The California State Auto Group and AAA Motor Clubs Split
The California State Auto Group, which includes the nonprofit AAA Northern California, Utah, and Nevada motor clubs, split into two separate entities as of January 2011 in order to separate its insurance company from the AAA auto club. The result was the formation of a newly separate, for-profit auto insurance unit that is separate from the non-profit auto club organization. California State Auto Group insurance is headquartered in Walnut Creek, CA. Simultaneously, CSAG Insurance also expanded its operations by acquiring the Wilmington, DE-based AAA Mid-Atlantic Insurance Group operation, which sells auto insurance to AAA members throughout Pennsylvania, Virginia, New Jersey, Delaware, Maryland the District of Columbia.
The 16th Largest Independent Auto Insurer
The California State Auto Group now ranks as the 16th largest independent auto insurers in America, having direct written premiums for almost 2,000,000 policies, representing 1.17 percent of auto industry market share. With the Mid-Atlantic Insurance Group as a subsidiary, The California State Auto Group has strengthened its marketing ability in the mid-Atlantic market. CSAG sells only to individuals who have membership status in the American Automobile Association (AAA), a federation consisting of 51 motor clubs located throughout the U.S. which operate independently and charge a separate annual membership fee.
AAA Member’s Automotive Advantages
One of the perks of AAA membership, no matter where a driver lives in the United States, is the ability to purchase auto insurance at attractive rates directly through the members local or regional club. California State Auto is a good example of how membership in an organization or association can help an individual qualify for reduced auto insurance premiums because there is strength of purchasing power in the number of individuals who are AAA club members who also secure their automobile insurance through an AAA insurance office. AAA members who secure automobile insurance through California State Auto Group compared with other national insurance providers can realize savings of as much as $400 annually.
In addition to having the option of receiving lower auto insurance rates as a perk of AAA membership through companies such as California State Auto Group, AAA members also receive other automotive perks through motor club membership, including free guidebooks and maps, emergency roadside assistance, travel assistance and discounts for a variety of services related to automobiles, their repair and travel both throughout the U.S. and internationally.