Farmers and AAA are both large insurers that offer a wide range of coverages and discounts. While Farmers is a typical national insurer, AAA is a not-for-profit motor club with different regional insurance groups. Drivers must have a membership to purchase AAA auto insurance policies.

Different drivers have different needs. Comparing multiple companies across key characteristics, like customer reviews, coverage options, and price, can help you find the right insurer. Your age, driving history, and location will determine your car insurance rates.

Here’s what you need to know about coverage from Farmers and AAA.

AAA vs. Farmers: The verdict

Both companies have solid coverage and discount offerings, but Farmers has more than AAA’s regional companies. AAA’s coverage options may vary based on the state you live in. Only members qualify for AAA’s insurance program, which limits access to the company’s coverage.

Farmers earned below-average customer satisfaction scores in the J.D. Power 2023 U.S. Auto Insurance Study. AAA regional companies earned mixed customer satisfaction scores in the same study, with a range of below-average and average scores.

The average cost of coverage from Farmers is slightly above the national average, while average rates from CSAA — a regional AAA company — come in below the national average. Receiving a quote from your regional AAA club will give you a better sense of how these two options stack up.

AAA

AAA is the 11th-largest car insurance company in the country by market share and offers coverage through different regional insurance clubs, including CSAA and Auto Club of Southern California. The company received a below-average number of customer complaints filed with the National Association of Insurance Commissioners (NAIC).

Farmers

Farmers is the seventh-largest car insurance company in the country by market share and offers coverage in all 50 states. Farmers has an above-average number of customer complaints filed with the NAIC for a company of its size. The company sells a range of insurance products, including home, life, and business insurance.

AAA SMARTtrek vs. Farmers Signal

AAA and Farmers both offer telematics programs that use mobile apps to track driving behavior. Drivers who enroll in telematics programs and practice safe driving can lower their rates.

SMARTtrek from AAA Insurance can save drivers up to 10% on their initial policy term when they enroll in the program, then an additional 20% based on driving behavior. Drivers simply download the SMARTtrek app, which tracks driving and gives helpful feedback. The app has a high rating of 4.0 out of 5 in the Apple App Store, but some customers criticize the app’s accuracy.

Drivers who enroll in the Farmers Signal program receive an initial 5% discount and can earn more discounts if they drive safely. Additionally, all drivers who receive a safe driving score higher than 80% in Signal can participate in a drawing for a reward of up to $100. The Signal by Farmers app has a 4.8 rating, with drivers praising the app’s interface and the program’s discounts.

AAA vs. Farmers: Which is the cheapest?

Policyholders with Farmers pay $110 per month for liability-only insurance and $215 for full coverage, on average. This is slightly above the national averages of $103 per month for liability and $182 for full coverage.

Average rates from AAA are lower, at $98 per month for liability-only insurance and $136 for full-coverage insurance.

AAA: Cheapest for drivers with a clean driving record

Drivers who maintain a clean driving record typically pay lower rates than people with one or more incidents on their driving record. Compare liability quotes from AAA and Farmers below.

AAA: Cheapest for drivers with a speeding ticket

Having a speeding ticket on your record will often result in increased rates. After receiving a ticket, drivers with coverage from Farmers typically pay more per month for car insurance than drivers with AAA.

AAA: Cheapest for teen drivers

Teens usually pay the highest rates and may have a difficult time finding affordable premiums. Young drivers who choose AAA pay lower average rates compared to young drivers who choose Farmers. Compare average rates for 18-year-olds below.

AAA: Cheapest for drivers with bad credit

AAA Insurance is cheaper for drivers with bad credit, on average. Compare specific rates for drivers with bad credit below.

AAA: Cheapest for senior drivers

Senior drivers with AAA pay lower average rates compared to seniors with Farmers Insurance. Compare average rates for drivers older than 60 in the table below.

Compare coverages: AAA vs. Farmers

AAA and Farmers both offer standard auto insurance coverages, which include bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist coverage, medical payments coverage, collision coverage, and comprehensive coverage.

Both companies offer a range of optional insurance products. Drivers looking for gap insurance will want to choose AAA because Farmers doesn’t offer it. Meanwhile, drivers hoping for rideshare coverage should opt for Farmers.

The table below outlines which companies offer which additional coverages.

Compare discounts: AAA vs. Farmers

Farmers offers more discounts for drivers compared to AAA, though both insurers’ offerings will vary on a state-by-state basis. Choosing Farmers might be a good idea if you’re looking for safe driving discounts, a student away at school discount, and discounts for military service members.

Farmers and AAA offer bundling discounts to consumers who also purchase homeowners insurance, life insurance, or other types of insurance coverage from them. Visit each company’s official site or speak to an insurance agent to learn how much you can save.

Drivers should note that although AAA offers fewer discounts, it generally has lower rates than Farmers.

AAA vs. Farmers FAQs