Farmers vs. USAA Car Insurance: Expert Recommended (2024)
In this comprehensive comparison between Farmers and USAA car insurance, one company outshines the other, excelling in pricing, discounts, and financial stability.
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Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many different insurance providers, which gives him unique insight into the insurance market...
Commercial Lines Coverage Specialist
UPDATED: Feb 7, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Feb 7, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
| Factor | Farmers | USAA |
|---|---|---|
| Clean Record | $139 | $59 |
| 1+ Ticket | $173 | $67 |
| 1+ Accident | $198 | $78 |
| DUI | $193 | $108 |
| Poor Credit | $239 | $101 |
*monthly rates are based on an average of minimum and full coverage for a 45-year-old male driver
| Discount | Farmers | USAA |
|---|---|---|
| Anti Theft | 15% | 12% |
| Good Student | 10% | 10% |
| Low Mileage | 10% | 5% |
| Paperless | 10% | 3% |
| Safe Driver | 5% | 15% |
| Senior Driver | 15% | 3% |
Farmers Car Insurance
Pros:
- Signal App Discounts: Farmers offers discounts through the Signal app, rewarding safe driving behavior with various discounts.
- Commendable Online Presence: Farmers provides a user-friendly online platform for policy management, including claims filing, making it convenient for tech-savvy customers.
- BBB and A.M. Best Ratings: The company is well-reviewed by both the Better Business Bureau (BBB) and A.M. Best, reflecting a level of trustworthiness and financial stability.
Cons:
- Pricing Variation: Farmers’ rates are cheaper in only nine out of 32 states in which they operate, indicating potential pricing challenges for some customers.
- Limited Commute Level Impact: While Farmers’ rates are comparable for different commute levels, the impact of commuting frequency on premiums may not be as significant as with other insurers.
- Moderate Discounts: Aside from the Signal app, Farmers’ discount offerings may be perceived as moderate compared to competitors.
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USAA Car Insurance
Pros:
- Competitive Pricing: USAA stands out with more affordable rates in all 29 states where both companies operate, making it a strong choice for cost-conscious consumers.
- Extensive Discounts: USAA offers various discounts, including some as simple as using your USAA login, providing ample opportunities for policyholders to save.
- High A.M. Best Rating: USAA receives an outstanding A++ rating from A.M. Best, indicating superior financial stability.
Cons:
- BBB Rating: USAA’s BBB rating of B- may be perceived as a drawback, potentially impacting the overall trustworthiness perception.
- Pricing Transparency: While USAA is generally more affordable, some customers may find the pricing structure complex or less transparent.
- Limited Eligibility: USAA membership is limited to military personnel, veterans, and their families, restricting eligibility for a significant portion of the population.
Best Overall Car Insurance: USAA Takes the Lead
After a thorough analysis of Farmers and USAA car insurance offerings, USAA emerges as the superior choice for several compelling reasons.
Pricing Dominance: USAA takes a clear lead in the pricing battle, offering more affordable rates in all 29 states where both companies operate. This consistent pricing advantage positions USAA as the go-to option for those seeking cost-effective coverage.
Extensive Discounts: USAA’s comprehensive discount offerings, including simple yet impactful discounts like using the USAA login, provide policyholders with numerous opportunities to save. This commitment to affordability aligns with the needs of a diverse customer base.
Financial Stability: USAA’s exceptional A++ rating from A.M. Best underscores its robust financial stability, assuring customers of long-term reliability and the ability to meet future financial obligations.
While Farmers has commendable features, such as the Signal app and positive BBB and A.M. Best ratings, the overall pricing competitiveness and broader eligibility criteria make USAA the standout choice. However, it’s crucial to acknowledge that USAA membership is limited to military personnel, veterans, and their families, impacting accessibility for some individuals.
Table of Contents
What can Farmers do for you?
When comparing insurers, the best place to start is with each company’s pricing structure. Let’s take a look at Farmers’ rates in comparison to state averages.
Farmers Average Monthly Rates by State
| State | Farmers Average Monthly Car Insurance Rates | Higher/Lower Than State's Average Monthly Rates ($) | Higher/Lower Than State's Average Monthly Rates (%) |
|---|---|---|---|
| Alabama | $348.82 | $51.57 | 1.23% |
| Arkansas | $354.82 | $11.07 | 0.26% |
| Arizona | $416.67 | $102.43 | 2.05% |
| California | $416.57 | $109.15 | 2.18% |
| Colorado | $440.85 | $117.82 | 2.23% |
| Hawaii | $396.99 | $184.02 | 3.86% |
| Iowa | $202.98 | -$45.46 | -1.87% |
| Idaho | $264.02 | $15.77 | 0.50% |
| Illinois | $383.77 | $108.31 | 2.35% |
| Indiana | $286.46 | $1.88 | 0.06% |
| Kansas | $308.65 | $35.35 | 0.95% |
| Maine | $230.85 | -$15.26 | -0.55% |
| Michigan | $708.63 | -$166.25 | -1.96% |
| Minnesota | $261.45 | -$105.48 | -3.36% |
| Missouri | $359.35 | $81.94 | 1.90% |
| Montana | $325.63 | $57.23 | 1.46% |
| North Dakota | $257.71 | -$89.45 | -2.89% |
| Nebraska | $333.11 | $59.47 | 1.49% |
| New Jersey | $634.75 | $175.15 | 2.30% |
| New Mexico | $359.63 | $70.99 | 1.65% |
| Nevada | $466.30 | $61.16 | 1.09% |
| Ohio | $285.25 | $59.44 | 1.74% |
| Oklahoma | $345.20 | $0.01 | 0.00% |
| Oregon | $312.79 | $23.81 | 0.63% |
| South Carolina | $390.99 | $75.89 | 1.62% |
| South Dakota | $314.07 | -$17.79 | -0.47% |
| Tennessee | $285.84 | -$19.24 | -0.56% |
| Utah | $325.67 | $24.68 | 0.63% |
| Washington | $246.83 | -$8.11 | -0.27% |
| Wisconsin | $314.79 | $14.29 | 0.38% |
| Wyoming | $255.78 | -$10.89 | -0.36% |
As you can see, out of the 32 states in which Farmers operates, it is cheaper in only nine. This is not particularly encouraging, but we’ll get a chance to compare Farmers to other companies later on.
Auto insurance providers are all about risk. The more a driver is on the road, the more they are seen as a risk. Let’s take a look at Farmers’ rates for different commute levels.
Farmers Average Monthly Car Insurance Rates by Commute Length
| Commute Length | Farmers Average Monthly Rates |
|---|---|
| 10-mile, 500 miles monthly | $348.27 |
| 25-mile, 1,000 miles monthly | $350.76 |
As you can see, and it is rather unusual, Farmers’ rates are comparable for the different commute levels.
Let’s now move on to what, if any, discounts Farmers offers.
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Farmers Discounts
Farmers’ most widely known discount is through an app for your phone called Signal. This app analyzes driving behavior and attributes a discount to your account should you display a tendency for safe driving.
https://www.youtube.com/watch?v=a3qyaVhLg04&feature=emb_logo
Keep in mind that Signal offers not just one but a variety of discounts. Sure, if you drive safely you’ll get the monthly discount, but you also get a 5 percent discount solely for having the app installed.
Let’s now move on to analyzing USAA to see how they compare.
What can USAA do for you?
Just as we did with Farmers, we’re going to begin with pricing. Let’s now take a look at a table showing rates for the 10 most prominent insurers throughout the country.
Average Monthly Car Insurance Rates Comparison for Top 10 Companies by State
| State | Allstate Average Monthly Rates | American Family Average Monthly Rates | Farmers Average Monthly Rates | Geico Average Monthly Rates | Liberty Mutual Average Monthly Rates | Nationwide Average Monthly Rates | Progressive Average Monthly Rates | State Farm Average Monthly Rates | Travelers Average Monthly Rates |
|---|---|---|---|---|---|---|---|---|---|
| Alaska | 262.11 | 346.09 | - | 240.00 | 441.30 | - | 255.24 | 185.68 | - |
| Alabama | 275.96 | - | 348.82 | 238.88 | 333.79 | 221.89 | 370.88 | 399.85 | 308.15 |
| Arkansas | 429.17 | - | 354.82 | 290.39 | - | 321.82 | 442.67 | 232.42 | 497.78 |
| Arizona | 408.68 | - | 416.67 | 188.73 | - | 291.34 | 298.13 | 396.35 | 257.06 |
| California | 377.75 | - | 416.57 | 240.47 | 252.87 | 387.77 | 237.47 | 350.19 | 279.13 |
| Colorado | 461.43 | 311.09 | 440.85 | 257.64 | 233.15 | 311.62 | 352.66 | 272.56 | - |
| Connecticut | 485.97 | - | - | 256.14 | 606.91 | 306.03 | 410.03 | 248.02 | 500.36 |
| District of Columbia | 539.08 | - | - | 307.73 | - | 404.08 | 414.19 | 339.50 | - |
| Delaware | 526.34 | - | - | 310.61 | 1530.00 | 360.85 | 348.49 | 372.24 | 348.53 |
| Florida | 620.04 | - | - | 315.30 | 447.35 | 361.63 | 465.28 | 283.14 | - |
| Georgia | 350.89 | - | - | 248.10 | 837.79 | 540.41 | 374.94 | 282.07 | - |
| Hawaii | 181.12 | - | 396.99 | 279.91 | 265.80 | 212.65 | 181.49 | 86.69 | - |
| Iowa | 247.16 | 251.82 | 202.98 | 191.35 | 367.94 | 227.95 | 199.63 | 185.38 | 452.45 |
| Idaho | 340.73 | 310.73 | 264.02 | 230.89 | 191.79 | 252.68 | - | 155.66 | 268.86 |
| Illinois | 433.70 | 317.94 | 383.77 | 231.60 | 189.80 | 225.98 | 294.72 | 195.41 | 208.31 |
| Indiana | 331.57 | 306.64 | 286.46 | 188.42 | 481.78 | - | 324.83 | 200.75 | 282.81 |
| Kansas | 334.19 | 178.87 | 308.65 | 268.39 | 398.70 | 206.30 | 345.37 | 226.67 | 361.79 |
| Kentucky | 595.33 | - | - | 386.13 | 494.25 | 458.60 | 462.30 | 279.53 | 545.97 |
| Louisiana | 499.90 | - | - | 512.88 | - | - | 622.59 | 381.59 | - |
| Maine | 306.30 | - | 230.85 | 235.25 | 360.95 | - | 303.63 | 183.22 | 187.75 |
| Maryland | 436.10 | - | - | 319.39 | 774.80 | 242.97 | 341.24 | 330.07 | - |
| Massachusetts | 225.71 | - | - | 125.85 | 361.61 | - | 319.59 | 113.49 | 294.83 |
| Michigan | 1908.55 | - | 708.63 | 535.84 | 1666.67 | 527.28 | 447.05 | 1047.13 | 731.16 |
| Minnesota | 377.67 | 293.44 | 261.45 | 291.55 | 1130.30 | 243.87 | - | 172.25 | - |
| Missouri | 341.35 | 273.91 | 359.35 | 240.44 | 376.56 | 188.78 | 284.93 | 224.41 | - |
| Mississippi | 411.84 | - | - | 340.60 | 371.33 | 229.71 | 359.07 | 248.37 | 310.78 |
| Montana | 389.34 | - | 325.63 | 300.20 | 110.51 | 289.86 | 360.90 | 201.48 | - |
| North Carolina | 599.20 | - | - | 244.72 | 181.89 | 237.34 | 198.55 | 256.55 | 261.06 |
| North Dakota | 389.11 | 317.70 | 257.71 | 222.35 | 1071.07 | 213.36 | 301.92 | 213.38 | - |
| Nebraska | 266.57 | 184.59 | 333.11 | 319.79 | 520.13 | 217.00 | 313.17 | 203.23 | - |
| New Hampshire | 227.08 | - | - | 134.59 | 703.70 | 207.59 | 224.54 | 182.12 | - |
| New Jersey | 476.13 | - | 634.75 | 229.58 | 563.89 | - | 331.06 | 627.26 | 354.54 |
| New Mexico | 350.05 | - | 359.63 | 371.53 | - | 292.87 | 259.93 | 195.06 | - |
| Nevada | 447.64 | 453.43 | 466.30 | 305.17 | 516.80 | 289.76 | 338.55 | 483.03 | 446.70 |
| New York | 395.08 | - | - | 202.35 | 545.06 | 334.41 | 314.26 | 373.72 | 381.57 |
| Ohio | 266.44 | 126.26 | 285.25 | 155.60 | 369.15 | 275.07 | 286.41 | 208.99 | 261.26 |
| Oklahoma | 309.89 | - | 345.20 | 286.45 | 572.89 | - | 402.70 | 234.73 | - |
| Oregon | 397.16 | 293.94 | 312.79 | 268.34 | 361.21 | 264.74 | 302.43 | 227.62 | 241.02 |
| Pennsylvania | 332.01 | - | - | 217.10 | 504.60 | 233.36 | 370.92 | 228.69 | 653.54 |
| Rhode Island | 413.29 | - | - | 466.89 | 515.34 | 367.47 | 435.92 | 200.54 | 575.79 |
| South Carolina | 325.29 | - | 390.99 | 264.83 | - | 302.12 | 381.09 | 255.95 | - |
| South Dakota | 393.64 | 337.29 | 314.07 | 245.02 | 626.33 | 228.14 | 312.73 | 192.19 | - |
| Tennessee | 402.40 | - | 285.84 | 273.62 | 517.22 | 285.41 | 304.74 | 219.94 | 228.21 |
| Texas | 457.12 | 404.06 | - | 271.94 | - | 322.30 | 388.72 | 240.00 | - |
| Utah | 297.20 | 308.23 | 325.67 | 247.13 | 360.65 | 248.88 | 319.18 | 387.15 | - |
| Virginia | 282.23 | - | - | 171.79 | - | 172.75 | 208.22 | 189.08 | - |
| Vermont | 265.87 | - | - | 182.98 | 301.76 | 177.35 | 434.76 | 365.24 | - |
| Washington | 295.04 | 309.42 | 246.83 | 214.05 | 332.89 | 177.49 | 267.46 | 208.32 | - |
| West Virginia | 318.39 | - | - | 176.73 | 243.70 | - | - | 177.19 | - |
| Wisconsin | 404.53 | 126.11 | 314.79 | 327.18 | 563.24 | 435.42 | 260.74 | 198.96 | - |
| Wyoming | 364.49 | - | 255.78 | 291.38 | 165.78 | 265.60 | 366.76 | 191.96 | - |
As you can see, both Farmers and USAA operate in 29 states. Farmers is more expensive than USAA in all 29 of these states. Clearly, USAA has a leg up when it comes to pricing. In fact, in quite a few of these states, USAA is only half the price of Farmers. This is not to mention all of the discounts they offer, many of which are as simple as using your USAA login.
Read more:
- Farmers vs. Progressive Car Insurance: Expert Recommended
- Farmers vs. Travelers Car Insurance: Expert Recommended
Let’s now move on to wrap up with how USAA is rated. In the meanwhile, if you’d like to learn more about USAA, read our USAA Insurance review.
Farmers vs. USAA Car Insurance: A Comprehensive Comparison of Claims Process
Ease of Filing a Claim
Farmers Insurance and USAA offer convenient methods for filing insurance claims, catering to modern digital preferences. Both companies provide online claim filing options through their respective websites or mobile apps, making it easy for policyholders to initiate claims at their convenience. Additionally, claims can often be filed over the phone, ensuring flexibility in the process.
Average Claim Processing Time
The efficiency of claim processing is a crucial aspect of customer satisfaction. Farmers Insurance and USAA strive to process claims swiftly and efficiently to provide timely assistance to their policyholders. The average claim processing time may vary based on the complexity and nature of the claim, but both companies prioritize prompt handling to expedite settlements.
Customer Feedback on Claim Resolutions and Payouts
Customer feedback regarding claim resolutions and payouts is valuable in understanding the overall claim experience. Reviews and testimonials from policyholders can shed light on the satisfaction levels with the claim settlement process, the fairness of payouts, and the responsiveness of the insurance companies in addressing their claims.
Evaluating customer feedback can help potential policyholders make informed decisions regarding their choice of insurer.
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Farmers vs. USAA Car Insurance: In-Depth Analysis of Digital and Technological Features for Enhanced Coverage
Mobile App Features and Functionality
Farmers Insurance and USAA offer mobile applications that come equipped with a range of features to enhance the user experience. These apps often allow policyholders to access their policy information, file claims, make payments, and view important documents directly from their smartphones or tablets.
The functionality and ease of use of these apps play a significant role in enhancing customer engagement and satisfaction.
Online Account Management Capabilities
Online account management is a crucial digital feature that enables policyholders to access and manage their insurance policies conveniently. Both Farmers Insurance and USAA offer user-friendly online platforms where policyholders can log in to their accounts, view policy details, update personal information, make payments, and track claims.
This digital convenience ensures a seamless and efficient insurance management experience.
Digital Tools and Resources
In the modern digital age, insurance companies like Farmers and USAA often provide policyholders with valuable digital tools and resources. These can include online calculators, educational materials, policy coverage explainers, and other resources that help policyholders better understand their insurance coverage.
Offering such digital tools empowers policyholders to make informed decisions about their insurance needs and coverage options.
USAA Ratings
We’ve covered pricing. We’ve covered discounts. Let’s look at one last criterion that is very important when it comes to comparing insurers: their ratings.
The best way to go about this is to look at the reviews given by A.M. Best and the Better Business Bureau. Let’s take a look at a table showing these two companies’ ratings for USAA.
USAA Company Ratings
| Agency | Ratings |
|---|---|
| AM Best | A++ |
| Better Business Bureau (San Antonio Headquarters) | B- |
| Moody's | Aaa |
| S&P | AA+ |
| NAIC Complaint Index (2017) | 0.75 (below the national average of 1.0) |
| JD Power | 5 out of 5 stars for overall claims satisfaction |
| Consumer Reports | 95 out of 100 |
| Consumer Affairs | 1 1/2 out of 5 stars based on 266 ratings |
As you can see, USAA scored an outstanding A++ rating from A.M. Best. As encouraging as this is, the Better Business Bureau‘s rating of B- is not so encouraging.
All in all, just keep in mind that price isn’t the only thing you’re looking for. Inquire as to how many discounts you can accrue no matter which insurer you go with. Also, compare the ratings for insurers. Make sure you’re going with a company that will be financially helpful for the foreseeable future.
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Frequently Asked Questions
Which car insurance company is better, Farmers or USAA?
Both Farmers and USAA are reputable car insurance companies, but the better option depends on your specific needs and circumstances. It is recommended to consider factors such as coverage options, customer service, pricing, and available discounts before making a decision.
What coverage options do Farmers and USAA offer?
Farmers and USAA offer a range of coverage options for car insurance, including liability coverage, comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, and personal injury protection. It’s important to review each company’s offerings to determine which coverage options align with your needs.
How is the customer service of Farmers and USAA?
Farmers and USAA are known for their customer service, but USAA has consistently received high ratings in customer satisfaction surveys. USAA’s commitment to serving military personnel and their families often contributes to positive customer experiences. However, individual experiences may vary, so it’s advisable to research and read reviews from policyholders.
Are there any notable differences in pricing between Farmers and USAA?
Pricing for car insurance varies based on multiple factors, such as your location, driving history, age, and the type of vehicle you own. Farmers and USAA may have different pricing structures, and it’s recommended to obtain quotes from both companies and compare them to find the most competitive rate for your situation.
Do Farmers and USAA offer any discounts on car insurance policies?
Both Farmers and USAA provide various discounts that can help policyholders save money on their car insurance premiums. These discounts may include safe driving discounts, multi-policy discounts, good student discounts, military discounts, and more. It’s worthwhile to inquire about available discounts when obtaining quotes from either company.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
Secured with SHA-256 Encryption
Michael Vereecke
Commercial Lines Coverage Specialist
Michael Vereecke is the president of Customers First Insurance Group. He has been a licensed insurance agent for over 13 years. He also carries a Commercial Lines Coverage Specialist (CLCS) Designation, providing him the expertise to spot holes in businesses’ coverage. Since 2009, he has worked with many different insurance providers, which gives him unique insight into the insurance market...
Commercial Lines Coverage Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.