What’s Better for Car Insurance – Farmers or USAA?
Last Updated on July 12, 2023
With so many different insurers out there, it can be difficult to decide which car insurance company is the best fit for your needs. Farmers and USAA are two popular auto insurers that serve the entire US. While both are well-respected and provide high-quality products, they have some key differences. Here’s an in-depth look at Farmers and USAA to help you find the car insurance policy that’s the best fit.
All About USAA Insurance
USAA, or the United Services Automobile Association, is an insurance company that provides coverage to the members of the military and their families. They are based in San Antonio, Texas, and were founded in 1922. Initially, they only provided coverage for members of the US Army, but later extended their coverage to all branches of the military. Today, family members of officers are also eligible for most products. Because USAA limits their coverage to those in the military, they are able to offer more affordable prices than their competitors. In addition to car insurance, USAA also offers homeowners’ insurance and other types of property insurance, as well as banking services.
All About Farmers Insurance
Farmers is one of the largest insurance companies in the United States and is part of the global Zurich Insurance Group. They were founded in 1928 in Los Angeles and continue to be headquartered in nearby Woodland Hills. They were initially founded to provide car insurance to those who worked in agricultural jobs but later expanded to offer coverage to all drivers. Farmers has a very wide range of insurance products in addition to car insurance, including home, life, recreational, and business insurance, as well as other financial services.
What Kinds of Coverage Does USAA Offer?
USAA offers a range of car insurance coverage types. As you might expect, they offer standard coverage types like liability, comprehensive, collision, personal injury protection, and underinsured motorist. They also offer coverage for rideshare drivers, which makes them a great choice for anyone who drives for Uber or Lyft. They also offer accident forgiveness, which ensures that your premiums don’t go up after your first accident, as well as a rental reimbursement add-on, which covers the cost of a rental car if you get into an accident. They also have a roadside assistance program, which covers towing and other emergency services while you’re out on the road.
What Kinds of Coverage Does Farmers Offer?
Farmers also offers all the standard coverage options that you would expect from a car insurance company, including liability, comprehensive, collision, uninsured motorist, and personal injury protection. Farmers also now offers rideshare coverage as well as specialty coverage for collectible cars and other unique vehicles. Their Signal program also helps you save money by using a smartphone app that monitors your driving. When you demonstrate safe driving habits, you can keep increasing your discount. This program is a great option for those who only drive occasionally, because the less you drive, the more money you’ll save. Like USAA, Farmers also has a good roadside assistance program that can easily be added on to any Farmers auto insurance policy.
Comparing Pricing: USAA vs. Farmers
When it comes to pricing, USAA’s policies will almost always be cheaper than Farmers’. This is because they only offer their policies to military families, which enables them to keep their costs lower. However, Farmers’ policies are reasonably priced, particularly for those who have a bad credit history. Customers who don’t have perfect credit often struggle to find a policy that is right for them, but Farmers offers reasonably priced options.
Both companies also offer a range of discounts to help you save money on your policy. These include standard discounts like good driver discounts, discounts for insuring multiple vehicles, discounts for car safety features, good student discounts, and bundling discounts. Each company also offers its own unique discounts. For example, Farmers offers a discount for owning a home as well as a discount for driving an eco-friendly vehicle. USAA has discounts for parking your vehicle on a military base as well as having a family member that also insures their vehicle with USAA.
View the table below to compare the discount offerings of Farmers and USAA:
| Discount | Farmers | USAA |
|---|---|---|
| Accident Free | ✓ | ✓ |
| Anti-Lock Brakes | ✓ | ✓ |
| Anti-Theft Device | ✓ | ✓ |
| Bundle Car and Life | ✓ | ✓ |
| Bundle Home and Car | ✓ | ✓ |
| Defensive Driving Class | ✓ | ✓ |
| Good Driver | ✓ | ✓ |
| Good Student | ✓ | ✓ |
| Farm or Ranch Vehicle | ✓ | |
| Long Term Policy Holder | ✓ | ✓ |
| Military | ✓ | |
| Multiple Vehicle | ✓ | ✓ |
| New Car | ✓ | |
| Pay In Full | ✓ | |
| Safety Features | ✓ | |
| Senior Driver | ✓ | |
| Telematics | ✓ | ✓ |
| Utility Vehicle | ✓ |
Comparing Customer Service: USAA vs. Farmers
Both USAA and Farmers get good reviews for customer service, but USAA stands out as offering some of the best customer service of any company in the US. Since they cater to a specific customer niche, they are able to really go above and beyond to help their customers. However, Farmers also gets positive customer service reviews with low complaint ratios. Both companies have apps that you can use to manage your policy. Farmers allows you to get a quote online, while both companies offer quotes by phone as well.
Both Farmers and USAA receive favorable ratings from AM Best, an agency that grades financial institutions on their stability and strength. Farmers receives an A rating while USAA receives an A++, the highest rating possible.
View the table below to compare the financial and customer service ratings of Farmers and USAA:
| Institution | Farmers | USAA |
|---|---|---|
| A.M. Best | A | A++ |
| Standard & Poor's | A | AAA |
| Fitch | A+ | AA+ |
| Moody's | A2 | Aa1 |
| BBB User Satisfaction | A+ | A++ |
| JD Power Rankings | 3/5 | 5/5 |
Who Should Use USAA?
If you are in the military or have a family member that is, USAA is likely going to be the better choice for you. Since they restrict their memberships to those who are in the military, they are able to offer more affordable pricing for their customers. They also have an excellent selection of insurance products and add-ons, including insurance for rideshare drivers.
Who Should Use Farmers?
Farmers is a good option for anyone who isn’t in the military and doesn’t qualify for USAA membership, but still wants affordable rates and flexible policy options. Farmers is also a good option for anyone who has poor credit, as they specialize in affordable rates for those with low to middling credit scores. Farmers is also a good option for those who like to develop a relationship with their local insurance agent, as they have thousands of agents across the United States.
Both USAA and Farmers are reliable choices for your car insurance policy. While USAA is the most affordable provider for those in the military, Farmers also offers affordable and reliable insurance policies for anyone. If you’re looking for a new car insurance policy, the best strategy is to get a quote from multiple insurers to see who can offer you the most affordable pricing.
