Farmers Auto & Home Insurance Review: Great Reviews and Competitive Pricing

Farmers
Farmers

Farmers Auto & Home Insurance Review: Great Reviews and Competitive Pricing

 Pros

  • Anyone who owns a home that was built less than 12 years ago
  • Someone who recently purchased a vehicle
  • Drivers who are looking for coverage when driving for ride-hailing services such as Uber and Lyft

 Cons

  • Someone who is willing to sacrifice good customer service for marginally lower rates
  • Drivers who don't qualify for any of Farmers' car insurance discounts

Farmers offers some of the best priced home insurance policies and decent car insurance rates, but what sets the company apart are its positive customer reviews and the customization of your insurance policy. If you’re looking for an insurance company that offers the bare minimum in exchange for lower rates, you’d likely find another insurance company more suited to your needs. However, Farmers is competitively priced for both, auto and home insurance, when you consider the company’s total offerings.

Farmers: Great Reviews and Competitive Pricing

Farmers’ strongest feature is its customer service, which translates into a speedy claims process and potentially discounted rates for customers. Farmers has a strong coverage network with more than 48,000 exclusive agents and approximately 21,000 employees available across all 50 states and Washington D.C. Reviews of Farmers paint the company’s agents in a positive light, as many mention that Farmers’ agents have found policyholders insurance discounts that they unknowingly qualified for. Even more highlight the company’s transparency when dealing with a claim. Farmers policyholders are likely to have a good experience when interacting with the company’s employees.

In terms of price, Farmers offers rates that are close to what major competitors offer for car insurance and some of the best prices for home insurance. However, Farmers offers a plethora of car insurance discounts, which can help bring annual costs down. Most notably, customers who have auto and home insurance policies with Farmers will be able to unlock a bundle discount which makes the policies considerably more affordable. The exact amount of savings the bundle discount offers depends on your state of residence and policy types, but you should expect to save around 16%.

Auto Insurance Take-Away: If you're someone who wants great customer service and coverage from a dedicated local agent, we recommend comparing quotes from Farmers and State Farm. Both insurers offer these benefits and are similarly priced. Farmers and State Farm agents will work with you to find discounts, understand your coverage needs, and more.

Home Insurance Take-Away: Farmers offers its customers great rates for home insurance policies and combines it with great customer service. Unless you’re looking for the cheapest home insurance rates, regardless of the trade-offs, Farmers will be hard to beat. The company’s national reputation and friendly agents make it one of our top recommended home insurance companies.

Farmers Auto Insurance

Farmers is the seventh largest auto insurance company in the country—you may recognize Farmers insurance from their TV ads featuring J.K. Simmons. Below, we outline Farmers’ auto coverage options, discounts and compare its annual costs to those offered by its competitors.

Farmers Auto Insurance Coverage Options and Discounts

Being one of the largest auto insurers, Farmers offers all of the traditional auto coverage options that other major national insurers do. It also offers notable auto optional coverage at an additional cost, such as the New Car Pledge; No Fault, No Foul; Towing & Roadside Assistance; Extended Customized Equipment Coverage; and Farmers Rideshare.

New Car Pledge: If you've recently purchased a new car, this optional coverage guarantees a brand-new replacement vehicle if your car is totaled within two years of its model year or before hitting 24,000 miles, whichever limit is reached first. For instance, if you purchased a 2018 Toyota Camry, it would be covered until 2020 or until the odometer reaches 24,000 miles. Furthermore, Farmers will ensure that mechanics only use original manufacturer parts for any minor repairs needed during this period.

No Fault, No Foul: With this optional feature, your rates won't go up if you're involved in an accident that isn't your fault. This saves you money over the life of your policy.

Towing & Roadside Assistance: If you want roadside assistance, be sure to add this optional coverage when you're purchasing your policy. The coverage offers 24/7 roadside assistance that includes the following services:

  • Towing to a nearby repair shop
  • Locksmith assistance
  • Battery jump-starts
  • Other small repairs at the location of your vehicle

Extended Customized Equipment Coverage: If you're someone who enjoys customizing your car with aftermarket parts, this optional coverage protects the custom parts of your vehicle if they're ever stolen or damaged. This optional coverage is useful since vehicle upgrades, like subwoofers and chrome rims, aren't usually covered under the standard insurance policy. The compensation you'll receive from the coverage is based on the part's actual cash value less depreciation. So, you'll want to keep track of your car's customized equipment and hold on to receipts to help you support a claim for an appropriate actual cash value.

Traditional Coverage Available Through Farmers

  • Comprehensive Coverage
  • Medical Payments
  • Personal Injury Protection
  • Collision Coverage
  • Uninsured/Underinsured Motorist Coverage
  • Liability Coverage

Highlight Coverage Feature: Farmers Rideshare

For drivers of Uber, Lyft or other ridesharing apps, this option extends your auto insurance coverage through the first phase of ride-hailing, which is when your app is on and you're looking for, but haven't found, a passenger. If you don't have ride-hail insurance, it's likely that you're not covered for the first phase of ride-hailing under your existing auto insurance policy. Once you have a passenger, the ride-hail company's insurance will cover you until you're back in the first phase of ride-hailing. While other insurers offer this coverage, Farmers is one of the largest insurers to do so at affordable rates.

Farmers’ Auto Insurance Discounts

Farmers offers all of the standard discounts you would find at other large auto insurance companies. The unique discounts that Farmers offers are the Business/Professional Group Discount and the Signal program, which we discuss below.

Farmers Credit Card Discount: Farmers offers its policyholders a way to save money by signing up for the Farmers® Rewards Visa®. The card comes with no annual fee and offers a rewards rate of 3%, meaning that you'll earn three points for every dollar you spend when you use it to pay for your Farmers' insurance policies, gas or home improvement projects. The points aren't capped and can be redeemed by applying them to the card's statement. So, when you use the card to pay for your insurance bill it's effectively a 3% discount. Points can also be redeemed for travel, gift cards and merchandise. This card is great if you have a big upcoming renovation project, such as replacing your roof. For example, assuming you spend $10,000 replacing your roof, you would receive $300 in rewards. Ultimately, this is a great card for anyone who plans to undertake a lot of home improvement projects or someone who bundles their insurance policies and therefore has to make large insurance payments.

Business/Professional Group Discount: If you're a member of an eligible occupation or business group, you might be eligible to receive a discount on your auto insurance. It's best to contact your agent to see if you qualify for this discount since eligibility varies by state. Below, we list common eligible occupations for the discount.

  • Accountants
  • Architects
  • Dentists
  • Educators
  • Engineers
  • Firefighters
  • Judges/Lawyers
  • Librarians
  • Military Personnel
  • Physicians
  • Police
  • Pilots
  • Scientists

Signal by Farmers: You can receive an automatic 3% discount when you sign up for Signal, a free mobile app that uses your cellphone to track your driving behaviors. When you renew your policy, Farmers adjusts your savings rate based on the data collected through the Signal app. The app gives you suggestions on how to improve your score, thereby, improving your savings. Currently, the discount is only open to residents of Arizona, Colorado, Indiana, Maryland and Missouri.

DiscountHow Do You Receive It?
Bundle DiscountBundle multiple Farmers insurance policies
Multicar DiscountInsure multiple vehicles with Farmers
Loyalty DiscountRemain insured with Farmers for three consecutive years
Distant Student DiscountYou're eligible if you have children who go to school a minimum of 100 miles from the covered vehicle and if they have no regular access to the car
Pay In Full DiscountPay your entire annual premium in one lump sum rather than in monthly installments
Transfer DiscountSwitch from your insurance company to Farmers without causing a lapse in your coverage
Good Student DiscountYou're eligible if you’re a high school student with at least a "B" average, college student with at least a 3.0 out of a 4.0 grade-point average or higher, a student on a dean's list or honor roll, or if you rank in the top 20% of your class or on national standardized exams

Farmers Auto Insurance Quotes Comparison

Across most driver profiles, Farmers falls somewhere in the middle in terms of affordability. Based on our sample driver profiles, Farmers offers insurance quotes that are close to its competitors, State Farm and Allstate. If you're choosing between these three insurers, it's best to shop around for quotes to ensure you're getting the best rate, since they will provide similar coverage options.

The most significant difference among Farmers, State Farm and Allstate were the rates offered for our sample 35-year-old driver profile. Farmers offered quotes that were 14% and 38% greater than what State Farm and Allstate offered, respectively. Unless you're looking to take advantage of Farmers' unique discounts, such as Signal or the Business/Professional Group discount, you're likely to get the best rates if you compare quotes before committing yourself to one auto insurer.

How Do Farmers' Auto Insurance Quotes Compare to Other Insurers?

Farmers Home Insurance

Below, we explore some of the company’s features and compare Farmers’ home insurance quotes to those offered by a few of its competitors.

Farmers Home Insurance Coverage Options and Discounts

Beyond offering a standard set of coverage, Farmers offers a few unique endorsements, such as Identity Shield, eco-rebuild, contents replacement cost, and trees and shrubs coverage.

Identity Shield: For a maximum of $65 per year, this endorsement provides coverage for $28,500 in expenses, such as legal fees, in the event that you’re a victim of identity theft. While other insurance companies offer identity theft endorsements, Farmers’ coverage includes credit monitoring for two people, annual identity reports and advisory services if you become a victim of identity theft.

Eco-rebuild: This endorsement provides you with up to $25,000 to rebuild, repair, or replace with green materials in the event that you experience a covered loss. We consider this a great endorsement since it helps policyholders qualify for discounts, such as the home safety discount, which can potentially offset the cost of the endorsement in the long run.

Contents replacement cost: The contents replacement cost endorsement covers the full replacement cost of your items in the event of a covered loss. The replacement cost is based on the cost of a new item with comparable features. Standard home insurance policies typically provide reimbursement for an item’s depreciated value, meaning that you receive less compensation from your insurance company than what you paid for your items.

Trees and shrubs: This endorsement provides up to $750 per item—up to a maximum of 5% of your dwelling coverage—that is damaged due to a covered loss. The endorsement includes coverage for trees, plants, shrubs or your lawn.

What’s Covered by a Farmers Policy?Details
Your propertyCovers you for damage to your home if it’s caused by a covered accident.
Your possessionsCovers damage, destruction and theft of possessions (subject to exclusions) anywhere in the world.
LiabilityPays when you’re legally liable for another person’s injury or for property damage caused by an accident.
Medical paymentsCovers medical costs associated with injuries on the premises of your residence, regardless of fault.
Additional living expensesReimburses you for up to 24 months of living expenses if you’re unable to stay in your home due to a covered loss.

Home Insurance Discounts Offered by Farmers

Farmers offers several home insurance discounts, but the discounts’ availability will depend on your policy and your state of residence, among other factors. While none of the discounts below are particularly unique, their low barriers to qualification makes them appealing. For instance, the new home discount offers a lenient 12 year period for policyholders to be eligible.

DiscountHow Do You Receive It?
Bundle DiscountsBundle a Farmers auto or life insurance policy with a Farmers homeowners policy.
Non-SmokerReside in a smoke-free home for at least two years.
Home RenovationReceive this discount after renovating your home’s heating and electrical, or plumbing systems.
New HomeQualify for this discount if you’re insuring a home that was constructed less than 12 years ago.
UL Approved Roofing MaterialsReceive this discount if your roof is constructed from materials deemed impact-resistant by Underwriters Laboratories.
Home SafetyQualify for this discount if your home is ENERGY STAR, EPA, or LEED certified. Alternatively, install reinforced windows and walls, or water leak or gas valve shut offs to qualify for the discount.
Protective DevicesReceive a partial reimbursement for the purchase of a fire alarm, security system, and/or an indoor fire sprinkler system.

Farmers Home Insurance Quotes Comparison

Farmers offers lower home insurance rates than its competitors’ average across several home insurance policy limits. For a home insurance policy with a $200,000 limit, Farmers offered an annual rate that was lower than its competitors’ average by $1,046. The disparity between Farmers’ rate and its competitors’ average rate increased to $1,432 for a policy limit of $350,000. Based on our study, the only insurance company that offered lower rates than Farmers was Allstate.

How Do Farmers' Home Insurance Quotes Compare to Other Insurers?

Farmers Customer Reviews, Complaints and Financial Strength Ratings

Overall, online customer reviews of Farmers tend to be positive. Farmers’ reviews often cite that the company has friendly agents that are ready to handle claims with a professional demeanor. J.D. Power ranked Farmers 18th among 24 auto insurance companies and 20th among 29 home insurance companies in its insurance satisfaction studies. Though, it’s worth noting that Farmers performs similar to its national competitors in J.D. Power’s studies, with small or regional insurance companies typically ranking above large national insurers. Furthermore, Farmers complaint rating of 0.20 from the National Association of Insurance Commissioner is significantly lower than the national median of 1.00 and bolsters our opinion on Farmers’ excellent customer service.

As with most insurers, your claims experience with Farmers will depend on where you live. Farmers is available in every state; however, it operates through its subsidiaries, such as 21st Century and Bristol West Insurance Group, in a few states. If you need to file an insurance claim with Farmers, you can do so by calling 1-800-435-7764. Alternatively, you can file a claim through Farmers' online portal.

Farmers’ excellent financial health means that policyholders don’t have to worry about the company’s ability to pay out claims. A.M. Best Rating Services assigns letter grades to insurance companies based on their ability to meet their financial obligations. Farmers was assigned a letter grade of A, which represents excellent health and is the third highest rating available.

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