My AAA membership is up for renewal. I’m talking about the organization that provides emergency roadside service: towing, jumpstarting, and lockout. It used to be American Automobile Association. Now it’s just AAA.
I have been a AAA member for a few years but I still don’t understand what AAA really is. I mean, is it a for-profit company? If so, who owns it? AAA books travel. Who earns the commission? AAA sells auto insurance. Who’s providing the insurance? Does AAA have its own insurance subsidiary or is it just an agent for other insurance companies? If I don’t use AAA travel agents or buy insurance from AAA, am I benefiting from the profits in those areas?
Wikipedia says AAA is a non-profit owned by regional motor clubs. Individuals like myself are members of a regional club, for example AAA Northern New England. It’s still not clear to me whether the regional clubs are for-profit or non-profit. I don’t have auto or homeowners insurance through AAA. Therefore I don’t know who’s behind the insurance. If anyone knows for sure, please help.
Suppose the regional clubs are non-profit. Then they are a form of a co-operative. People band together and provide services to themselves, either in-house or by contract with outside providers. That’s how Vanguard, mutual insurance companies, credit unions, and homeowners associations are organized. A retail chain store I frequent called REI is also organized as a co-operative. Costco, on the other hand, is a for-profit company, although it also charges membership fees. In the health care field, the Kaiser Foundation Health Plan is a non-profit co-operative which contracts with Kaiser hospitals and Permanente doctors, unlike other health insurance companies which are in it for profit.
I wonder why we don’t see more co-operatives. I can see the lack of profit prospect makes people less motivated to start these. But how did these co-operatives get started in the past? The organizers knew there wouldn’t be profit. Was it easier to start a co-operative in the past but more difficult now?
It’s also interesting to note that a co-operative structure does not guarantee the lowest cost or the highest quality. Vanguard does very well in both cost and quality. State Farm as a mutual insurance company isn’t necessarily the least expensive. Other stores often beat REI in prices although REI has a better return policy. For towing and jumpstarting? I don’t know if other companies do it better or cheaper than AAA because I don’t have any experience with others.
The roadside assistance option from auto insurance is cheaper than AAA membership. I wonder if I should use that instead, or just pay out-of-pocket if I need service.
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Wm Tanksley says
I’ve been very happy with my AAA… Except that I’ve used the lockout help more than I’d care to recount :-), but it’s always been a positive experience.
Add in the occasional restaurant discount — if you normally go to any that happen to offer a AAA discount, it’s often reasonably good — and perhaps some of the other member services, if you use them (I don’t).
Anyone have any experience with the roadside service from other providers (insurance, cell phones, etc)?
-Wm
jeana milton says
Family members and I left stranded over 6 times in the last year! Paid big money for several memberships! Left stranded for hours. No call backs no one to turn to (0 phone numbers for headquarters) and no reimbursement ect. Very bad business practices!
johanna mcelwee says
Well this comment is about AAAs Roadside Service in The North Bay. I was stirred towards using AAA Auto repair and I thought ok it’s AAA so I should be safe from being taken advantage of. They ran the diagnostic on my 2011 Toyota and they said that the alternator needed to be replaced but he would need to remove my bumper and this would take at least 4hrs. to fix. Said I needed a new battery $100,mine just needed charging up. Final price would be $1300 and some change. He lied about the bumper needing removal and it does not take 4hrs. of work an alternator I checked. Need to say that I’m a woman. I wasted a whole day ,lost 2 tows,time at work and was treated like I was a fool. They laughed at me after I let them know tht they were scamming me! The experience raised my blood pressure+made me sick to stomach and pained me deeply as trusted customer. Off and on for at less 20yrs It was an simple repair
daddy dub says
The downside to using the roadside assistance option through your car insurance is that it can lead to being “uprated”, aka paying more. Most insurance providers would prefer that you have no claims whatsoever.
Dirk says
Sorry, that is a myth. A chargeable point on an auto policy is an at fault accident and almost all moving violations while driving.
Tim says
Actually Dirk, I am a licensed Insurance Agent and have been for more than 14 years. It is true that a towing claim CAN count against you and raise your premiums. In fact, a $50.00 towing claim typically is placed under an “other-than collision” or “comprehensive” category and with two or three of these it can affect future rates or the rate of insurance you may be trying to shop or compare among. So, unfortunately Daddy Dub Says is correct although I think it is a horrible rule of thumb. And AAA offering a benefit that is separate from your Auto policy ALSO means that the Service Benefits of Towing, Lock-out, Battery Service, Fuel Service and more travel with the PERSON not the vehicle. For example, I can be riding as a passenger in the car of anyone and use my benefits because they are tied to me not the car! All good reasons to use AAA in my humble opinion.
Stacy says
Um the roadside assistance is separate from claims for accidents the latter of which increase your insurance also you don’t have to have aaa insurance in order to get the aaa membership which is a separate low amount.
Jack says
I own an agency. They don’t raise rates over tows. Unless your selling for the Transylvanian insurance company.
jack b says
Jack, it’s “you’re” selling, not “your”. Also, you do realize this thread has been dormant for Years, and actually started way back, in 2009, during the first President Obama administration LOL! That was 12 Years ago.
Sandra says
Jack b, you’re the one commenting over SOMEONE else commenting. Leave the og Jack alone
Sally says
Tim is a shill for AAA totally trying to sell you on how good a AAA membership is.
Mike says
It’s generally cheaper to self-insure whenever you can afford to take the risk. That said, if the insurance premium is reasonable and it gives you peace of mind, the intangible benefits may make up for the cost.
Dave C. says
I’ve also been wondering if I should forget about AAA and just use the roadside assistance plans with my car insurance. AAA provides a lot of other perks though, that insurers don’t really give, like discounts on travel and such.
Wldct69 says
AAA follows the person and not the car like insurance does. If you are with a friend or a kid is with a friend and their car breaks down. AAA comes out for the member even if they don’t own the car. Plus the discounts at hotels and restaurants easily pay for it.
longerDollar says
I use the roadside assistance with my insurance provider – they charge $8 per 6 months (costing me $16 / year). The only downside to this is – i can avail it only for the insured car. If you have more than 1 car, you have to buy this on each car making it almost as expensive (or more) as the AAA coverage. Also AAA does provide other services home/auto insurance and their rates are competitive.
I switched to insurance last year, since most of my travel is booked through travel websites which dont let you apply AAA discounts during booking.
Stacy says
That should be 8 a month times 12 months which is 96 a year which is same or less than a year aaa membership depending on plan you have but aaa is for person not vehicle so I have been with my aunt and we used the tow before and we pay a little more now for the 109 mile tows as opposed to 7 mile tows
JT says
I joined AAA 3 years back ..I would say I am more than happy with the membership.Every year it gives me back much more than what I spent for the membership.I addition to that I have the peace of mind that I can get immediate assistance if I encounter any issues with the car…
JT says
I have a health insurance background. I decided to shop my policy around. I am in New England Region. Being a new AAA member I called AAA for auto quote. The representative John was very nice and helpful but BUYER BEWARE when he told me that my policy would be for 6 months and not 12 months.I was surprised. He told me the reason, the State of Nh is now requiring 6 month policies..TRUTH METER FALSE I contacted the NH Div of Insurance There is NO NH law on this Truth IS AAA registered with the state of NH to only sell 6 month polices. Oh Gosh lie number 2, I was told that the State of NH has a law that the minimum amount of Rental Insurance you can purchase is 30,000 .TRUTH METER FALSE . AAA should know better. Telling consumers lies will get you in the end and it looks overall bad for your business.
P. says
ALL insurance companies are polite liars. If, and when you need them, they are not there to help you. Allstate (who I sued, took 4+ years to settle.)
They don’t settle, EXCEPT on cars. Photos don’t lie. They try to “overpay” for property. But, they hire Dr. Guns. You can be devastating injured. All their Dr’s say your fine. They hire them to legally lie. Paying, are you ready? To the “Dr’s ” 15,000.00 to 20,000.00 and way more. In short your state, my state let them play a game. Look up All state insurance 2+ billion net. There all your buddy until they should pay.
Fern says
Did you ever find out the answer to your question of what is the nature of AAA, cooperative or other?
By the way, coops are not necessarily non-profit. I am a member of a food coop which is counted as for-profit. For any profits, the Board of Directors decides how much to reinvest into the business, use to pay down debt, or send out as patronage refunds or dividend checks to the membership. Such distributions are usually tied to the amount of one’s purchases for the year.
Tim says
AAA is a not-for-profit Fraternal Club. Any profits are returned back into the Club in the form of benefits or other services. “A fraternal organization is a brotherhood or a type of social organization whose members freely associate for a mutually beneficial purpose such as for social, professional or honorary principles.” – http://www.investopedia.com/terms/f/fraternal-organization.asp
Fern says
I meant to add that I have AAA membership and car insurance, and have been wondering about what AAA is, too – so I was looking for answers and found your page here.
I will click the box to get follow-up comments via email.
Thanks!
john says
Great service and great AAA member discounts. Just beware that once you sign up, they will raise your rates EVERY year. Not much, but a slow bleed. There is “nothing they can do.” Good economy or bad economy, they go up. I know it’s nit picking and value outweighs cost, but c’mon. I can’t raise my rates every year. Looking at BP Auto club again.
Wldct69 says
UM … it’s like 65 dollars a year currently. There is no better deal out there. I pay like 130 a year and I have two grown kids on it and it’s paid for itself in hotel discounts alone. How much are you paying for you to think it’s too much?
Ty says
Do NOT get road side assistance from your Insurance company. Every time you use it they count it as a claim and you don’t want claims because it increases your insurance rates.
Stick with AAA, it’ll save you money in the long run.
R. Fox says
It’s funny- the original question”Who really owns AAA has never been answered ?
I am a CAA member. I bet it is all owned by some family in the US and it is really a private for profit company running under the guise (costume) of coop type membership organization.
I have never seen Board of Director ballots or annual (or quarterly ) financial statements nor have I seen any discussion of financial surpluses.
Does anybody know the answer ?
Who really is making the money from AAA ?
Wldct69 says
AAA headquarters is a not for profit service company. If they are going to show a profit then the money goes back to all of the individual auto clubs.
D. Barthlow says
Here goes:
The insurance agency component writes policies for both a AAA subsidiary, as well as other companies. The insurance company that AAA Northern New England uses is owned by Auto Club of Southern California, and it is one of the largest insurance companies in California.
There are some independent clubs and several regional super clubs in therm of size. AAA Northern New England is owned by Auto Club of Southern California.
The organization is set up a private not for profit, similar to what health insurance companies like Blue Cross were before privatizing. Profits from areas such as travel or insurance go back in to defray the actual costs of dues, as road service costs are actually higher than what you actually pay. This collateral income keeps those costs lower.
You do not get a “vote” or financial statements, as a member you are not an owner, there are no owners, and the Board of Directors for the next term is nominated and elected by the existing Board, so if you want reliable road service stick with AAA, if you’re looking to have control over the organization then go out and start your own damn auto club. Get a life!!
R. Fox says
“There are no owners” There are assets ! Don’t think so.
Seems to be a big commitment to a message here ! Why ?
D.Barthlow says
In the event that the organization were to disband or convert to For-Profit, then the proceeds would be converted to a charitable trust that would advance the original mission/purpose of the Organization. This is exactly what Health Insurance Companies (Blue Cross) , Student Loan Companies (Sallie Mae) and others have done throughout the Country, and is provided for as an option in the Tax Code revisions from 1996. In the event that no such conversion occurs, any profits are simply poured back into
You never voted on Blue Cross’s Board of Directors, or Sallie Mae’s directors before they converted to a for profit, now publicly traded company. You never have voted on AAA Northern New England’s Directors. The law specifically allows for not for profits to provide this mechanism to the Board of Directors of an Organization to perpetuate its own nominees.
Sorry to disappoint you, but your meager membership dues aren’t going to entitle you to a “Share” of AAA.
gsuburban says
That membership used to until Auto Club stole that ownership from the 5 million members in 2002 I believe. Now, the members have no say, which is what the board wanted and why that company Auto Club of Southern California now is running their business like a hack shop.
Ryan says
My take is that AAA is perpetuated by the Board of Directors and those at the top of the organization.
AAA was initially organized to benefit members with roadside assistance. The membership became large creating a large revenue stream for the organization. As time passed and the value of the roadside assistance diminished (due to an improvement in vehicle quality as well as a myriad of others providing roadside assistance–new car dealers, aftermarket repair facilities, etc.) the lead individuals of AAA sought to enhance the value of membership by expanding into insurance and travel offerings. This was done in an effort to retain and hopefully expand membership which in turn would stabilize or increase revenues.
So, while one may think that the members were the driving force behind the expansion of service offerings (travel, insurance, etc.). It is also very possible and likely that the expansion was perpetuated by the Board and organization leaders in order to preserve their jobs and the level of compensation they had become accustomed to. The level of compensation though is difficult, if not possible to ascertain for these key AAA individuals.
That’s my take.
Miss D says
Speaking from the roadside assistance providers standpoint, AAA is NOT your best option. While they do treat their members well, they have no respect towards their towing vendors. They will tell the member 30min ETA when in fact the towing vendor told AAA it would be at least an hour, making the vendors looks bad. They also took away business from several small companies that had been working with AAA for years, giving it to a new company that just started up in our town. They randomly decide not to pay the vendors on invoices, and when we call for help, we are dealing with rudeness.
If possible use ANYONE but AAA. Other roadside assistance programs offer just as good rates, services, etc and they treat their vendors with respect. AAA just abuses towing vendors.
Wldct69 says
Yeah but they only help if it’s your car that has an issue. If I borrow a friends car or I’m with a friend then AAA will come town or fix that car too because the membership follows the member not the car.
MIKE NIKOLAS says
AAA is more about cross selling products and services then they are about Road Side services. It would be very interesting to see an audited breakdown of their revenues and expenditures. Roadside service vendors are paid substandard fees. It would be interesting to see a study conducted to calculate what the true costs of road side services is. AAA looks like a hero the motoring public but the truth is this so-called non-profit has done more harm than good to the economic well being of the Towing Industry.
gsuburban says
I think the same. The Auto Club claims their insurance company division pays for all the shortages within the membership. I would have to agree that seeing some accounting would really be needed to believe them. they are so dishonest with their annual revenue numbers and they are so closed lip about how the company is structured and how much they pay their vie presidents, presidents, CEO’s etc. I’m sure the executives pay are huge otherwise, why the non disclosure? Not for profit is blasted all the time but why? They think that makes people think they are a discount company and don’t make a profit? The answer is two fold. How much does Auto Club of So Ca spend on car racing/motorsports every year? Tens of millions. Where does all that loot come from? Do they make it up in sales? Not likely but all the top executives are at all of the races with their family and friends paying the way.
Chayanne says
Screw the towing industry and stop going around towing random cars, that’s karma for you guys. I’m glad.
Mary Shiner says
My AAA insurance went up $300 for 2012 and we both have good driving records and no accidents. The agent said it was because Michigan has the highest unlimited medical than anyone and that is what went up. She said she could drop my rate considerably (like $700 for the whole year) with a 6 mo policy through one of their other AAA companies. What other AAA companies? This is what I don’t understand and it was never offered to me before. Any comments would be welcomed.
gsuburban says
Review your coverages. Medical coverage on auto policies is usually a waste of money if your family has health coverage. Mostly, if you have health coverage, he only reason to have med-pay on auto ins is for your passengers or to cover you when in an unowned car without med-pay. Same goes on home insurance. They write it up with “guest medical” which is a waste since most folks have health coverage. Stupid line of coverage but a good one if you don’t have any other coverage to pay for auto accident related injuries.
Louis Horman says
I see no clear answer to “what is AAA”? AAA Mid-Atlantic has financials for 2008 and 2009 on it’s web site with an unbelievable range of income/loss shown (millions). Most of expenses seem to be “other” with no indication of what executives and board of directiors are paid much less any bonuses/fringe (free cruises?). There is some indications of “taxes”. With membership in the millions, it would seem we would know where and who we are sending our dues/premiums to each year.
jm says
WHAT AAA HAS DONE TO THE TOWING INDUSTRY
WHAT STARTED THIS INVESTIGATION/STUDY WAS WHY DRIVERS WERE BEING PAID VERY LOW WAGES?
I WANTED TO FIND OUT WHY TOW TRUCK DRIVERS IN GENERAL ARE PAID FAR LESS THAN MOST PROFESSIONS.
WHAT IS COMPENSATION PAY FOR DRIVERS DOING AAA TOWING?
MY FACTS SHOW HOURLY ARE PAID LESS THAN $11.00 AN HOUR NO BENEFITS.OTHERS ARE PAID COMMISSION WHICH IS 35% OF TOW,THAT WOULD BE $9.45 PER $27.00 CALL.BASIC TOW OR SERVICE AAA RATE IS $27.00
DRIVERS WORK MORE THAN 48 HOURS A WEEK AND DON’T EVEN MAKE $25,000 A YEAR AND NO BENEFITS.
WHAT I UNCOVERED WAS THAT $27.00 A CALL FOR TRUCK,DRIVER AND FUEL BARELY COVERED EXPENSES.THERE IS ABOUT 15% CHANCE THAT YOU WILL NOT COVER YOUR COSTS.
FACTS
AAA CONTROLS MORE TOWS THAN ANYBODY IN THE WORLD.
AAA HAS TAKEN ALL PROFIT OUT OF THESE TOWS.
AAA MAKES MILLIONS AND MILLIONS IN PROFITS.
THE COMPANIES THAT TOW FOR AAA
WHAT I UNCOVERED WAS THAT THERE WERE TWO DIFFERENT KINDS OF COMPANIES THAT TOW FOR AAA.
THOSE THAT DO LESS THAN 4O% AAA TOWS.THEY USE AAA FOR FILL-IN WORK. THE TERM THEY USED IS BREAK-EVEN TOWS.
2. COMPANIES THAT DO MORE THAN 75% AAA TOWING.THESE COMPANIES ARE THE ONES THAT ARE DOING MOSTLY AAA BREAK EVEN TOWS.
THE DRIVERS
DRIVERS WORK IN SNOW,RAIN,HOT OR COLD.WORK PERFORMED TIRE CHANGES,JUMP-STARTS,LOCKOUTS,AND TOWING.WHEN YOU BREAK DOWN ANYTIME AND ANYWHERE THERE WILL BE A TRUCK AND DRIVER.I TALKED TO OVER 20 DRIVERS AND ASKED IF ANY EVER MADE OVER $30,000 IN A YEAR WORKING AS TOW TRUCK DRIVER,THEY ALL SAID NO.ALL DRIVERS SAID THEY WORKED OVER 48 PLUS HOURS A WEEK.DRIVERS WHO WORK ON COMMISSION DON’T GET PAID FOR WAITING FOR A CALL OR IF TRUCK BREAKS DOWN.A DRIVER CAN GO ALL NIGHT 12 HOURS AND MAKE NOTHING.IMAGINE THAT WAITING ALL NIGHT FOR A CALL YOU FINALLY GET ONE AND YOU MAKE $9.45 ON IT,THAT IS THE AAA WAY OF LIFE.WAS TOLD BY OWNERS AND DRIVERS AAA ABOUT GOA’S[GONE ON ARRIVAL].WHEN A DRIVER SHOWS UP AND CAR IS NOT THERE,THEY DO NOT GET PAID FROM AAA.COMPANY LOSES FUEL COST AND DRIVER LOSES HIS TIME.IT IS VERY DANGEROUS JOB.I READ AN ARTICLE THAT SAID ONE TOW TRUCK DRIVER EVERY WEEK IS KILLED PROVIDING SERVICE.
CONCLUSION
WORKING LONG HOURS AND PUTTING YOUR LIFE ON THE LINE,DOES NOT PAY VERY WELL.AAA HAS TAKEN BILLIONS OUT OF TOWING INDUSTRY AT THE EXPENSE OF PEOPLE AND COMPANIES THAT SUPPLY THE SERVICE.I LOOKED AT A LOT OF PROFESSIONS THAT ARE CLOSE TO TOWING AND NOBODY EVEN COMES CLOSE TO MAKING AS LITTLE MONEY AS THEY DO.WHY SHOULDN’T THESE PEOPLE BE ABLE TO MAKE A GOOD LIVING.I COULD NOT FIND ONE AAA DRIVER WHO GOT ANY BENEFITS OR DECENT PAY. I DO HAVE A LOT MORE INFORMATION ON THIS MATTER.I CONTACTED AAA SEVERAL TIMES. IF YOU WANT TO HELP OR WANT MORE INFORMATION EMAIL AT [email protected] [thank you]
Neil says
Why is AAA so behind the times? Phone service,life insurance,pass ports ,this company will
Fall by the wayside like SEARS AN ROBUCKS
nellai says
AAA do not have their own car insurance. They do the service of an agent for you to pick best quote from the AAA rated companies in your state. You can switch between the partners if you are not satisfied with the one you have. They are doing the job of finding good car insurance quote with low price and best coverage. But they are not providing car insurance. I know only this much.
Emencee says
I have AAA roadside asst. Auto ins. Home ins. I also have a gold card for being a member for over 20 years. I’ve had one claim on a new car when an overpass crumbled down on me driving on the express way. One claim when my wife hydroplaned into a car during a rainstorm. Raised two teenage daughters with them. Used them to cover my house ever since I had it built. Never had a claim on my home.
What do you get for that kind of dedication. Well, you get to feel like an idiot. I currently have full coverage on one car and insurance for the same 1100 square foot house, (tiny). I’ve gone from a few hundred dollars in rates (sure everything used to be cheaper) to now being told my rates are over $4,500 just for auto & home. I could get a better deal if I walked in as a new customer. Of course my $100.00 for my roadside assistance per year does not cover my wife. We have to buy a rider policy of $40 to $60 a year depending on which time of year you buy it.
AAA is no better than any bank now you would go to for a loan. All the personal attention that was there when I first signed up is completely gone. I had a fantastic agent that went out of her way to do a service that you’re charged for now. Like, getting a monthly service fee to pay your own bill. Isn’t that what they’re there for? To take your money? Are they so busy that they have to charge us extra to take our money?
Whenever I tried to start a new relationship with a new agent I was told I could just call any agency to speak with any representative. My file could be looked up by anyone. Well, my money will be accepted by anyone. I’ll just have to give less of it.
gsuburban says
Time to consider Farmers, Allstate and State Farm. Auto Club doesn’t pay employee’s and sales agents like they used to. A young agent with AAA could make a cool $50k a year back in the 1960’s and would remember you and call you at renewal time and work with the new rates etc. to renew your policy so it would be in line with your wealth, protections needs, drivers, cars, boats, RV’s etc. That is all gone. They run now as a one time agent service joint, the one time you buy their insurance. After that, you are likely stuck with 20 year old employees who don’t know you and are over worked to service complete strangers at lousy pay levels.
An independent agent either services their clients or loose them for a slightly higher rate of course.
Bob Thompson says
AAA has changed since Insurance Agents are no longer being paid renewals. Their focus is selling new business and doing whatever it take to convince you to move forward with the purchase. However, servicing will be promised but now delivered by the agent who sold you the policy. His or her job is to sell X number of policy or he or she will be terminated so who do you think he or she cares more about. There are so many way to make the policy cheaper and you the general consumer will NEVER understand. Be Careful. I am agent and know how the game is played [ unfortunately I can only express this to make myself feel better] AAA has a pending lawsuit here in Southern California for an illegal commission scheme…..google Jill Rogers vs Auto and read all about it !!!!!!!
gsuburban says
That lawsuit is settled and guess what? Auto Club lost, as they have on many other employee lawsuits. They ended up having to pay back-commissions and other money to those agents which was in the tens of millions of dollars. Auto Club isn’t the same as they were pre-year2000…not a trustworthy company any longer and they hire people who are qualified but trick them on the pay plan every year which results in service that is crap.
jerry lee says
My wife and I are convinced that AAA has been worth the membership (I do not by the insurance….yet).. at midnight, in the out lot at the air port, who are you going to call???? We call AAA and get the problem resolved. We use the assist at least once per year.
But I too am unsure of its organization….. it seems to be a hydra. I have not been able to find a single head of anything… I was able to get a name and number for my state org….. but not a national head…..
If any one can help me understand the organization I would appreciate it.
gsuburban says
They hide more than they should which means something ain’t good for the public to read.
Tim says
AAA is a Fraternal Organization that has Clubs that are regionally headed and individually started. Think of it like a McDonald’s franchise, which are many times owned by different people but still have to adhere to common rules to keep their franchise. Each club appoints a Board of Directors and has to adhere to rules and validate every 5 years to keep its association with AAA National. Each club is not-for profit, returning any profits back into the club for the benefit of its members. Hope this helps! http://www.investopedia.com/terms/f/fraternal-organization.asp
Also, “gsuburban” you clearly have had a poor experience with AAA and that is too bad. Each company (whether for profit or not) has individual PEOPLE who make the company what it is or isn’t. From what I have seen, the people in my region are amazing and care deeply for the members. And the structure of the organization is amazing. Who wouldn’t want a company who sells things that ultimately are lower in cost and benefit the club by keeping costs low or offering more benefits? Yes they cross-sell, for the benefit of the members who need the products or services as well as for the benefits of the members who do not (in keeping overall dues low by generating profit that is funneled back into the Club).
Amber says
This is stipid. Maybe a group of MEN own abunch of different companies and get their own discounts from them hince how AAA maybe non profit, because their other companies are for profit. With the brains the first 10 comments had, i just summed up a question first guy’s, and i was just tryin to find out about AAA
Dr. Nick says
To go back to answering the question:
As an employee of Kaiser Permanente, which is also a “Non-profit organization,” the statement that there is no profit is false. Kaiser is made up of two different companies, one for profit, and one that is non-profit.
It’s for tax shelter as well as marketing that they use the non-profit gimmick part. They are able to claim many expenses under that umbrella and the side umbrella which keeps all Doctor costs and visits and manages part of the premiums under the profit side, which allows them to retain profits with less taxes on it.
Now, I am not sure on the exact nature of how they are managing to divert one section to the other, and especially how, legally they are able to do so. And even though, I have been with them for over 15 years now, and it seems to be highly profitable way of doing business, they have been able to keep a good secretive hold on the matter. Although honestly, I never really looked into beyond the initial understanding of the structure of payments.
So in short: “Non-profit” doesn’t mean non-profit, just means a tax shelter.
Hopefully, that helps shed a little light on the subject. Anyone else who wants to look into it more, please do so. I would be happy to learn a little more about the subject myself.
Diane says
AAA if it is a non profit, shouldn’t be. They are all about pushing sales and everyone is on a push to sell. The travel agents are on commission and pushed to sell, but they can’t advertise outside of the membership. The are pushed to sell travel companies that AAA owns, even if this isn’t the trip the customer wants to take. They have great training, but once you are trained they whole thing goes out the window.
They also have Human Resource people that don’t follow the rules of FMLA and HIPPA rules and regulations. Deny FMLA to people with documented chronic illness and demand that the person disclose the illness and diagnosis.
AAA is not the happy customer service organization they portray themselves to be.
jack says
But its a non-Profit
Jackie says
I work for AAA and a lot of what was said here is false. AAA is a great company and we care about our members. We don’t work on commission and we are not-for-profit. We are member owned.
Michael Miller says
Where does AAA get there mechanics ? Are they even ASE certified? I have used the Rockville and Gaithersburg offices of Mid-atlantic md. and they are no more than trained chimps with a few skills. They messed up my truck I took my truck to Toyota and they uncovered bolts missing from my timing belt housing and other things like wires pulled from the harness block. Their work is shoddy and abusive to your vehicle. Find a good certified mechanic and stay away from AAA. They are only concerned with selling you services you neither need or want. Never again will I use AAA for my auto repair. Its a shame because they could of had a life long customer if they had only been straight with me. Every time I left their office my truck was worse off than when I brought it.
Grumpy Old Man says
For a non-profit they sure use aggressive marketing tactics. I don’t see other non profits like the Red Cross and so forth doing what they’re doing. I guess some people might find value in a AAA membership because they offer such diverse services but honestly I prefer the services of Costco to a AAA when it comes to vacation discounts and all sorts of other things. Costco has more intelligent employees and provides better service. For roadside assistance, I take care of most of that myself (jumping cars, tire changes, etc.) so I don’t have much need for that. I also take care of my vehicles, get regular maintenance and using quality parts for replacements. It only costs about $50 for a tow when you need one (once every several years) so I don’t really find enough value in AAA’s service to warrant the membership.
And again, this whole non-profit thing seems weird to me in AAA’s case. I mean you don’t see the Red Cross or other non-profit organizations very aggressively looking for memberships. That just seems bizarre. If you want to advertise on TV or billboard sign or a bus, fine. Don’t bombard my mailbox with crap and then try to make it incredibly difficult to get off the bulk mail list.
If I want a membership for roadside assistance, I’ll look for all the options and compare it myself. If you have the best value to service ratio, you’ll get my business. If not, someone else will. AAA is not very competitive on automobile insurance and their customer service quality varies greatly depending on which agent you get. My current auto insurance carrier however takes good personal care of my needs and gives me a great bang for my buck. As a result, they get my business. They also don’t bombard me with junk trying to cross-sell and upsell me and that counts for a lot.
Brian Alesio says
I have been a 5 person member for over 30 years. I am incensed at the “rep” that would not reveal the “published” membership rates for the “basic/classic” tier,(AAA Midatlantic). My renewal is $74.00 (master), each associated is $46.00. I questioned my rates versus those I was viewing in a mailer to a friend which I was quoting from. The special inducement 1st-year rate of $10.00 discount would equate to a $50.00 Yr. rate (auto-renewal required). I was most abrasively advised that “The rates are set by them, and subject to change”. I was informed that I was not entitled to any adjustment based on my line of inquiry. (This guy Ryan was a real snot).
Question…. Do they have a published rate?
Brian.
Steve says
I work for AAA and alot of what you read here is true, it’s not a great company. AAA puts it’s bored members first, it’s members 2nd and employees dead last. AAA’s slogan, “Where members come first”, is just that, a slogan, a marketing slogan to make you feel good about continuing to write them a check every year for your membership. AAA PUTS ITS POLICIES 1ST, it’s policies come first always and before the member, anyone working in membership, dispatch or even their road side phone service agents will tell you the same. They have so many conviluted policys and rules that make no intuitive sense and seem as if they were constructed by an inept highschool graduate which might explain why the rules and polcies are in constant flux. The culture is disconnected and lacks organization on many levels.
Harry says
what is the American automobile Association business model ?
It is said the AAA is a non-profit owned by regional motor clubs. When the AAA helps vehicle owner whose car has problem in the road ..the question is : does technician from regional motor clubs help customer or the regional motor clubs outsources the work to towing company in regional region as business partner of regional motor club
Please give me understanding.
abrokenviewfinder says
You can’t be “member owned” if none of the members have no say on the direction of the company. Being a “club” you can give suggestions, but there is is no formal way of putting – and knowing – your input will be counted. But here take my annual $3000 for insurance that I’ve only used once in 25 years, yet continues to go up. I’ve talked to an attorney who used to work on claims for AAA for many years. CA AAA absolutely works on commissions. Non-profit is not the same as not-for-profit; the latter can roll gains back into the company. I did advertising for a health insurance company for 5+ years; it was crazy the extent they would go to for the cash cow. At least they could see the doctor when needed, auto insurance $$$$ is just gone next year – and hopefully there were no claims – but it’s going to increase anyway. Necessary evil.
looking for an alternative says
I just got a renewal notice in the mail, and I looked over the privacy disclosure that they’re required to send out and which they hope no one reads. The four things you don’t get to opt out of:
1. They’ll circulate your personal info within the organization, comply with subpoenas and other legal inquiries, and REPORT TO CREDIT BUREAUS. What on earth are they reporting to credit bureaus? Insurance claims? What is their liability if they make a mistake on a report? Can’t opt out.
2. They’ll sell your personal info to marketers. Can’t opt out. Prepare yourself for email and paper mail marketing of all kinds.
3. They’ll sell your data for joint marketing to other financial companies. Can’t opt out. Wait, AAA calls itself a financial company? Because of the insurance, right? Brace yourself for parasitic “retirement planners” now.
4. Tell “affiliates” about our “transactions” and “experiences.” Can’t opt out. Who are these “affiliates,” and what’s their business? What’s it to these “affiliates” what my travel plans and/or income level are?
As near as I can tell, they’re a co-op that’s been taken over by vultures under the cover of the old reputation and turned into a data-mining resource. They treat their service providers like crap and they prey on people trying to break into the insurance business to make hard-sell pitches who are expected to live on a commission-only income, or nearly so.
Anonymous tech says
As an AAA light service roadside tech who started working for them a few weeks ago. Any “non profit” who’s gross income is $6+ billion is currupy. The NFL was “non profit”.Membership dues average $100 x 60 million members.
From roadside tech on up, EVERY employee seems to have to look over their shoulder and make shore the management is not trying to stab them in the back. They expect roadside techs to drive, be on phone with a member AND be on another app with dispatch all at the same time. They do not even provide the proper Tablet windshield mounts for their drivers. Nor do they provide the right tools, drivers end up spending their own money on them and mounts. Apparently Puerto Rican are allowed to be salaried at AAA and while on clock are allowed to work elsewhere for money at same tume. and not get fired buy promoted.
Bill says
WOW, WOW!!!! I just ask a simple question and look at all the communication about this subject. A lot of people have had bad trouble with AAA. Why didn’t I read this before I joined? Let me add to this discussion. I received a notice in October that my AAA membership expiration date was 2/1/2024. I received another in November and another in December 2023. I went to the office and gave them a check on Jan. 23, 2024. Today, I received another notice on the envelope “YOUR MEMBERSHIP HAS EXPIRED! My check cleared my bank on Jan. 24. Great Company.