Farmers Auto Insurance Review
Farmers Insurance Group is a well-established, well-known name in the American insurance industry. Its history extends back nearly a century, and the company maintains a very large professional network that includes more than 48,000 exclusive and independent agents. The company offers a long list of insurance products, and this review will focus on its auto coverage.
Company background and information
Farmers traces its history back to 1928, when it first launched as the Farmers Automobile Inter-Insurance Exchange. The Farmers name was inspired by the founders’ initial focus on serving farmers, ranchers, and other rural residents during the early years of the automobile revolution. They believed drivers in these demographic groups deserved lower auto insurance rates, as they were statistically less likely to be involved in an accident or make a claim.
Over the ensuing decades, Farmers grew into an insurance juggernaut through a sustained expansion and acquisition campaign. It also branched out to offer many other forms of insurance. Today, the company’s product lineup includes auto, home, life, business, renters, and condominium coverage.
Types of auto insurance available through Farmers Insurance
Farmers offers every major type of auto insurance, including:
- Liability insurance (mandatory in practically all states)
- Uninsured and underinsured driver coverage (mandatory in some states)
- Medical payments coverage (mandatory in some states)
- Personal injury protection (PIP) coverage (mandatory in some states)
- Comprehensive coverage (usually optional)
- Collision coverage (usually optional)
These forms of coverage address such risks as:
- Financial liability (property damage and/or bodily injuries) arising from an accident for which you were at fault
- Damage to your vehicle or injuries requiring medical treatment caused by a driver who was not insured
- Medical expenses incurred by you and/or the occupants of your vehicle as the result of a crash you caused
- You cannot work while you recover from injuries suffered in an auto accident and you stand to lose income because of it
- Your vehicle is stolen, or it is damaged or destroyed by fire, extreme weather, vandalism, or civil unrest
- Single-vehicle accidents resulting in damage to your car
Farmers also offers umbrella insurance, which examines all your current insurance coverage and personal assets and closes off any gaps or risks to which you are still exposed.
According to an analysis published by U.S. News & World Report in April 2020, the average annual cost of a Farmers auto insurance policy was $1,682 or $140.17 per month.
You may pay more or less than this, depending on factors such as:
- Your age
- Your gender
- Your marital status
- Your level of coverage
- Your credit score
- Your driving record
In general, older customers and married customers with clean driving records and high credit scores qualified for the company’s best rates.
Compared to other major providers analyzed by the report, Farmers landed in the middle of the pack for pricing. However, it excels at customer service, and a large majority of Farmers clients report that they are satisfied with their policies. Farmers also offers 24/7/365 claims support, and its claims system is very easy to navigate.
Who qualifies for discounts with Farmers Insurance?
Many insurance companies offer discounts to customers whose lifestyles, professions, or affiliations mean they pose a lower statistical risk of filing a claim. Farmers is no different. You may qualify for a discount on your Farmers auto insurance if you:
- Insure multiple vehicles
- Bundle your auto insurance with another type of Farmers insurance, such as home or life insurance
- Have a good driving record
- Hold membership in a professional organization or are a member of a regulated profession that requires licensure
- Have good grades
- Own a vehicle that uses alternative fuel sources
- Own your home
- Own a vehicle with anti-theft devices or advanced safety technologies
- Pay your premiums electronically (online)
- Pay your full year’s premiums up front instead of in monthly instalments
- Have been continuously covered with auto insurance for an extended period of time
Farmers also operates a voluntary discount program using an app known as Signal by Farmers (not to be confused with the eponymous encrypted messaging app). The app uses telematic technologies to monitor your driving habits. Farmers offers customers the option of using the app to monitor their driving habits for 10 car trips. Customers who show that they have good driving habits can save an additional 5%, which works out to about $84 a year based on the company’s average rates.
Pros and cons of Farmers Insurance
Like all insurance companies, large and small, Farmers shines in certain areas and shows room for improvement in others. Let’s take a look at the pros and cons of choosing Farmers as your auto insurance provider.
On the plus side:
- Farmers has a very long track record and an advanced understanding of the insurance industry, which it leverages to provide customers with value-added service
- The company has excellent financial strength and stability
- It is easy to find a Farmers agent or connect with a customer service or claims representative from anywhere in the United States
On the downside:
- For some drivers, Farmers is not the least expensive option
- Farmers was a little late to the telematics game, and the jury is still out with regard to the effectiveness of its Signal by Farmers app
What others are saying about Farmers
As of September 2020, here’s a snapshot of how major ratings agencies and organizations rank Farmers Insurance Group:
- A.M. Best: A
- Better Business Bureau (BBB): A+
- Moody’s: A2
- Standard & Poor: A
- Consumer Reports: 89/100
Multiple sources also report that Farmers generates complaints with state-level insurance regulators at lower-than-average rates. Customer satisfaction levels are generally very high, and a large majority of Farmers clients say they would recommend the company to others.
Many people prefer to source their insurance from major providers who have been around for a long time, as they have the financial stability to ensure they can honor their insurance contracts no matter what might happen. From this standpoint, Farmers Insurance Group is one of the strongest options on the market.
Its rates aren’t always of the rock-bottom variety, but Farmers understands how to reduce customers’ risk exposure and it provides excellent value for the money. If you’re looking for a new auto insurance provider, Farmers is certainly worth a close look.