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

Quick Facts

• Looking at the national averages for auto insurance, Farmers Mutual offers significantly less expensive prices than AAA
• AAA may help you save more money -- they offer more discounts than Farmers Mutual
• Farmers Mutual has cheaper premiums for drivers who have below-average credit

AAA or Farmers Mutual: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering huge savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to AAA or Farmers Mutual as your top options, but which company has more affordable rates for car insurance?

Looking at nationwide averages, AAA has average rates that are around 70% a month more expensive than those from Farmers Mutual.

Even so, that doesn't necessarily mean Farmers Mutual will be the cheaper option for each driver. After all, insurance carriers can offer drastically different rates to every driver depending on rating factors like your age, where you call home, your driving record, or even your credit score (among other things), so prices will vary quite a bit from person to person.

So, if you want to find out which of AAA or Farmers Mutual is really the best for you, keep reading to see average premiums for each carrier broken down by many different rate factors.

AAA vs. Farmers Mutual: Average Car Insurance Rates by State

AAA and Farmers Mutual only compete against each other in one states, with Farmers Mutual offering less expensive rates to the average driver in all of them. Nebraska has the most noticable difference, where Farmers Mutual prices are $260 more affordable than auto insurance premiums at AAA.

But there's more to calculating insurance prices than just where you live. 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 other group of drivers out there on the road. That's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

However, 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 Farmers Mutual for their auto insurance pay over 75% less than those who use AAA.

That being said, both companies will offer you dramatically lower premiums by the time you turn 25. Farmers Mutual offers the steepest decrease, with 25-year-olds paying less than half what 18-year-old drivers are charged. AAA's average prices lower almost 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable rates you'll ever see.

But who has the best premiums for retired drivers between AAA and Farmers Mutual? Farmers Mutual gets the edge, with rates for drivers 65 and older nearly 75% cheaper than the national average for AAA.

Which is the Best Company for Married Drivers?

Did you know that insurance prices are generally less expensive for married policyholders than they are for those who are single? That's because policies for married drivers usually cover more than one vehicle, which quite a few carriers will give you a discount for.

For single drivers, the difference in average premiums between these two companies is significant, with Farmers Mutual prices coming in at about a quarter of AAA's. For married couples, the advantage is clear again - Farmers Mutual has the edge when it comes to average premiums.

AAA or Farmers Mutual: Average Rates by Gender

Did you know women normally pay less for auto insurance than men? That's because men are more likely to get into accidents and get speeding tickets, which increases the chances of filing a claim with insurance.

Men typically pay around $35 per month more than women with AAA, but with Farmers Mutual, the difference is closer to $8 a month.

Looking at overall affordability, Farmers Mutual comes out on top for both men and women, with average rates $237 less for men and $211 cheaper for women.

AAA vs. Farmers Mutual: 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 insurance can be pretty complicated. Everyone needs car insurance, but there are so many different terms and coverages that it can be hard to find the right policy for you.

But most policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability).

Looking specifically at state minimum liability limits, Farmers Mutual has the significant edge, with average monthly premiums coming in at $32. If you want a full coverage policy with the same state minimum limits, Farmers Mutual again has the edge, with policies averaging about $147 per month to AAA's $459.

Is AAA or Farmers Mutual Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

It's no secret secret that speeding tickets and collisions lead to higher rates, but which company -- AAA or Farmers Mutual -- has the cheapest prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their insurance can usually expect their monthly bill to go up around 29% after getting a speeding ticket. Farmers Mutual policyholders can expect a less drastic increase of about 8%.

That being said, Farmers Mutual is generally the more affordable option for drivers both with clean records and with a ticket. With Farmers Mutual, drivers with a clean record can save around $143 a month and drivers with a speeding ticket can save about $223 per month.

Which Company is Best for Drivers After an Accident?

Both carriers will raise premiums pretty significantly if you get into an at-fault collision with AAA climbing by around 37%. Farmers Mutual has a less extreme raise, but you can still expect to pay nearly 20% more than you were prior to your first accident.

At the end of the day, the cheaper prices come from Farmers Mutual, with average rates coming in at $86 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 car insurance bill. For example, AAA increases average premiums by nearly $200 a month -- that's more than a 45% increase.

But if you end up with a DUI charge and are looking for more affordable prices, Farmers Mutual tends to be less expensive for the average driver, with monthly premiums coming in at about $128 to AAA's $403.

How does Credit Score Impact AAA and Farmers Mutual Rates?

In many cases, your credit score can be used as one of the variables to determine your monthly insurance rates. This isn't true for everyone (California, for example, has banned the use of credit score as a car insurance factor) but it does affect lots of drivers out there.

Auto insurance companies argue that those with poor credit scores are less likely to pay their bills on time each month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking at AAA and Farmers Mutual specifically, which one has the lowest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Farmers Mutual will typically reward you the most. For drivers with "excellent" credit scores, Farmers Mutual comes in over 56.22 more affordable. Drivers with "good" credit scores normally save around 66% with Farmers Mutual compared to average premiums from AAA.

Which Company is Best for Drivers with Bad Credit?

Farmers Mutual typically offers lower rates than AAA when it comes to drivers with bad credit. Drivers with "fair" credit pay about 70% per month less with Farmers Mutual compared to AAA, and those with "poor" scores generally save an average of around 81% a month.

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

The amount of time you spend behind the wheel of your car plays a big role in your monthly prices. Typically, those who drive fewer miles will end up with less expensive rates since there's less of a chance of causing an accident and filing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers Mutual charges. However, there's a small difference in monthly premiums for AAA, with policyholders who drive the least paying about $13 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, Farmers Mutual is the cheaper carrier.

AAA or Farmers Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a pretty big impact on your monthly car insurance cost. Normally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers because of the small number of cars that are on the roads where they live.

Farmers Mutual tends to offer the most affordable rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

If you live in a rural area, you can expect to pay around $90 monthly with Farmers Mutual compared to AAA's $256. Drivers in suburban ZIP codes pay about $87 with Farmers Mutual compared to AAA's $301 per month. In urban areas, Farmers Mutual's average prices are around $93 a month compared to AAA's $384.

AAA vs. Farmers Mutual 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 car insurance discounts as possible.

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

Luckily, we did the hard work for you and compared all of the different discounts offered by AAA and Farmers Mutual so that you can easily see which company offers the most discounts and, therefore, the largest savings.

AAA knocks Farmers Mutual out of the park when it comes to the sheer number of discounts available, offering 33 different discounts to Farmers Mutual's seven.

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

On the other hand, Farmers Mutual has a proprietary discount of their own -- a secondary vehicle discounts.

Final Thoughts: Is AAA or Farmers Mutual Best for You?

So, you've seen how different factors can affect your auto insurance premiums. We've broken down the different discounts each carrier offers, too. But, at the end of the day, which company is the best carrier for you and your specific needs?

Farmers Mutual might be best for you if....

• You will be the only person on the car insurance policy.
• You want the most robust protection via a "full coverage" policy.
• You live in a rural neighborhood.

AAA might be best for you if...

• You're looking for discounts -- Aaa has the most.

Hopefully, this guide helps you get a better idea of the difference between AAA and Farmers Mutual and that it aids in making a more informed decision about your 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 auto insurance -- comparing quotes from multiple companies, not just AAA and Farmers Mutual. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

AAA vs. Farmers Mutual FAQs

Is AAA or Farmers Mutual cheaper?

Farmers Mutual is the more affordable of the two companies when looking at national average rates, with policies averaging $90 per month with Farmers Mutual and $314 for AAA. Even so, that doesn't mean Farmers Mutual will be the cheapest carrier for everyone, since there are several different variables that come into play when it comes to your insurance payment.

Who is better, AAA or Farmers Mutual?

Unfortunately, the real answer is "it depends.". Neither company is necessarily "better" for each policyholder -- it all depends on the makeup of your unique auto insurance profile.

Why do AAA and Farmers Mutual offer me different rates?

Car insurance carriers use a lot of different factors when determining the prices they charge. Things such as gender, where you call home, age, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Farmers Mutual use different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from multiple different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from a handful of carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your information once and you'll get quotes from dozens of your local top auto insurance companies for free. With those, you can guarantee you're getting the lowest rate. And maybe you'll find that the best carrier for you isn't AAA or Farmers Mutual 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.