Farmers vs. USAA: Best Car Insurance for 2021
When comparing Farmers vs. USAA car insurance, USAA has the cheapest rates across the board. USAA also has the highest financial and customer satisfaction ratings as well. The only problem is USAA is only available to the military, veterans, and their families. So while all drivers may want the cheaper insurance policies, USAA may be just out of reach. When comparing Farmers vs. USAA auto insurance rates, take advantage of all discounts available, such as the Farmers good student discount.
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UPDATED: Aug 9, 2021
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- In general, USAA car insurance is cheaper than Farmers
- USAA is only offered to the military, veterans, and their families
- USAA has better financial and customer satisfaction ratings than Farmers
When it comes to car insurance companies, you have a lot of options, and comparing them side by side will help you narrow down your choices. We’ll compare the pros and cons of Farmers vs. USAA car insurance companies to see which one best suits your needs.
Compare rates, discounts, financial ratings, and customer satisfaction ratings to determine if one of these companies is for you. It’s also important to know that while USAA is cheaper than virtually every competitor, it’s only offers car insurance coverage to the military, veterans, and their families.
If you aren’t connected to the US military, you can still get affordable rates. Farmers Insurance offers comprehensive coverage and affordable rates for civilians whether you’re looking for an auto insurance policy, homeowners, or something else. They compete with companies like Progressive and Liberty Mutual. Your driving habits, age, car, and other factors play a role in the rates at each company, but the exact algorithms are different.
To find the best company, you don’t have to just compare Farmers vs. USAA. Enter your ZIP code to receive free quotes from a variety of car insurance companies near you.
Is Farmers car insurance or USAA car insurance cheaper?
You may be surprised to learn all of the factors that car insurance companies use to determine your rates. Common factors used are your age, gender, ZIP code, driving history, and credit score.
All of these will be used to determine how affordable Farmers vs. USAA car insurance is for you. Since everyone will be different, rates will vary. The same driver could get completely different prices from different carriers.
First, we will look at Farmers vs. USAA car insurance rates by demographics. We all know that younger drivers are charged higher rates, but let’s look at just how much age, gender, and marital status affect your auto insurance rates.
|Age, Gender, and Marital Status||Farmers Average Annual Rates||USAA Average Annual Rates|
|Single 17-year-old female||$8,666.24||$4,695.06|
|Single 17-year-old male||$9,202.06||$5,225.88|
|Single 25-year-old female||$2,672.81||$1,913.08|
|Single 25-year old male||$2,791.21||$2,119.73|
|Married 35-year-old female||$2,316.82||$1,484.88|
|Married 35-year-old male||$2,306.44||$1,482.91|
|Married 60-year-old female||$2,117.42||$1,395.84|
|Married 60-year-old male||$2,179.61||$1,400.76|
USAA has the cheapest car insurance rates regardless of age, gender, or marital status.
Your driving record is another significant factor that auto insurance companies consider when quoting rates for cheap car insurance. You will pay even more on your policies when you have accidents, tickets, or DUIs than if you have a clean driving record.
|Driving Record||Farmers Average Annual Rates||USAA Average Annual Rates|
|With 1 accident||$4,518.73||$2,516.24|
|With 1 DUI||$4,718.75||$3,506.03|
|With 1 speeding violation||$4,079.01||$2,193.25|
Farmers car insurance rates are higher than USAA’s rates no matter your driving record.
You may also be surprised to hear that your auto insurance rates are influenced by your credit score. Car insurance companies believe that you are less likely to file a claim and are more able to pay for damages out of pocket if you have a higher credit score.
Farmers vs. USAA Average Annual Rates Based on Credit History
|Credit History||Farmers Average Annual Rates||USAA Average Annual Rates|
Yet again, USAA is the cheapest option whether you have good, fair, or poor credit.
Some states, like California, no longer allow auto insurance companies to look at credit scores when determining your rates. You may also find companies that don’t use it. Farmers and USAA both do in states where it’s legal to do so.
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Does Farmers or USAA have better car insurance discounts?
You can significantly lower your rates if you add car insurance discounts to your policy. Most companies offer common discounts for multiple policies, your job, and how many cars you insure.
This table shows you the available discounts through Farmers and USAA. If the amount of the discount is known, it is included. Take a look and see which company offers you the most discounts.
|Car Insurance Discounts||Farmers (%)||USAA (%)|
|Daytime Running Lights||x||x|
|Electronic Stability Control||x||N/A|
Both companies offer a lot of discounts and some are only offered at one company. For example, Farmers offers a continuous coverage discount and USAA doesn’t. However, USAA offers a family legacy discount and Farmers doesn’t. Both have discounts for safety innovations with information pulled using your car’s VIN.
Other discounts, such as the USAA or Farmers good student discount, are offered by both companies. It pays to spend a little more time on your application. Questions like if you went to college or which credit union you bank with could lead to more savings.
As you compare Farmers vs. USAA car insurance quotes, be sure to ask for any eligible discounts.
How do Farmers and USAA compare in financial strength and customer satisfaction?
A.M. Best ranks insurance companies based on financial stability. Farmers received an A rating, meaning they have an excellent ability to meet their obligations. USAA earned an A++ rating showing they have a superior ability to meet their obligations.
Farmers received an A+ rating from the Better Business Bureau, but USAA received an A- score. Also, Farmers is accredited and USAA is not.
J.D. Power ranked Farmers and USAA on customer satisfaction, including prices, billing, claims, and what is offered. Farmers ranked about average, but USAA ranked above average.
Both companies offer mobile apps and websites, and customers can access their insurance information, pay bills, and access their ID cards when needed.
Farmers and USAA also offer additional coverages, such as roadside assistance. Additional coverages, such as Farmers and USAA home insurance are available. In fact, you can even purchase Farmers and USAA pet insurance.
Deciding to buy Farmers vs. USAA car insurance can be a difficult decision. To determine if either is right for you, look at rates, discounts, and ratings.
You can also compare additional companies to see which one is the best fit. Enter your ZIP code to compare quotes from several companies near you now that you’ve compared Farmers vs. USAA car insurance.