Costco vs Farmers: which is better for car insurance in 2026?

Q: Is Costco or Farmers cheaper?

We cannot answer that with published data. Costco does not release public rate information, so no independent study — ours included — can put a national average next to Farmers's $4,048/yr. The only way to know is to quote both.

Q: Which handles claims better, Costco or Farmers?

Neither has a clear edge. Costco scores Not rated and Farmers 690/1,000 on the claims measure we use — close enough that the individual adjuster you draw matters more than the company average.

Q: Is Costco better than Farmers overall?

We can't put two scores side by side here. Costco does not publish enough of the underlying data for us to give it an overall score — we would rather say so than compute one from the two or three figures that do exist. Farmers scores 3.1 out of 5. Compare them on the individual categories above, and on the quotes you actually get.

Q: Can I switch from Costco to Farmers mid-policy?

Yes. Auto policies can be cancelled at any time, and most insurers refund the unused premium pro-rata — though some charge a short-rate cancellation fee, so check your policy before you cancel. The one rule worth following: get the new policy bound and in force before you cancel the old one. Even a single day uninsured can count as a coverage lapse, which raises your rate at the next renewal and, in some states, exposes you to a registration penalty.

CostcoNot scored

Farmers

Across our six scoring categories, Costco comes out ahead in 0, Farmers in 1, with 5 too close to call. There is no overall score to compare, though: Costco does not publish enough of the underlying data to earn one, and we would rather leave it blank than build a number out of the two or three figures that happen to exist. Farmers is the better-documented of the two, which is not the same as being the better insurer for you. Judge these two on the categories where both have real figures — and on what they actually quote you.

Costco vs Farmers, side by side

Category

CostcoRead the full review

FarmersRead the full review

Overall scoreWeighted across the six categories below

Not scored

PriceAverage annual full-coverage premium · 25% of score

Not published

This company does not release public rate data

1.5$4,048/yr

Average full coverage vs. $2,356 national average

Claims satisfactionJ.D. Power 2025 claims study, out of 1,000 · 20% of score

Not rated

Not ranked as its own brand in the J.D. Power 2025 claims study

3.0690/1,000

J.D. Power 2025 claims study, segment average 700

Complaint recordComplaints relative to company size · 15% of score

2.5More than expected

Complaints relative to company size, NAIC data 2022–2024

3.5About the expected number

Complaints relative to company size, NAIC data 2022–2024

Better

Financial strengthAM Best Financial Strength Rating · 10% of score

4.0A

AM Best Financial Strength Rating

4.0A

AM Best Financial Strength Rating

DiscountsBreadth of published discounts · 15% of score

3.59 published

Discounts on the carrier's own pages · No branded telematics program found

3.510 published*

Discounts on the carrier's own pages (*from secondary sources — carrier blocks access) · No branded telematics program found

Digital experienceApp ratings and self-service depth · 15% of score

Not published

No app-store presence we could verify

4.54.84 iOS / 4.7 Android

App Store (27K ratings) and Google Play (10.8K ratings), August 2026

Availability

40 states, members only

40 states, through agents — the Farmers brand left Florida in 2023 and does not write in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont or West Virginia

Best suited to

Costco Executive Members who value guaranteed renewal

drivers who want an agent and have specific coverage needs Farmers can meet

Sources: average premiums from NerdWallet's August 2026 rate analysis (Quadrant Information Services), for a 35-year-old driver with a clean record and good credit in a 2023 Toyota Camry LE at 12,000 miles a year, 100/300/50 limits with $1,000 deductibles — national average $2,356. Claims satisfaction from the J.D. Power 2025 U.S. Auto Claims Satisfaction Study (segment average 700). Complaint record from NerdWallet's analysis of NAIC complaint data, 2022–2024. Financial strength from AM Best. Discounts and app data from each carrier's published pages and the Apple App Store / Google Play, retrieved August 2026. Updated August 2026.

Costco vs Farmers across all six categoriesScored 1–5. Longer is better in every category — the price bar already accounts for cheaper being better.

CostcoFarmers

Category by category

Price

Too close to call

Costco does not release public rate data, so there is no like-for-like premium to set against Farmers's $4,048/yr. That is a real gap in the comparison, not a rounding error — treat Costco's price as unknown until you have a quote in hand.

Costco

No published premium. The rate study behind every other price on this site does not quote Costco separately, so the price category carries no score.

Farmers

$4,048 a year for full coverage, 72% above the national average and the most expensive carrier in this review by a wide margin.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: Costco posts Not rated and Farmers 690/1,000, a difference too small to choose on.

Costco

Costco is not a ranked brand in the J.D. Power 2025 claims study. American Family's 702 is measured on a different book of business and is not borrowed here.

Farmers

690 out of 1,000, ten points below the segment average.

Complaint record

Farmers ahead

Farmers takes complaint record on About the expected number against Costco's More than expected.

Costco

More complaints than expected for its size, per NerdWallet's analysis of 2022–2024 NAIC data — a worse record than American Family's own brand.

Farmers

Close to the number of complaints expected for its size.

Financial strength

Too close to call

Neither pulls ahead on financial strength: Costco posts A and Farmers A, a difference too small to choose on.

Costco

AM Best A (Excellent), affirmed in September 2025 for all three companies that underwrite Costco auto policies.

Farmers

AM Best A (Excellent).

Discounts

Too close to call

Neither pulls ahead on discounts: Costco posts 9 published and Farmers 10 published*, a difference too small to choose on.

Costco

Nine published auto discounts, counting the member discount itself. No usage-based program is offered through Costco.

Farmers

Roughly ten discounts, though Farmers blocks automated access to its own discounts page, so we could not verify the list or its telematics program name directly.

Digital experience

Too close to call

Neither pulls ahead on digital experience: Costco posts Not published and Farmers 4.84 iOS / 4.7 Android, a difference too small to choose on.

Costco

No app-store figures we could attribute to the program. Policies are serviced through American Family's account system, and we could not confirm which app Costco policyholders use.

Farmers

4.84 on the App Store and 4.7 on Google Play — the best-rated app pairing in this review, across a relatively small rating base.

So which one?

Pick Costco if…

You are among costco executive members who value guaranteed renewal.
Availability fits: 40 states, members only.

Read the full Costco review →

Pick Farmers if…

You are among drivers who want an agent and have specific coverage needs farmers can meet.
You want the lower complaint record — Farmers sits at About the expected number.
Availability fits: 40 states, through agents — the Farmers brand left Florida in 2023 and does not write in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, South Carolina, Vermont or West Virginia.

Read the full Farmers review →

Costco vs Farmers, answered

The questions people ask before switching between these two.

Is Costco or Farmers cheaper?

Which handles claims better, Costco or Farmers?

Is Costco better than Farmers overall?

Can I switch from Costco to Farmers mid-policy?

Other comparisons

Allstate vs Costco American Family vs Costco Amica vs Costco Auto-Owners vs Costco Chubb vs Costco Clearcover vs Costco Allstate vs Farmers American Family vs Farmers

See all 387 head-to-head comparisons →

Compare real quotes from both — and 50+ others.

Averages are a starting point. Your rate is the only number that decides it.

Get my free quotes →