Farmers vs State Farm
Which one is best for you?
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Last Updated: July 7, 2023
State Farm and Farmers are two of the most popular insurance companies in the U.S. that offer a wide range of insurance options. But which one is right for you? Several factors can influence your choice in the end but how do the two insurance heavyweights look head-to-head?
Farmers Insurance vs State Farm: Head-to-Head
|A.M Best Rating
|Better Business Bureau(BBB)
|J.D. Power Claims Satisfaction rating
|NAIC (National Association of Insurance Commissioners) Rating
State Farm vs Farmers Pros
- State Farm is the largest auto insurance provider in the U.S.
- Over 19,000 insurance agents nationwide.
- The #3 best car insurance company of 2023.
- High customer loyalty, ratings, and recommendations from policyholders.
- Competitive rates for teen drivers.
- Low rates of complaints filed about car insurance.
- Offers numerous discounts.
- Highly rated customer service
- Low level of complaints
- Many discounts available.
- Offers unique coverage options that can occasionally be added without an additional cost.
- Cheaper than State Farm for drivers with poor credit.
Farmers vs State Farm Cons
- Higher rates for drivers with poor credit among competitors.
- Subpar auto insurance costs for good drivers and those with prior records
- Doesn’t offer gap insurance.
- Fewer add-on coverage options for those with specialized needs.
- Very few home insurance endorsements
- Average car insurance rates higher than the national average.
- Auto insurance prices especially high for young and senior drivers.
- Doesn’t offer gap insurance or vanishing deductible.
Farmers vs State Farm: Car Insurance
State Farm claims nearly one-fifth of the U.S. car insurance market share. Its wide network of agents enables personalized experiences for each customer. Third-party reviewers and its customers gave State Farm good ratings, positive assessments of its customer relations, finances, and customer satisfaction.
Farmers Insurance is one of the oldest and largest insurance providers in the U.S. It only has a 4.49% market share but has a good customer rating. You can expect reasonable rates, several discount options, and a wide coverage lineup to pair with its car insurance policy. It also provides a telematics option that safe drivers would appreciate.
Car Insurance Rate Comparison
Car insurance rates can vary among companies, so it’s best to shop around for car insurance quotes. But here’s a comparison of rates between State Farm and Farmers based on various driving profiles.
|Rates based on
|Drivers with speeding ticket
|Drivers who caused an accident with injury
|Drivers with a DUI
|Drivers with poor credit
|Adding a teen driver (16-year-old)
|Young drivers (ages 18 to 25)
|Senior drivers (ages 70 and 80)
Both State Farm and Farmers have a telematics program. Here’s an overview to review which one might suit your needs best.
|State Farm Drive Safe & Save
|This is a good option for low-mileage drivers that the company claims can save up to 50% on premiums.
|You can get a 5% discount for signing up and save up to 15% savings for qualifying drivers. Drivers under the age of 25 can also qualify for an additional 10% savings. You can also win rewards every month, but Signal isn’t available in every state.
Here’s what State Farm’s Emergency Road Service offers:
- Mechanical labor
- Towing service
- Removal of stuck vehicle
- Gas or oil delivery
- Help with changing a tire or a jumpstart.
- Locksmith services
Farmers, meanwhile, covers up to $150 per incident alongside the following services:
- Flat-tire change
- Winching and lock-out services
State Farm or Farmers Car Insurance: Which One is Cheaper Overall?
The national average rate for good drivers, drivers with speeding tickets and drivers who have previously caused an accident with injury is $2,150 per year. In comparison, you get much cheaper rates from State Farm than Farmers. State Farm offers rates below the national average, while Farmers’ rates exceed the average.
For drivers who have a DUI record, the national average cost is $3,537 annually. State Farm offers a better deal in this case too. However, Farmers auto insurance is the more affordable option if you have poor credit. Your credit score correlates with the chance of making an insurance claim, so insurance providers often charge higher rates for poor credit.
Once again, State Farm offers better rates for adding a teen driver to your policy. Its rates are $300 below the national average of $2,419, while Farmers’ rates exceed that by $1,300. Similarly, State Farm car insurance rates are lower for young drivers, aged 18 to 25. In contrast, Farmers rates exceed the $4,706 national average for young drivers.
Finally, senior drivers get a more competitive cost from State Farm. Farmers auto insurance rates are again above the national average by $350 a year, while State Farm offers rates at $400 a year below the average.
By comparison, State Farm tends to be the more affordable option. But you should keep in mind that the cheapest car insurance provider may vary depending on your location too.
State Farm vs Farmer Homeowners Insurance
Much like car insurance, both companies are well-established in the homeowners insurance industry. Both insurance providers offer unique coverage options at various prices.
If you’re looking for flexible coverage, State Farm has a wide range of coverage extras to choose from. But it doesn’t offer many homeowners discounts, with only four discount offers available. While State Farm’s home insurance can be more expensive than average, third-party reviewers positively rate its home insurance policies.
Farmers homeowner insurance is a popular option among customers because of the variety of policy options and affordable rates it offers. Despite the wide selection of options, third-party reviewers and consumers give Farmers somewhat average reviews.
Both State Farm and Farmers offer interesting home insurance products with similar reviews and ratings from customers and third parties. Take your time to compare quotes, discount, and coverage types to determine which suits you best.
- Dwelling coverage covers the damage to your home and attached structures, like a back porch.
- Other Structures Coverage covers damage to other structures you have on your property, such as a detached garage.
- Personal property coverage protects your personal property from theft or damage.
- Liability insurance pays for lawsuits arising from injuries or damages to others due to an accident.
- Additional living expenses coverage pays for extra expenses like hotel bills if you are unable to live in your home due to a covered issue, such as a fire.
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Home Insurance Options
You can also get various add-ons from State Farm and Farmers for your home insurance. Options for home insurance add-ons include:
|Insured dwelling coverage lets you add extra coverage for your house if you need to spend more for repairs than stated in your policy. This type of coverage is a good option to have if local construction costs rise.
|Extended replacement cost coverage provides 125% or 150% of your dwelling coverage if repair costs exceed your insured amount.
|ID theft insurance helps you navigate the recovery process for up to a year and will reimburse you up to $25,000.
|Guaranteed replacement cost coverage gives you unlimited coverage for the costs to repair or rebuild your house. This coverage is a gold standard, especially if there’s a major disaster in your area.
|Personal articles policy covers everything from jewelry to sports equipment. It doesn’t have a deductible and covers the replacement costs of your items.
|Identity shield gives you ID theft protection and credit monitoring services.
|Umbrella insurance will cover liability claims that exceed your home insurance policy limits.
|Earthquake insurance covers your home and private property if damaged by an earthquake.
|Flood insurance covers your home and personal belongings from damage caused by a flood
Along with this, Farmers also sells umbrella insurance, and coverage for condos, renters, mobile and manufactured homes, vacation homes, vacant homes, and landlord insurance.
Home Insurance Dicounts
State Farm Home Insurance Discounts
You can save money on your State Farm policies with discounts such as:
- Bundle policies. You can qualify for discounts by purchasing multiple policies. You can save an average of 23% by bundling home and auto insurance policies.
- Home security insurance discount. You can qualify for a discount by installing fire and burglar alarms to secure your house.
- Roofing discounts. State Farm provides roofing materials discounts if you use hail-resistant shingles.
Farmers Home Insurance Discounts
Here are a few ways to save money on your Farmers home insurance premium:
- Secure your home. If you install fire alarms, security alarms and secure your locks and windows, it may help you qualify for a discount.
- Don’t smoke. Farmers offers discounts to non-smokers and those who have quit the habit for at least two years.
- You can also qualify for a discount if you buy multiple policies from Farmers, like an umbrella policy or car insurance.
- You can also get discounts based on your career. For example, teachers, police officers and firefighter can get discounts.
State Farm vs. Farmers: Which One Should You Choose?
In most states, State Farm can give you the cheapest average prices on car insurance and relatively better customer experience, while Farmers can give you more unique coverage choices. If you value cheaper rates and more discount savings, State Farm should be the better choice. But if you’d prefer unique coverage options, Farmers is the likely choice.
State Farm also has great online tools, especially its calculators. It offers several online calculators for budgeting, savings, and credit. But both companies offer online tools to make things easier. Ultimately, State Farm takes the cake. It has cheaper rates, better customer experience and fewer complaints in recent years.
But the ideal insurance provider comes down to your specific requirements and preferences. So, do your homework and compare offers you can get from both companies before deciding your pick.
Frequently Asked Questions
Which is more financially stable, State Farm or Farmers?
If you look at third-party reviews, State Farm received the highest A+ score from A.M. Best, highlighting its superior financial strength. Farmers scored an A, which although excellent isn’t as strong as State Farm.
Which insurance company has the most discounts?
Farmers offers the most discounts. It’s easy to qualify for most of the discounts. However, since Farmers has a higher cost of coverage, State Farm might help you save a bit more.
Is State Farm and Farmers insurance the same?
State Farm and Farmers Insurance are two separate insurance companies with their own unique brand identities, products, and services. While both companies offer various types of insurance coverage, including auto, home, life, and business insurance, they are not the same entity.
- Farmers Insurance vs State Farm: Head-to-Head
- State Farm vs Farmers Pros
- Farmers vs State Farm Cons
- Farmers vs State Farm: Car Insurance
- Car Insurance Rate Comparison
- Telematics Option
- Roadside Assistance
- State Farm or Farmers Car Insurance: Which One is Cheaper Overall?
- State Farm vs Farmer Homeowners Insurance
- Home Insurance Options
- Home Insurance Dicounts
- State Farm vs. Farmers: Which One Should You Choose?
- Frequently Asked Questions
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