USAA and Farmers are two of the most respected insurers in the United States. They offer competitive rates to policyholders who choose them for their auto, home or life insurance needs. This review provides information about each company to help you decide which one will best meet your personal auto insurance needs.
For more details on each company’s offerings, see our USAA Car Insurance Review and Farmers Car Insurance Review.
USAA and Farmers Auto Insurance Coverage
USAA and Farmers offer typical auto insurance coverage options:
Read our article on Common Types of Auto Insurance to learn more about basic coverage.
Additional coverage from Farmers and USAA may be available in addition to basic coverage in some states.
- Roadside assistance / towing
- Rental car refund
- Medical payments
- Injury Protection (PIP)
- Car replacement cover
Average USAA and Farmer Insurance Rates
Farmers often have higher rates than other major insurers. According to The Zebra, the average monthly farmer premium is $ 131. Premiums with USAA are generally in the lower range. Its average policy costs $ 106 per month. Remember that in addition to your driving record, your age, gender, marital status and credit history are all factors that influence the overall cost of insurance.
This table compares the average annual premiums between the USAA and farmers by age group.
|age range||United States||Farmers|
|Teens||$ 3,336||$ 6,528|
|20s||$ 1,548||$ 2,020|
|30s||$ 1,140||$ 2,020|
|40s||$ 1,104||$ 1,511|
|the 50’s||$ 1,044||$ 1,507|
|60s||$ 1,068||$ 1,402|
Source: The Zebra
Premium Farmer and USAA discounts
Farmers offer many savings options to policyholders:
- New car discounts
- Discounts on anti-lock brakes
- Discounts on anti-theft equipment
- Good student discounts
- Paperless discounts
- Early signing discounts
Significant savings can come from bundling policies. Additional savings through full payment or automatic premium payment are available.
USAA also offers good drivers, good students, and discounts on family packages. Policyholders benefit from an unusual discount for stored vehicles. The benefit, intended for deployed military personnel, saves up to 60% for safe storage of a car for 30 days. If the storage location is on a military base, the USAA grants an additional 15% discount.
Customer Satisfaction with USAA and Farmers
High ratings for customer service and satisfaction are essential for any insurance business. Many people place great emphasis on a company’s reputation when choosing a new insurance provider. These potential customers equate high odds with a high likelihood that the insurer will process claims quickly and efficiently.
The JD Power US Auto Insurance Study 2021 includes responses from approximately 39,000 auto insurance customers. It provides information on customer satisfaction in key areas:
- Cost of auto insurance
- Policy Offers
- Billing process and policy information
- Interactions with clients
The results of the survey indicate that the opinions and experiences of customers with farmers are rated “excellent”.
USAA was not officially included in these JD Power rankings because the insurer did not meet the study criteria. USAA offers its policies only to veterans and members of the United States Armed Forces and their families. Still, the company receives a lot of positive reviews and its customer service is highly regarded.
USAA is among the top-rated companies by Investopedia in many of its reviews, including Best Auto Insurance, Best Auto Insurance for Teens, and Best Auto Insurance for Military Members.
Who has the better financial situation, the farmers or the USAA?
According to AM Best, both companies have the financial strength to meet their financial obligations. USAA was awarded a higher grade, A ++. Farmers received an A-. These ratings indicate the financial stability of companies and their ability to meet their claims obligations.
USAA or Farmers: What’s Right for You?
There are many factors to consider when choosing between Farmers and the USAA for auto insurance. USAA receives a lot of praise from customers, but membership restrictions may prevent you from signing a policy with them. However, Farmers has thousands of agents across the country. This gives policyholders the option of personalized service from a local agent.
USAA and Farmers are great options for a quality auto insurance policy. Both providers offer great coverage and economical discounts. While the USAA tends to be the first choice in terms of lower rates and more coverage options, their coverage is limited to a specific group of customers.
Your auto insurance requirements and circumstances are unique. You need to do some research when choosing a new insurance provider. Speak with company representatives and choose the company and coverage levels that best meet your needs. It’s crucial to request quotes from multiple carriers and understand your coverage options before signing a new insurance policy.