Haris Ashley
Farmers Insurance Group of Companies serves over 50 million individual policies across all 50 states, offering auto insurance, home insurance, life insurance, and more. Farmers Insurance is ranked 8th out of 10 companies in the US News rating of the best car insurance companies, with an overall score of 4.1 out of 5. While Farmers Insurance offers a wide variety of discounts and customisation options, its rates are higher than the national average in every driver category. WalletHub analysis, on the other hand, suggests that Farmers Insurance is one of the 10 cheapest auto insurers nationally, with customers paying an average of $1,044 per year for coverage. However, according to Bankrate, the average cost of car insurance with Farmers is $3,407 per year for full coverage and $1,130 for minimum coverage, which is higher than the national average. Overall, Farmers Insurance offers competitive rates in some states, while being wildly overpriced in others.
| Characteristics | Values |
|---|---|
| Average Annual Premium | $3,407 for full coverage and $1,130 for minimum coverage according to Bankrate. $3,113 according to US News and $1,044 according to WalletHub. |
| Competitiveness | Ranked No. 8 out of 10 by US News. WalletHub analysis ranks Farmers as one of the 10 cheapest auto insurers nationally. Reddit users claim that Farmers' rates are inconsistent across states and that they are "wildly overpriced" in some areas. |
| Customer Loyalty | 40% of customers are "very likely" to renew their policy. 25% are "very likely" to recommend the company, and 60% are "likely" to recommend it. |
| Add-on Coverage Options | Farmers offers the most add-on coverage options out of all the companies in the US News rating. |
| Discounts | Farmers offers 23 auto insurance discounts and various discount opportunities that may lower your premium if you qualify. |
| Customer Service | Most customers surveyed by US News were either satisfied or completely satisfied with Farmers' customer service. |
| Coverage Options | Farmers offers a good selection of coverage, including gap, non-owners, rideshare, and SR-22 insurance. They also offer a vanishing deductible and accident forgiveness. |
| Customer Profile | Farmers' rates are higher for teen drivers, young adults, and adults (married 40-year-olds). Their rates also vary based on driving record, experience, location, type of car, insurance history, and more. |
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What You'll Learn
Farmers Insurance rates vary by state
Farmers Insurance rates are highly dependent on the state. According to WalletHub, Farmers Insurance is one of the 10 cheapest auto insurers nationally, with customers paying an average of $1,044 per year for coverage. However, other sources suggest that Farmers Insurance rates are consistently very high across all driver profiles, and its average annual rate of $3,113 is more than $1,000 higher than the national average.
Farmers Insurance rates are based on several factors, including the driver's age, ZIP code, driving record, insurance history, type of car, and coverage and deductible choices. For example, Farmers offers the second-highest car insurance rate for teen drivers among the companies analysed, with rates 86-91% higher than the national average for male and female teens, respectively. Rates tend to decrease as drivers get older and maintain a clean driving record.
Farmers Insurance is also not available in all states. It does not sell car insurance in Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia, or Washington, D.C.
Overall, while Farmers Insurance may be competitive in some states, it is important to research the rates in your specific state, as they can vary significantly.
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Farmers Insurance rates for teen drivers
Farmers Insurance offers a range of insurance products, including car insurance for teen drivers. While Farmers Insurance rates tend to be higher than the national average across various driver categories, there are specific considerations for teen drivers that may impact the overall competitiveness of their rates.
Firstly, Farmers Insurance recognises that adding a teen driver can significantly increase premiums. This is a common trend across all insurance companies due to the higher risk associated with novice drivers. According to the Insurance Institute for Highway Safety (IIHS), teens are involved in crashes four times more frequently than drivers aged 20 and above. As a result, Farmers Insurance offers various strategies to mitigate these higher costs, such as raising deductibles and providing discounts specifically designed for young drivers.
Farmers Insurance offers a good student discount for students aged 16-24 who maintain at least a B average or are ranked in the top 20% of their class. They also provide a student away-at-school discount and a Righttrack discount. Additionally, Farmers Insurance offers a safe driver discount for drivers who have been accident and violation-free for at least three years. This discount can be earned over time, even if the driver has previously been insured by another company.
While Farmers Insurance has the second-highest car insurance rate for teen drivers among the companies analysed, their rates for young adult drivers show a notable decrease. The rates for female teen drivers are 91% higher than the average, while for male teens, the rates are 86% higher. However, for young adult female drivers, the rates are $1,230 per year higher than the national average, and for males, the rates are $1,386 higher. This decrease in rates with age is a common trend across insurance companies.
The competitiveness of Farmers Insurance rates for teen drivers can vary depending on the state and local market conditions. While their rates might be competitive in certain states, they can be considered wildly overpriced in others. Therefore, it is advisable to research local rates and compare them with those offered by Farmers Insurance to determine their competitiveness in a specific region.
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Farmers Insurance rates for adults
Farmers Insurance offers auto insurance, home insurance, and life insurance, among other services. The company's rates are generally considered to be higher than those of its competitors. For example, Farmers' average annual car insurance rate is $3,113, which is more than $1,000 higher than the national average. Similarly, Farmers' auto insurance rates are higher than most competitors for drivers who have caused accidents, with rates nearly $1,200 per year more than the national average.
Farmers Insurance's rates for adults are also higher than the national average. For instance, Farmers' sample rates for young adult drivers are higher than the national average for this age group, with rates of $1,230 per year higher for female drivers and $1,386 higher for male drivers. Furthermore, Farmers has the highest sample premiums for adults in the 40-year-old age group, with average annual rates that are more than 50% higher than the national average.
Farmers Insurance offers a variety of coverage options and add-ons, which may contribute to their higher rates. The company provides full coverage car insurance, which typically includes liability, uninsured/underinsured motorist, collision, and comprehensive coverages. Farmers also offer additional coverage options, such as new car replacement, accident forgiveness, loss of use reimbursement, and customized equipment coverage. These optional coverages allow customers to customise their policies to their specific needs, but they come at a higher cost compared to the national average.
In addition to age and coverage options, Farmers Insurance considers various factors when determining rates. These factors include driving record, experience, type of car, ZIP code, insurance history, and deductible choices. Risky drivers, such as those with at-fault accidents, speeding tickets, poor credit, or DUIs, are likely to have higher rates. The company also takes into account the number of miles driven, with higher rates for high-mileage drivers.
While Farmers Insurance rates tend to be higher, they offer a wide variety of discounts to make their policies more affordable. They provide bundling discounts for customers who combine multiple policies, such as auto, home, life, or pet insurance. Farmers also offer specific discounts for families with teen drivers, like the Farmers shared family car discount. Additionally, Farmers Insurance is known for its quick response times, good customer support, and fast claims payouts, which may be valuable to customers despite the higher rates.
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Farmers Insurance rates for good drivers
Farmers Insurance is one of the largest insurance companies in the US, offering a wide range of policy options to meet various needs. While the company provides numerous coverage options, allowing for highly personalized plans, its rates are often considered expensive and less competitive compared to other insurers.
For good drivers specifically, Farmers Insurance rates tend to be higher than the national average. In fact, Farmers Insurance has the second-highest average costs for good drivers among the companies analysed by Forbes Advisor. Its average rate is over $900 per year more than the national average of $2,149 per year. This indicates that even for good drivers, Farmers Insurance may not offer the most competitive rates.
Additionally, Farmers Insurance rates for teen drivers are significantly higher than the national average. For female teen drivers, Farmers' rates are 91% higher than the average, while for male teens, they are 86% more expensive. As drivers get older and maintain a clean driving record, rates tend to decrease, but Farmers' rates for young adult drivers are still higher than the national average.
Farmers Insurance also has the second-highest average annual rates for drivers with a DUI among the analysed companies. The company's rates for drivers with poor credit are also considerably higher than the average. These factors further contribute to the perception that Farmers Insurance rates may not be as competitive as those offered by other insurers.
It's worth noting that Farmers Insurance offers various discount opportunities that may lower premiums for good drivers. For example, they offer a 5% discount for signing up for Signal, and safe drivers may be eligible for savings of up to 15% at policy renewal. Additionally, drivers under 25 can qualify for a "youthful" discount of up to 10%, and monthly awards of up to $100 are given to those with a good driving score of 80% or higher.
While Farmers Insurance provides a range of coverage options and discounts, their rates, especially for good drivers, are generally higher than the national average and other competitors. However, it's always recommended to shop around and compare rates from multiple insurers to find the best option for your specific needs.
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Farmers Insurance rates for high-risk drivers
Farmers Insurance is generally considered to have high rates for car insurance compared to other companies. Its average annual rate of $3,113 is more than $1,000 higher than the national average. Farmers Insurance is ranked 8th out of 10 companies in a rating of the best car insurance companies. Its rates are higher than the national average across all driver categories, including age, vehicle, and coverage amount.
For high-risk drivers, Farmers Insurance may not be the most competitive option in terms of pricing. High-risk drivers are typically classified as those with multiple traffic tickets, poor credit, a history of accidents, or a DUI on their record. While Farmers Insurance offers a range of coverage options and add-ons, its rates tend to be higher for drivers with these risk factors.
For example, Farmers Insurance has the second-highest average annual rates for drivers with a DUI on their record. The company's sample annual rate for drivers with poor credit is also significantly higher than the average. Additionally, Farmers Insurance has the highest rates for drivers with a speeding ticket, with costs over $1,250 higher than the national average.
The company's rates for teen drivers, who are often considered high-risk due to their lack of driving experience, are also among the highest in the industry. Its sample annual rate for female teen drivers is 91% higher than the average, while for male teens, it is 86% more expensive than the national average.
While Farmers Insurance may not be the most competitive in terms of pricing for high-risk drivers, it does offer a range of coverage options and add-ons that may appeal to some customers. The company also provides accident forgiveness, gap insurance, and a New Car Pledge that replaces your car if it is totaled in a covered accident. However, it is important to note that Farmers Insurance has received some criticism for its high level of complaints and its claims processes.
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Frequently asked questions
Farmers Insurance rates are highly dependent on the market, the type of client, and the location. While Farmers Insurance is one of the 10 cheapest auto insurers nationally, according to WalletHub, it is still more expensive than other top competitors. Farmers Insurance customers pay an average of $1,044 per year for coverage, while the national average is $2,680 per year.
Farmers Insurance considers various factors when calculating your premium, including your age, location, driving record, and insurance history. Your coverage and deductible choices will also impact your final quote.
You can lower your Farmers Insurance costs by taking advantage of the various discounts offered, such as bundling multiple policies and the Farmers shared family car discount. You can also opt for a higher deductible and reduce your coverage.
Farmers Insurance rates tend to be higher for teen drivers compared to other companies. For example, their sample annual rate for female teen drivers is 91% higher than the average, while for male teens, it is 86% more expensive than the national average.
No, Farmers Insurance rates vary across different states. Some users have reported that Farmers Insurance is competitive in certain states, while it is wildly overpriced in others. It is recommended to ask around locally to get a better idea of the rates in your specific state.
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