Farmers Insurance Vs. Geico: Which Provider Offers The Best Coverage And Rates?

When it comes to car insurance, two of the most recognisable providers are Farmers Insurance and Geico. But which is better?

Geico is the second-largest car insurance provider in the US, while Farmers ranks seventh. Both companies have extensive coverage options and are in good standing with leading credit rating agencies. However, Geico beats Farmers when it comes to customer ratings and cost.

Geico is the cheapest carrier for full coverage insurance, at $1,763 per year, while Farmers's average annual rate for full coverage is $2,387. Geico also has cheaper rates for teenagers, poor credit score drivers, young adults, adults, seniors, and drivers with speeding tickets or a DUI.

Farmers has the edge when it comes to the number of discounts offered, and it also has fewer customer complaints than Geico.

Customer service

According to a survey by US News, GEICO scored higher than Farmers in overall customer satisfaction, particularly in customer loyalty. However, Farmers ranked higher in customer service and claims handling. Among survey respondents who opened a policy, 37% of Farmers customers claimed to be very satisfied with the value offered by the company, compared to 42% of GEICO customers. When it comes to filing a claim, 47% of Farmers customers were very satisfied, while 56% of GEICO customers felt the same. Additionally, Farmers has a higher rating for customer service from J.D. Power, but both companies have received more than the average number of customer complaints for companies of their size, according to the National Association of Insurance Commissioners (NAIC).

MoneyGeek also rated GEICO higher than Farmers in customer satisfaction, with a score of 3.75 compared to 3.5. GEICO also scored higher in J.D. Power's customer satisfaction rating, with 843 points compared to Farmers' 816. However, Farmers received a better score in the complaints category. The NAIC Complaint Index, which measures the number of complaints relative to the company's market share, shows that Farmers has a score of 1.31, while GEICO's score is 2.04, indicating that Farmers receives fewer complaints than GEICO.

In terms of customer ratings on WalletHub, GEICO has better ratings across several platforms, including J.D. Power, NAIC, and WalletHub's customer review score. However, both companies have received more complaints than average for their size, with complaints about GEICO focusing on delays in claims payments and unsatisfactory settlement offers, while Farmers has been criticized for unexpected claim denials and poor customer service.

When it comes to customer service, GEICO generally receives positive reviews and has a better rating than Farmers on most platforms. However, it's important to note that both companies have areas where they can improve, and individual experiences may vary.

Cost

When it comes to cost, Geico beats Farmers. Geico is the cheapest carrier for full coverage insurance, with an average national annual cost of $1,047, while Farmers is $1,578. Geico also has the lowest rates for state minimum coverage, at $405 per year.

The cost of car insurance varies depending on the state you live in, your age, credit score, and driving record. Geico is cheaper than Farmers in most states and for all driver types, except those with a DUI. Geico has some of the cheapest rates for teen drivers and is also cheaper for young adults, adults, and seniors.

The average cost of a Geico policy in California is $66 per month, while the average cost of a Farmers policy is $135 per month.

Farmers has the edge when it comes to discounts, with over 20 options available.

Discounts

Both GEICO and Farmers Insurance offer a range of discounts to their customers. GEICO's discounts are divided into five main groups, based on a driver's affiliations, education, driving history, vehicle equipment, and customer loyalty. Similarly, Farmers Insurance offers discounts based on the type of insurance policy held and the state of residence.

GEICO Discounts:

• Affiliation Discounts: GEICO provides discounts for military personnel, federal employees, and members of specific groups or businesses that partner with GEICO.
• Driver's Ed Discounts: GEICO offers savings for drivers who invest in safety training or educational courses, as well as for young drivers who maintain good grades.
• Driving History Discounts: GEICO rewards customers with clean driving histories and offers discounts for drivers who regularly use seat belts and those who have been accident-free for five years or more.
• Vehicle Equipment Discounts: GEICO provides discounts for cars equipped with safety features such as airbags, anti-lock brakes, anti-theft systems, daytime running lights, and new vehicles.
• Customer Loyalty Discounts: GEICO offers savings for customers who insure more than one vehicle or obtain multiple types of policies, such as auto, homeowners, renters, or mobile home insurance.

Farmers Insurance Discounts:

• Auto Insurance Discounts: Farmers Insurance offers discounts for bundling home and auto policies, being a member or employee of certain businesses or professional associations, military service or veteran status, good driving habits, mature or defensive driving courses, alternative fuel vehicles, automatic payments, and paying premiums in full.
• Home Insurance Discounts: Farmers Insurance provides discounts for bundling policies, being a member or employee of certain businesses or professional associations, installing security systems, fire alarms, non-smoking households, purchasing new homes, UL-approved roofing materials, fortifying homes against natural disasters, and green certifications.
• Business Auto Insurance Discounts: Farmers Insurance offers discounts for corporations and vehicles with advanced safety technology features.
• Multi-Policy Discounts: Farmers Insurance gives savings to customers who bundle their commercial auto policy with other types of policies, such as business owners, workers' compensation, or personal lines auto and homeowners insurance.

Financial stability

Farmers Financial Stability

Farmers Insurance Group has been deemed financially stable by independent insurance rating agencies. It has received an A rating from AM Best, which assesses a company's financial stability and ability to pay claims long into the future. This rating indicates that Farmers has an excellent ability to meet its financial obligations.

Farmers has also been accredited by the Better Business Bureau (BBB) since 1951. It has received an A rating from Moody's, indicating strong financial stability, and an AA+ rating from Standard and Poor's.

Geico Financial Stability

Geico has also demonstrated strong financial stability. It is a wholly-owned subsidiary of Berkshire Hathaway, a company with a strong balance sheet and diverse businesses. Geico has received an A++ rating from AM Best, the highest rating possible, indicating superior financial strength.

Additionally, Geico has earned high ratings from other credit rating agencies, including an AA+ rating from Standard and Poor's and an Aa1 rating from Moody's. These ratings reflect Geico's strong financial position and ability to meet its financial obligations.

Comparison

Both Farmers and Geico have strong financial stability, as indicated by their high ratings from credit agencies. Geico's A++ rating from AM Best surpasses Farmers' A rating, suggesting that Geico may have a slightly stronger financial position. However, both companies are considered financially stable and capable of fulfilling their financial obligations.

Coverage options

Both GEICO and Farmers Insurance offer a range of coverage options for their customers.

GEICO Coverage Options

GEICO offers a wide range of insurance products, including:

• Motorcycle insurance
• ATV insurance
• Umbrella insurance
• Homeowners insurance
• Renters insurance
• Mobile home insurance
• Boat insurance
• Personal watercraft insurance
• Flood insurance
• RV insurance
• Life insurance
• Commercial auto insurance
• Business insurance
• Identity theft protection
• Snowmobile insurance
• Collector car insurance
• Mexico car insurance
• Pet insurance
• Medical malpractice insurance
• Earthquake insurance
• Event insurance
• Travel trailer insurance
• Motorcycle insurance
• Travel insurance
• Commercial insurance
• Flight insurance
• Trip insurance
• Overseas insurance
• Umbrella insurance
• Homeowners insurance
• Travel trailer insurance
• Motorcycle insurance
• Mobile home insurance
• Off-road vehicles and ATVs
• Commercial insurance

GEICO also offers standard car insurance coverage, including liability, collision, and comprehensive coverage. Other coverages available include personal injury protection (PIP), uninsured and underinsured motorist insurance, and medical payments. Add-ons for your insurance policy could consist of rental reimbursement or towing and labor.

Farmers Coverage Options

Farmers Insurance offers a range of insurance products, including:

• Auto insurance
• Homeowners insurance
• Renters insurance
• Landlord and rental property insurance
• Life insurance
• Business insurance
• Motorcycle insurance
• Recreational insurance
• Umbrella insurance
• Pet insurance
• Rideshare insurance
• Mutual funds
• College savings plans
• IRAs
• Variable universal life insurance
• Annuities
• Boat insurance
• Travel trailer insurance
• ATV insurance
• Motor home insurance
• Off-road vehicles and ATVs insurance
• Commercial insurance

Farmers Insurance also offers standard car insurance coverage, including liability, collision, and comprehensive coverage. Other coverages available include uninsured/underinsured motorist coverage, medical payments or personal injury protection (PIP) coverage, and emergency road service. Add-ons for your insurance policy could consist of rental reimbursement, mechanical breakdown coverage, and towing and roadside service.

Frequently asked questions