Farmers Insurance Review
- January 11, 2018 - We’ve updated our review to take into account the most recent consumer studies and financial ratings for auto insurance providers. Farmers still offers some of the better coverage options on the market, but its customer satisfaction for filing claims has taken a hit — customers reported particular difficulty with the repairs process. The company's financial strength rating also decreased — its Moody’s rating changed from an Aa3 to A2. We’ll keep our ears to the ground for any changes, but for now, our other picks will be a better match for most people.
Our Farmers Insurance Review
Farmers Insurance is a popular option for those looking for extensive policy and coverage options. Aside from standard offerings, customers have access to add-ons like glass repair and speeding ticket forgiveness — unique and useful options that other companies lack. In other words, Farmers lives up to its promise of financial protection from accidents, rate increases, and anything in-between.
That said, Farmers Insurance ranks below the industry average for customer service when it comes to the actual claims process. Reported difficulties range from getting a claim accepted to a lack of clear guidance during repairs. That means you may have to work a little harder to make sure your claim is proceeding and providing you all the benefits under your coverage. However, Farmers Insurance does offer one of the better online management systems to help you keep track of its many coverage options and the benefits you should receive.
Farmers Insurance claims its 85 years in business has given them the ability to provide quality coverage, convenience, and personalized service that go beyond basic expectations. Farmers promises to not only cover injuries and damages but to provide tools and easy access to a neighborhood agent for guidance on anything from accidents to repairs.
Recently, Farmers Insurance even began rolling out rideshare coverage for Uber and Lyft drivers — a relatively new form of insurance not covered by most standard plans. With its diverse coverage options and embrace of new consumer needs, Farmers plans to be on the forefront of policy offerings and convenience in the insurance market.
Is it true?
Farmers Insurance is one of the leading car insurance providers in the nation and offers coverage in all 50 states. According to the Insurance Information Institute’s current statistics, Farmers Insurance is the seventh largest provider of private passenger auto insurance — a ranking that is largely due to its history of thorough coverage.
The J.D. Power 2017 Insurance Shopping Study, an in-depth look at how consumers choose insurance providers, rates Farmers as above average when it comes to the quality of their policy offerings — beating other top providers like GEICO and Allstate. Customers can expect all the standard coverage types from personal injury protection to uninsured motorist coverage. Farmers also offers a wide range of add-ons including old favorites such as roadside assistance and new options like rideshare coverage (in select states). When it comes to thorough policy offerings, Farmers delivers on its claims.
More impressive is the Farmers Insurance online dashboard that allows you to request adjustments to your coverage options, change your deductibles, and add or remove a vehicle from your policy. While not perfect, it means you can easily make changes to your policy and manage your account without having to spend time on the phone or visiting an agent in person. While you’ll always have access to a large network of agents, we like having convenient control over our coverage.
However, consumer studies indicate that working with Farmers Insurance after signing up for a policy isn’t as convenient as it seems. Although Farmers scored well in the Insurance Shopping Study, a separate J.D. Power study on overall customer satisfaction during the claims process ranks Farmers Insurance eighteenth out of 24 providers. Customers from the study reported that the quality of service they received while Farmers Insurance handled their repairs was below average. Complaints from the Better Business Bureau express similar opinions with quite a few reporting difficulty when filing a claim or unexpected rate increases. Helpful tools or not, Farmers may make you jump through more hoops and hurdles for your coverage than they claim.
|Quotes will differ from person to person|
|People who want to manage policies online or quick access to an in-person agent|
|People who want a more straightforward repairs process or a more financially stable company backing their claims|
|845 out of 1000
(Above industry average)
|849 out of 1000
(Below Industry Average)
Our Deep Dive
- Extensive Protection and Coverage Options: As stated before, Farmers offers thorough coverage options including anything from a New Car Pledge to accident forgiveness. The former means Farmers will pay for a brand-new car if your vehicle is totaled within the first two years of ownership. With accident forgiveness, Farmers will forgive one at-fault accident for every three years you drive without one — this prevents a costly premium increase. In other words, Farmers Insurance offers comprehensive coverage options that will potentially save you some big money.
- Assistance for daily driving needs: The previous coverage options alone translate to peace of mind in the event of an accident, but Farmers goes one step further with the option of rental car reimbursement. That means you won’t be without transportation or have to pay for it while your car is in the shop. Add to that roadside assistance and Farmers will even help with non-accident related issues. For example, Farmers will send someone to jump start your car or change a tire — no matter where the car is. We like that Farmers Insurance offers coverage that keeps our daily driving needs in mind.
- Policy Management: Farmers excels when it comes to online policy management, allowing you to easily manage your account through their online dashboard. If you download the Farmers Insurance Mobile App, you’ll also be able to view your ID card and make payments on the go. That said, the app won’t let you make changes to your policy which we feel is an oversight.
- Access to agents in all 50 states: When it comes to getting the most personalized help available, nothing beats speaking with an agent in-person. According to the JD Power Insurance Shopping Study, Farmers ranks above average for customer experiences with its local agents. Online management tools are convenient, but a great auto insurance provider will also have a strong network of agents.
- 24/7 claims center: The Farmers claims department is available 24 hours a day and 7 days a week. Rather than having to wait for business hours, a Farmers claims representative will always be standing by ready to answer questions or to receive any claims you report.
- Limited Driver Discounts: If pricing is a significant factor in your auto insurance decision, you may be disappointed in the selection of driver discounts offered by Farmers insurance. Though it does provide many common discounts, including price breaks for good drivers, good students, and members of the military, it doesn’t provide the full variety of deals offered by other top insurers in the market. For example, Farmers offers no price breaks for low-mileage drivers. While there are some nice discounts for seniors available, you can get similar savings from other insurers that also provide discounts in areas where Farmers falls short.
- Lack of Learning Materials: Unfortunately, Farmers offers little in the way of auto insurance education. Good learning materials can help anyone, especially new drivers, make an informed decision about what types of coverage best meet their needs. The companies that perform best in this category, like State Farm, integrate thorough help guides and video tutorials on their websites, to help you understand coverage options and the basics of car care. Though Farmers car insurance does offer some online learning tools, they are not easy to find or simply lack thorough explanations.
- Financial strength rating: As a leading provider, Farmers Insurance has the financial stability to back the claims you make. However, its overall financial strength ratings have decreased since our first pass — their Moody’s rating decreased from an Aa3 to A2. That’s not to say Farmers is in financial trouble. But if you want the most financially stable company backing your claims, you may want to look at our top picks.
The Bottom Line
Farmers Insurance provides access to thorough coverage options and a large network of agents that will fit most needs. Having the ability to tweak your policy ensures you’ll be able to quickly cover any gaps in your coverage or remove options that you end up not needing. The result? Financial protection and savings for peace of mind. While its policy offerings are solid, customers have reported that the claims filing and repairs process can involve more obstacles than we’d like. This is difficult to overlook considering a convenient claims process is one of the most important factors when choosing an insurance provider. We want our insurance providers to provide high quality service while we’re shopping and after we sign up. If you want the most straightforward auto insurance experience, you’ll want to look at our other options. But for those who prize policy and coverage options above all else, Farmers may be worth a look.
In-Depth Auto Insurance Reviews
We've reviewed a lot of insurance companies. Check out our in depth reviews of each.*
- Ameriprise Financial
- Liberty Mutual
- Nationwide Insurance
- State Farm
- The Hartford