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

USAA vs. Farmers: A Summary

If you’re looking to compare car insurance, two companies you might consider are USAA and Farmers. Keep in mind that USAA only offers insurance to military members, veterans, and their eligible family members, while Farmers is available to both military and non-military drivers in all 50 states. Here’s how those two companies compare in terms of cost and reputability.

Insurify Composite Score

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.

USAA

USAA is a financial company serving military members and their families. It offers a variety of insurance, banking, and investing products, including standard car insurance coverage options. In addition, you can get umbrella insurance, roadside assistance, rental reimbursement, new car replacement, and even rideshare coverage from USAA.

USAA offers free accident forgiveness if you’ve been a member for five years without any at-fault accidents. The company also provides a variety of discounts tailored to military members. USAA has superior financial strength ratings and was the highest-rated insurer in 2022 by J.D. Power. The company’s affordable rates make it an optimal choice for military members.

Farmers

Farmers has been around since 1928 and provides vehicle, property, business, and life insurance to people nationwide. Farmers offers standard liability and full-coverage policies in addition to several unique coverages, including full windshield and glass coverage, towing and roadside service, guaranteed value coverage, and rideshare insurance.

While not as highly rated as USAA, Farmers Insurance is well-rated for customer satisfaction by J.D. Power and has excellent financial strength ratings. Discounts at Farmers vary by state, so you may not know what’s available until you apply for a policy. In most states, you can sign up for the Signal app, which may reward you for safe driving habits if you install a tracker in your car. However, Farmers premiums can be relatively pricey.

USAA vs. Farmers — Ratings

The Best Car Insurance Companies in 2022

See More: The Best Car Insurance Companies

Farmers is one of the best insurance companies Insurify’s data scientists evaluated, based on its analysis of a variety of data. USAA didn’t make the list because it’s not available to everyone, but USAA is a reliable car insurance provider that may be the best option for military members looking for affordable coverage.

Compare USAA vs. Farmers: Which Is Cheaper?

USAA car insurance rates are cheaper than Farmers car insurance rates for all types of drivers. In fact, USAA offers the cheapest average rates for most drivers out of all the companies we evaluated, with few exceptions. However, it’s important to keep in mind that USAA insurance isn’t available to all drivers—you must be a USAA member to get a policy.

The Cheapest Car Insurance Companies in 2022

Farmers is not one of the cheapest insurance companies out there. In fact, Farmers is consistently more expensive than the industry average for all types of drivers. However, Farmers offers some unique coverage options that aren’t available everywhere, and the company is highly reputable.

USAA didn’t make the list because it isn’t available to everyone, but USAA consistently charges cheaper premiums than most other companies.

See More: The Cheapest Car Insurance Companies

Compare USAA vs. Farmers Car Insurance by Age

Insurance companies tend to charge much higher rates to younger drivers due to their lack of experience on the road. Research shows that teens are more likely to crash than any other age group, so teen drivers pay the most. Car insurance rates tend to decrease with age, with drivers in their 50s paying the cheapest premiums. Here’s what you can expect from each company.

Farmers insurance is relatively expensive compared to the industry average, especially for teen drivers. USAA, on the other hand, offers some of the lowest rates to drivers of all ages. Farmers offers slightly lower average rates to drivers in their 80s, but otherwise, USAA is the cheapest insurance provider on average for all other ages.

Compare USAA vs. Farmers Car Insurance by Gender

In most states, car insurance companies consider your gender when setting your monthly premiums. Women pay just slightly less than men over their lives, with more significant gender differences for younger age groups. Here’s what men and women pay on average at each auto insurance provider.

Which is cheapest for men?

USAA’s average monthly premiums for men are significantly less than both Farmers’ rates and the industry average. In fact, USAA offers the cheapest premiums for men out of the insurers we evaluated.

Which is cheapest for women?

Women pay much less on average at USAA than at Farmers. USAA average premiums also beat the industry average. Out of all the insurance companies we evaluated, USAA offers the cheapest premiums for women.

Compare USAA vs. Farmers Car Insurance by Mileage

Some car insurance companies consider your estimated annual mileage when establishing your monthly premiums. For this reason, policyholders who only drive occasionally may pay less than those who drive more frequently. Both USAA and Farmers have usage-based programs that may reduce your rates further if you’re a low-mileage driver.

Which is cheapest for drivers with high mileage?

USAA car insurance is much cheaper for high-mileage drivers than Farmers. USAA premiums also beat the industry average for high-mileage drivers.

Which is cheapest for drivers with low mileage?

USAA premiums are cheaper than Farmers premiums on average for low-mileage drivers as well. Getting a policy from USAA with low mileage even beats the industry average.

Compare USAA vs. Farmers Car Insurance by Credit Score

In most states, auto insurers review your credit-based insurance score when setting your premiums. That’s because of a correlation between poor credit and relatively high claims filing. Keep in mind that certain states, such as California, Massachusetts, and Hawaii, prohibit the use of credit score in underwriting. Here’s what USAA and Farmers charge drivers, based on their credit tiers.

Which is cheapest for good credit?

USAA offers cheaper rates than both Farmers and the national average for drivers with good and excellent credit. USAA is the cheapest company we evaluated for drivers with good credit, but drivers with excellent credit pay slightly less at Farmers.

Which is cheapest for bad credit?

The average premiums that drivers with bad credit pay at USAA are less than half what Farmers charges on average. USAA also beats the industry average for these drivers and is the cheapest provider for drivers with average credit. Drivers with poor credit pay a little less on average at GEICO.

Compare USAA vs. Farmers Car Insurance by Driving Record

One of the ways insurance companies evaluate the risk to insure you is by reviewing your driving record. If you’ve had speeding tickets, DUIs, or at-fault accidents in the past, your insurer will see that as a sign of risky driving behavior. As a result, drivers with violations pay more for car insurance.

Some companies offer a way to offset the price increase, such as by taking a defensive driving course or enrolling in a telematics program that tracks your driving habits. But on average, you’ll still pay higher rates than a driver with a clean record. Every insurer assesses violations a little differently, however.

Here’s what you can expect from USAA and Farmers in terms of cost after each type of infraction.

Which is cheapest for good drivers?

Drivers with a clean record pay cheaper rates on average at USAA than at Farmers. USAA also beats the industry average. In fact, USAA is the cheapest insurance company we evaluated for good drivers.

Which is cheapest after a speeding ticket?

Drivers who have been pulled over for speeding pay cheaper average rates at USAA than at Farmers. USAA’s rates also beat the industry average and are the cheapest of those we evaluated for drivers with speeding tickets.

Which is cheapest after an accident?

USAA policyholders who have caused a crash pay less than half what Farmers policyholders pay after an at-fault accident. USAA also beats the industry average and is the cheapest company we evaluated for drivers with accidents on their records.

Which is cheapest after a DUI?

A DUI is a serious offense that typically requires your insurer to file an SR-22 on your behalf, so it drives up rates at all companies. But drivers with DUIs pay significantly more on average at Farmers than at USAA. USAA also beats the industry average. However, some DUI drivers may find cheaper rates at Farmers.

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

Note that discounts vary from state to state.

Our Methodology and How We Compared USAA 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.

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