that will affect AAA‘s ability to compete:
- How quickly can they enhance their mobile app and modernize their dispatch infrastructure to match newer competitors?
- Will they offer more hybrid membership options that bundle insurance and roadside together?
- Can they expand their travel discounts and financial products to deepen value proposition?
- Will eco-friendly services attract more millennials away from alternatives like Better World Club?
While AAA faces challenges, their strong brand recognition, cross-country service network, and over 100 years of experience still make them a force. AAA will likely remain one of the top auto club choices, even if they are no longer the single dominant provider they once were.
The next time your AAA membership is up for renewal, I encourage you to take a fresh look at competitors like Allstate and Better World Club. The best roadside assistance option for you depends on your budget, coverage needs, and eco-values. Gone are the days when AAA was the automatic go-to for breakdown protection.