Farmers Car Insurance Review [Rates, Coverage, & More]

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You’ve tried everything.

You’ve put in the time and research, spending what seems like countless hours scouring websites to find the information you need about potential car insurance providers. You don’t want to make a mistake and choose one that doesn’t offer you the coverages you need, so it’s easy to get caught in an internet black hole comparing companies to see how they measure up.

But, there’s a much easier way.

With so many insurance providers available today, it’s often nothing short of a challenge to separate the ones whose rates and service are truly stellar from those that fail to live up to consumer expectations.

If you’re currently on the hunt for insurance providers and Farmers has made it on your shortlist, you’ve come to the right place. Even if you’re just contemplating a change and are curious about what this company has to offer, this comprehensive Farmers auto insurance review is for you.

One of the largest insurance companies in the U.S. in terms of premiums written and market share, Farmers originated when its inaugural holding company Farmers Automobile Inter-Insurance Exchange was established in downtown LA back in 1928. Since then, Farmers has grown from a small insurance company in a one-room office to an immense chain of branches across the country.

Farmers has an impressive selection of insurance options available and is a popular choice for many consumers. That said, it’s critical to understand exactly what this insurance carrier has to offer and where it falls short before taking the leap.

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The following Farmers auto insurance review will equip you with everything you need to know to make the right decision for your coverage needs. Ready to learn everything you need to know about Farmers’ consumer ratings, coverage options, claim process, and more?

Let’s get down to business.

Rating agency

An insurance company’s ratings are a critical factor to bear in mind when searching for coverage. There are a number of entities, such as J.D. Power and AM Best Company that regularly release ratings for various insurance providers across the nation. Ratings are important because they reveal both the financial state of a company as well as its overall consumer satisfaction to help you make the choice that is right for you.

For a closer look at the ratings awarded for Farmers Insurance, keep scrolling.

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AM Best

AM Best’s rating system is widely respected by insurers everywhere, as a positive or negative rating from them can make all the difference in whether consumers decide to purchase coverage or not. AM Best assesses both the insurance carrier’s financial strength along with the likelihood that they will continue to fulfill policies and contracts with insureds.

AM Best’s financial strength rating for Farmers Insurance is A. Just one notch below the superior A+ rating, an A means that the insurance carrier has excellent financial strength and will continue to meet consumer needs and contractual obligations with insureds.

In short, this is great news for Farmers Insurance! If you noted the loss ratio listed at the beginning of our Farmers auto insurance review, you’ll notice that the company comes in at 73.63 percent.

But what does this mean?

Well, an insurer’s loss ratio is the cost of claims they are paying in comparison to the premiums they are earning. So, if an insurance company has a loss ratio above 100 percent, this means they’re losing money. If they have a loss ratio under 100 percent, this is a good sign that they are experiencing a healthy proportion of paid claims to earned premiums.

Better Business Bureau

The Better Business Bureau is a non-profit entity that measures rankings for businesses based on its Accredited Business System. The BBB is not government-affiliated or sanctioned, but they are a reliable and helpful source insureds can use to assess a potential carrier’s performance.

One thing you should know is that the BBB assigns different ratings to the same insurance carrier based on state. For example, in the state of California, Farmers currently has an A+ rating, which is the highest rating they offer.

The BBB has several rating elements or criterion they use to determine its rating for any given company. These include:

• The company’s complaint history
• The type of business
• The length of time the company has been in business
• The transparency of the company’s business practices
• Any failure to honor commitments made to the BBB
• Government and licensing actions (such as failure to obtain a particular license)
• Advertising problems

So, while the BBB’s rating is not the only one you should take into account from our Farmers auto insurance review to determine if this carrier is the right one for you, rest assured that each company is thoroughly vetted before being assigned a rating.

Moody’s Rating

Moody’s has a somewhat different rating scale for companies, ranging from Aaa as the highest rating to C as the lowest. In addition to the letter modifiers, Moody’s also adds numbers for ratings Aa through Caa.

In October 2018, Moody’s actually altered Farmers’ ratings to a negative outlook, citing:

The negative outlook reflects Farmers persistently high gross underwriting and financial leverage relative to peers. While Farmers has made good progress toward improving its personal auto underwriting results by raising rates and implementing underwriting actions, surplus has remained relatively flat and earnings modest. For the first half of 2018, Farmers reported statutory net income of $130 million compared to a net loss of $148 million in the prior year period.

Moody’s current financial strength rating for Farmers Insurance Exchange, the primary insurer from Farmers’ carrier pool, is A2. This rating indicates that the company has a mid-range ranking, with obligations cited to be upper-medium grade with low credit risk.

The surplus note grade (insurer issued securities) for Farmers is rated Baa2. This means that Farmers has a mid-range ranking, with medium grade obligations subject to moderate credit risk, which could be speculative in nature. Speculative characteristics indicate the potential for investors to lose in the long run.

Of course, there are more factors at play than the Baa2 rating, but this is something to bear in mind when making your choice.

Time to move on to the S&P rating. Let’s go!

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S&P Rating

S&P Global has an array of criterion they use to determine a company’s rating, including credit and potential risk factors. S&P uses a letter grade system to rank each company.

Currently, Farmers Insurance has an A rating with S&P Global. This means its capacity to repay financial obligations is strong.

However, it is interesting to note that similar to Moody’s, S&P Global has ranked Farmers’ credit outlook as negative. Before you let that deter you, let’s pause and examine another significant factor you should be taking into account when deciding to go with Farmers or not—consumer complaints.

Let’s take a closer look

NAIC Complaint Index

The NAIC (National Association of Insurance Commissioners) is the chief insurance regulatory body for insurance companies in the U.S. Check out the table below, featuring the consumer complaint index for Farmers.

Given the fact that the national median complaint ratio is 1.00, Farmers is definitely receiving far fewer complaints than other competitors in the insurance market. When you compare the small number of customer complaints against the vast number of premiums written, it’s safe to say the majority of Farmers consumers are satisfied with the carrier.

JD Power

As you can see from the table above, Farmers is doing very well overall in terms of customer satisfaction. One area JD Power’s 2018 U.S. Auto Satisfaction Claims Study noted that Farmers needs to work on is the first notice of loss or initial claim reporting process.

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Consumer Reports

We understand that it’s not only important to understand an insurer’s financial outlooks from rating agencies, but their overall consumer satisfaction too. At the end of the day, that will be one of your major decision-making factors when choosing whether you want to go with Farmers or move on to another carrier.

Another fantastic rating resource for overall insureds’ satisfaction is Consumer Reports. The table below reveals the most recent data from Consumer Reports, gathered from various customer surveys. Check it out for yourself!

As you can see, Farmers is doing a great job at handling claims and overall, customers are very satisfied.

What’s Farmers company history like?

Ready to delve into Farmers’ company history? While at first glance it might not seem as important as factors like rates and customer satisfaction, an insurance company’s history not only tells you where it’s been, but where it’s going—and if you want to go along with it.

Let’s get down to business.

Market share

The higher a company’s market share is, the more competitive it is against other carriers in the market. As you can see from the table below, Farmers’ market share actually decreased by 0.12 percent between 2015 and 2017.

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Service options

Farmers has an impressive array of service options to meet any consumer preference. You can contact them by going to their website and submitting a query through the contact form. You can also contact customer service, a claims representative, or local independent agent directly by phone.

Commercial auto insurance coverage

Farmers offers an excellent selection of commercial auto insurance coverage options, so this is definitely something worth looking into if you are a business owner who needs coverage for your drivers.

Here are some of the primary types available:

• Non-owned auto insurance – Provides coverage if an employee gets into an accident that they are responsible for while using a rented or borrowed vehicle.
• Uninsured/underinsured motorist insurance – Provides coverage if one of your drivers gets into an accident and the other party is either uninsured or has insufficient insurance to cover the costs of damages.
• Telematics – Depending on the state you live in, you can opt for a telematics GPS device to enable you to monitor the driving and location of company employees when they are on company business.
• Lease/loan insurance – Provides coverage for the amount you still owe on a vehicle based on its loan agreement or lease terms.
• Mobile business interruption insurance – if you own a food truck, this type of coverage will offer indemnity for loss of income if your vehicle is not currently useable because of a covered loss.
• Primary mobile food vendor insurance – provides coverage for property pertaining to your business, equipment, and money.

Community service

Farmers has a long history of community involvement, both through corporate giving and community outreach programs. In fact, they have created what is known as Farmers Pillars of Corporate Responsibility, including assisting with disaster resilience, education, and civic engagement.

According to their Farmers In Our Communities webpage, the company was awarded a spot among the Top 150 Military Friendly Employers in the U.S., with a special program called Suits for Soldiers that provides professional clothing to veterans and military members to ease the move back to civilian life.

Farmers has a Volunteer Incentive Program where employees can give back to their favorite non-profit charities in the community. The company also offers the Matching Education Gifts Program, where Farmers matches employee donations to qualifying institutions for amounts up to $500.

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Future outlook for Farmers

After delving into the ratings and company details our Farmers auto insurance review has covered so far, it looks like the carrier has a good future ahead of it. Not only do they have a low complaint ratio and excellent customer satisfaction ratings, but their loss ratio is in a healthy range as well. Their market share is a factor that bears watching, as it has decreased slightly over the last few years.

While Moody’s and S&P were the only two with negative outlook projections for the company, the former still rated Farmers with low credit risk and noted that the carrier was working on improving its underwriting results.

In 2018, Farmers increased their rates to improve their personal auto underwriting results. If Farmers wants to continue to improve their underwriting outcomes to balance out their annual losses (and therefore increase their financial stability), they’ll need to continue offering excellent customer service and affordable rates to consumers. Otherwise, those underwriting results could look bleak and customer satisfaction would have the potential to drop considerably in 2019 and onward.

What coverage options are available?

Now that we’ve gone over essential information like ratings and company history, it’s time to delve into the next part of our Farmers auto insurance review— your coverage options. It’s essential to make sure that Farmers offers the coverages you need before taking the leap.

Let’s go!

What are the primary types?

Here are the primary types of auto insurance coverage you can (and should!) have on your policy, if you choose to go with Farmers.

• Liability Coverage – Provides coverage for any bodily injury or property damage incurred by another party due to a collision you cause. This type of coverage is mandatory in most states at minimum amounts as dictated by state law, but it is always advised to purchase above those levels.
• Collision Coverage –  Covers the costs of repairs to your vehicle if it incurs damage or offers compensation in the event of a total loss.
• Comprehensive Coverage – Provides coverage if your car incurs damage as a result of something other than a collision like an act of God, such as a falling tree or hailstorm.
• Uninsured/Underinsured Motorist Coverage – insures you for the costs of bodily injuries you incur as the result of a collision that is not your fault. If the other driver does not have any insurance or has insufficient coverage to pay for all your bills, uninsured/underinsured motorist coverage will, up to and until your policy limits are exhausted.
• Medical Payments – Covers the costs of medical bills in the event of a covered loss, no matter who was at fault.
• Personal Injury Protection (PIP) – Covers the costs of rehabilitation and medical bills, plus lost wages in the event of a collision. PIP is only available in certain states.

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Are there any add-ons available?

Besides these main types of coverages, our Farmers auto insurance review would be remiss without mentioning some of the optional coverage add-ons to consider for your policy. Check them out!

• New Car Replacement Coverage – If your car is a total loss in its first two model years and the vehicle has less than 24,000 miles on it, you could be eligible for New Car Replacement Coverage. This type of coverage offers reimbursement so you can replace the car with an identical make and model, minus any required deductible.
• Customized Equipment Coverage –  If you purchase a vehicle but aren’t completely happy with all the equipment it features, you might decide to customize your car with extras like a sound system. If you already have collision and comprehensive coverage on your vehicle, customized equipment insurance will cover the costs of any damages to the add-ons you make. Coverage for customized equipment may be subject to certain limits, so be sure to talk to an agent to make sure you are properly covered.
• Personal Liability Umbrella Coverage – If you want more liability coverage above and beyond your current policy limits, you can opt for extended limits to be purchased in $1 million increments as high as $10 million. For example, if you are responsible for an auto accident and your personal insurance policy’s limits aren’t high enough to cover the other party or party’s damages, an umbrella insurance policy will protect your assets and provide the extra coverage you require.
• Towing and Roadside Service Coverage – If your car dies or you are locked out of your vehicle, this type of coverage gives you 24/7 help for things like locksmith services, a flat tire change, battery jump-starts, towing services, and emergency roadside assistance.
• Accident Forgiveness Coverage – If you haven’t been in an accident for years, then cause a collision, this type of coverage means that Farmers will forgive your at-fault driving behavior once every three years you go without an accident. So, a single accident won’t affect your premium with this coverage if it’s an isolated incident.
• Loss of Use Coverage – If your vehicle is out of commission temporarily due to a qualifying disablement covered under your collision or comprehensive insurance, Farmers will pay a flat amount for transport options like cabs, a rental car, or public transit.
• Car Rental Reimbursement Coverage – If you get into an accident and require the use of a rental car, Farmers will help you locate a rental, including free rental pickup and delivery. Rental reimbursement lasts for up to 30 days for each qualifying loss covered by your collision or comprehensive insurance.
• Glass Buy-Back Coverage – If you have a crack in your vehicle’s windshield, this kind of coverage will ensure that Farmers puts you in touch with a local car glass company so you can get the issue fixed.
• Original Equipment Manufacturer Coverage – If your vehicle incurs damage in a covered event, this type of insurance will handle the costs of repairs using only original factory parts, if available. You must already have comprehensive and collision coverage on your policy, and your vehicle must not be over 10 years old, based on the present calendar year.

Can you bundle coverages?

Farmers Insurance gives you the option to bundle multiple policies to receive a discount on all your insurance coverages. For example, you could bundle your Farmers auto insurance policy with your homeowner’s policy or life insurance policy.

Coverage bundles are a great way to save on your auto insurance coverage while reducing the overall costs of your other essential coverages. If this sounds like something you might be interested in, Farmers could be an excellent choice for you to get the coverages you require for your family all in one place.

Which states does Farmers operate in?

Farmers is a chain of insurance providers, currently licensed and practicing across all 50 states. Policies and discounts could vary depending on the state you live in.

The good news is that no matter where you are, you’ll have no issue finding a Farmers insurance branch near you.

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What discounts are available?

One of the primary factors any consumer wants to know when reading a Farmers auto insurance review is—drum roll please—discounts! We get it, which is why we put together the table below with all the discount options you should ask Farmers about.

Considering you could save as much as five percent on your policy costs by having a green vehicle alone, you’ll definitely want to check out these discounts when deciding whether Farmers is the right carrier for you.

Farmers currently has 34 different discounts for you to choose from when purchasing your policy, which is excellent compared to other carriers. From driver’s education to federal employee discounts, you’ll see a good selection that many other companies don’t offer.

That said, there are still some options missing that other competitors are currently offering, such as:

• Adaptive Cruise Control
• Emergency Deployment
• Engaged Couple
• Family Legacy
• Fast 5
• Forward Collision Warning
• Further Education
• Good Credit
• Lane Departure Warning
• Life Insurance
• Loyalty
• Married
• Military Garaging
• New Address
• New Customer/New Plan
• New Graduate
• Newly Licensed
• Newly Wed
• Non-Smoker/Non-Drinker
• Occasional Operator
• On Time Payments
• Online Shopper
• Recent Retirees
• Renter
• Roadside Assistance
• Seat Belt Use
• Stable Residence
• Students and Alumni
• Volunteer
• Young Driver

This may seem like a ton of missing discounts, but options like roadside assistance and on time payments aren’t that widely offered. One essential discount missing from Farmers extensive list is a discount for good credit histories. Bear in mind, while Farmers doesn’t offer a discount for good credit, you could easily see higher rates with a bad credit score depending on the state you live in.

How to file a claim

In the event you get into an auto accident, you will be required to report the claim as soon as possible to receive any compensation for covered losses. At this point in our Farmers auto insurance review, we’re going to dig deep into this carrier’s claim process to help make your decision just that make easier.

As you can see from the table above, Farmers’ number of premiums written year to year increased consistently between 2015 and 2017, but not by a very wide margin. Besides premiums written, the loss ratio is another very important factor to consider when selecting a car insurance carrier. The higher a company’s loss ratio is, the more money in claims they are paying out and the less they are receiving back in earned premiums.

The table above reveals the loss ratio for Farmers in recent years. You’ll notice that the loss ratio has been steadily increasing, making a significant jump between 2016 and 2017. At this point, the loss ratio is still in a healthy range revealing a good proportion of claims paid to earned premiums. This also reveals that Farmers is paying out a solid number of claims to insureds.

Speaking of claims—it’s time to delve into your claim reporting options in case you get into an accident.

We get it.

Accidents can be stressful and scary, so choosing a car insurance company that makes the process of reporting and filing your claim smooth and seamless is a must.

The good news is, Farmers makes the claims reporting process faster and easier than ever, with options to suit any preference. Here are your options for reporting a claim with Farmers:

• Phone, any time 24/7 by calling 1-800-435-7764
• Online
• Through the mobile app for iPhone or Android

How to get car insurance rates

At the end of the day, finding the car insurance carrier to suit your needs often comes down to rates. So, it’s important to understand what your rate options are before making a decision to go with an insurer. For everything from state rates to mileage rate comparisons, keep scrolling through our Farmers auto insurance review.

Let’s go!

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Does the state you live in affect your rates?

The table above reveals just how much your rates can change depending on the state you live in. Take Michigan vs. Minnesota for example. That’s over a $5,000 rate difference!

Company rates comparison

As you can see from the table above, Farmers is in the upper range for average annual rates when compared to other providers, but definitely not at the top. So, both the state you live in and the insurance carrier you pick can have a huge effect on the rates you can expect to pay.

Farmers is available to consumers in all 50 states.

Let’s take a look at how different auto insurance companies handle commute rates compared to Farmers.

What are the average commute rates?

Once again, Farmers comes in the median range rate-wise based on the commute. In fact, their average annual rates only increase by around $30 for 10 vs. 25-mile commutes.

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What are the coverage level rates?

What are the credit history rates?

A good credit score can make all the difference between affordable car insurance rates and exorbitant ones. The average U.S. resident’s credit score is 675, meaning that most individuals in the States have fair to good credit.

As the table above shows, Farmers doesn’t have a significant rate jump for poor vs. good credit as some other companies do, which could be good news if you are trying to rebuild your credit and don’t have the best history just yet. Other companies have much wider rate gaps, such as Liberty Mutual with an over $3,000 rate difference!

Even if you don’t have the best credit, don’t let that discourage you. As you now know from our Farmers auto insurance review, there are many factors that go into determining rates, from location to coverage levels and more.

Speaking of which, let’s see how driving record could affect your insurance premiums with Farmers.

What are the driving record rates?

Some insurance companies take a very hard line with driving record rates, with huge rate differences for drivers with clean records vs. a violation like a speeding ticket or DUI. However, Farmers comes in with a moderate approach once more, and a far narrower gap for driving record rates than some other carriers, like Nationwide.

Remember! If you opt to add Farmers’ Accident Forgiveness Coverage, with three accident-free years, one accident won’t affect your rates. After that, your premiums could go up.

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How to obtain a quote online

Now that you’re an expert from our Farmers auto insurance review on all the key factors you need to know when examining a carrier, let’s take a look at the process for obtaining a quote online. Once you obtain you’re quote, you’ll be one step closer to making the decision that is best for you.

Before you obtain your quote, it will be helpful if you have the following information on hand:

• License plate number
• Driver’s license number
• Vehicle identification number (VIN)
• Odometer reading
• Purchase date
• Current insurance information

Next, you’ll need to visit the quote page on Farmers Insurance website, here.

This page will prompt you to select the insurance product you desire and enter your zip code to start your quote. Select “auto” and enter your zip code in the box below. Then, hit “start my quote.”

The next page will look like the one you see below.

Enter your personal information as requested to continue. Farmers has a five-step quote process with forms on each page to fill in. Here’s what the next page looks like.

Simply fill in each form, hit continue, and follow the prompts all the way until the end of step five to obtain your free quote!

Once you’ve received your personal insurance quote from Farmers, you might decide you’re ready to move forward with your application. You can purchase your policy online or go through an agent, the choice is yours.

To apply, you will need the following documents.

What do you get with Farmers mobile app?

If you want to access your policy and key information while on the go, you’re in luck because Farmers has a mobile app available on both the App Store and Google Play.

The Farmers App has an impressive 4.8 rating on the Apple Store out of over 2,400 ratings, with the Google Play version garnering a 3.8 rating from over 3,400 users.

Here’s what you can do on the Farmers mobile app:

• View your policy or policies
• Access proof of insurance ID cards
• Get in touch with your agent
• Pay your insurance bill
• Sign up to receive all notices electronically
• Report a claim
• Get billing alerts via push notification

Consumers love the ease and efficiency of the app. Some reviewers have commented on minor bugs like being prompted to enter their location when it’s already switched on or having to reinstall the app after updates. That said, those bugs seem to lie mostly with the Google Play Version of the app, and users are still very pleased overall.

The Farmers website itself is super easy to use and navigate. This is what the main page looks like below.

The menus at the top of the page let you do everything from making a claim to paying your bill to finding an agent. You can use the search bar to look up any questions you might have. Click on the icons in the middle to start your free quote.

If you scroll to the bottom of the Farmers home page, you can select from a range of options to be directed to the contact page, social media pages, or whatever else you might be looking for.

What are the pros and cons?

Let’s do a quick recap of the pros and cons so you can make the best decision for your driving needs.

Bear in mind, your rates can and will change based on the area you live in, so check out the average annual premiums in your area before making a final decision.

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FAQ

Here are some frequently asked questions we bet you’re just itching to know the answers to! Check out Farmers’ Frequently Asked Questions page for additional information.

1. Who do I call to report a loss? 

If you get into an accident or experience any type of loss, you must alert your Farmers insurance agent. You should also make a claim right away, by calling Farmers Claims Services at 1-800-435-7764, reporting it online through the Farmers website, or via the mobile app.

2. What discounts can I receive? 

The exact discounts you’ll be able to receive depend on your eligibility, but generally, apply to individuals in certain occupations (like doctors and dentists), teens with safe driving histories, homeowners, drivers with vehicles featuring traditional safety elements, and drivers with multiple vehicles. However, there are lots of other discounts you could be eligible for. Check out the Farmers Insurance Discounts page to view discounts in your state.

3. What if I’m considered an at-risk driver? 

Farmers insures drivers with a range of backgrounds and driving records, with highly affordable, competitive coverage rates when compared to other carriers. Farmers Risk Assessment Indicator tool is one factor they leverage to assess your rates if you’re a high-risk driver. Don’t worry though, just because you have a citation on your record doesn’t automatically mean you won’t be able to obtain coverage.

While we would say the most significant downside to Farmers is the company’s less than ideal ratings and outlook awarded by S&P and Moody’s, in terms of consumer satisfaction, affordable rates, and coverage options, this insurer is hard to beat. What’s more, Farmers’ quotes, claims, website, and mobile app are user-friendly and highly navigable, which is a huge plus for insureds.

Ready to start saving on insurance providers today? Just enter your zip code in the FREE rate calculator below to get started. 

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