Farmers vs. USAA: Which Is The Best? (2024)

USAA’s low auto insurance rates and excellent customer satisfaction ratings make it a better choice than Farmers for military members, veterans, and their families.

Lindsay Frankel
Written byLindsay Frankel
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Lindsay FrankelInsurance Writer
  • 5+ years in auto insurance and personal finance writing

  • Featured in top personal finance publications

Lindsay is a widely published creator of auto insurance content. She also specializes in real estate, banking, credit cards, and other personal finance topics.

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Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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 February 23, 2024 at 11:00 AM PST

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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.

Quick Facts
  • USAA is the best option for military drivers due to the company’s low premiums and stellar third-party ratings.

  • Farmers offers more coverage options and discounts than USAA.

  • Farmers’ national average rates are more than double USAA’s average premiums.

Farmers vs. USAA: The verdict

USAA auto insurance earned high ratings in multiple J.D. Power studies, has the top financial strength rating with 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.

FactorFarmersUSAA
Insurify Quality (IQ) Score3.84.5
Customer satisfaction score3.34.2
Average quote: liability only$108$46
Number of available discounts2210
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.
  • Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.

    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. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

Farmers

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).

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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.
$108/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.
$242/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

For over a month, I have been trying to get just two vehicles on my policy, and they can’t get it right. And they are impossible to get ahold of. Very frustrating.

Joel - December 1, 2023
Verified

As a company, they were wonderful, but they jacked up their rates so high for me to stay with them. They require you to pay two months in advance, which is $500, which was out of my price range. I just don’t understand why they do that.

jessica - November 27, 2023
Verified

They treated me well.

Karen - November 21, 2023
Verified
Read our Farmers review

USAA

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]

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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.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
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.
$46/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.
$98/mo

In business for more than 100 years, USAA exclusively serves members of the military and their immediate families. The company offers multiple types of insurance products, as well as banking, investing, and retirement services. Auto insurance customers have access to a number of discounts, including for bundling, insuring multiple vehicles, living on a military base, and more. A.M. Best gives USAA an A++ rating for financial strength, and the company had the highest or second-highest rating of all insurers in every region in J.D. Power’s Overall Customer Satisfaction Index. Customer reviews are mixed for service and claims processing.

Pros
  • Low premiums

  • SafePilot program rewards good driving with up to 30% discount

Cons
  • Only available to active-duty military, veterans, military spouses, or children of service members or veterans

  • No 24/7 customer phone support

They have stopped thinking about how today's financial strain is impacting their customers.

Darcy - November 26, 2023
Verified

Not satisfied with price hike even after lowering coverage.

Linda - November 3, 2023
Verified

Wonderful service, pricing, and care.

Robert - October 24, 2023
Verified
Read our USAA review

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Farmers’ Signal vs. USAA SafePilot

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 up to a 10% discount 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.

How Does Usage-Based Insurance Work?

How Does Usage-Based Insurance Work?

Farmers vs. USAA: Which is the cheapest?

Based on national premium data, USAA is significantly cheaper than Farmers. USAA charges an average monthly premium of just $46 for liability coverage and $98 for full coverage, while Farmers charges an average of $108 and $242, 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.

USAA: Cheapest for drivers with a clean driving record

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.

Driver TypeFarmersUSAA
Clean driving record$108$46
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.

USAA: Cheapest for drivers with a speeding ticket

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.

Driver TypeFarmersUSAA
Drivers with a speeding ticket$125$53
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.

USAA: Cheapest for teen drivers

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.

Driver TypeFarmersUSAA
18-year-old$183$70
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.

USAA: Cheapest for drivers with bad credit

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.

Driver TypeFarmersUSAA
Drivers with bad credit$121$58
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.

USAA: Cheapest for senior drivers

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.

Driver TypeFarmersUSAA
Senior drivers$81$36
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: Farmers vs. USAA

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.

CoverageFarmersUSAA
Rideshare coverageYesIn most states
New-car replacement coverageYesYes
Roadside assistanceYesYes
Rental car reimbursementYesYes
Loss of useYesNo
Guaranteed valueYesYes, through American Collectors Insurance
Customized equipmentYesNo
Personal umbrellaYesYes
Glass coverageYesYes (coverage varies by state)
Spare parts coverageYesNo
Original equipment manufacturer (OEM)YesNo
Accident forgivenessYesYes, in most states

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Compare discounts: Farmers vs. USAA

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.

DiscountFarmersUSAA
Clean driving recordYesYes
Defensive driving courseYesYes
Multi-policyYesYes
Multi-carYesYes
Low-mileageNoYes
Telematics (safe driving app)YesYes
Anti-theft deviceYes, in some statesYes
HomeownerYesNo
Payment discountsYesNo
Good studentYesYes
Distant studentYesNo
Shared family carYesNo
PaperlessYesNo
Legacy discountNoYes
Affinity/military discountYesNo
Deployment discountNoYes
Military garage discountNoYes

Farmers vs. USAA FAQs

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.

  • Is Farmers or USAA better?

    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 discount opportunities. Plus, it’s available nationwide.

  • What are the main differences between Farmers and USAA insurance?

    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.

  • Who is eligible for a USAA policy?

    USAA membership is open to current military members and honorably discharged veterans, pre-commissioned officers, and their spouses and children.

  • What additional services do Farmers and USAA offer?

    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.

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.

Sources

  1. NAIC. "Property and Casualty Insurance Industry Top 25 Groups and Companies by Countrywide Premium." Accessed February 14, 2024
  2. J.D. Power. "2023 U.S. Auto Insurance Study." Accessed February 14, 2024
  3. Centers for Disease Control and Prevention. "Teen Drivers and Passengers: Get the Facts." Accessed February 14, 2024
  4. III. "Background on: Credit Scoring." Accessed February 14, 2024
Lindsay Frankel
Lindsay FrankelInsurance Writer

Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.

Courtney Mikulski
Edited byCourtney MikulskiSenior Editor, Auto
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • 3+ years producing insurance and personal finance content

  • Main architect of the Insurify Quality Score

Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.

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Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 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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