Farmers Auto Insurance: Good Option?

Farmers Insurance is one of the oldest auto insurance companies in the U.S., having opened in 1928. It offers a wide range of insurance products, including auto, home, life, business, motorcycle, and recreational vehicle insurance. It also provides financial products such as mutual funds, IRAs, and annuities.

Farmers Insurance has received positive reviews for its customer service and claims handling. It offers a variety of coverage options and discounts, including accident forgiveness, new car replacement, and rideshare insurance. However, its insurance rates tend to be higher than those of its competitors, especially for young and senior drivers.

Overall, Farmers Insurance is a good option for those who value customer service and are willing to pay higher premiums for comprehensive coverage and smooth claims processing.

Customer service and satisfaction

Farmers Insurance has been in business since 1928 and currently serves over 50 million individual policies across all 50 states. The company offers a wide range of insurance products, including auto, home, life, business, and pet insurance, as well as financial products such as mutual funds and annuities.

In terms of customer service and satisfaction, Farmers Insurance receives mixed reviews. On one hand, the company is known for its superior customer service, with positive reviews highlighting quick response times, good customer support, and fast claims payouts. The company also has a strong network of agents and employees available across the country. Additionally, Farmers offers a variety of coverage options and discounts to customize policies, which can enhance the customer experience.

On the other hand, some customers have expressed dissatisfaction with Farmers Insurance, particularly regarding claim handling and customer support. There have been complaints about delays in the claims process, unsatisfactory claim settlements, denials, and cancellations. Some customers have also reported issues with roof repairs or replacements, with the company denying claims and even dropping coverage due to roof issues.

When it comes to ratings, Farmers Insurance has received varying scores from different sources. WalletHub editors give the company a rating of 3.0 out of 5, while users on the platform rate it 3.3 out of 5 on average. J.D. Power, a data analytics company, gives Farmers an overall satisfaction score of 72 out of 100, which is slightly below the industry average. The National Association of Insurance Commissioners (NAIC) reports that Farmers has a higher-than-average number of complaints for auto insurance, with a rating of 1.31. However, for homeowners insurance, Farmers receives fewer complaints than average, with an NAIC rating of 0.57.

Overall, while Farmers Insurance has a solid presence in the industry and offers a wide range of products, there are some areas for improvement when it comes to customer service and satisfaction. The company's ratings and reviews highlight a mix of positive and negative experiences, indicating that customers' mileage may vary when dealing with Farmers Insurance.

Discounts and add-ons

Farmers Insurance offers a wide range of discounts and add-ons to its auto insurance policies. The availability of these discounts and add-ons may vary based on the state you live in and the type of insurance policy you hold. Here are some of the discounts and add-ons offered by Farmers:

Discounts

• Bundling Discounts: You can save money by bundling your home and auto insurance policies with Farmers, with potential savings of up to 20% on average.
• Multi-Car Discount: If you insure more than one car with Farmers, you may qualify for a discount.
• Safe Driver Discount: Farmers rewards drivers with a clean driving record, meaning no traffic violations or accidents. The Signal® app is also used to track driving behaviour and reward safe driving.
• Good Student Discount: Students who maintain good academic performance, typically a B average or higher, can qualify for a discount.
• Senior Defensive Driver Discount: Drivers over 55 who complete a safe driving course can receive a discount.
• Military Discount: Active-duty personnel, veterans, and their families may be eligible for a discount.
• Alternative Fuel Vehicle Discount: Available only in California, this discount is offered for vehicles with alternative fuel systems.
• Anti-Theft Discount: If your car has alarms and other protective devices, you may be eligible for a discount.
• Electronic Funds Transfer Discount: Setting up automatic monthly payments can result in a small discount.
• EPolicy Discount: Going paperless and opting for electronic document delivery can provide a small discount.
• Good Payer Discount: If you have no late fees within the last 12 months, Farmers may offer a discount.
• Affinity Discount: Farmers offers discounts to qualifying employees, members, or retirees of certain groups or businesses.
• Homeowner Discount: Homeowners can receive a small discount on their auto insurance.

Add-ons

• New Car Replacement: Farmers will replace your new car with a brand-new one if it is totaled within the first two model years and 24,000 miles of ownership.
• Accident Forgiveness: Your insurance rate won't increase after an accident if you purchase accident forgiveness and avoid accidents for three years.
• Loss of Use: Farmers will reimburse you for transportation costs (rental cars, cabs, ridesharing, or public transit) while your car is in the shop or totaled after an accident.
• Customized Equipment Coverage: Covers the cost of repairing or replacing custom parts installed in your car, such as chrome rims or a stereo system.
• Original Equipment Manufacturer Coverage (OEM): This coverage ensures that repairs to your car use parts from the original manufacturer, rather than cheaper aftermarket parts.
• Rideshare Insurance: Extends your personal auto policy to cover gaps in coverage when driving for companies like Uber or Lyft.
• Flex Personal Auto Policies: Available in certain states, these policies offer free benefits like accident forgiveness and diminishing deductibles for safe driving and customer loyalty.

Premiums and pricing

Farmers Insurance is one of the oldest auto insurance companies in the US, having opened in 1928. It is the seventh-largest auto insurer in the country. It offers standard coverage choices plus a solid list of extras and discounts.

Farmers Insurance offers a wide range of insurance policies, including auto, home, life, landlord, rental property, business, ATV, off-road, RV, and motorcycle insurance. It also offers financial products such as mutual funds, IRAs, college savings plans, and annuities.

The cost of Farmers Insurance varies depending on factors such as age, driving record, address, the type of car driven, and insurance history. Overall, Farmers Insurance is neither cheap nor expensive. Its insurance policies cost $1,578 per year on average.

For young drivers, Farmers Insurance is expensive. Its policies for young drivers are over $1,500 above the national average of $3,704 per year. For senior drivers, Farmers Insurance is also pricey, with rates nearly $1,050 above the national average of $2,150 per year.

For drivers with a clean record, the average annual rate is $3,106 for full coverage insurance, which is over $1,000 above the national average of $1,982. For drivers with a speeding ticket, the national average annual cost is $2,531, while Farmers Insurance charges $3,327.

Farmers Insurance also has higher-than-average rates for drivers who have caused an accident that injured someone else. The national average is $3,009 per year, while Farmers Insurance charges $3,372.

For drivers with a DUI, Farmers Insurance's average rate is $4,263 per year, which is about $900 above the national average of $3,363.

Farmers Insurance offers several discounts that can help reduce the cost of insurance premiums. These include discounts for bundling multiple policies, insuring multiple vehicles, having a good driving record, having a good student record, paying premiums in full at the start of the term, and more.

Claims and complaints

Claims Handling:

Filing an insurance claim can be stressful, and Farmers Insurance recognises this. The company aims to provide peace of mind throughout the claim process. Farmers offer easy-to-use online tools to assist customers in filing and managing their claims. The process is designed to be straightforward, taking less than 5 minutes to initiate a claim. Necessary information includes the policy number and a few other pertinent details.

Once a claim is filed, a Farmers Claim Representative will review the claim and explain how the policy coverages apply to the specific situation. Customers can choose their preferred method for vehicle repairs, either through a repair shop within Farmers' network or an external shop. Farmers guarantees the quality of repairs performed within their network for as long as the customer owns the vehicle.

During the claim process, customers can track and manage their claim online, checking its status, viewing relevant documents, and uploading receipts. Farmers also offer options for rental vehicles while the customer's vehicle is being repaired.

Customer Complaints:

Farmers Insurance, as one of the largest auto insurers in the country, has its fair share of customer complaints. According to the National Association of Insurance Commissioners (NAIC), Farmers had a lower-than-expected number of complaints relative to its size. The company's auto insurance received a score of 1.09 on the NAIC complaint index, indicating more complaints than average. However, its homeowners insurance scored better with a 0.57, suggesting fewer complaints than average.

In terms of customer satisfaction, Farmers earned an overall satisfaction score of 72 out of 100 in a NerdWallet survey, lower than the average of 78 among the insurers surveyed. J.D. Power's studies also placed Farmers at or above the industry average for auto and home claim satisfaction.

Overall, Farmers Insurance's claims handling and customer complaint record show a mixed picture. While the company strives to provide a smooth claim process and has received positive feedback in some areas, there are also indications of higher-than-average complaints, particularly regarding auto insurance.

Coverage options

Farmers Insurance offers a wide range of coverage options for car insurance, including standard and optional coverages. The standard coverage options include:

• Comprehensive coverage
• Medical payments coverage
• Personal injury protection
• Uninsured/underinsured motorist coverage

In addition to these standard options, Farmers offers several notable optional coverages at an additional cost. These include:

• New Car Pledge: This coverage guarantees a brand-new replacement vehicle if your new car is totaled within two years of its model year or before hitting 24,000 miles, whichever comes first.
• Accident Forgiveness: Farmers will forgive one at-fault accident for every three years you drive without one, meaning your rate won't increase due to a single accident.
• Loss of Use Coverage: Farmers will reimburse you for transportation costs while your car is in the shop or totaled after an accident. This can include public transportation, cabs, ridesharing, or rental cars.
• Customized Equipment Coverage: This coverage protects custom parts on your vehicle, such as chrome rims or a new stereo system, if they are stolen or damaged.
• Original Equipment Manufacturer (OEM) Coverage: This coverage pays for replacement parts from your car's manufacturer instead of cheaper aftermarket parts if you're in a covered wreck.
• Rideshare Insurance: This coverage extends your personal auto policy to fill in the gaps in coverage provided by rideshare companies like Uber or Lyft.

Farmers also offer Flex Personal Auto policies in certain states, which can include perks such as accident forgiveness and diminishing deductibles.

In addition to these coverage options, Farmers offers a long list of discounts, including bundling multiple policies, insuring multiple vehicles, safe driving, and more.

Frequently asked questions