Farmers and USAA offer various coverage options nationwide, but USAA stands out for its high J.D. Power ratings and other customer satisfaction scores, its top financial strength rating from AM Best, and its relatively affordable rates. But USAA only offers auto policies to military members, veterans, and their families.
Farmers’ national average premiums are more expensive than USAA’s, and the company doesn’t score as highly in Insurify’s analysis, but it may be a good fit for some non-military drivers. It’s important to compare personalized quotes, coverage options, and available discounts to help find the best car insurance company for you.
USAA auto insurance earned high ratings in multiple J.D. Power studies, has the top financial strength rating from AM Best, and has some of the lowest average car insurance premiums. But USAA membership is only available to pre-commissioned officers, military members and veterans, and their immediate family members.
Farmers, on the other hand, is more than twice as expensive as USAA on average, and the company has below-average J.D. Power rankings in some regions. But it offers a much longer list of car insurance discounts and is available to drivers nationwide, regardless of their military affiliation.
Overall, USAA is a better car insurance company, but only drivers in the military community are eligible for its membership. Farmers is still a solid option for car insurance for non-military drivers. The table below shows how Farmers and USAA compare.
Farmers is one of the top-10 largest car insurance companies, with a 4.6% market share as of 2022.1 The company offers a highly rated mobile app, holds an average rating for claims satisfaction with J.D. Power, and has a low complaint rate with the National Association of Insurance Commissioners (NAIC).
USAA is a members-only insurance company that only provides coverage to military families and veterans and holds 5.9% of the market share in direct premiums written.1 The insurer has relatively affordable car insurance rates, along with particularly valuable discounts for military members. It also has high J.D. Power customer satisfaction ratings in every region.2
Farmers and USAA have telematics programs that encourage safe driving and may help good drivers save money.
Farmers’ Signal is a mobile app that evaluates your driving behavior. If you adhere to the speed limit, practice safe braking, and avoid using your phone while driving, you could potentially save money when your policy renews. However, risky driving can also raise your premium. The app includes a safety feature, CrashAssist, which can detect an accident and call for emergency help.
Unlike Signal, there’s no risk of increasing your premiums when you enroll in USAA SafePilot. The SafePilot app also has crash detection and logs your trips and monitors your driving habits. You can get a discount of up to 10% on your policy just for signing up. Depending on your driving behavior, you may also receive a discount of up 30% when you renew your policy.
Based on national premium data, USAA is significantly cheaper than Farmers. USAA charges an average monthly premium of just $51 for liability coverage and $97 for full coverage, while Farmers charges an average of $110 and $215, respectively.
You may pay less if you’re eligible for discounts at either company, and your personal car insurance premiums also depend on factors like your age, location, driving history, and sometimes your credit score. Also remember that the right insurance policy for you depends on more than just price. You’ll also want to consider the company’s reputation and your specific needs.
Whether you buy liability-only insurance or pay for comprehensive and collision coverage as well, you’ll likely pay a lot less for a policy from USAA. Farmers charges drivers with a clean record more than double what USAA charges, on average.
A speeding ticket on your record can raise your auto insurance premiums because it shows insurance companies that you’ve engaged in risky driving behavior. Both companies charge higher monthly premiums to high-risk drivers, but Farmers’ rates are more than double USAA’s rates.
Because young drivers have less experience on the road and higher accident rates, they pay more for car insurance than other age groups.3 Teen drivers pay especially high average rates for Farmers’ coverage, while USAA auto insurance rates for 18-year-olds are much cheaper.
In most states, auto insurers use credit-based insurance scores as one factor in determining your premium. If you have a good credit score, you may get cheaper rates. But drivers with bad credit pay more expensive rates because insurance companies believe they’re more likely to file a claim.4
On average, drivers with poor credit pay more than double the premium for a policy with Farmers than with USAA.
While car insurance rates typically decrease with age, premiums can increase for drivers in their 70s due to a higher risk of accidents and more serious injuries. USAA has cheaper average car insurance rates for older drivers than Farmers.
Farmers and USAA offer the basic coverages that state laws require, such as liability coverage, uninsured/underinsured motorist coverage, personal injury protection, and medical payments coverage. Both companies also offer collision insurance and comprehensive coverage. Some coverages may vary by state.
In addition to the standard coverages offered by most auto insurance companies in the U.S., both Farmers and USAA offer robust insurance coverage add-ons. The following coverages, while optional, can help you get more protection from your auto policy.
While USAA has more generous car insurance discounts for military members, like discounts for deployment and garaging your vehicle at a military base, Farmers offers more discounts overall. For example, Farmers offers a discount to homeowners, even if you don’t have homeowners insurance with the company.
Here’s a quick guide to switching your car insurance in a few steps. Check out the answers to questions about Farmers and USAA below.
According to national quote data and a detailed analysis of quality factors, USAA is a better car insurance company than Farmers. But USAA car insurance is only available to military personnel and their families. Farmers is more expensive on average but may offer more coverage options and discounts. Plus, it’s available nationwide.
The main difference between these companies is the cost: Farmers car insurance is significantly more expensive than USAA, according to Insurify data. Also, access to coverage from USAA is restricted to military members, veterans, and their immediate family members, while Farmers is available to anyone.
USAA membership is open to current military members and honorably discharged veterans, pre-commissioned officers, and their spouses and children.
Farmers and USAA both offer roadside assistance if you add the coverage to your policy. Farmers also offers 24/7 claims assistance. Both companies have highly rated mobile apps you can use to manage your policy, along with telematics programs to help you become a better driver and have the chance to earn a discount.
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Key architect of Insurify's quality score.
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