USAA vs. Farmers Insurance

Which insurance company is right for you? Compare cost, savings, and quotes from USAA and Farmers.

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USAA vs. Farmers: What You Need to Know

USAA is an organization founded by military members for military members and their families. USAA was founded in the 1920s, during a time of social and political change. In San Antonio, Texas, 25 army officers met to insure each other’s vehicles and named William Garrison as the first president. This tiny group of men would later turn into one of the largest insurance companies, serving millions of members and becoming a fully integrated financial services organization. In 1923, the group expanded membership to include Navy and Marine Corp officers. In the 1930, membership grew despite the financial crisis, called the Great Depression, and several natural disasters that only exasperated an already desperate situation. By 1931 membership doubled from 15,000 to 30,000. The first annual report to members was published in 1932, and it highlighted financial success and commitment to the organization’s members. During World War II, USAA automatically renewed auto insurance policies, making things a little easier for those who were deployed abroad. In 1946, the organization became an industry leader in technology with its new automated office machines. In 1948, membership was opened to Air Force officers after the National Security Act of 1947 created the department. In 1952, USAA opened an office in Frankfurt, Germany, the first office outside of Texas. In 1961, USAA changed its bylaws so that officers no longer lose their membership after resigning from service. In 1962, they opened an office in London, England. In 1969, USAA formed their first disaster response team which is stationed in the Gulf Coast tending to members impacted by Hurricane Camille.In 1973 USAA opened offices in Tampa, Colorado Springs and San Diego and established their headquarters in San Antonio. In 1978, they began offering toll-free phone service to members. In 1983, the USAA Federal Savings Bank opened its doors and in the same year USAA Volunteer Corps was created to help with employee volunteerism in their communities. In 1990, the USAA Educational Foundation was set up to help consumers get free information on financial management, safety concerns and more. In 1991, USAA began offering roadside assistance and travel benefits. In 1991, they made electronic funds transfers available to members and in 1996 they formed the USAA Ethics Office as a commitment to ethical business conduct. In 1996, they began accepting enlisted as members. By 1999, members could conduct business online. In 2001 USAA provided special deployment assistance for the fight on terrorism. In 2006, they began offering ATM reimbursement and allowing members to deposit checks from home. In 2008, USAA expands eligibility requirements to include military retirees as well as the spouses and children of members. In 2009, all men and women who serve in the U.S. military and their families became eligible for membership. That same year, USAA became a sponsor of the Army-Navy Football Game and launched their mobile app. In 2010, USAA opened financial centers throughout the country while partnering with hundreds of UPS stores to service members. In 2011, USAA became the official Military Appreciation Sponsor of the National Football League. In 2016, they were the first bank to offer mobile app check deposit for visually impaired members. By 2017, USAA had 12 million members and a net worth of $31 billion.

Farmers Insurance began selling insurance a year before the Great Depression and survived to become a household name. Founders John C. Tyler and Thomas E. Leavey started off by going farm to farm to gain their first policies. They specifically lowered rates for farmers and ranchers because they understood that these occupations posed fewer risks with their vehicles. By 1928, they were able to open an office in downtown Los Angeles. During the Great Depression, Farmers was one of the few companies that were able to pay claims. When a devastating earthquake hit Los Angeles, Farmers paid out claims for damaged cars and became the first insurance company to offer comprehensive insurance.

Below is a list of average rates, rankings, products and discounts for the two companies. For full company overviews, you can visit USAA Overview and Farmers Overview.

USAA vs. Farmers: How much are the Average Rates?

Below is a list of the average rates that drivers typically pay with USAA and Farmers. On average, USAA charges approximately $116.41 per month while Farmers comes in at around $264.40 per month. For USAA, the cheapest state average is Maine at $52.43 per month and the most expensive is New York at $192.28 per month. For Farmers, the cheapest state average is North Dakota at $112.50 per month and the most expensive is Michigan at $712.11 per month.

USAA

Average Rate

$116.41
Farmers

Average Rate

$264.40
National

Average Rate

$117.77
State USAA Farmers
Alabama $110.78 $195.20
Alaska $80.76 -
Arizona $108.33 $260.68
Arkansas $76.65 $192.40
California $160.91 $258.23
Colorado $98.61 $289.21
Connecticut $118.38 -
Delaware $75.42 -
District of Columbia $76.68 -
Georgia $119.18 -
Hawaii $86.16 -
Idaho $56.46 $123.45
Illinois $109.08 $199.08
Indiana $68.62 $136.14
Iowa $69.35 $141.59
Kansas $86.72 $197.95
Kentucky $101.59 -
Louisiana $152.52 -
Maine $52.43 -
Maryland $130.52 -
Massachusetts $111.28 -
Michigan $129.59 $712.11
Minnesota $99.81 $168.82
Mississippi $78.71 -
Missouri $68.55 $203.54
Montana $73.81 $192.46
Nebraska $92.64 $197.97
Nevada $131.13 $313.07
New Mexico $88.66 $217.58
New York $192.28 -
North Dakota $55.25 $112.50
Ohio $64.55 $146.86
Oklahoma $106.02 $165.64
Oregon $82.64 $173.29
Pennsylvania $90.08 -
Rhode Island $121.52 -
South Carolina $98.62 -
South Dakota- $119.82
Tennessee $89.67 $157.88
Texas $120.34 -
Utah $88.73 $220.13
Virginia $83.53 -
Washington $83.07 $153.41
Wisconsin $57.93 $165.74
Wyoming $105.98 $203.01

USAA vs. Farmers: Rates by Number of Vehicle

Home

Drivers will typically get a discount if they insure multiple vehicles. Here is a list of average rates that USAA and Farmers typically charge for drivers who have more than 1 vehicle.

Number of Vehicles USAA Farmers
1 Vehicle $106.30 $244.72
2 Vehicles $153.17 $325.39
3 Vehicles $241.33 $565.26
4 Vehicles $243.01 $

USAA vs. Farmers: Rates by Homeownership

Home

Drivers who own their home rather than rent can sometimes get a small discount. We found that on average USAA charges $116.67 per month and Farmers charges $258.87 per month for customers who own their home.

Own/Rent USAA Farmers
Own $116.67 $258.87
Rent $116.26 $267.76

What is USAA and Farmers Insurance Rating?

Which car insurance company is better? We've made it easy to compare companies side by side. See how USAA and Farmers ranked among the industry ratings.

Comparison USAA Farmers
Year Founded 1922 1928
Market Share 3%
A.M. Best A++ A-
BBB Rating B- A+
Financial Strength Excellent Excellent
JD Power Ranking Among the best About Average
Moody’s Rating A2
NAIC Complaint Index 1.01 0.8
S&P Rating AA+ A

USAA or Farmers: Insurance Products Offered

What coverage is available through USAA and Farmers? Both insurance companies offer Auto, Commercial, Home, Life, Motorcycle, RV, and Umbrella Insurance. Additional products from USAA insurance also includes Condo, Farm, Health, Pet, and Renters Insurance. Considering these two top insurance providers? Check out the list below. To view a full list of products that are available, visit USAA and Farmers Insurance page.

Insurance USAA Farmers
Auto Insurance
Commercial Insurance
Condo Insurance
Farm Insurance
Health Insurance
Home Insurance
Life Insurance
Motorcycle Insurance
Pet Insurance
Renters Insurance
RV Insurance
Umbrella Insurance

USAA or Farmers: Ways To Save

Farmers offers a wide range of discounts to its policyholders, including Distant Student, Electronic Funds Transfer (EFT), and Good Student discounts. USAA also offers a few discounts that Farmers doesn’t including Premier Driver, New Vehicle, and Military Installation discounts. Start taking advantage of discounts offered by insurance providers like Farmers and USAA insurance and save yourself some money. You can review the full list of discounts that these two companies offer below.

USAA Farmers
Annual Mileage Alternative Fuel Discount
Automatic Payments Discount Distant Student
Defensive Driving Course Discount Electronic Funds Transfer (EFT) Discount
Discount for Driving Research (telematics) Good Student
Driver Training Course Discount Homeowner Discount
Family Discount Multi-Car Discount
Good Student Discount Multi-policy Discount
Military Installation Occupational Discount
Multi-policy Discount Pay-in-Full Discount
New Vehicle Discount Teen Driver Discount
Premier Driver Discount Transfer Discount

Pros & Cons of USAA & Farmers

Pros

USAA
  • USAA offers financial literacy classes to its members as well as retirement planning.
  • The USAA app is easy to use and very helpful for managing your account.
Farmers
  • Financial strength
  • Great employee education and customer service.

Cons

USAA
  • USAA mainly offers coverage to military members and their families.
Farmers
  • Steep early-cancellation fees.

USAA or Farmers Mobile Apps Options

The USAA Mobile app is available for iOS and android. It gives users convenient and secure access to their accounts to manage finances, investments, insurance and more. The Farmers app is available for iOS and Android. The Farmers Mobile App allows you access to self-service features.

USAA Mobile App
iOS     4.8432K user reviews
Android     4.6125K user reviews
Farmers Mobile App
iOS     4.83K user reviews
Android     43K user reviews

USAA & Farmers Contact Info

USAA Contact Info
Address 9800 Fredericksburg Rd., San Antonio, TX 78288
Phone 1-800-531-8722
Website https://www.usaa.com/
Facebook https://www.facebook.com/USAA/
Twitter https://twitter.com/USAA
Youtube https://www.youtube.com/channel
Linkedin https://www.linkedin.com/company/usaa/
Farmers Contact Info
Address 6301 Owensmouth Avenue, Woodland Hills, CA 91367
Phone 1 (800) 974-6755
Website https://www.Farmers.com
Facebook https://www.facebook.com/FarmersInsurance/
Twitter https://twitter.com/WeAreFarmers
Youtube https://www.youtube.com/farmersinsurance
Linkedin https://www.linkedin.com/company/farmers-insurance/

Methodology
The statistics listed on this page are from our own in house reporting. We track and record quotes that carriers have provided based on various criteria. The rates and averages shown on this page should only be used as an estimate.

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