The American Automobile Association, AAA, was founded in Chicago, IL 1902. It is the US’s 17th biggest car insurance company, with 0.71% of the market share. While most people know AAA as a not-for-profit, members-only motor club, it offers car insurance to over 60 million members. However, unlike other insurance companies, AAA does not write its policies. Each “auto club” operates independently. So, when you file a claim, you will work with one of AAA’s regional insurance partners.AAA has a generally positive reputation but has yet to keep it out of trouble when paying claims. In 2021, a court awarded 26 million dollars to a claimant for breach of good faith and fair dealing. This claimant was only seeking $25,000, but AAA’s refusal to pay ended up costing them 1,000 times that amount. The jury found that AAA could have settled this out of court for the policy limits but instead made the victim go through the entire litigation process. In this case, the victim received more compensation than their policy limits, and AAA received punishment for their actions.