Farmers vs. State Farm: Which Insurer Is Better for You?

Choosing the best insurer for you depends on what you’re looking for from your auto insurance company. Price-wise, State Farm is the winner, charging an average of $85 per month, while drivers with Farmers Insurance pay an average of $181 per month. And State Farm’s rates are lower in every state.

That said, Farmers excels in other ways. This insurer has more optional coverages, more discounts, and better customer reviews on at least one review site.

If you’re trying to decide between State Farm and Farmers Insurance for your auto insurance, here’s what you need to know:

Key Takeaways:

• State Farm offers lower average rates than Farmers for every driver demographic.
• Farmers Insurance offers both accident forgiveness and new car replacement as optional coverages, but State Farm doesn’t.
• Military members, federal employees, and teachers all may receive an affinity discount through Farmers.

How State Farm and Farmers Stack Up

Price is an important factor to consider when choosing your auto insurer, but it’s not the only one. We’ve researched dozens of companies to determine each one’s Compare.com Rating, which looks at factors like price, customer satisfaction, ease of use, availability, industry reputation, and more.

The table below breaks down scoring for Farmers and State Farm based on these factors:

State Farm comes out ahead of Farmers in each of the five categories. In particular, price-conscious drivers who want an insurer with an excellent industry reputation will probably prefer State Farm over Farmers.

That said, Farmers offers several benefits that State Farm doesn’t, including a more robust menu of optional coverages and many more discounts.

Farmers vs. State Farm: Breaking Down Average Rates

Not every driver is the same, which is why rates will vary — sometimes drastically — from one driver to the next. Factors like your location, age, driving record, and even credit history can affect how much you pay for auto insurance.

Here’s the average monthly amount Farmers and State Farm charge based on these factors, compared to the national averages that drivers in each demographic pay for insurance:

Keep in mind that the rates listed in this table are just averages. The specific rate you’ll receive from either of these companies — or from another insurer altogether — will vary a great deal depending on your specific situation, including your location. That’s why it’s so important to get quotes from multiple insurers. That way, you can be sure you’re getting the best coverage for the lowest price.

State Farm vs. Farmers: Average Car Insurance Rates by State

The state you live in can have a substantial effect on how much you pay for car insurance. That’s partially because each state has its own insurance regulations and requirements, which can affect what coverage you must purchase.

But rates may also go up or down within your state (or even your ZIP code), depending on the driving behavior of others in your area. For example, if your area has a large number of uninsured drivers, you’ll likely pay more for insurance than a driver living in a state with high insurance compliance.

In the table below, you can compare the average rates Farmers and State Farm charge drivers in each state where both companies offer insurance policies.

State Farm offers cheaper policies than Farmers in all but one state — California. But your state isn’t the only factor that has a serious effect on your rates. Let’s take a closer look at some others.

Farmers vs. State Farm: Average Rates by Age

Your age correlates with the likelihood of making an insurance claim, partially because age helps indicate your experience behind the wheel, maturity level, and risk-taking tendencies. That’s why younger drivers pay significantly more for their car insurance than those with a few more years under their belts.

The table below highlights the average monthly rates that Farmers and State Farm charge to drivers in each age group.

Which company is better for teens?

Teen drivers are new to the road and are more likely to take risks that older drivers would typically avoid. These two factors combine to make teens a risky prospect behind the wheel, and their insurance premiums are higher as a result.

With Farmers Insurance, drivers in their teens can expect to pay an average of $307 per month, while at State Farm, they pay an average of $140 per month, according to Compare.com data.

Which company is better for seniors?

Senior drivers generally have the most experience behind the wheel, which is why they often have the lowest insurance rates of any age group.

Our research found that Farmers Insurance charges an average of $136 per month to drivers in their 60s, while State Farm charges those same drivers an average of $62 per month.

State Farm vs. Farmers: Average Rates by Driving Record

Insurance companies pay close attention to your driving record, since it can be an indicator of your likelihood of filing a claim in the future. Insurers have found that drivers with a clean record are less risky to insure compared to people with a recent ticket, accident, or DUI. That’s why insurance rates go up after any kind of moving violation or claim.

In the table below, you’ll find the average monthly rates that Farmers and State Farm each charge for drivers based on their driving record.

Which company is better for good drivers?

Maintaining a clean driving record is one of the best ways to keep your auto insurance rates low since drivers with no moving violations or at-fault accidents get the best premiums from insurance companies.

With Farmers, a driver with a clean record can expect to pay an average of $181 per month, according to Compare.com data. The same driver would pay an average of $85 per month with State Farm.

Which company is better for drivers with a ticket?

Auto insurance companies take moving violations seriously since drivers with speeding tickets are more likely to cause an accident or file a claim. The average rate increase after a speeding ticket is 27% nationally, according to our research.

Farmers Insurance charges an average of $208 per month for drivers with speeding tickets, while State Farm charges an average of $94, according to Compare.com data.

Which company is better for drivers with a recent accident?

If you’re at fault in an accident, your auto insurance rates will increase by an average of 34% nationally, according to Compare.com data. This is true for Farmers and State Farm, as well.

Our analysis found that the average rate for a driver with a recent at-fault accident is $222 with Farmers and $102 from State Farm — well above the average rates they charge drivers with clean driving records.

Which company is better for drivers with a DUI?

A driver with a DUI poses a much greater risk of filing a claim, which is why a DUI conviction will increase your rates by an average of about 50% nationally, according to our research.

With Farmers Insurance, the average rate for a driver with a DUI is $281 per month, while State Farm charges an average rate of $132 monthly.

Comparing State Farm and Farmers Car Insurance Coverages

Car insurance companies offer a number of different coverage types to choose from. While all companies offer basic liability coverage — enough to cover your state’s mandatory required insurance — other available coverage options will vary from one company to the next.

Here are the optional car insurance coverages that Farmers and State Farm each offer to drivers:

Farmers edges ahead with 10 optional coverages compared to State Farm’s eight. Specifically, accident forgiveness and new car replacement coverage — which State Farm doesn’t offer — could be a good reason to choose Farmers.

Comparing State Farm and Farmers Car Insurance Discounts

One way to lower your insurance premiums is through discounts. Most discounts are based on your driving behaviors or other factors that correlate with a lower risk of filing a claim, although you may qualify for other discounts based on other factors, such as enrolling in auto pay.

The type and amount of the various discounts will vary between companies, and not all discounts are available in all areas. Here’s how Farmers and State Farm stack up for the most common discounts:

Farmers appears to be ahead of State Farm in the number of available discounts. But State Farm explains on its website that you may be eligible for additional discounts that aren’t necessarily listed and to contact your agent for more information.

It’s also worth noting that State Farm’s rates are generally lower than Farmers’, which may negate some of the need for discounts.

Comparing Farmers and State Farm Customer Satisfaction

Looking at actual customer reviews of Farmers and State Farm can help you gauge the level of customer satisfaction you can expect from each insurer. The table below compares the overall review and rating scores for both companies, compiled from various trusted review sites.

Though State Farm is ahead of Farmers for two of the three customer review sites, keep in mind that these ratings may be based on different sample sizes. State Farm has around 600 reviews on Trustpilot, more than 17,000 on Clearsurance, and around 4,000 on ConsumerAffairs — all more than Farmers for the same sites. The sheer difference in the number of reviews makes State Farm’s slim lead less significant.

Generally, negative State Farm reviews focus on the difficulty of filing claims and reaching agents or representatives during the claims process. This recent review is a representative example:

For Farmers, unhappy customers seem most likely to complain about rates going up or Farmers canceling their policies without warning, even though they haven’t filed any claims. Here’s one reviewer’s recent experience with this issue:

More About State Farm and Farmers

While price and customer review scores can help you determine which insurance company will give you solid service at a good price, these aren’t the only factors worth considering. State Farm and Farmers differ from each other in several ways beyond their premiums and customer satisfaction. Consider these important aspects of the insurance experience from both companies:

Company perks

Parents worried about their young drivers may be interested in State Farm’s Steer Clear program. Specifically, drivers under the age of 25 with no at-fault accidents or moving violations in the past three years can sign up for the program and save up to 20%.

Under this program, a young driver will take driver-focused training that includes course training, practice driving, mentorship, and program certification, all with the goal of improving safe driving habits and situational awareness.

Farmers, on the other hand, might be the right fit for drivers who belong to an affinity group or partner employer. The Farmers Insurance GroupSelect affinity discount can save you up to 23% on your insurance, and it could also allow you to make your auto insurance payments through automatic payroll deduction, taking one more thing off your to-do list.

Claims processing

Both State Farm and Farmers offer multiple ways to file a claim. In either case, you can file over the phone, on the company website, or through the company’s mobile app. State Farm encourages customers to file online or on the app.

Though both insurers tout how easy the claims process is, customers may not agree. State Farm has a rating of 1.19/5 stars with the BBB, and the insurer has a score of 1.97 on the NAIC Complaint Index, meaning State Farm receives nearly twice the number of complaints as expected.

Farmers also has low customer ratings with the BBB, with 1.12/5 stars. It also has a score of 1.07 on the NAIC Complaint Index, meaning it receives close to the expected level of complaints.

Mobile apps

Farmers and State Farm each offer highly rated mobile apps. Both apps have received 4.8 out of 5 stars on the App Store and 4.6 out of 5 stars on Google Play.

The Farmers app — which is available for both iOS and Android — allows you to get a quote, pay your bill, request roadside assistance, report a claim, stay connected to your agent, and receive push notifications about your account.

The State Farm insurance app — also available on both iOS and Android — allows you to access your policy, file and manage your claims, make payments, get roadside assistance, upload photos and documents, and contact your agent.

Farmers vs. State Farm FAQs

If you’re comparing Farmers’ and State Farm’s auto insurance options, you may want to consider the answers to the following common questions.

What are the best car insurance companies?

The best car insurance company for you depends on your driving record, insurance profile, and coverage needs. In addition to shopping around to find the right insurer for your needs, it’s also a good idea to check an insurance company’s financial strength rating with AM Best and its customer satisfaction rating with J.D. Power.

What’s the difference between Farmers and State Farm?

Generally, State Farm offers lower rates, with policies averaging $85 per month — lower than the national average of $135 per month. On the other hand, Farmers customers pay an average of $181 per month, according to our analysis. Still, Farmers offers many more optional coverages than State Farm, allowing its customers to customize their insurance.

Which insurance company is better than Farmers?

The best insurance company for your needs, whether it’s Farmers or another insurer, will depend on your specific driving record and car insurance profile. For instance, even though State Farm is typically a more affordable option than Farmers, price may not be your only consideration. Farmers offers a much more robust menu of coverage options than State Farm, which could make it the better choice for your needs.

What makes State Farm different from competitors?

J.D. Power ranks State Farm above average for customer satisfaction in all but two regions (where it ranks about average) and ranks this insurer above average for customer claims satisfaction. State Farm also offers lower rates for drivers with an accident, speeding ticket, or DUI compared to its competitors.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies, and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.

Sources:

1. J.D. Power, “2023 U.S. Auto Claims Satisfaction Study,” last accessed June 12, 2024.
2. J.D. Power, “2024 U.S. Auto Insurance Study,” last accessed June 12, 2024.
3. Government Employees’ Benefit Association, “Member Auto and Home Insurance Program,” last accessed June 13, 2024.
4. Clearsurance, “State Farm Insurance,” last accessed June 13, 2024.
5. Clearsurance, “Farmers Insurance Group,” last accessed June 13, 2024.
6. ConsumerAffairs, “State Farm Auto Insurance Reviews,” last accessed June 13, 2024.
7. ConsumerAffairs, “Farmers Auto Insurance Reviews,” last accessed June 13, 2024.
8. Better Business Bureau, “Customer Reviews for State Farm Insurance Company,” last accessed June 12, 2024.
9. Better Business Bureau, “Customer Reviews for Farmers Insurance,” last accessed June 12, 2024.
10. NAIC, “State Farm Mut Auto Ins Co National Complaint Index Report,” last accessed June 12, 2024.
11. NAIC, “Farmers Ins Co Inc National Complaint Index Report,” last accessed June 12, 2024