[Review] Farmers Auto Insurance That Offers Great Coverage, User Satisfaction, Affordability and Discounts

Farmers Auto Insurance
Farmers Auto Insurance

Farmers came in as a below average insurer according to our analysis. The insurer scored well on complaints and stability, but not on other factors like user satisfaction, affordability and discounts.

Farmers is neither cheap nor expensive for drivers looking for full or minimal auto insurance or those with traffic violations.

However, its policies are costly for young drivers. Farmers offers additional coverage for custom parts, glass deductible modification, and original equipment manufacturer (OEM). This coverage is quite rare among insurers.

Founded in 1928, Farmers provides excellent coverage and is available nationwide. Even though Farmers has slightly higher premiums compared to the industry average, it offers excellent coverage and plenty of discounts to compensate.

And in addition to the font options and digital tools available, customers also seem happy with their experience.

If you’re looking for great coverage and are okay with paying a little more, Farmers is a great choice.

Farmers Auto Insurance Overview

To determine the average rates offered by farmers, we collected quotes from 29 states for different types of drivers. The company’s insurance policies cost an average of $1,578 per year, which is neither cheap nor expensive.

We research also found that farmers insurance policies are moderately priced for drivers with poor driving records and those looking for full coverage or minimum coverage policies. However, its policies for young drivers are costly.

If you’re looking for the cheapest car insurance, we recommends exploring several options. Typically, drivers would benefit from getting personalized quotes from at least three providers to find out what rates insurers offer based on specific requirements and backgrounds.

1. Lots of Discounts Available

Farmers offers 23 different discounts ranging from a typical multi-policy discount to a distant student discount. These are great opportunities to reduce your annual premium.

2. Available Nationwide

You can get farm policy in all 50 states and Washington D.C.

3. Good Third-Party Reviews

Across all the third-party reviews available, customers seem happy with their Farmers experience.

The company received no complaints through the National Association of Insurance Commissioners Complaints Index, and it earned a 4.0 score from Consumer Affairs, which is no small feat.

4. Does not Offer Gap Insurance

While this coverage is fairly typical and may be necessary if you lease or finance a car, Farmers doesn’t offer it at all. The company notes that most car dealerships offer coverage when you buy or lease a car.

5. Slightly Higher Premiums

The average annual premium with farmers is about 15% higher than the national average. While that’s only a $282 difference, it might still be too much for most people.

Farmers Auto Insurance Rates and Discount

According to our Policygenius analysis of data provided by Quadrant Information Services, drivers pay an annual premium of $1,934 with farmers, but this can vary from person to person.

That’s just over 15% more than the average national car insurance premium. Although it may seem a bit more expensive, Farmers offers plenty of discount opportunities to lower your rate.

Farmers has 23 discounts listed online, but not all of them are available in all states, and some discounts may cancel each other out. Your options are:

  • Multi-font discount. If you bundle your car insurance policy with another Farmers policy (like home insurance), you could save money on both.
  • Discount on signal. This usage-based program monitors your driving through an app you install on your phone. Participating drivers can earn discounts for driving safely.
  • ePolicy discount. This saves you money if you opt for paperless communications and invoicing.
  • Good discount for payers. When you pay on time for 12 months, you could see a reduction in your annual premium. Not available in California.
  • Safe driver discount. If you have zero BI (bodily injury) points on your driving record, meaning you didn’t injure anyone in an at-fault accident, you could get a discount.
  • Good student discount. You could save money if you do well in school. This could be by earning a 3.0 GPA, a spot on the Dean’s List, a spot on the Honor Roll, placing in the top 20% of your class, or scoring in the top 20% of a standardized test.
  • Shared family car discount. If your household shares a car, you may be eligible for a discount. Not available in California.
  • Distance learning student discount. If your child goes to school more than 100 miles away and doesn’t have access to your family cars, that could lower your rates.
  • On your own discount. If you were on a Famers policy with your family, but have since moved on and are paying for your own insurance, you could save on your insurance premium until you turn 29.
  • Discount for mature/defensive/senior drivers. This discount applies to those over 55 who have completed a state-approved safe driving course within the past three years.
  • Discount for the owner. Just owning a home could earn you a discount.
  • Alternative fuel discounts (CA only). If you live in California and your car is powered by something other than gasoline, you may qualify for a lower premium.
  • EFT discount. Your premium could be lower if you set up automatic payment.
  • Discount with full payment. Your premium could be reduced if you pay your annual premium all at once at the start of your policy, rather than in monthly installments.
  • Anti-theft reduction. Your car’s alarms and other protective devices could qualify you for a discount.
  • Discount on the guide device. If you have a tracking device on your car that can help locate it if stolen, you may be able to get a discount.
  • Discount on VIN engraving. If your VIN number is etched on your car glass, it could lower your premium (and come in handy if your car is stolen).

Farmers Auto Insurance Customer Satisfaction Rate

Customer satisfaction rate:

  • First notice of loss: 3/5
  • Process estimate: 4/5
  • Repair process: 4/5
  • Complaints department: 4/5
  • Rental experience: 4/5
  • Rules: 4/5

According to data provided by J.D. Power, Farmers scored a customer satisfaction rating of 816 points out of 1,000.

The industry average is 835, so the overall satisfaction level for Farmers is lower than that of most competitors. These category-specific star ratings are also based on data from J.D. Power.

Farmer Auto Insurance Expensive or Cheap?

Our analysis revealed that Farmers is neither cheap nor expensive for drivers looking for full coverage policies, minimum coverage policies and for those with poor driving records.

We also determined that if you’re a young driver looking for auto insurance, farmer policies will cost you dearly.

Insurers generally do not share their methods of calculating insurance costs.

Most will charge more if you choose additional coverage, have a bad driving record, or have a less than ideal credit score.

Although farmers insurance policies are moderately priced, you may be able to lower your car insurance premiums further by taking advantage of the deep discounts it offers.

The company offers several discounts for policyholders who have bundled insurance policies and for insuring multiple cars with the company.

It also offers discounts if you have an anti-theft system and airbags installed in your vehicle, if you choose a paperless policy, if you pay your premium in full at the start of the term and for safe driving.

Students can lower their insurance costs with discounts for getting good grades.

It also offers several discounts that other insurers don’t usually offer. These include discounts for a shared family car or for etching the vehicle’s VIN on the glass or other areas of your vehicle.

If you have installed a vehicle recovery device or daytime running lights, you may also qualify for a discount.

Financial Confidence

When choosing an auto insurance company, it is important to understand the company’s financial situation.

This helps to understand the likelihood of the carrier successfully paying your claim.

Farmers has relatively good scores among major credit rating agencies, but Moody’s Farmers “outlook” (or expected success) is still rated “negative.”

  • A.M. Best: A
  • Moody’s: A2
  • S&P: A

A.M. Best is one of the top credit rating agencies for insurance companies. Farmers has a score of A (as of February 7, 2022), which is the third highest score a carrier can achieve.

Moody’s assesses a company’s ability to repay debt and assesses its overall financial condition, which is especially important when it comes to paying claims. Currently, Farmers has an A2 rating. That’s still technically a good score, but Moody’s also rated the company’s outlook as “negative.” This assessment is likely related to company or industry changes, and is unlikely to affect the daily lives of Farmer customers. We plan to monitor this space to see how it progresses, and will update this information once we know more.

Standard & Poor’s (S&P) also rates companies based on their ability to pay claims and overall financial performance. The farmers have a score of A, which is the highest of the average.