Farmers Insurance Vs. Usaa: Which Provider Offers The Best Coverage And Benefits?

USAA and Farmers are two of the most popular insurance providers in the United States. While both companies offer auto, home, and life insurance, there are some key differences between the two. USAA is only available to members of the Armed Forces and their families, whereas Farmers is more widely available. In terms of cost, USAA typically has lower premiums and rates than Farmers. USAA also has better customer satisfaction scores and offers more coverage options. However, Farmers offers more discounts than USAA and has thousands of agents across the country, providing personalized service to its policyholders. Overall, USAA is generally considered the better option for those who are eligible, but both companies have their unique features and advantages.

Customer satisfaction

USAA has been praised for its customer service, with some customers describing it as the "best insurance provider" with "great employee education". USAA's app has also been described as "amazing" and "easy to use". USAA has also been recognised for its financial literacy classes and retirement planning. However, some customers have criticised USAA for its "average customer service", with some users reporting that the company is "impossible to get a hold of".

Farmers has been described as having "great customer service and satisfaction", with some customers reporting that they have been with the company for "several years now and see no reason to change". The company's website and mobile app have been described as "intuitive and easy to use". However, some customers have reported that Farmers is "not the cheapest option", with some users reporting that the company has "raised rates after [their] first accident".

Cost

USAA and Farmers are two of the most popular insurance providers in the United States. While both companies offer a range of insurance products, including auto, home, life, motorcycle, and umbrella insurance, there are some key differences in terms of cost.

USAA is known for offering competitive rates and is often considered one of the more affordable options in the industry. The company caters exclusively to military personnel and their families, and its insurance rates reflect this unique customer base. On average, USAA policyholders pay between $600 and $1,500 per year for their car insurance premiums. The company also offers various discounts, such as safe driver discounts, good student discounts, and military installation discounts. Additionally, USAA provides flexible payment plan options with no upfront costs.

Farmers Insurance, on the other hand, typically has higher rates than other major insurers. The average annual cost of a Farmers auto insurance policy is around $2,000 for full coverage and $808 for minimum coverage. These rates are higher than the national average and may be a factor for customers when comparing insurance providers. Farmers does offer a variety of discounts, such as multi-policy discounts, good payer discounts, and safe driving discounts, which can help offset the higher base rates.

When it comes to homeowners insurance, USAA and Farmers again differ in their pricing. USAA's average annual cost for homeowners insurance is $2,409.42, which is slightly lower than the national average of $2,511.25. Farmers Insurance does not provide a specific average cost for homeowners insurance but offers various discounts to help reduce the overall cost, such as bundling discounts and protective device credits.

Overall, when comparing USAA and Farmers Insurance in terms of cost, USAA typically offers more competitive rates, especially for military personnel and their families. However, it's important to note that insurance rates can vary based on individual factors such as driving record, age, and location, so it's always a good idea to get quotes from multiple providers to find the best rate for your specific needs.

Discounts

USAA Discounts

USAA offers 14 auto insurance discounts, including:

• Safe driver discount
• Good student discount
• Multi-policy discount
• Driver training discount
• New vehicle discount
• Multi-vehicle discount
• Annual mileage discount
• Vehicle storage discount
• Family discount
• Length of membership discount
• Military installation discount
• No payment plan fees discount

USAA also offers a telematics program called SafePilot, which offers a 10% discount for signing up and up to 30% savings for safe driving.

Farmers Discounts

Farmers offers 23 auto insurance discounts, including:

• Multiline discount
• Multicar discount
• Signal discount
• Affinity discount
• EPolicy discount
• Good payer discount
• Safe driver discount
• Distant student discount
• Youthful driver discount
• Good student discount
• Shared family car discount
• On your own discount
• Defensive driving discount
• Homeowner discount
• Alternative fuel discount
• EFT discount
• Pay-in-full discount
• Antilock brakes discount
• Anti-theft discount
• Passive restraint discount
• Homing device discount
• VIN etching discount
• Daytime running lights discount

Farmers also offers a telematics program called Signal, which offers a 5% discount for signing up and up to 15% savings for qualifying drivers.

Coverage options

Farmers Insurance offers a wide range of coverage options for its customers. The company provides standard home insurance coverage options, along with six add-ons for added protection. These include extended replacement cost, guaranteed replacement cost, building ordinance or law, sewer and drain water damage, scheduled personal articles, and identity theft protection.

Farmers Insurance also offers standard auto insurance coverage, including liability, collision, and comprehensive insurance. Optional add-ons include uninsured/underinsured motorist coverage, personal injury protection (PIP), towing and roadside service, rental car reimbursement, customised equipment, glass deductible buyback, full windshield and glass coverage, spare parts coverage, original equipment manufacturer (OEM), new car replacement coverage, and accident forgiveness.

The company also offers business insurance, motorcycle insurance, recreational insurance, landlord and rental property insurance, and umbrella insurance.

Availability

Farmers Insurance is available in all 50 states and Washington, D.C.

USAA insurance is also available in all 50 states and Washington, D.C. However, USAA insurance is only available to current and former members of the U.S. military and their spouses and children.

USAA was founded in 1922 by a group of 25 Army officers who wanted to self-insure their cars. At the time, insurance companies considered military officers a high-risk group. USAA was founded so they and other military members could get adequate insurance coverage.

Today, USAA is among the leading providers of insurance, banking, investment, and retirement solutions to members of the U.S. military, veterans who have honorably served, and their families. USAA has about 37,000 employees worldwide and 13 million members.

USAA offers insurance for active, retired, and separated veterans if honorably discharged. USAA insurance covers military members and their families, including spouses, children, step-children, and widows. USAA also offers insurance to pre-commissioned officers, such as a contracted cadet or midshipman enrolled in a service academy or officer candidates, adult children of USAA members, and widows or widowers of USAA members.

Frequently asked questions