AAA vs. Farm Bureau Financial Services: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, Farm Bureau Financial Services offers significantly cheaper prices than AAA
• AAA may help you save more money -- they offer more discounts than Farm Bureau Financial Services
• Farm Bureau Financial Services offers more affordable premiums for policyholders who live in rural neighborhoods

AAA or Farm Bureau Financial Services: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. You've probably seen commercials and billboards from companies offering huge savings, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to AAA or Farm Bureau Financial Services as your top options, but between the two, which company will offer you more affordable rates?

As you can see, Farm Bureau Financial Services is quite a bit cheaper than AAA, with premiums averaging $170 a month compared to $314 with AAA when looking at the national average rates for auto insurance.

But that doesn't mean Farm Bureau Financial Services will necessarily be less expensive than AAA for each driver. Insurance carriers vary their prices depending on things like how old you are, where you live, how clean your driving record is, how good your credit score is, and tons of other factors, so premiums could vary drastically from person to person.

Luckily, we've broken down average prices from both AAA and Farm Bureau Financial Services by several different rate factors, so read on to find out which carrier is the best for you.

AAA vs. Farm Bureau Financial Services: Average Car Insurance Rates by State

AAA and Farm Bureau Financial Services only compete against each other in two states, with Farm Bureau Financial Services offering more affordable rates to the average driver in all of them. Nebraska has the most noticable difference, where Farm Bureau Financial Services prices are $198 less expensive than car insurance premiums at AAA.

That being said, there's a lot more that goes into your insurance payment than just the state you live in. Read on to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance rates of any group on the road. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have Farm Bureau Financial Services for their auto insurance pay over 50% less than those who use AAA.

However, with both companies, you'll see your premiums decrease significantly by the time you turn 25. For example, average prices for AAA policyholders drop around $400 and Farm Bureau Financial Services's rates reduce about $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the most affordable insurance premiums you'll ever find. After all, they've likely been driving for quite some time, which normally reduces their chances of collisions and other infractions that can raise prices.

When looking at AAA and Farm Bureau Financial Services specifically, which company is best for retired drivers? Farm Bureau Financial Services gets the edge, with rates for drivers 65 and older $111 cheaper than the national average for AAA.

Which is the Best Company for Married Drivers?

Single drivers tend to get offered slightly more expensive car insurance premiums than married policyholders. That's typically because married couples tend to own and insure multiple vehicles, which can often earn you a discount.

For those who are single, the difference in average rates between these two carriers is significant, with Farm Bureau Financial Services prices coming in at around half of AAA's. The advantage is also clear for married drivers - Farm Bureau Financial Services offers the cheapest average premiums.

AAA or Farm Bureau Financial Services: Average Rates by Gender

Because women are less likely to get into accidents and get speeding tickets, they have a decreased chance of filing a claim with insurance. So, women tend to get cheaper rates than men.

Usually, women see rates more than 10% per month less with AAA, but surprisingly, with Farm Bureau Financial Services, women generally pay about 3% more a month than men.

Looking at overall affordability, Farm Bureau Financial Services offers the lowest average prices for both men and women. On average, women save about $124 per month and men save around $163 with Farm Bureau Financial Services compared to the average AAA policyholder.

AAA vs. Farm Bureau Financial Services: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

It's no secret that auto insurance can be pretty complicated. Everyone needs insurance, but there are so many different limits and terms that it can be hard to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability).

Looking specifically at state minimum liability insurance, Farm Bureau Financial Services has the significant edge, with average monthly rates coming in at $87. If you want a full coverage policy with the same state minimum limits, Farm Bureau Financial Services again has the edge, with policies averaging about $253 a month to AAA's $459.

Is AAA or Farm Bureau Financial Services Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance companies offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that speeding tickets and at-fault accidents lead to higher prices, but which carrier -- AAA or Farm Bureau Financial Services -- has the most affordable rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their auto insurance can usually expect their monthly bill to go up around 29% after getting a speeding ticket. Farm Bureau Financial Services policyholders can expect a less drastic increase of about 17%.

That being said, Farm Bureau Financial Services has less expensive prices for drivers in both categories -- their rates are around 43% more affordable for drivers with clean records and 51% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through AAA can expect to see around an $126 -- or about 37% -- rise in their insurance premiums. Drivers who use Farm Bureau Financial Services for their auto insurance will see a monthly bill around $66 (or 35%) more expensive after reporting an accident to their car insurance company.

At the end of the day, the more affordable rates come from Farm Bureau Financial Services, with average prices coming in at $187 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or ticket when it comes to your insurance bill. For example, AAA increases average premiums by nearly $200 per month -- that's more than a 45% increase.

But if you end up with a DUI charge and are looking for more affordable rates, Farm Bureau Financial Services tends to be less expensive for the average driver, with monthly premiums coming in at about $226 to AAA's $403.

How does Credit Score Impact AAA and Farm Bureau Financial Services Rates?

Did you know many car insurance carriers take into account your credit score when determining premiums? This isn't true for everyone (for example, California and Michigan are two states that ban the practice entirely), but it might come into play for several drivers.

Auto insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with cheaper prices.

So, which carrier offers the best premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, Farm Bureau Financial Services will typically reward you the most. For policyholders with "excellent" credit scores, Farm Bureau Financial Services comes in over 31.35 more affordable. Drivers with "good" credit scores normally save around 43% with Farm Bureau Financial Services compared to average prices from AAA.

Which Company is Best for Drivers with Bad Credit?

Farm Bureau Financial Services typically offers lower rates than AAA when it comes to drivers with a below average credit score. Drivers with "fair" credit pay about 47% a month less with Farm Bureau Financial Services compared to AAA, and those with "poor" scores generally save an average of around 53% a month.

Is AAA or Farm Bureau Financial Services Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a pretty big impact on how much insurance carriers will charge for coverage. Usually, those who drive fewer miles will end up with less expensive prices since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, Farm Bureau Financial Services tends to be the cheaper option. Farm Bureau Financial Services's average premiums for drivers with 6,000 annual miles come in more than 45% more affordable than AAA. Those who drive 12,000 miles annually can expect to pay 45% less with Farm Bureau Financial Services over AAA.

AAA or Farm Bureau Financial Services: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a big impact on your monthly car insurance cost. Typically, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders since there are a lot fewer cars on the roads where they live.

Farm Bureau Financial Services boasts the lowest average premiums for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save about $101 with Farm Bureau Financial Services compared to AAA. People who live in suburban areas pay around $142 less with Farm Bureau Financial Services compared to AAA. For drivers in urban ZIP codes, Farm Bureau Financial Services's average prices are about $188 less than AAA Insurance.

AAA vs. Farm Bureau Financial Services Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many auto insurance discounts as possible.

The hard part is finding all of the discounts you can take advantage of, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and Farm Bureau Financial Services so that you can find the one that has the most discounts and, therefore, the largest savings.

AAA blows Farm Bureau Financial Services away when it comes to the sheer amount of discounts available, offering 24 more discounts than Farm Bureau Financial Services.

There are a couple discounts both companies offer, but AAA also offers discounts for AAA, academic, advance quote, and more.

On the other hand, Farm Bureau Financial Services has a few proprietary discounts of their own for things like life policy discounts, safe young driver discounts, and seasoned account discounts.

Final Thoughts: Is AAA or Farm Bureau Financial Services Best for You?

So, you've seen how different variables can affect your car insurance rates. We've broken down the different discounts each company offers, too. That's all well and good, but when it comes down to it, which carrier is the right carrier for you and your specific needs?

Farm Bureau Financial Services might be best for you if....

• You will be the only person on the insurance policy.
• You're looking for the best premiums on liability only coverage.
• You have a short drive to work everyday.

AAA might be best for you if...

• You want to save extra money with discounts.

Hopefully, this guide has ben a valuable resource as you compare AAA and Farm Bureau Financial Services and that you can now make a more informed decision when it comes to your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just AAA and Farm Bureau Financial Services. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple quotes from some of the best auto insurance companies in your area, all for free.

AAA vs. Farm Bureau Financial Services FAQs

Is AAA or Farm Bureau Financial Services cheaper?

Farm Bureau Financial Services is the cheaper of the two carriers when looking at national average prices, with policies averaging $170 per month with Farm Bureau Financial Services and $314 for AAA. Even so, that doesn't mean Farm Bureau Financial Services will be the cheapest company for everyone, since there are lots of different factors that come into play when it comes to your insurance bill.

Who is better, AAA or Farm Bureau Financial Services?

Unfortunately, the only answer we can give you is "it depends.". No one carrier is necessarily "better" for every policyholder -- it all boils down to your unique auto insurance profile.

Why do AAA and Farm Bureau Financial Services offer me different rates?

Insurance companies use quite a few different variables when calculating the rates they charge. Things like age, where you live, gender, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Farm Bureau Financial Services calculate premiums using different factors, so it's likely they'll offer different rates. The best way to determine which company is the most affordable for you is by comparing personalized quotes from many different carriers.

How do I know if AAA or Farm Bureau Financial Services is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once and you'll get quotes from dozens of your local top insurance carriers for free. With those, you can guarantee you're getting the lowest premium. And maybe you'll find that the best company for you isn't AAA or Farm Bureau Financial Services at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.