Farmers Insurance Review 2021: A Legacy Insurance Company With Flexible Coverage Options

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Farmers Insurance Overview

Farmers Insurance has gone from a small company insuring the vehicles of farmers to an insurance giant. Founded in 1928, Farmers now insures more than 10 million households with more than 19 million individual policies across all 50 states. The California-based company has over 48,000 independent agents and offers a wide range of insurance policies that can be customized to fit most needs and budgets.  

Farmers Auto Insurance

Many use Farmers for auto coverage because it offers basic types of coverage plus a few additional coverage options, such as extended coverage for customized equipment or new car replacement coverage. 

Types of Coverage 

  • Liability
  • New car replacement coverage
  • Comprehensive and collision coverage
  • Customized equipment coverage
  • Liability
  • Uninsured and underinsured motorist damage
  • Medical payments coverage
  • Towing and roadside assistance
  • Accident forgiveness
  • Loss of use coverage
  • Rideshare insurance

Cost of Farmers Auto Insurance 

Farmers auto insurance is more affordable, on average, than at many other insurance companies. According to the latest Bankrate data, the average annual cost of Farmers car insurance is $190 for minimum coverage and $1,124 for full coverage — roughly $700 cheaper than the national average for full coverage.

Farmers Auto Insurance Discounts

Farmers has more than 20 different auto insurance discounts, from multi-policy discounts to safe driver discounts. For example, if you bundle your home and auto policies with Farmers, you could save an average of 20%. Keep in mind discounts and their availability depend on the kind of insurance policy you have and what state you’re in. Here are a few that stand out:

  • Signal by Farmer: You can get a 5% discount for downloading the Signal app and up to a 15% discount at the end of the year. The Signal app tracks your driving habits.
  • Good student: Students with good grades — at least a 3.0 GPA or on the dean’s list — can get a discount.
  • Distant student: This discount applies if a college student on a parent’s policy is at college at least 100 miles away and left their car at home.
  • Multi-vehicle: You can get a discount if you insure multiple vehicles.
  • Multi-policy: You can get a discount if you bundle different types of policies.
  • Safe driver: Any rated driver who has no bodily injury points on their driving record can get a discount.

Farmers Home Insurance

For home insurance with Farmers, you can pick between three basic packages — standard, enhanced, and premier. There is a lot of flexibility with them; you can raise or lower limits in virtually every type of package, and add or change coverage. Standard policies include typical homeowner protections and are more catered to homeowners who are just starting out. Farmers’ enhanced and premier policies have extra features that more established homeowners might prefer.

Types of Coverage 

Farmers has five types of home insurance coverage, including:

  • Homeowner insurance: Coverage for a single family home
  • Condo insurance: Coverage for a condo or townhome.
  • Mobile and manufactured insurance: Coverage for a mobile or manufactured home.
  • Specialty home insurance: Coverage for seasonal home, investment properties, and older or low-value homes.
  • Vacant home insurance: Coverage for homes that aren’t occupied. 

Cost of Farmers Home Insurance 

The national annual average for home insurance is $1,477, and Farmers is slightly above it. Farmers’ average annual premium for home insurance is $1,502, according to the latest Bankrate data. 

Farmers Home Insurance Discounts

On top of a multi-policy discount, there are other discounts that you can qualify for when signing up for home insurance with Farmers.

  • New home: Discount for homes less than 14 years old.
  • Claims free: If you haven’t had a home insurance claim for three years in a row, you could receive a discount.
  • Rent to own: An option for people with Farmers’ renters insurance who buy a home and switch to a Farmers home policy.
  • Good payer: Discount for paying your insurance bill on time.
  • Home safety: If your windows, walls, roof, or foundation are fortified against natural disaster, and you have automatic gas or water shutoffs, there’s a discount.
  • Green certifications: Discount for energy-efficient and safe homes that are Energy Star, EPA, or LEED-certified.
  • Protective devices: Discount for having a fire alarm, security system, or sprinklers in the house. 
  • Claim forgiveness: If you have a claim with Farmers after being claim-free for at least five years, your premium won’t increase.

Farmers Life Insurance

There are several types of life insurance you can get with Farmers, by either speaking to an agent or getting a quote online from Farmers’ website.

Types of Coverage 

  • Term life insurance: Life insurance policy that lasts for a specific period of time — generally for 10, 20 or 30 years.
  • Whole life insurance: Permanent life insurance
  • Universal life insurance: Permanent life insurance that may also accumulate a cash value

Cost of Farmers Life Insurance 

The average cost of life insurance is $22.95 a month for 35-year-old-women looking for a 30-year term policy with a death benefit of $250,000, according to the latest Bankrate data. NextAdvisor pulled a Farmers quote for life insurance coverage starting at $500,000 for a 35-year-old woman who’s healthy, living In California, and wants term life insurance. For that person, it would cost around $62 a month for 30 years of Farmers’ value term life insurance, $41 for 20 years, and around $24 for 10 years.

Farmers Life Insurance Discounts

Farmers doesn’t offer any life insurance discounts, but you can qualify for a multi-policy discount. For example, if you have auto and life insurance, or home and life insurance with Farmers, you can get a discount. 

Farmers Ratings, Customer Satisfaction and Complaints 

Farmers Insurance is the 7th most popular insurance brand, and 44% of responders report having a positive opinion of the company, according to YouGov. Farmers ratings and customer satisfaction reviews are a mix of average and below average across the board. On ConsumerAffairs, an online forum for reviews, Farmers is rated four out of five stars based on over 400 ratings submitted in the last year. 

“Farmers insurance has been around since 1928 and holds an A rating with A.M. Best, so one would think they must be doing something right,” says Micah Metcalf, a licensed insurance broker and owner of Metcalf Financial in Arizona. “However, this company has some ethical issues. First and foremost, Farmers is a captive agency meaning that if you seek insurance through them, you only can obtain rates for one product, at one price and it may not even be the best option for you.”

In recent years, Metcalf says Consumer Reports, a nonprofit that offers unbiased product reviews and ratings, gave Farmers Insurance a “worse” rating for both “problems with claims” and “delayed payments.” Consumer Reports also said that Farmers was one of the “poorest performers” amongst many major insurance companies in terms of paying off automobile claims in 30 days or less, according to Metcalf. However, Farmers ranked slightly above average in J.D. Power’s most recent property claims satisfaction survey, which could be a sign of improvement. 

Below are ratings from leading market researcher J.D. Power. Farmers scored below average for overall customer satisfaction for auto insurance across the U.S., except the North Central region. Farmers’ home and renters insurance also ranks below average for customer satisfaction. 

2020 J.D. Power Study Rating
Farmers Auto Insurance827/1000
Farmers Home Insurance814/1000

Farmers Pros and Cons

Pros

  • Wide selection of coverage options: Farmers offers auto, home, life, and other types of insurance policies, making it easy to bundle.

  • Declining deductible: You can earn up to $50 toward your deductible each year your policy remains in force.

  • There’s a mobile app: Manage your insurance policy from your phone with Farmers mobile app. It allows you to pay your bill, receive electronic billing notices, find your agent’s contact information, and file a claim.

  • Dozens of discounts: Farmers has a wide range of discounts across the board, and even more in some states.

  • Strong financial stability: Rated A+ by A.M. Best Company

  • Big network of independent insurance agents: Farmers has over 48,000 independent agents, so it’s easy to get in contact with one in your area to discuss your coverage.

Cons

  • Room for improvement with digital experience: Website is not very user-friendly or easy to navigate.

  • Lengthy quote process: To get a quote from Farmers, you have to give up a lot of personal information including our full name, address, vehicle information, and Social Security number on their website.

  • Relatively poor reputation with claims over the years: Farmers has been labeled one of the “poorest performers” among many major insurance companies for handling claims.

  • Customer satisfaction ratings are below average: Several surveys show customer satisfaction with Farmers is subpar.

  • Lack of gap coverage: Farmers doesn’t offer gap insurance coverage for cars.

  • Some insurance policies are costly: The average annual premium for Farmers home insurance is more expensive than the national average.

Other Policies Offered by Farmers

Other than auto, home, and life insurance, Farmers provides insurance in several categories, including:

  • Renters insurance
  • Landlord and rental properties insurance
  • Business insurance
  • Motorcycle insurance
  • Pet insurance
  • Recreational insurance (boats, ATVs, etc.)
  • Umbrella

Bottom Line

Thanks to its well-established history, nationwide reach, and number of insurance policies it offers, Farmers is known as a legacy insurance provider that offers a wide range of coverage options. Because it offers several lines of insurance, there’s not only flexibility to tailor your coverage to meet your needs, but you could also be eligible for its multi-policy discount. You can save up to 20% if you bundle your home and auto policies with Farmers — a good, while not incredibly generous, discount. 

Farmers doesn’t stand out for its mobile app or website, and is still catching up to other insurance companies in improving the online customer experience. While Farmers has had a relatively poor reputation with customer service and claims over the years, it continues to stay relevant in a world where highly personalized insurance is the norm. With Farmers, you can pick and choose insurance policies unique to you by playing around with different levels of coverage, and you can choose from optional add-on policies to better meet your needs.

Frequently Asked Questions

How do I get an insurance quote from Farmers?

The easiest and fastest way to get an insurance quote from Farmers is online through its Farmers FastQuote® portal. You have to enter some personal information to get an online quote, but it only takes a few minutes. You can also get a quote by contacting a Farmers insurance agent through its customer service line.

How can I file a claim with Farmers?

There are lots of ways to file a claim with Farmers: You can text a phone number to begin the claims process, file on the mobile app or on their website, or call a customer service representative.

Is Farmers available everywhere in the U.S.?

Farmers offers auto, home insurance, and other types of insurance policies across the U.S., but the company’s products and discount availability can vary depending on the state you live in.