AAA vs. Farmers: Home Insurance Comparison

AAA outranks Farmers for customer satisfaction and affordability, while both companies have similar financial stability ratings. In the U.S., AAA ranked 12th. Farmers ranked 19th.

AAA charges an average of $2,889 annually for a homeowners policy with $500K dwelling coverage. You will pay an average of $8,040 annually if you want the same coverage with Farmers, but Farmers beats AAA in terms of offered discounts and coverages.

Our analysis evaluates both companies’ homeowners policies.

MoneyGeek’s comparison of both insurers found that although AAA offers affordable premiums and its customers have fewer complaints, the company doesn't offer as many discounts and coverages. It also doesn’t offer policies in all U.S. states. Farmers offer more discounts and coverages, plus it is available in 49 U.S. states. It also ranks lower for affordability and customer satisfaction.

We found that you will pay the most affordable rates with AAA. Its average policy cost is $1,762 annually. Farmers is a more expensive option because it charges $2,228 annually for a home insurance policy.

These rates are the average cost of insurance. Your actual premium may differ depending on your personal information and coverage needs.

Factors that significantly affect your homeowners insurance premiums include your policy's amount of dwelling coverage and where you live in the state. MoneyGeek analyzed which insurance provider is the cheapest option based on these factors.

Before you purchase a policy, you should estimate how much dwelling coverage you need. This information will help you choose a policy with sufficient financial protection.

When purchasing a policy, you can choose various dwelling coverage amounts ranging from the baseline dwelling coverage of $100k to $3 million. We found that no matter the amount of dwelling coverage, AAA offers cheaper premiums than Farmers.

The table below shows how dwelling coverage affects homeowners insurance costs.

Your location can impact the cost of your homeowners policy. AAA’s policies are the most affordable in California ($1,656), and the insurance provider charges the highest rates in Oklahoma ($4,456). Farmers offer the cheapest policies in Alabama ($324), while its policies are the most expensive in Colorado ($6,207).

MoneyGeek analyzed how homeowners insurance cost from AAA and Farmers varies from state to state in the table below.

You should evaluate an insurance company’s customer service before buying a policy since you will need access to efficient customer support and fair processing when you file a claim.

MoneyGeek’s analysis of both insurance companies shows that AAA offers better service quality overall than Farmers. Although both companies are financially stable, AAA scored better for affordability than Farmers.

When you purchase an insurance policy, you get many standard coverages. These include personal property, dwelling and liability. Insurers also provide various additional coverages to help increase your protection against damages.

If you opt for AAA, you will only get four add-on coverages. You can choose Farmers if you want more since the company offers seven add-on coverages.

Farmers offers identity theft coverage, building ordinance or law coverage, contents replacement cost coverage, matching and energy efficiency upgrade coverage. AAA does not offer these coverages. These coverages can protect you against identity theft costs, help you rebuild your home according to local building codes, reimburse you for a covered loss of your personal belongings and more.

AAA offers earthquake and flood coverage, which Farmers does not protect you against. These can be helpful if you live in earthquake or flood-prone areas.

MoneyGeek gathered this information from the AAA and Farmers’ websites. The companies might offer other coverage options.

You can take advantage of various discounts to lower your homeowners insurance premiums. Farmers offers 13 discounts, making it a better option than AAA, which only offers eight discounts to policyholders. Besides the home renovation discount, Farmers also offers the most common discounts.

Farmers offers claims-free, claim forgiveness, paperless, deductible reward affinity, pay-in-full, automatic payment, responsible payment and earthquake discounts that AAA doesn't offer. These give policyholders ways to save money on homeowners insurance than they could with AAA.

AAA offers senior and loyalty discounts that Farmers does not offer, which can be helpful for older homeowners or those who plan to stick with AAA long-term.

We collected this data manually from these companies' websites. You may find other discounts unique to your location or that aren't advertised online.

You might still need to determine the ideal company for your insurance needs. If that’s the case, you can look at our analysis of the best homeowners insurance companies. We evaluated the most suitable insurers based on many essential factors.

Besides other factors, the total cost of repairing your home significantly impacts the cost of a policy. You can use our homeowners insurance calculator to understand how much a policy might cost.