AAA vs. Farmers: Which Is the Best? (2024)

The number of coverage and discount options from Farmers make it the better option for many drivers.

A.M. Steinbach
Written byA.M. Steinbach
A.M. Steinbach
A.M. SteinbachInsurance Writer
  • Full-time writer for 5+ years

  • Two-time Emmy Award nominee

A Harvard graduate, Mark has worked as a freelance personal finance and tech writer. He’s also written for Saturday Night Live.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated June 11, 2024

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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.

Quick Facts
  • Farmers has more discount offerings than AAA.

  • Both companies offer telematics programs that reward safe driving.

  • Of the two insurers, only AAA offers gap insurance.

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.

FactorAAAFarmers
IQ Score3.84.2
J.D. Power customer satisfaction score820 out of 1,000802 out of 1,000
Average quote: liability only$88$111
Number of discounts1022
Number of states where it operates5050
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: We use data from AM Best, S&P, Moody's, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 20,000 customer reviews across 155 car insurance companies. We also considered third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the United States, as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.

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).

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.8
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$88/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$131/mo

When AAA began in 1902, it was a small, members-only motor club. The organization introduced insurance coverage for members a few decades later. Other aspects of the club, like exclusive discounts, travel help, and emergency roadside assistance, have stayed the same throughout the years. Today, the company partners with regional insurance companies to offer insurance coverage for millions of members.

Pros
  • Unique membership perks like travel discounts and members only DMV locations

  • Standard extra coverage such as roadside assistance

  • High customer satisfaction

Cons
  • Limited company options

  • AAA membership is required to obtain coverage

  • Coverage varies based on location

Read our CSAA review
Luz - June 11, 2024
Verified

AAA Review

Excellent company. It's an ethical company.

Chauncey - June 11, 2024
Verified

AAA

Professional, accommodating, economical, efficient.

Monique - June 8, 2024
Verified

Average

My monthly payments increased by $80.

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.

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.2
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$111/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$248/mo

The seventh largest insurer in the U.S., Farmers has been in business for more than 100 years. The company offers about 30 different types of insurance, including auto, home, renters, flood, earthquake, life, and business insurance. Farmers offers numerous discounts, including for multiple cars, safe driving, anti-theft equipment, and bundling. Swiss insurer Zurich Insurance owns Farmers. With an A rating from A.M. Best for financial stability, Farmers has mixed online reviews from customers, and about four times as many complaints as expected in the National Association of Insurance Commissioners Customer Complaint Index.

Pros
  • Many discounts

  • Robust roadside assistance program

Cons
  • Lower customer satisfaction

  • Tends to have higher premiums than some competitors

Read our Farmers review
Larry - June 11, 2024
Verified

I wouldn't recommend using Farmers. My agent transferred my policy to another agent in Orange County. The communication was very poor, with slow email responses and it took weeks to get proof of insurance. I also feel that I was severely overcharged.

I wouldn't recommend using Farmers. My agent transferred my policy to another agent in Orange County. The communication was very poor, with slow email responses and it took weeks to get proof of insurance. I also feel that I was severely overcharged.

Vicki - June 11, 2024
Verified

Just okay

I wasn't offered any discounts, which is why I switched. I now pay less than half of what my premium was with Farmer's for the same coverage.

Linda - June 11, 2024
Verified

Outstanding Customer Service, But High Cost

Their customer service is outstanding and they are always ready to help with everything. However, the cost is over the top expensive.

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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 $111 per month for liability-only insurance and $248 for full coverage, on average. This is slightly above the national averages of $105 per month for liability and $215 for full coverage.

Average rates from AAA are lower, at $88 per month for liability-only insurance and $131 for full-coverage insurance.

Keep in Mind

Your quote will vary based on your age, driving history, vehicle choice, credit, ZIP code, and more. For example, a middle-aged driver of a Honda Civic with a clean driving record will likely pay less than a teen driver of a sports car with an accident on their record.

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.

Driver TypeAAAFarmers
Clean driving record$88$111
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Driver TypeAAAFarmers
Drivers with a speeding ticket$109$127
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Driver TypeAAAFarmers
18-year-old$130$191
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Driver TypeAAAFarmers
Drivers with bad credit$134$134
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Driver TypeAAAFarmers
Senior drivers$65$81
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

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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.

DiscountAAAFarmers
Clean driving recordNoYes
Defensive driving courseYesYes
Multi-policyYesYes
Multi-carYesYes
Low mileageYesNo
Telematics (safe driving app)YesYes
Anti-theft deviceNoYes
New carNoNo
Military affiliationNoYes
Good studentYesYes
LoyaltyYesNo
Auto payYesYes
Student away at schoolNoYes
HomeownerNoYes
Alternative fuelNoYes (CA only)

AAA vs. Farmers FAQs

To decide on the right insurance company for you, you should compare quotes from multiple auto insurers. The following information should help answer your remaining questions about insurance policies from AAA and Farmers.

  • Who is AAA’s biggest competitor?

    As a midsize insurer with a solid national footprint, AAA is competing with similar-sized auto insurance companies, like Safeco, Erie Insurance, Mercury, American Family, and The Hartford.

  • Does Farmers Insurance have a good reputation?

    Farmers has an A (Excellent) financial strength rating from AM Best, which underscores the company’s reputation as a legitimate insurer with the ability to pay out claims. The company has a mixed customer service reputation, with a below-average J.D. Power score and a low Trustpilot rating.

  • What are the pros and cons of AAA?

    AAA offers affordable rates and a wide array of coverage options, including gap insurance. Unfortunately, AAA isn’t the best option for drivers who need rideshare coverage or want access to extensive car insurance discounts.

  • Who are the insurance competitors of Farmers?

    Farmers is a large national insurer that competes with other big names in the industry, such as Allstate, State Farm, Liberty Mutual, GEICO, Progressive, and Travelers.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

A.M. Steinbach
A.M. SteinbachInsurance Writer

A.M. is a Brooklyn-based writer, editor, and content marketing strategist who's worked with major brands in insurance, tech, finance, and healthcare. He also contributes to The Average Joe, a personal finance newsletter that reaches over 250,000 daily readers. Since 2019, he's written for Insurify, breaking down a diverse range of insurance topics into crisp, readable prose.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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