In 1928, John C. Tyler and Thomas E. Leavey founded Farmers Insurance as an auto insurer for farmers and ranchers, believing from their own personal experience that farmers and ranchers pose fewer auto insurance risks. The company has since grown to offer not only auto insurance, but homeowners, renters, life, business, and more. It operates three reciprocal insurers that are owned by their policyholders. So if you’re considering Farmers Insurance, here’s what you need to know.
Is Farmers Insurance Right for You?
Farmers Insurance may be a good fit if you need auto, home, renters, landlord/rental property, life, business, motorcycle, recreational, or umbrella insurance. The insurance company serves all ages, and even offers a rewards-earning credit card.
If you have an unusual insurance need, Farmers may be able to help. Farmers Insurance can perhaps offer such a wide range due to the network of companies it oversees, including Foremost (which insures specialty property such as mobile homes and watercraft) and Toggle, which exclusively insures renters.
Is Farmers Insurance Available in My State?
Farmers Insurance offers coverage in all 50 U.S. states, although policies and discounts differ. Some Farmers Insurance sub-companies are only available in certain states. For example, 21st Century Insurance only serves California drivers, and Toggle is only available in 25 states.
Pros and Cons of Farmers Insurance
Insurance, discount, and investment options
Potentially confusing companies
Farmers Insurance Pros Explained
- Insurance, discount, and investment options: Farmers Insurance offers attractive insurance discounts in some states, including a defensive driving discount for seniors who’ve passed an approved driver’s-education course, which makes it a top choice for senior auto insurance. The Farmers Financial Solutions arm offers college savings, retirement, and emergency-cushion investment plans. Unusual coverages include pet insurance, vacation-home insurance, rideshare insurance, and jet-ski insurance.
- App options: Policy perks for Farmers Insurance customers include the Farmers Mobile App, policyholders can pay bills with Siri, report claims, store auto insurance cards, and get roadside assistance. The Farmers Signal app can save between 5% and 15%, based on your safe-driving habits.
- Renter-friendly insurance: Toggle is a Farmers Insurance brand available in 25 states, targeted at renters, side-hustlers, and millennials. It includes various price points for entry, and you may opt for coverage for travel, high-value equipment, “pet parents,” small-business owners, and bed-bug remediation. Toggle works with Credit Lift by RentTrack to provide a positive credit history for on-time rent payments.
Farmers Insurance Cons Explained
- Potentially confusing companies: While it’s probably beneficial overall that Farmers Insurance can offer many products through dozens of brands, companies, and subsidiaries, finding the right one for your coverage needs or customer reviews via online searches may be difficult. The online quote system or a live agent should be able to assist.
- Customer complaints: Although the main company has had a number of complaints filed with the Better Business Bureau (BBB), many of which focus on a product or service of the company, Farmers Insurance has maintained its accreditation and “A-” overall BBB rating.
Farmers Insurance Products and Services
Farmers Insurance offers several types of insurance policies for personal and business needs, including:
- Property insurance: Home, condo, and renters insurance, along with seasonal/vacation home, vacant home, landlord and rental property, mobile and manufactured home, plus flood and earthquake insurance are all available for homeowners.
- Vehicle insurance: Autos, motorcycles, collectible cars, rideshare, and recreational vehicles such as boats, jet skis, off-road vehicles, fifth-wheel trailers, motorhomes, and travel trailers, can all be insured.
- Personal insurance: Life insurance including term, whole life, and universal life, along with add-on plans for accidental death, disability, critical illness, and accelerated death benefits, is available for purchase. Identity and umbrella insurance plans are also available.
- Business insurance: Property, liability, employee or third-party crime, loss control, auto, workers’ compensation, umbrella, and employee life insurance are available. Custom-crafted insurance strategies for a variety of businesses are possible, including apartment-building owners, nonprofit organizations, restaurants, small stores, and wholesalers.
What Discounts Are Offered?
Discounts differ on a state-by-state basis, although multi-line discounts are common, as are discounts based on your occupation or profession, such as those for teachers or firefighters.
Auto Insurance Discounts
For auto insurance, defensive-driving discounts are available for vehicles with daytime running lights and vehicle-recovery devices, among other features. There are family discounts available, including teen-driver and good-student reductions, and completion of defensive-driving classes for teens or seniors. Farmers Insurance provides discounts for hybrid and alternative-fuel vehicles, as well. The Signal telemetrics app can save you between 5% and 15%, too.
Home Insurance Discounts
For homes, discounts may be available based on who you are and what you do. For example, nonsmokers and people in certain occupations may be able to save more. Discounts may also be extended to those who have bought new homes, are buying via rent-to-own strategies, install impact-resistant roofing, or perform home renovations. Safety discounts may be available for homes with installed alarm systems, and those with eco-friendly and safety features.
Other Farmers Insurance Notable Offerings
Some coverage types and extra perks may only be available in certain states.
- The Farmers Rewards Visa credit cards offer three points for every $1 spent on a Farmers product, gasoline, or home improvement, and one point for every $1 spent on everything else. Points can be redeemed for statement credit, travel, gift cards, and more.
- An auto insurance endorsement for rideshare drivers is available in 29 states.
- Toggle insurance offers “side-hustle coverage” for part-time businesses earning between $1,000 and $25,000.
- Toggle’s “Creative and Maker Coverage” covers expensive tools that artists often need, including cameras, 3D printers, DJ equipment, musical instruments, and projection equipment.
- Pet insurance covers animal accidents, well-pet checks, and illnesses.
- Comprehensive options for collectible cars, including coverage suitable for auto shows.
- Identity Shield insurance covers up to $28,500 in expenses incurred when someone steals your identity, including credit monitoring, replacing identification, and losses due to identity theft.
Farmers Insurance Ratings and Reviews
Insurance stability rating firm AM Best gave Farmers Insurance an “A-" (Excellent) financial strength rating.
According to J.D. Power’s 2019 U.S. Auto Insurance Study, Farmers Insurance was rated “about average,” ranking toward the bottom of the list for each applicable region. It was also rated “about average” in the J.D. Power 2019 U.S. Home Insurance Study. However, Farmers received only two out of five power circles from J.D. Power where renters insurance is concerned, lumping it in with “the rest.”
Farmers Insurance has been BBB accredited since 1951 and has an “A-” rating. Customer reviews are at a little over one star, though, with 701 complaints closed between 2017 and 2020.
The Farmers Insurance, Inc. app is rated 4.8 in the Apple App Store and 4.6 in the Google Play Store.
The Bottom Line
Farmers Insurance may be a good fit for you if you’re looking for good customer service online, hope to find well-rated homeowners insurance, or have special valuables or unique living spaces, such as a second home, mobile home, or travel trailer. The company strives to offer wraparound insurance, investments, and financial products, too, such as credit cards. While it offers many products and services, it’s important to consider all of your insurance options to find the plans that make the most sense for your financial situation.