Compare AAA vs. Farmers: Quotes, Discounts (2023)

AAA vs. Farmers: A Summary

If you’re looking to compare car insurance providers, two companies you may consider are AAA and Farmers. We’ll go over the similarities and differences between these companies to help you decide which is right for you. But first, here’s how these two auto insurance companies compare in terms of average monthly cost and Insurify Composite Score.

ICS Score Explanation:

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

AAA

AAA was formed over a century ago when several small motor clubs joined together. The federation of auto clubs is best known for its roadside assistance memberships, but you can purchase auto insurance directly from AAA in many states as well. In some states, AAA acts as a broker, connecting you with other insurers, such as GEICO and State Farm.

AAA members can save on auto insurance from AAA, but you don’t need a membership to get help from a AAA insurance agent. In addition to offering standard coverages, like collision and comprehensive coverage, AAA car insurance offers rental reimbursement, gap insurance, new car protection, and rideshare coverage in some regions.

AAA offers other insurance products, such as home insurance, and provides a bundling discount. AAA has an excellent financial strength rating from A.M. Best. CSAA, one of AAA’s regional clubs, was ranked above average for customer satisfaction in J.D. Power’s 2021 U.S. Insurance Shopping Study, while other AAA auto clubs were ranked below average.

Farmers

Farmers Insurance was founded in 1928 and offers a variety of insurance products, including homeowners insurance, auto insurance, and life insurance to customers in all 50 states. The company has excellent financial ratings. Farmers was ranked below average in J.D. Power’s 2021 U.S. Insurance Shopping Study but was ranked above average for claims satisfaction.

Farmers’ premiums are higher than the industry average, but the insurance provider offers a variety of discounts. Besides the standard coverage options, Farmers also offers towing and roadside service, rental car reimbursement, rideshare coverage, new car replacement coverage, and other unique options for special equipment and collectible cars.

Farmers offers a variety of discounts, but they vary by state. You can also save based on your driving behavior with the Signal telematics program.

AAA vs. Farmers — Ratings

The Best Car Insurance Companies in 2022

AAA and Farmers are not among the best insurance companies we reviewed, but some motorists may find that one of these companies best meets their needs. For example, Farmers has coverage options not provided by other insurers, such as classic car coverage. And existing AAA members who are happy with the insurance group might want to get their insurance coverage from the same place.

Compare AAA vs. Farmers: Which Is Cheaper?

Farmers is cheaper than AAA on average. However, AAA is cheaper for teen drivers and a few other age groups. Both companies charge higher rates than the industry average, so it’s a good idea to check your rate with a handful of other insurance providers.

The Cheapest Car Insurance Companies in 2022

Farmers and AAA are not the cheapest companies we reviewed. Both companies charge car insurance premiums that are higher than the industry average. For every type of driver, there’s another auto insurance company offering cheaper car insurance rates.

Compare AAA vs. Farmers Car Insurance by Age

Age is one of the most important factors in determining car insurance rates because it directly relates to your experience on the road. Teen drivers are more likely to crash than any other group, so they pay the highest rates, while drivers in their 50s and 60’s tend to pay the lowest rates. Here’s what you can expect from each insurer based on your age.

AAA is cheaper on average for teen drivers and motorists in their 30s, 40s, 50s and 60s. Farmers, on the other hand, is cheaper for older drivers. Both companies are more expensive than the industry average, however. For most age groups, USAA offers the cheapest rates, followed by GEICO.

Compare AAA vs. Farmers Car Insurance by Gender

Most car insurance companies consider your gender when underwriting your insurance policy. Women tend to pay just slightly less than men. In the teen years, the difference is sometimes more significant since teen males have more than double the vehicle death rate that teen females have.

Farmers offers cheaper car insurance rates than AAA for both men and women.

Which is cheapest for men?

Farmers is cheaper than AAA for men, but both companies charge more than the industry average.

Which is cheapest for women?

Women pay slightly cheaper premiums on average at Farmers than AAA, but both insurers charge more than the industry average.

Compare AAA vs. Farmers Car Insurance by Mileage

When you apply for a car insurance policy, the insurance agency or company will ask you for your estimated annual mileage. This has a minimal impact on your car insurance rates, but low-mileage drivers tend to pay slightly less than high-mileage drivers.

Keep in mind that you might achieve greater savings if you participate in a usage-based telematics program offered by your insurance company. Both AAA and Farmers offer these telematics programs, but they may not be available in all states.

Here’s what drivers pay on average for car insurance at AAA and Farmers based on their estimated annual mileage.

Which is cheapest for drivers with high mileage?

Farmers is cheaper than AAA for high-mileage drivers. However, neither company’s rates beat the industry average.

Which is cheapest for drivers with low mileage?

Farmers offers cheaper premiums than AAA for low-mileage drivers. However, both companies are more expensive than the industry average.

Compare AAA vs. Farmers Car Insurance by Credit Score

Car insurance companies in most states use your credit-based insurance score to determine your insurance rates. Policyholders with excellent credit tend to pay the least, while drivers with poor credit pay more for car insurance. That’s because several studies found a correlation between bad credit and more claims activity.

Car insurance companies charge higher rates to drivers with bad credit to account for their risk. Here’s what you can expect from AAA and Farmers based on your credit score.

Which is cheapest for good credit?

Farmers is cheaper than AAA for drivers with good or excellent credit, but neither company’s rates beat the industry average.

Which is cheapest for bad credit?

Farmers is significantly cheaper than AAA for drivers with bad credit. But both companies charge more than the industry average.

Compare AAA vs. Farmers Car Insurance by Driving Record

Car insurance companies look at your driving record to determine the risk to insure you. If they see things like speeding tickets and DUIs on your record, they’ll be inclined to think you’re not taking safety precautions and charge you higher rates. Sometimes, you can take a driving course or enroll in a telematics program to offset the higher cost.

Here’s what AAA and Farmers are charging drivers on average based on the infractions on their driving records.

Which is cheapest for good drivers?

Farmers is cheaper than AAA for motorists with a spotless driving record. But both companies charge more than the industry average.

Which is cheapest after a speeding ticket?

Both companies charge more to drivers with speeding tickets, but Farmers offers the cheaper rates. Neither company’s rates beat the industry average, however.

Which is cheapest after an accident?

Drivers who have caused crashes pay more at AAA than Farmers on average. While Farmers is cheaper, it still doesn’t beat the industry average rate for drivers with at-fault accidents.

Which is cheapest after a DUI?

A DUI is a serious offense that requires you to have an SR-22 on file with the DMV in most states. That’s why AAA’s rates spike for DUI drivers. Farmers is more lenient with DUI drivers but still charges them more than the industry average rate.

AAA vs. Farmers Car Insurance: What discounts does each offer?

AAA Discounts

• Paperless

• Paid in full

• Autopay

• Telematics

• Defensive driver

• Multi-policy

• Multi-car

• Young driver

• Good student

• Student away

• Safety device

• Anti-theft device

• New car

Note that these discounts vary by region. Check with an insurance agent or visit your local auto club group’s website for more details.

Farmers Discounts

• Multi-policy

• Multi-car

• Affinity

• Paperless

• Good payer

• Safe driver

• Young driver

• Good student

• Student away

• Defensive driver (mature driver or senior driver in some states)

• Homeowner

• Autopay

• Paid in full

• Safety device

• Anti-theft device

• Telematics

Farmers discounts can vary by state. Ask an insurance agent which of these discounts you may be eligible for.

Our Methodology and How We Compared AAA and Farmers

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.