AAA vs. Farmers: Which Company is the Best Fit for You?

You've probably seen ads offering big savings on car insurance, but are AAA or Farmers right for you? Which company offers the lowest rates, or the most discounts? Read on to see how AAA and Farmers compare, and to find out which carrier is the best one for you, your vehicle, and your budget.
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Quick Facts

  • In general, Farmers offers significantly more affordable premiums than AAA
  • AAA offers more discounts than Farmers Insurance
  • Farmers tends to be a much cheaper option for drivers who have received a ticket within the last few years

AAA vs. Farmers: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering big discounts. But exactly how much can you save by switching?

You've maybe even narrowed it down to AAA or Farmers as your top options, but which company will offer you less expensive prices?

AAA Farmers

As you can see, Farmers has average rates that are about 35% per month cheaper than those from AAA when looking at the national average rates for insurance.

Even so, Farmers may not be the most affordable or best option for every driver out there. Car insurance companies use all sorts of complex algorithms to calculate premiums, so depending on how old you are or where you live (among many other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both AAA and Farmers by a variety of different rate factors, so read on to find out which company is the best for you.

AAA or Farmers: Average Car Insurance Rates by State

State AAA Farmers

AAA and Farmers compete against each other in seven states, with Farmers offering more affordable premiums to the average driver in all of them. Arizona has the most noticable difference, where Farmers prices are over 50% less expensive than auto insurance rates at AAA.

That being said, there are plenty of other factors that go into your insurance cost than just your home state. Keep reading to find out more.

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Which is the Best Company For Young Drivers?

AAA Farmers
18-year-old drivers$689$533
25-year-old drivers$276$155

Teen drivers will almost always have the most expensive car insurance premiums of any group on the road. It's normally because young, inexperienced drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $150 less a month by choosing Farmers over AAA.

However, with both carriers, you'll see your rates decrease significantly by the time drivers turn 25. For example, average premiums for AAA policyholders drop nearly 60% and Farmers's prices reduce over 70% over that time.

Which is the Best Company for Retired Drivers?

AAA Farmers
65+-year-old drivers$238$143

Drivers around retirement age usually enjoy some of the cheapest insurance rates out there. After all, they've likely been driving for quite some time, which typically decreases their chances of accidents and other infractions that can increase premiums.

When looking at AAA and Farmers specifically, which carrier is best for retired drivers? Farmers gets the edge here, with average prices coming in at around $143 a month compared to AAA's $238.

Which is the Best Company for Married Drivers?

AAA Farmers

Those who are single tend to get offered slightly more expensive auto insurance rates than married couples. This usually boils down to married policyholders having multiple cars on their policy -- something lots of car insurance companies will reward with discounts.

When it comes to relationship status, Farmers is the clear winner for single policyholders, with prices about $124 per month cheaper than AAA, on average. The advantage for married drivers with Farmers is also obvious, where drivers save almost 40% a month.

AAA vs. Farmers: Average Rates by Gender

AAA Farmers

Women tend to pay less for auto insurance than men. This is because men are statistically more likely than women to get into collisions and file an insurance claim, which leads to increased risk for insurers and, therefore, higher rates.

Men generally pay nearly $35 per month more than women with AAA, and around $7 with Farmers.

Looking at the data for each company specifically, Farmers comes out on top for both men and women, with average premiums $124 less for men and $97 cheaper for women.

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AAA or Farmers: Compare State Minimum vs. Full Coverage Rates

AAA Farmers
State Minimum*$169$126
Full Coverage**$459$281

*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 insurance can be a complicated subject for most people. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

That being said, most policies end up falling into two different types of coverage -- liability only (which provides property damage and bodily injury coverage for other drivers if you cause an accident) and full coverage (which typically refers to having comprehensive and collision coverages in addition to what you get with a liability policy).

If you're looking for state minimum limits for liability insurance, Farmers generally offers significantly less expensive rates of $126 compared to AAA's $169. When it comes to full coverage policies with similar limits, Farmers again has the edge, with policies about $200 a month more affordable than AAA, on average.

Is AAA or Farmers Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

It's no secret secret that tickets and accidents lead to higher premiums, but which carrier -- AAA or Farmers -- has the most affordable prices for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

AAA Farmers
Clean Record$213$162
1 Speeding Ticket$299$206

AAA policyholders can expect their premiums to go up an average of $86 per month if they get a ticket, while Farmers usually raises rates around $44 a month, on average.

But Farmers is normally the cheaper option for both drivers who have a recent speeding ticket and those with clean records, offering prices that are $51 and $93 more affordable, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

AAA Farmers
Clean Record$213$162
1 At-Fault Accident$339$224

AAA drivers who get in a collision can expect to see their rates rise by over 35%, while those who have insurance through Farmers will see about a 30% increase.

Overall, the less expensive premiums come from Farmers, with monthly prices averaging $224 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

AAA Farmers
Clean Record$213$162
1 DUI$403$221

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

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How does Credit Score Impact AAA and Farmers Rates?

Did you know that many insurance carriers take into account your credit score when calculating prices? Certain states and companies do not allow for credit score to be used as a rating factor, but it does affect several policyholders out there.

Auto insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

Looking at AAA and Farmers specifically, which carrier has the cheapest premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

AAA Farmers
Excellent Credit Score$185$164
Good Credit Score$247$185

Which Company is Best for Drivers with Bad Credit?

AAA Farmers
Fair Credit Score$304$209
Poor Credit Score$539$256

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Is AAA or Farmers Better for Drivers who Work from Home or Have Short Commutes?

AAA Farmers
6,000 Annual Miles$307$203
12,000 Annual Miles$320$203

How much you drive can have a sizable impact on how much insurance companies will charge for coverage. That's because the fewer miles you put on your vehicle each year, the less likely you are to get into an accident and cause an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a small difference in monthly rates for AAA, with drivers who put 6,000 miles on their car yearly paying around $13 less each month compared to those who drive 12,000 miles annually. Still, Farmers is the more affordable option for drivers in both categories.

AAA vs. Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a big impact as well. Typically, those who live in urban areas will pay more than drivers in rural areas because there are a lot more vehicles on the roads in those areas.

AAA Farmers
Urban Areas$384$251
Suburban Areas$301$189
Rural Areas$256$170

Farmers boasts the cheapest average premiums for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest rates from both carriers, but Farmers comes out on top with average prices about $170 per month. Farmers also has cheaper average premiums for drivers in urban and suburban ZIP codes -- a 35% and 37% a month respective difference when compared to AAA policyholders in similar areas.

AAA vs. Farmers Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you're eligible for.

In the table below, we've compared all of the different discounts offered by AAA and Farmers so that you can find the one that has the most discounts and, therefore, the biggest savings.

AAA Farmers
AAA Discount 
ABS Discount 
Academic Discount 
Advance Quote Discount
Alternative Fuel Discount 
Anti-Theft Discount
Covid-19 Relief Discount 
Defensive Driver Discount
Distant Student Discount
Driver Training Discount
DriveSharp Discount 
EFT Discount
Employee Discount 
ESC Discount 
Garage Discount 
Good Driving Discount
Good Payer Discount 
Good Student Discount
Group Discount
Homeowner Discount

Looking at the total number of discounts, AAA comes out ahead with 33 discounts to Farmers's 28.

There are a couple discounts both companies offer, but AAA also offers AAA discounts, academic discounts, COVID-19 relief discount, and more that Farmers does not.

On the flip side, Farmers has a couple unique discounts of its own -- ABS discounts, alternative fuel discounts, ESC discounts, and more.

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Final Thoughts: Is AAA or Farmers Best for You?

So, we've broken down the average prices for many of the factors insurance carriers look at, and walked through the different discounts each company offers, too. But, at the end of the day, is AAA or Farmers the right carrier for you and your specific profile and needs?

Farmers might be best for you if....

  • Your driving record contains an at-fault collision.
  • You're looking for more protection with "full coverage" car insurance.
  • You live in a rural area.

AAA might be best for you if...

  • You want to save extra money with discounts.

We hope this guide helps you get a good idea of the differences between AAA and Farmers and that you can now make a more informed decision when it comes to your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from several companies, not just AAA and Farmers. Luckily, sites like do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top car insurance carriers in your area, all in just a few minutes.

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AAA vs. Farmers FAQs

Is AAA or Farmers cheaper?

Looking just at the national average rates, Farmers is the less expensive of the two companies, offering average rates of $203 per month compared to $314 for AAA. That being said, Farmers won't necessarily be the most affordable carrier for every driver, since there are several different variables that are considered when it comes to your auto insurance bill.

Who is better, AAA or Farmers?

Unfortunately, the only answer we can give you is "it depends.". No one company is "better" for each driver -- it all depends on the makeup of your unique insurance profile.

Why do AAA and Farmers offer me different rates?

Car insurance carriers take a look at quite a few different factors when determining the premiums they charge drivers. Things such as where you park your car, gender, age, where you live, and sometimes even things like your credit score can all come into play. Both AAA and Farmers calculate prices using different variables, so each one will most likely offer different rates. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from a range of different companies.

How do I know if AAA or Farmers is right for me?

The only way to find the insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, sites like make it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best car insurance companies in your area. With those, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be AAA or Farmers at all!


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.

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