When Farmers Insurance reviews its customers’ claims, it’s not from a far away, by an employee in a cubicle, totally detached from its clients. On the contrary—the company actually has mobile response teams which are dispatched to ground zero and assess the situation personally. And that’s the company’s most significant advantage—a personal touch in a somewhat impersonal industry.
Farmers insurance group was founded in 1928 in Los Angeles, California. It is a subsidiary of the Zurich Insurance Group. It has more than 40,000 independent agents and approximately 21,000 employees. Farmers insurance claims it takes pride in its wide network of agents and the professionalism they bring.
Their commercials stress how Farmers takes great care of their employees, customers, and the local community. To determine whether or not Farmers is as great as it advertises, we’ve conducted an in-depth analysis.
Farmers Auto Insurance Review
Farmers is an affordable insurer with reliable customer service that offers various discounts and optional coverages. We recommend checking it out.
- Decent claims processing
- Solid discounts
- Good customer service
- Rewards Visa Card
- Outrageously expensive for younger drivers
- Above average prices
Farmers Auto Insurance: Product Overview
Farmers operates in all 50 US states. The company has a vast network of independent agents, but also offers excellent online tools. It has a convenient mobile app, which lets you access your policy documents, pay bills, set up reminders, and report claims.
After you file a claim online, a representative will call you to discuss the details, and you’ll always be able to check your claims status online through the Farmers insurance mobile app.
The prices offered by Farmers are average, unless you’re a young driver. In this case, premiums are extremely high, and we would advise you to look elsewhere. Overall, customer service is very solid and nearly the best available.
One of the areas where Farmers insurance excels is their claims processing, which is reflected by the high ratings it has. There are several extra coverage options and discounts to satisfy the average customer; however, there are companies that offer more in this department.
Farmers Car Insurance Signature Feature
The Rewards Visa Card is definitely one of the best perks of being a Farmers customer. It earns you points for each purchase made using the card. Furthermore, you will earn triple points if you are purchasing Farmers products.
There is no annual fee, and the points you collect never expire. You can later redeem them to offset purchases. Alternatively, you can redeem your points on travel, gift cards, merchandise, and much more.
Farmers Insurance Reviews of Financial Strength
No matter how reasonable the prices are and how pleasant the customer service is, it’s not worth much if the company doesn’t have the financial strength to pay their claims. There should be no such worries here because Standard and Poor’s gives Farmers a solid rating of AA, or “Very Strong.”
Additionally, the company is ranked 256rd on the Fortune 500 list for 2021. Also, Farmers insurance rating from A. M. Best is A (Excellent), which is the second-best rating possible. Besides taking good care of its finances, the company also takes good care of its workers. Namely, it holds 97th spot on Fortune’s “100 Best Companies to Work For” list.
All of this data indicates that Farmers certainly has strong financial operations, and there should be no concerns when it comes to the company’s ability to pay customers’ claims.
Farmers Insurance Review: Types of Insurance Offered
We found that Farmers offers all the common coverage that most insurance companies offer plus some interesting extras. Basic options commonly found in the industry include:
- Property damage liability
- Bodily injury liability
- Medical expenses
- Personal injury protection
- Underinsured/uninsured motorist protection
The optional coverage is as follows:
New Car Replacement Coverage
This option is very useful If your car is less than two years old, and it has a mileage less than 24,000 miles. It will cover the expenses of a new vehicle of the same make and model minus the deductible, if a total loss happens.
Farmers’ offer is good, as other Farmers auto insurance reviews will confirm. However, Travelers has the best coverage, which covers your new car for up to five years.
Customized Equipment Coverage
If you have customized your car to fit your needs and to match your personality, this option will have you covered in case of an accident. It covers items such as sound system, alloy wheels, spoilers, or bumpers. The clients can buy Customized Equipment Coverage with comprehensive or collision coverage.
Personal Liability Umbrella Coverage
If you want to raise your liability limits, you can purchase Farmers personal umbrella coverage and increase your limits up to $10 million.
Farmers Insurance Roadside Assistance
This optional coverage pays the costs of roadside repairs. Some of the things covered are flat tire changes, battery jump starts, fuel and oil delivery, towing, and locksmith services. The roadside assistance helpline operates 24/7, and you can call them in case of an emergency at 1-800-435-7764.
Your cracked windshield will be repaired by a reputable vehicle glass company. This option is helpful for people who have comprehensive coverage but with a high deductible. In their case, the deductible is higher than the cost of a windshield.
Farmers Insurance Rental Car Coverage
While you’re waiting for your car to be repaired, Farmers will cover the price of a rental car for a maximum of 30 days. They will also help you find a quality rental shop that will bill them directly. Additionally, you will get free pickup and delivery of the rented vehicle.
This option is available only in selected states. You will have to contact your local agent for availability information.It expands the insurance offered by the ridesharing companies such as Uber and Lyft. It provides coverage when you are connected to the app and waiting to be matched with a passenger.
Farmers Insurance Accident Forgiveness
If you are a safe driver for years, your insurance price won’t go up if you cause an accident.
Loss of Use
If your car is out of service due to a qualified disability, Farmers will provide a flat amount for public transport, a taxi, or a rental vehicle while your car is being repaired.
Original Equipment Manufacturer
This option is available with collision and comprehensive Farmers insurance coverage. One of the conditions is that your car isn’t older than 10 years. It pays for the manufacturer’s original replacement parts.
Classic & Collector Car Insurance
This option is specifically designed for people who love cars and their history. If you own a Mustang from the 1960s, a rare Shelby Cobra, or a custom hot rod that you would never dare tell your wife the cost of, Farmers has you covered. Farmers agents will guide you on how to find the best coverage for a car that you cannot replace easily.
Farmers Insurance Customer Service
Most reviews rate the customer service as very good. In J.D. Power’s 2021 claims satisfaction study the company holds the 5th place. Furthermore, the company also came 5th in the 2021 insurance shopping study,
It should also be kept in mind that in regional rankings, there are places where Farmers does not score that high. Those regions are the California and mid-Atlantic region. If you are looking for the absolute best customer service, you might want to look elsewhere if you are based in these locations.
The company is accredited on the Better Business Bureau website, and it has an A- rating, which is pretty good. On the other hand, the rating from customer-based Farmers insurance reviews on the BBB is just 1.4 stars out of 5.
Farmers has an NAIC ratio of 1.09, which is slightly above expected for a company of its size. The expected number is represented as 1. The lower the rating, the better. Unfortunately, Farmers is hardly comparable here to other big insurance providers like Geico and Progressive. Namely, they have 0.62 and 0.75. respectively.
Farmers auto insurance reviews on websites like Yelp and Consumer Affairs are often very negative, with a lot of one-star reviews; however, this is quite common for the industry. The customers complained about how their claims were handled, that they received low settlements, and that Farmers would do everything to deny the guilt of their drivers.
On the other hand, there were many satisfied customers on Consumer Affairs, citing helpful agents and excellent customer service.
Our overall impression, based on all the data presented, is that Farmers offers reliable customer service, while not being the best in this particular department.
Farmers Insurance Discounts
The company offers a significant number of discounts that can bring the premium down. This is especially important for younger drivers since Farmers has higher prices for this particular category.
One thing we did not like is that Farmers doesn’t provide information on the website about how much the discounts reduce the premium percentage-wise. Furthermore, many of the discounts are not available in all states.
You will have to call an agent to get Farmers auto insurance quote and information about how they affect your price.
The discounts offered are as follows:
Business/Professional Group Discount –It applies to members, employees, and retirees of certain businesses and occupational groups.
Alternative Fuel Vehicle Discount – Available to clients who are insuring a vehicle that’s using an alternative fuel. This applies to hybrids, electrics, and cars with natural gas, methane, or propane powered engines. In other words, you save money on fuel and also on your Farmers insurance payment.
Anti-Theft Discount – Applies If your car has an anti-theft device installed by the manufacturer or an authorized dealer. It is mandatory that the system is self-activating upon locking the car’s doors.
Bundle Discounts – If you are purchasing home, condo, life, renters, or umbrella packages from Farmers, in addition to auto insurance, you can get a discount.
Electronic Funds Transfer Discount – If you are paying your premium by Automatic Bank Payment (EFT), you are eligible for a discount on your auto Farmers insurance auto quote.
ePolicy Discount – If you decide to handle your insurance documents electronically, you can get a discount.
Good Student Discount – Applies to good students who are 16 to 24 years old. There are some requirements they have to meet. Firstly, they have to be full-time high school or college students. Secondly, they have to have a GPA of B or higher or be on the Dean’s list.
Other Farmers insurance reviews agree with us that this is much needed, given how high their premium is for younger drivers. These discounts will be quite handy in the states like New York, which have high car insurance prices and a significant number of universities.
Homeownership Discount – If you own a home, you can get a discount on your auto insurance. The home does not have to be insured with Farmers.
Multi-Car Discount – If you have multiple vehicles on a policy with Farmers, you are eligible for a discount.
Paid in Full Discount – Your Farmers automobile insurance policy will be cheaper if you pay in full.
Safe Driver Discount – This option is available only in selected states. If you have a clean driving record, you may qualify for a discount.
Senior Defensive Driver Discount – To qualify for this discount, you have to be at least 55 or 65 years old, depending on the state you reside in. You must also provide a certificate of completed accredited defensive driving course.
About Farmers Insurance Rates
In our rate comparison, we found that the company’s prices depend on the driver’s age. For a 21-year-old driver, a Farmers monthly premium was $735, which is more than three times the premium of Progressive for the same category.
In other words, you can insure three young drivers with Progressive and still get each one a large pizza twice a month, for the price that Farmers offers for a single driver. Farmers does offer some discounts for younger drivers; however, we would still advise them to look elsewhere if they are searching for a decent price.
We also got a Farmers insurance quote for 40-year-old and 70-year-old drivers, and we found that the company’s prices are only slightly above the average for those categories. This means that Farmers can be an excellent choice for those categories if they can take advantage of one of the many discounts designed for them, like defensive driving or occupational discounts.
There are many factors that determine your final premium. It’s always the best idea to get a quote from a few insurance companies and see which one fits your needs perfectly.
Farmers Insurance vs. Allstate
In our analysis, Allstate comes as a slightly cheaper option than Farmers for middle-aged and older drivers. However, it is significantly less expensive for younger drivers. When it comes to customer service, Farmers scores significantly better.
However, Allstate offers guaranteed claims satisfaction, which warrants you a refund if you are not pleased with the way your claim was handled. On the other hand, the Farmers offer more additional coverage options and discounts compared to Allstate, plus the advantage of using the Farmers Visa card.
This means that the choice between these two companies is not an easy one. Namely, both Farmers and Allstate have their unique advantages and disadvantages.
Farmers Insurance vs. State Farm
Whether you will get better prices from Farmers or State Farm depends on your age. For a 21- -year-old driver, State Farm has significantly cheaper coverage, while for a 40-year-old driver Farmers has a clear price advantage.
For a 70-year-old driver, the difference is only $10 per month in State Farm’s favor, meaning other factors like customer service and discounts should guide your choice.
Speaking of State Farm and Farmers auto claims satisfaction and customer service, Farmers is the winner, but just by a hair. Namely, with 893 points, Farmers hold the fifth spot on the J.D.Power 2021 claim satisfaction list, and State Farm is sixth with 892 points. For illustration, the best-positioned company, The Hartford, has 905 points.
Farmers also has an advantage when it comes to discounts and optional coverage, meaning it might be a better choice for all but younger drivers.
Progressive vs. Farmers
Farmers insurance claims reviews by J.D. Power rank the company significantly better in claims handling and insurance shopping. On the other hand, when it comes to offering the best prices, Progressive simply destroys Farmers in all three categories. There is no real competition here—if you want to get the best rates possible, Progressive should be your “go to” company.
When it comes to optional coverage, discounts, and unique features, both companies put up a good fight, meaning there is no clear winner in this department. All things considered, the advantage that Progressive has when it comes to prices can hardly be outweighed, meaning we would choose this company over Farmers.
Farmers Insurance Competitors – Best Alternatives
We have found many good alternatives to Farmers. Those looking for the best prices, especially for riskier categories, should check Progressive. Geico is also a company that offers decent prices, is widely available, and scores well among expert insurance reviews.
Those looking for the best customer service should check The Hartford and Erie insurance since these companies score high in this department. Perhaps the best overall choice is Amica Insurance, offering the perfect mixture of reasonable prices and outstanding customer service.
Expert Thoughts: The Summary of Farmers Auto Insurance Reviews
Our analysis has shown that Farmers’ prices may be higher than average, but so is the customer service. Namely, J.D. Power gives it 893 (out of a maximum 1000) points stars in the claims handling department. A result like this got it a high fifth place on the list of the companies with the highest claim satisfaction. For illustration, the winner has 905.
When it comes to insurance shopping, Farmers is about average, with 868 points. However, it scores really high in digital service and holds the third spot on the J. D. Power list. In conclusion, if you are interested in excellent service and don’t want to overpay, Farmers is a great option.
People Also Ask
Is Farmers Insurance a good insurance?
Yes, Farmers is good car insurance. It holds around 4% of the entire US private passenger car insurance market. Besides offering solid customer service and interesting options, it has a wide range of discounts and an extensive agent network. As far as the rates are concerned, middle-aged and older drivers will find them very tempting, while the younger drivers might not be too thrilled.
Is Farmers Insurance better than State Farm?
We can’t say if one company is better than the other one in general, as it all depends on the driver category and many variables. In general, Farmers car insurance is cheaper for middle-aged and older drivers, while 21-year-olds will be much happier with State Farm’s prices. When it comes to size, State Farm is the most significant player in the US car insurance market with a 16% share, while Farmers holds just 4%. State Farm’s financial rating is also better, A++, compared to Farmers’ A.
Is Farmers Insurance a pyramid scheme?
No. Farmers is not a pyramid scheme. It is sometimes compared to it by unsatisfied agents that stopped working there. In order to become a Farmers’ agent, people are required to invest some of their money in opening a franchise. As with any business, there are chances of failure, and people lose the money they’ve invested. This is a matter of internal business structure and it doesn’t concern clients. They should only keep in mind that this is a legitimate insurance company more than 90 years old.
What is the rating of Farmers Insurance?
Farmers Insurance has an A or “Excellent” A.M. Best rating. This is the third-best rating possible, behind A++ and A+, which are both called “Superior.” Farmers’ high rating indicates that the company is capable of paying out its clients’ claims. When it comes to J.D.Power rating, Farmers is rated better than average when it comes to claims satisfaction but below average in the insurance shopping department.
Does Farmers auto insurance have accident forgiveness?
Yes, Farmers offers accident forgiveness to its clients. It will forgive one at-fault accident for every three years of accident-free driving. That means your insurance premium will not go up after an accident. You can get accident forgiveness if you buy a Farmers’ Smart Plan insurance policy. However, it is not available in California, New York, South Carolina, and Hawaii. Check with your local agent before committing.
Why is Farmers Insurance so expensive?
Although it’s not the cheapest insurance around, Farmers insurance is not expensive in general. It all depends on the driver category and other variables. It offers many discounts, and practically anyone can qualify for several of them. That will reduce the cost considerably, and the final price will be much lower than the initial quote you got. We can agree with some Farmers insurance reviews that say safe drivers should definitely check out what the company offers.