MAPFRE Accuses AAA of Violating Exclusive Marketing Agreement

By Andrew G. Simpson

The biggest auto insurer in Massachusetts is at odds with the AAA Northeast division it says is violating an exclusive 20-year joint marketing agreement that is worth $200 million a year in premiums to the insurer.

In a lawsuit in state court, insurer MAPFRE contends that AAA Northeast’s insurance agency has already begun selling auto insurance policies from its affiliated insurer, Motor Club Insurance Co. (MCIC), to its auto club members even though the exclusive joint marketing agreement (JMA) with MAPFRE is still in effect.

According to MAPFRE, the JMA gives it the exclusive right to market and sell to AAA Northeast members using the AAA Emblem at preferential or discount pricing under the state’s group insurance law until December 31, 2026.

But, the insurer alleges, AAA Northeast is seeking to “undercut MAPFRE’s relationship with Massachusetts consumers by improperly promoting and selling insurance” through MCIC starting January 1, 2026–a full year before the agreement is set to expire, despite MAPFRE giving notice of AAA Northeast’s violations and requesting AAA to adhere to its obligations.

The insurer said the JMA, which has been in place since 2007, generated more than $200 million in premiums for MAPFRE from AAA Northeast customers in 2025 alone.

Documents with the complaint indicate that MCIC has filed discounted group auto insurance rates with a January 1, 2026 effective date with the state insurance department.

“For MCIC to offer any discount targeted at AAA Northeast members in 2026 would be a direct violation of the JMA and this deeply reduced rate is a ‘discount’ in everything but name,” the lawsuit contends.

The insurer further claims that AAA Northeast is violating the JMA in its use of the AAA Emblem on its website in relation to MCIC and by having its sales associates advising members on insurance mention MCIC but not mention MAPFRE.

AAA Northeast did not respond to a request for comment.