AAA vs. Farmers: Home Insurance Comparison

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Updated: May 22, 2024

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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.

Comparison Overview: AAA vs. Farmers

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.


Total Score












Average Annual Premium



MoneyGeek ranked companies based on nationally recognized data from leading consumer reporting agencies, including J.D. Power for customer service, AM Best for financial stability and Quadrant Information Services for affordability. Learn more.

Which Company Is Cheaper Overall?

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.

Average Annual Homeowners Insurance Premium of AAA vs. Farmers


Average Annual Premium


Average Annual Premium

Farmers’s homeowners insurance costs on average: $2,228:$466 more

This is 26% more expensive.

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.

Which Company Is Cheaper Based on Dwelling Coverage Amount?

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.

Average Premiums for AAA vs. Farmers
AAADwelling Coverage Amount$100,000Average Annual Premium$698
FarmersDwelling Coverage Amount$100,000Average Annual Premium$2,715
AAADwelling Coverage Amount$250,000Average Annual Premium$1,602
FarmersDwelling Coverage Amount$250,000Average Annual Premium$2,845
FarmersDwelling Coverage Amount$500,000Average Annual Premium$8,040
AAADwelling Coverage Amount$500,000Average Annual Premium$2,889
FarmersDwelling Coverage Amount$750,000Average Annual Premium$10,749

How Much Does Each Company Cost by State?

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.

Average Premiums for AAA vs. Farmers
FarmersStateALAverage Annual Premium$324
FarmersStateARAverage Annual Premium$1,363
AAAStateAZAverage Annual Premium$2,205
FarmersStateAZAverage Annual Premium$1,416

Which Company Has Better Customer Service?

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.

AAA vs. Farmers: Customer Service Scores

MoneyGeek Score



Satisfaction Score



Stability Score



Affordability Score



Optional Coverages Offered by AAA vs. 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.


Sewer backup coverage
Covers the cost of
water damage from
a sump pump,
drain or sewer overflow.

Identity theft coverage

Covers some of the
costs incurred due to
identity theft or fraud.

Extended reimbursement

Extends your limits for
certain coverages.

Scheduled personal property coverage

Covers the cost of
valuable items like
jewelry, furs, fine art, etc.

Building ordinance or law coverage

Covers the cost to
rebuild or upgrade a
home so that it
meets the most up-to-date
building codes after a
covered loss.

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.

Discounts Offered by AAA vs. Farmers

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.


Protective device discount

Discount for having
theft or fire protection
devices, such as alarms
or sprinklers.

Insurance bundling discount

Discount for bundling
your homeowners insurance
policy with another product,
like auto insurance.

Claims-free discount

Discount for going
several years without
filing a claim.

New home discount

Discount for homes that
have been recently constructed.

Home renovation discount

Discount for homes that
have been recently renovated.

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.

How Much Could Your Homeowners Insurance Premium Cost?

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.

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MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — it’s free, no personal information required, no spam.


Rates updated:

Jul 22, 2024

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About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.