Farmers vs. USAA Car Insurance (2021)

When comparing Farmers vs. USAA there are several criteria to analyze. As far as pricing goes, USAA wins across the board. Both companies offer a plethora of discounts, especially USAA. Furthermore, both companies are well-reviewed by the BBB and A.M. Best.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jan 28, 2021

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The Highlights

  • You can find insurance discounts from both Farmers and USAA.
  • Farmers is only cheaper than nine of the state averages.
  • USAA offers more competitive pricing in the majority of states.

If you are here with us today, you have most likely begun the process of finding your next, or possibly first, insurer. To assist in simplifying the difficult choice, we’ll be comparing Farmers vs. USAA. So, USAA or Farmers: which company is the best for you?

If you would like to learn more about Farmers Insurance specifically, be sure to read our Farmers Insurance Group review.

Before we get into details, feel free to type your ZIP code into our free and helpful tool above to find affordable car insurance rates in your area. You may even be able to get Farmers or USAA insurance quotes.

What can Farmers do for you?

When comparing insurers, the best place to start is with each company’s pricing structure. Let’s take a look at Farmers’ rates in comparison to state averages.

Farmers Average Annual Rates by State
StateFarmers Average Annual Car Insurance RatesHigher/Lower Than State's Average Annual Rates ($)Higher/Lower Than State's Average Annual Rates (%)
Alabama$4,185.80$618.8414.78%
Arkansas$4,257.87$132.893.12%
Arizona$5,000.08$1,229.1124.58%
California$4,998.78$1,309.8526.20%
Colorado$5,290.24$1,413.8526.73%
Hawaii$4,763.82$2,208.1846.35%
Iowa$2,435.72-$545.56-22.40%
Idaho$3,168.28$189.195.97%
Illinois$4,605.20$1,299.7228.22%
Indiana$3,437.55$22.580.66%
Kansas$3,703.77$424.1511.45%
Maine$2,770.15-$183.13-6.61%
Michigan$8,503.60-$1,995.04-23.46%
Minnesota$3,137.45-$1,265.80-40.34%
Missouri$4,312.19$983.2622.80%
Montana$3,907.55$686.7117.57%
North Dakota$3,092.49-$1,073.35-34.71%
Nebraska$3,997.29$713.6117.85%
New Jersey$7,617.00$2,101.7927.59%
New Mexico$4,315.53$851.8919.74%
Nevada$5,595.56$733.8613.12%
Ohio$3,423.01$713.3020.84%
Oklahoma$4,142.40$0.080.00%
Oregon$3,753.52$285.757.61%
South Carolina$4,691.85$910.7119.41%
South Dakota$3,768.80-$213.47-5.66%
Tennessee$3,430.07-$230.82-6.73%
Utah$3,907.99$296.107.58%
Washington$2,962.00-$97.32-3.29%
Wisconsin$3,777.49$171.434.54%
Wyoming$3,069.35-$130.73-4.26%
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As you can see, out of the 32 states in which Farmers operates, it is cheaper in only nine. This is not particularly encouraging, but we’ll get a chance to compare Farmers to other companies later on.

Insurers are all about risk. The more a driver is on the road, the more they are seen as a risk. Let’s take a look at Farmers’ rates for different commute levels.

Farmers Average Annual Car Insurance Rates by Commute Length
Commute LengthFarmers Average Annual Rates
10-mile, 6,000 miles annually$4,179.32
25-mile, 12,000 miles annually$4,209.22

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As you can see, and it is rather unusual, Farmers’ rates are comparable for the different commute levels.

Let’s now move on to what, if any, discounts Farmers offers.

Farmers Discounts

Farmers’ most widely known discount is through an app for your phone called Signal. This app analyzes driving behavior and attributes a discount to your account should you display a tendency for safe driving.

Keep in mind that Signal offers not just one but a variety of discounts. Sure, if you drive safely you’ll get the monthly discount, but you also get a 5 percent discount solely for having the app installed.

Let’s now move on to analyzing USAA to see how they compare.

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What can USAA do for you?

Just as we did with Farmers, we’re going to begin with pricing. Let’s now take a look at a table showing rates for the 10 most prominent insurers throughout the country.

State By State Average Annual Car Insurance Rates Comparison for Top 10 Companies
StateAllstate Average Annual RatesAmerican Family Average Annual RatesFarmers Average Annual RatesGeico Average Annual RatesLiberty Mutual Average Annual RatesNationwide Average Annual RatesProgressive Average Annual RatesState Farm Average Annual RatesTravelers Average Annual RatesUSAA Average Annual Rates
Alaska$3,145.31$4,153.07$2,879.96$5,295.55$3,062.85$2,228.12$2,454.21
Alabama$3,311.52$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Arkansas$5,150.03$4,257.87$3,484.63$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
Arizona$4,904.10$5,000.08$2,264.71$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
California$4,532.96$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77$3,338.87
Connecticut$5,831.60$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
District of Columbia$6,468.92$3,692.81$4,848.98$4,970.26$4,074.05$2,580.44
Delaware$6,316.06$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
Florida$7,440.46$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67$2,850.41
Georgia$4,210.70$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88$3,157.46
Hawaii$2,173.49$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28$1,189.35
Iowa$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Idaho$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19$1,867.96$3,226.29$1,877.61
Illinois$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35$3,898.00$2,408.94$3,393.75$1,630.86
Kansas$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Kentucky$7,143.92$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,998.79$6,154.60$7,471.10$4,579.12$4,353.12
Maine$3,675.59$2,770.15$2,823.05$4,331.39$3,643.59$2,198.68$2,252.97$1,930.79
Maryland$5,233.17$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87$2,744.14
Massachusetts$2,708.53$1,510.17$4,339.35$3,835.11$1,361.86$3,537.94$1,458.99
Michigan$22,902.59$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49$2,066.99$2,861.60
Missouri$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91$2,525.78
Mississippi$4,942.11$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
Montana$4,672.10$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74$2,031.89
North Carolina$7,190.43$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66
North Dakota$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53$2,006.80
Nebraska$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71$2,330.78
New Hampshire$2,725.01$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46$1,906.96
New Jersey$5,713.58$7,617.00$2,754.94$6,766.62$3,972.72$7,527.16$4,254.49
New Mexico$4,200.65$4,315.53$4,458.30$3,514.38$3,119.18$2,340.66$2,296.77
Nevada$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
New York$4,740.97$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
Ohio$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oklahoma$3,718.62$4,142.40$3,437.34$6,874.62$4,832.35$2,816.80$3,174.15
Oregon$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Pennsylvania$3,984.12$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$4,959.45$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
South Carolina$3,903.43$4,691.85$3,178.01$3,625.49$4,573.08$3,071.34$3,424.77
South Dakota$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23
Tennessee$4,828.85$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Texas$5,485.44$4,848.72$3,263.28$3,867.55$4,664.69$2,879.94$2,487.89
Utah$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83$2,491.10
Virginia$3,386.80$2,061.53$2,073.00$2,498.58$2,268.95$1,858.38
Vermont$3,190.38$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84$1,903.55
Washington$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78$2,262.16
West Virginia$3,820.68$2,120.80$2,924.39$2,126.32$1,984.62
Wisconsin$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53$2,975.74
Wyoming$4,373.93$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55$2,779.53
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As you can see, both Farmers and USAA operate in 29 states. Farmers is more expensive than USAA in all 29 of these states. Clearly, USAA has a leg up when it comes to pricing. In fact, in quite a few of these states, USAA is only half the price of Farmers. This is not to mention all of the discounts they offer, many of which are as simple as using your USAA login.

Let’s now move on to wrap up with how USAA is rated. In the meanwhile, if you’d like to learn more about USAA, read our USAA Insurance review.

USAA Ratings

We’ve covered pricing. We’ve covered discounts. Let’s look at one last criterion that is very important when it comes to comparing insurers: their ratings.

The best way to go about this is to look at the reviews given by A.M. Best and the Better Business Bureau. Let’s take a look at a table showing these two companies’ ratings for USAA.

USAA Company Ratings
AgencyRatings
AM BestA++
Better Business Bureau (San Antonio Headquarters)B-
Moody'sAaa
S&PAA+
NAIC Complaint Index (2017)0.75 (below the national average of 1.0)
JD Power5 out of 5 stars for overall claims satisfaction
Consumer Reports95 out of 100
Consumer Affairs1 1/2 out of 5 stars based on 266 ratings
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As you can see, USAA scored an outstanding A++ rating from A.M. Best. As encouraging as this is, the Better Business Bureau‘s rating of B- is not so encouraging.

All in all, just keep in mind that price isn’t the only thing you’re looking for. Inquire as to how many discounts you can accrue no matter which insurer you go with. Also, compare the ratings for insurers. Make sure you’re going with a company that will be financially helpful for the foreseeable future.

Ready to buy car insurance? Type your ZIP code into our free and helpful tool below to find reasonable car insurance quotes in your area.

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