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Farmers Insurance Review 2018: Complaints, Ratings and Coverage

Auto Insurance, Insurance

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Farmers reviews and ratings

  • Customer satisfaction ratings are average for both home and auto insurance
  • Fewer customer complaints than the median for auto, home and life insurance products
  • Compared to other insurers, Farmers has a lot of options to customize home and auto policies

Overview

Farmers Insurance is the fifth-largest home insurer and seventh-largest auto insurer in the country. It offers an array of other insurance products as well as financial products such as mutual funds and annuities.

Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “about average” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “about average” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “about average” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.


Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “about average” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “about average” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “about average” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Farmers auto insurance

Farmers offers standard coverage choices for auto insurance, in addition to several types of optional coverage, including:

  • New car replacement: If your new car is totaled in the first two model years or 24,000 miles of ownership, Farmers pays to replace it with a new one.
  • Accident forgiveness: One accident is forgiven, meaning your rate won’t go up if you have one, for every three years you drive without an accident.
  • Small-claim forgiveness: Your rate stays the same even if a small accident is your fault.
  • Incident forgiveness: Don’t sweat that speeding ticket. If nobody files a claim related to the incident, your rate stays the same. Not available in all states.
  • Loss of use: When your car is in the shop or totaled after an accident, Farmers reimburses you for a rental, cabs or public transit.
  • Extended customized equipment: If you have custom parts installed in your car, such as chrome rims or a new stereo system, this option expands your policy to cover those parts if they’re stolen or damaged.
  • Rideshare insurance: Companies such as Uber or Lyft typically provide limited liability insurance for drivers while the app is on, with full coverage that kicks when you accept a ride and have passengers. Farmers rideshare insurance extends your personal auto policy to fill in the gaps, providing coverage between rides, so you’re always covered during your rideshare job.

Farmers home insurance

Like its auto policies, Farmers homeowners insurance starts with the basics and allows customers to add features they want or need.

Farmers Smart Homeowners Policy is an upgraded policy that includes standard homeowners insurance, plus:

  • Claim forgiveness, which waives the surcharge if you go six or more years without filing a claim.
  • Cosmetic damage coverage, which covers the cost of any reasonable cosmetic fixes when you file a claim for functional damage to your home. (Availability varies by state.)

There are other individual options you can add to any Farmers homeowner policy, if it is available in your state:

  • Identity Shield: For $65 or less per year, this feature allows you to add on identity theft coverage, including credit monitoring and assistance replacing identity or travel documents
  • Eco-rebuild: Receive up to $25,000 for extra costs to repair, replace or rebuild your home with green materials after you file a claim
  • Contents replacement: When an item in your home is damaged or destroyed, you receive reimbursement for the value of a new one
  • Trees and shrubs: Pays up to $750 per item if your trees, shrubs, plants or lawn are damaged — for a total of up to 5% of your dwelling coverage

Farmers life insurance

Farmers offers several types of life insurance policies, including term, whole and universal life insurance. All of Farmers’ term life options are convertible to lifelong coverage.

Simple Term Life fast-tracks the application process, allowing you to skip the medical exam and get insured more quickly.

  • Coverage starting at: $75,000
  • Terms offered: 10, 20, or 30 years

Value Term Life from Farmers comes with a guaranteed death benefit amount, and your premiums won’t increase during the term you sign up for. If you convert to whole life or a longer term, your rates might increase.

  • Coverage starting at: $150,000
  • Terms offered: 10, 20, or 30 years

Decreasing Term Life is for people who want a policy to cover only a mortgage or other debt. The death benefit decreases to 20% of the original value over time, while premiums remain level.

  • Coverage starting at: $25,000 in most states; $50,000 in Texas and California.
  • Terms offered: 15, 20, 25 or 30 years.

Other types of insurance from Farmers

In some cases, you may be able to save money by bundling these products with a Farmers homeowners or auto insurance policy.

Other types of insurance from Farmers
  • Renters insurance
  • Landlord/rental property insurance
  • Umbrella insurance
  • Business insurance
  • Motorcycle insurance
  • Pet insurance
  • Off-road vehicle insurance
  • Boat insurance
  • Personal watercraft insurance
  • Travel trailer insurance
  • Motorhome or RV insurance
  • 5th wheel insurance
  • More about Farmers Insurance

    Website: You can connect with an agent, get a quote, report a claim and check on its status, find the number to call for towing and roadside help and more. You’ll find ample resources to help with your claim, as well as a checklist of what to do in an accident.

    Mobile app: You can pay your insurance bill, update payment options, get your agent’s contact information, view your policy details, and get access to your digital insurance ID cards when you need proof of insurance.


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    NerdWallet’s star ratings are based on the following three factors, each weighted equally to produce a 300-point maximum total score:

    • 2017 consumer complaints data from the National Association of Insurance Commissioners. The median complaint ratio for the industry is 1. Lower ratios are better. Insurers whose median complaint ratios were more than 1 received fewer points; those lower than 1 received more points.
    • 2017 company satisfaction data from the Consumer Reports Winter Survey. Higher satisfactions ratings from Consumer Reports were given higher scores in our calculation.
    • 2017 J.D. Power ratings from three studies encompassing regional customer service satisfaction, auto claims satisfaction and shopping satisfaction. Ratings from each of the separate 2017 studies were averaged to form one overall score from J.D. Power. The higher the average, the more points the insurer scored in our calculation.

    Only larger insurers with data available in all three of these categories were included. Smaller insurers not listed here may also be good choices and are worth consideration.