Farmers Auto Insurance Review 2023

Pros Explained

• Broad network of agents available: Unlike some other insurance companies that focus on their online presence, Farmers still sells insurance through its network of agents in 42 different states. 
• Multiple discounts available: Customers have the potential to save on premiums with myriad discounts, including savings for maintaining a safe driving record, purchasing multiple policies, and more. 
• Above-average ratings for claims satisfaction: Farmers earned the 5th spot out of 18 top insurance companies in J.D. Power's 2021 U.S. Auto Claims Satisfaction Study.
• Customize your coverage to suit your unique needs: Farmers lets customers choose the coverage options they want the most with plenty of add-ons available.
• Added coverage available for rideshare drivers: If you drive for Uber or Lyft, Farmers offers additional coverage options you can add to your policy.

Cons Explained

• Not available nationwide: Farmers does not offer auto insurance coverage in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, and West Virginia.
• Below-average customer service ratings in most regions: Farmers scored below average in customer service within seven of the eight regions rated in J.D. Power's 2021 U.S. Auto Insurance Study.
• No gap insurance offered: Farmers Insurance does not offer gap insurance as a coverage option.

Introduction

Farmers Insurance offers auto insurance in 42 different states, and this insurer makes it easy to choose the types of coverage you need the most. For example, customers can ensure they have basic coverage included in their policy, such as liability protection, uninsured and underinsured motorist coverage, and collision coverage, yet they can add on protection for towing and roadside assistance, rideshare work, full windshield, glass replacement, and more. However, Farmers does not offer gap insurance—a type of insurance coverage that fills in the "gap" when you face a total loss of your car and you owe more than it's worth.

Farmers' most recent rating for financial strength from AM Best was an A, although the company had been "under review" by the third-party ratings agency in the past. Separately, you should note that Farmers has less than stellar ratings for its customer service.

That said, all insurance companies fall short in a few areas, and there's a reason Farmers Insurance is still popular with consumers. Read on to learn more about how we rated this company, its average premiums, and more.

Company Overview

Farmers Insurance was founded in 1928 in Los Angeles, California, with the intent of providing vehicle insurance policies to farmers. It is one of the few companies founded just before the start of the Great Depression that is still a household name.

In the 1930s, Farmers became the first insurance company in the U.S. to offer comprehensive auto insurance. Farmers Insurance is still headquartered in California today. In addition to auto insurance, Farmers offers other types of coverage, including homeowners insurance, life insurance, renters insurance, business insurance, and more.

Types of Coverage

Farmers Insurance offers the following types of auto coverage you can select for your auto insurance policy.

Collision

Collision coverage pays to repair your vehicle when you're in an accident that's your fault. This includes accidents with other vehicles, animals, objects, or buildings.

Comprehensive

Comprehensive coverage pays for damage to your vehicle not caused by a collision. For example, damage from hail, theft, and vandalism could be repaired with this type of coverage.

Customized Equipment

If your car has customized upgrades and equipment like custom wheels, this coverage can repair and replace those components, provided you have collision and comprehensive coverage as well.

Guaranteed Value Coverage

This auto insurance upgrade ensures you are paid a defined, agreed-upon value if your car is a total loss after an accident or any other type of damage.

Liability

If an accident causes injury to others or their property and you're at fault, liability coverage can help pay for damages. Basic liability coverage is required by law in every state, although minimum coverage requirements vary.

Loss of Use

Loss of use coverage can reimburse you for transportation costs that take place while your car is being repaired, including rental cars, taxis, rideshares, and public transit. 

Medical Payments

This type of coverage pays for medical bills that result from an accident, and it is applicable regardless of who was at fault.

New Car Replacement Coverage

If your car is a total loss after an accident, new car replacement coverage will replace it with a new one of the same make and model. This coverage can be applicable for cars with less than 24,000 miles that are within two model years' old.

Original Equipment Manufacturer (OEM)

If your car requires factory-original parts, this coverage can pay for the added cost. Typically, this protection is only available for cars up to 10 years old.

Personal Injury Protection (PIP)

PIP coverage helps kick in for damages when you face rehabilitation or lost wages after an accident, and this protection covers the insured regardless of who was at fault.

Rental Car Reimbursement

This add-on coverage can cover the cost of a car rental while yours is being repaired after an accident. Coverage is good for up to 30 days.

Rideshare Insurance

If you drive for Uber or Lyft, this additional coverage can provide protection against losses while you're ridesharing. 

Roadside Assistance and Towing

This add-on coverage can help you access 24/7 roadside assistance if you need a tow, a tire change, locksmith services, a jumpstart, or other types of help.

Spare Parts Coverage

If you keep spare parts on hand for your car and they have to be used for a repair, this coverage can reimburse you for them up to $750. This type of coverage is mainly geared to collectors of classic and rare cars.

Uninsured and Underinsured Motorist

Uninsured and underinsured motorist coverage pays for losses caused by a driver that does not have auto insurance or adequate coverage. This type of insurance can pay for bodily injury and damage to your car.

Windshield and Glass Coverage

This additional protection pays for glass repair and replacement with no deductible required. A glass coverage option with a low $100 deductible is also offered.

Discounts

Farmers Insurance says it assesses customer risk using a Risk Assessment Indicator, which is a "numerical score based on credit report information." In other words, it's worth noting that information on your credit report, good or bad, will have an impact on the premiums you'll be asked to pay.

That said, the company offers quite a few discounts on its auto insurance policies, although it's fairly vague about who can qualify and asks you to speak with an agent to discuss discounts.

Potential discounts can include:

• Discounts based on occupation: Farmers Insurance says it offers discounts for individuals in certain occupations. For example, lower premiums may be available for doctors, registered nurses, dentists, teachers, police officers, firefighters, and more.
• Homeowner discounts: If you own a home, you may be eligible for lower auto insurance premiums as a result. This is especially true if you bundle your car insurance with a homeowners insurance policy.
• Good student discounts: Students with good grades are often eligible for car insurance discounts. This can include teens with parents who have safe driving records.
• Equipment discounts: You may also be eligible for savings if you have certain equipment on your vehicle, such as airbags.
• Multi-policy discounts: If you insure multiple vehicles or buy other types of insurance from Farmers, you could be eligible for multi-policy discounts.
• Payment discounts: You can pay less for coverage if you pay your auto insurance premiums upfront for six months or if you enroll in paperless billing.
• Safe driving discounts: Pay less for premiums if you have been free of accidents and violations for at least three years.

Payment Options

Farmers Insurance offers several different payment discounts, including discounts for signing up for paperless billing, discounts for paying premiums upfront every six months (instead of monthly), and savings for buying your policy early.

It also lets you pay your premiums in several different ways, including:

• Online through your Farmers.com account
• Directly with your agent
• By phone
• By mail

Payment methods you can use to cover your bill include:

• Checking or savings account online 
• A check sent in the mail
• Debit cards
• Credit cards

Loss Ratio

Farmers Insurance features a loss ratio of 52.71%, which is a low rating compared to other major insurers we profiled. As you compare different insurance companies based on this metric, note that many other major insurance companies score better in this category, including State Farm, Erie Insurance, and American Family Insurance.

Other Features

While Farmers Insurance relies on the agent model to sell and service its insurance products, it has a decent online presence and a handle on technology. For example, Farmers makes it easy to get a free quote for a range of insurance products online and without speaking with an agent. It also let users file and monitor claims online or through the Farmers mobile app, which can be downloaded on iOS and Android devices. It has received very strong third-party customer reviews.

Customer Service

The company boasts a customer care center with several ways to contact them, including online messaging. Customers can also reach out to their insurance agent for help, or they can call customer service at 1-888-327-6335 on Monday through Friday from 7 a.m. to 11 p.m. CT as well as weekends from 8 a.m. to 8 p.m. CT.

Satisfaction Ratings

While Farmers has less than stellar ratings for its customer service, it does have good claims satisfaction scores. Farmers Insurance earned the fifth spot out of 18 top insurance companies in J.D. Power's 2021 U.S. Auto Claims Satisfaction Study. Farmers scored 893 out of 1,000 possible points in this study, whereas the industry average score was 880.

In terms of its general customer satisfaction and customer service scores, this is one area where Farmers Insurance struggles. Unfortunately, Farmers scored well below average in customer service within seven of the eight regions included in J.D. Power's 2021 U.S. Auto Insurance Study. It even scored in the bottom two of all companies profiled in the Mid-Atlantic, Northwest, and Southeast regions and Texas.

Complaint Index

Consumers who may be considering an auto insurance policy from Farmers should make sure they have a general idea of the number of formal complaints filed against the company. To help guide you in that area, we researched the National Association of Insurance Commissioners (NAIC) database, which compiles consumer complaints about insurance companies and makes it easy to filter them by date.

The NAIC sets the industry average complaints at 1.0, and Farmers has a company complaint index rating of 0.15 for 2021. The company had just one complaint registered through the NAIC that year, which is very good.

Account Management

Like many other insurance companies, Farmers has an online portal and a mobile app that offer the same basic functions. Both let you see your policy information and make payments online or using your mobile device. You can even begin the claims process with either option.

When it comes to keeping track of claims, Farmers lets you follow claims from start to finish with their online account management page and mobile app. Of course, you always have the option to reach out to your agent with questions as well.

How Farmers Compares to Other Auto Insurance Companies

While it's crucial to ensure you have the right coverage and limits in place, the auto insurance premiums you are asked to pay will inevitably play a role in which company you choose. With that in mind, we compared median annual insurance premiums among top insurers who offer car insurance nationwide.

Ultimately, Farmers’ median annual premiums worked out to $1,909, which is higher than many other popular insurers. Other companies that showed lower median annual premiums include Allstate ($1,674), Nationwide ($1,511), and Erie Insurance ($1,082), among others.

While median annual premiums shed light on how much you might pay for a policy, you should take the time to get a quote from Farmers before you rule them out. After all, you may secure lower premiums based on your credit rating, discounts you qualify for, your driving history, and other factors.

Final Verdict

Farmers Insurance offers broad coverage options and customizable policies. It has a record of few customer complaints. Since you can use this provider for your personal use as well as ridesharing, this company can also work well if you drive for Uber or Lyft.

Farmers auto insurance premiums, however, are often higher than competitors, so you may want to shop around to be sure you are getting the best deal. We recommend getting quotes from at least three or four different insurance companies before making a decision.

Frequently Asked Questions

Does Farmers Insurance Have a Good Reputation?

Farmers Insurance has a reputation for few customer complaints, with just one complaint being registered through the National Association of Insurance Commissioners. However, it has a below-average score in customer satisfaction from J.D. Power's 2021 U.S. Auto Insurance Study, ranking below many competitors.

Is Farmers Good at Paying Claims?

In general, Farmers Insurance customer are satisfied with how the company pays their claims. In J.D. Power's 2021 U.S. Auto Claims Satisfaction Study, Farmers ranked fifth out of 18 top insurance companies.

Why Are Farmers Insurance Rates So High?

Agent commissions raise the price of Farmers insurance policies, especially compared to competitors that conduct more business online. Farmers also notes that supply chain issues and labor shortages since 2020 have raised the cost of car repairs, which then raises the cost of insurance premiums as well.

What Are the Benefits of Farmers Insurance?

Farmers auto insurance policies offer a variety of discounts, such as homeowner and good student discounts, which have the benefit of lowering your premiums. You can also benefit from their strong online presence, which can allow you to get a quote for insurance without speaking to an agent, as well as manage premium payments and claims online.

Methodology

Investopedia is committed to providing readers with unbiased, comprehensive reviews of auto insurance companies. All of our reviews are based on extensive research and analysis of each company’s coverage, customer service, pricing, years in business, accreditation, and more. To rate providers, we developed an auto insurance review methodology that compares the auto insurance coverage types, additional features, discounts, account management, and other features.

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