What’s Better for Car Insurance – Farmers or USAA?
Last Updated on January 3, 2026
With so many auto insurers out there, choosing the right company can feel overwhelming. Farmers and USAA are both well-known, nationwide brands with strong coverage options—but they’re built for different audiences. The biggest difference is simple: USAA is only available to eligible military members, veterans, and qualifying family, while Farmers is available to the general public (availability and products can still vary by state).
Below is a clear breakdown of Farmers vs. USAA—coverage, pricing, discounts, customer experience, and who each company tends to be best for.
Key Takeaways
- Eligibility Is the Biggest Difference: USAA is only available to eligible military members, veterans, and qualifying family members, while Farmers is available to most drivers.
- USAA Often Wins on Price for Eligible Drivers: If you qualify, USAA frequently comes in cheaper—but it still pays to compare quotes in your ZIP code.
- Farmers Stands Out for Agent Support: Farmers is a strong choice if you want guidance from a local agent and lots of coverage add-ons and discount categories.
- Discounts and Programs Vary by State: Both offer common discounts and telematics programs, but availability and savings depend on your state, driving profile, and underwriting company.
- Quick Comparison: Farmers vs. USAA
- All About USAA Insurance
- All About Farmers Insurance
- Coverage Options: USAA vs. Farmers
- Comparing Pricing: USAA vs. Farmers
- Discounts and Savings Programs: USAA vs. Farmers
- Comparing Customer Experience and Financial Strength
- Who Should Choose USAA?
- Who Should Choose Farmers?
- Final Thoughts: Farmers vs. USAA
- FAQs on Farmers vs. USAA Auto Insurance
Quick Comparison: Farmers vs. USAA
| Category | USAA | Farmers |
|---|---|---|
| Who Can Buy It | Military members, veterans, and eligible family (USAA review) | Most drivers (coverage varies by state) (Farmers review) |
| Typical Pricing Trend | Often among the lowest for eligible members | Often higher than bargain insurers, but lots of discount options |
| Best For | Military households prioritizing price and service | Drivers who want an agent relationship, lots of policy options, and bundling |
| How You Buy | Direct (online/phone) | Often through local agents (plus online options) |
All About USAA Insurance
USAA is designed for military members and their families. It was founded in 1922 in San Antonio, Texas, and it still focuses heavily on serving the military community. Eligibility usually includes active duty, veterans, and certain family members—most commonly spouses and children. (Here’s a full eligibility breakdown: Who is eligible for USAA?.)
Because USAA targets a specific membership base, it often competes aggressively on price and member experience. If you qualify, it’s worth checking typical premiums in your area: USAA auto insurance policy cost.
All About Farmers Insurance
Farmers is a major U.S. insurer with a long history in auto insurance. Founded in 1928 in Los Angeles, Farmers has grown into a large group of companies and is affiliated with the Zurich Insurance Group. Today, Farmers offers a broad mix of insurance products and is known for flexible policy options and a large agent network.
If you like having a dedicated person to call—and you prefer comparing coverage with someone who knows your local market—Farmers is one of the better-known “agent-centric” carriers.
Coverage Options: USAA vs. Farmers
Both companies offer the standard lineup most drivers need. If you want a refresher on what’s available (and what’s optional), see this guide to auto insurance coverage types.
USAA typically offers:
- Liability, collision, comprehensive, uninsured/underinsured motorist, and (where available) PIP/MedPay
- Extra options like rental reimbursement and roadside assistance (USAA roadside assistance)
- Specialized add-ons for gig drivers, including USAA rideshare insurance
Farmers typically offers:
- Liability, collision, comprehensive, uninsured motorist, and (where available) PIP/MedPay
- Roadside assistance add-ons (Farmers roadside assistance)
- Options for specialty vehicles and certain “non-standard” markets (varies by state/company)
- Coverage add-ons for gig drivers, including Farmers rideshare coverage
Comparing Pricing: USAA vs. Farmers
If you’re eligible for USAA, it’s common for USAA to come in cheaper than many competitors. Farmers, on the other hand, can be competitive for some drivers—especially if you qualify for multiple discounts and bundle policies—but it’s not usually known as a “lowest price” carrier.
Also remember: rates can swing dramatically based on location and rating factors. In many states, insurers factor credit-based insurance scores into pricing, so drivers may see different outcomes depending on their profile. Here’s how that works: Does credit score affect car insurance rates?
Discounts and Savings Programs: USAA vs. Farmers
Both insurers offer common discounts like multi-vehicle, bundling, safety features, and good student discounts. Where they differ is in member-specific perks (USAA) and agent-led discounting strategies (Farmers).
View the table below to compare common discount offerings from USAA and Farmers:
| Discount / Feature | USAA | Farmers | Notes |
|---|---|---|---|
| Multi-vehicle | ✅ | ✅ | Often one of the biggest easy wins. |
| Bundling (auto + home/renters) | ✅ | ✅ | Bundling can be especially strong when you stay with one carrier long-term. |
| Safe driver / claims-free | ✅ | ✅ | Eligibility varies by state and underwriting company. |
| Good student / student away at school | ✅ | ✅ | Rules vary by age and student status. |
| Vehicle safety & anti-theft | ✅ | ✅ | Applies when the vehicle has qualifying equipment. |
| Telematics / usage-based insurance | ✅ | ✅ | USAA uses app-based programs; Farmers offers its Signal program. |
| Telematics program name | SafePilot (availability varies) | Signal | Both monitor driving behavior through a mobile app. |
| Homeowner discount | Sometimes | Common | Farmers often markets an “own a home” discount. |
| Military-specific discounts/perks | Common | Varies | USAA can be uniquely strong here (garage on base, membership-based perks, etc.). |
If you want a deeper discount rundown, here are the company-specific lists: Farmers discounts and USAA discounts.
Comparing Customer Experience and Financial Strength
Customer experience depends on your state, your claims history, and even which underwriting company writes your policy. But you can compare third-party signals like financial strength ratings and complaint data.
Both USAA and Farmers are considered financially stable insurers. For background on how financial strength grades work, see: AM Best ratings.
View the table below to compare major stability and service indicators for Farmers and USAA:
| Category | USAA | Farmers | What It Tells You |
|---|---|---|---|
| Financial Strength (AM Best) | A++ (Superior) | A (Excellent) | Higher ratings generally suggest stronger ability to pay claims over time. |
| Buying Experience | Direct (online/phone) | Agent-led (plus online) | USAA is built for self-service; Farmers is strong if you want an agent. |
| Complaint Data (Varies) | Varies by underwriting company/state | Varies by underwriting company/state | Complaint patterns can differ a lot by state and the exact insurer entity. |
| Apps / Digital Tools | Strong digital experience + telematics | Strong digital tools + telematics | Both support mobile claims, ID cards, payments, and usage-based discounts. |
Who Should Choose USAA?
If you’re eligible, USAA is often a top pick for a simple reason: it tends to deliver strong value for military households. It’s especially appealing if you want:
- Consistently competitive pricing (for eligible members)
- A strong digital-first experience
- Specialized coverage options that match military life (deployment, base garaging, frequent moves, etc.)
Who Should Choose Farmers?
Farmers is a strong option if you don’t qualify for USAA (or if USAA isn’t the best price in your ZIP code) and you want flexible coverage with the option to work with a local agent. It can be a good fit if you value:
- An agent relationship (especially helpful for bundling and coverage customization)
- Lots of policy add-ons and discount categories
- Access to multiple companies under the Farmers umbrella (availability varies by state)
If you’re debating whether to buy through an agent or direct, this can help: Is auto insurance cheaper through an agent?
Final Thoughts: Farmers vs. USAA
USAA is hard to beat on value if you qualify. Farmers is a solid choice for drivers who want a broader public option, agent support, and flexible coverage choices. Either way, the best strategy is to compare quotes using the same coverages and deductibles, then weigh price against how you prefer to manage your policy (self-service vs. agent support).
