Farmers Signal Review: How It Works & What You Should Know

An increasing number of car insurance companies offer telematics programs. Farmers Insurance customers can participate in its Farmers Signal telematics program to earn savings and other rewards. The Signal app tracks your driving habits and rewards you for good behavior, like not speeding, slamming on the brakes, or driving during rush hour.

Although the program can lead to decent savings, it’s not for everyone, especially if you need to work on safer driving habits. You could save up to 15% on your Farmers auto insurance premiums, too many risky driving behaviors could cause your rates to increase at your next renewal. Some people say the app doesn’t always accurately record their trips, but several customers say they save 5%–10% by participating in the program.

Here’s how Signal works, ways to maximize your savings, and how it stacks up against the competition. Plus, we’ll share reviews from real-life Signal participants to help you determine if the program is worth it.

What Is Farmers Signal?

Signal is a telematics program offered by Farmers Insurance that tracks your driving habits through a smartphone app. Your good driving behavior could help you save money on your Farmers auto insurance policy.

The Signal app monitors your behavior as you drive and gives you a score after each trip. If you maintain a score of 80% or higher, you may be eligible to win up to $100 in rewards — not to mention lower car insurance rates.

Farmers Insurance isn’t the only telematics program available. Many of the best auto insurance companies offer usage-based insurance options, including:

• Liberty Mutual and Safeco RightTrack
• State Farm Drive Safe & Save
• Allstate Drivewise
• Progressive Snapshot

How Does Farmers Signal Work?

The Signal program works through a smartphone app that you download onto your phone and will remain in your phone’s background. Once it detects you’re driving, the Signal app automatically starts recording the trip. After the trip ends, it’ll show up in your home screen trip list, allowing you to review your results and change the trip type (more on that later).

Knowing what the app tracks and how it determines who’s driving can help you better understand how Signal works.

Let’s take a closer look.

What does Signal track?

Like many other usage-based insurance programs, Signal monitors driving habits and behaviors, including:

• Hard braking
• Driving faster than the posted speed limit
• Phone usage while driving
• Mileage of each trip
• The time of day you drive

Signal also has an optional CrashAssist feature that uses sensors in your phone to detect if you’ve been in an accident. You’ll get a push notification on your smartphone asking you to confirm whether you were in a crash. From there, the app can:

• Contact emergency services in the area
• Help you file a claim
• Access roadside assistance

Although Signal tracks your location and the personal information you provide at enrollment, it can’t track other app data or personally identifiable information (PII).

How does Farmers know who’s driving?

The Signal app observes your behavior — including your phone’s rotation as you get into your car — to determine who’s driving, according to the Farmers website. You can change the trip after it’s complete if the app incorrectly labeled you as the driver.

To do so from the Home screen:

1. Go to the Trips section.
2. Select “All Trips.”
3. Locate the trip in question and click the right arrow.
4. Scroll to the bottom and click “Edit.”
5. Change the type to Passenger, Not a Car, or Driver, then click “Done.”

How Much Can You Save With Farmers Signal?

Signal customers save 5% when enrolling and can save up to 15% for practicing safe driving habits. Keep in mind your discount will vary and can change at each renewal depending on driver participation and behaviors throughout the prior policy term.

All household drivers must participate to be eligible for the maximum discount. Besides the discount potential, you can win a monthly reward of up to $100 if you earn a driving score of 80% or better.

Some Farmers customers say they earn around 10% in savings or less with the Signal app, as shown in the reviews below.

Farmers Signal vs. the Competition

Usage-based and telematics programs are extremely popular among auto insurance companies — even the cheapest insurers typically offer this option for potential savings.

The table below shows some of the most popular usage-based insurance programs, including initial and maximum discounts.

Farmers’ and State Farm’s telematics programs offer the lowest initial discount of 5%. And Farmers’ maximum discount is also the lowest of all programs on this list. Several companies — like Liberty Mutual, Nationwide, and Travelers — offer higher discounts of up to 40%. That means safe drivers and low-mileage drivers could potentially see significant savings.

How to maximize your Signal discount

If you want to get the maximum Signal discount, make sure you enroll young drivers in your household into the program — and be sure that every household participant practices safe driving habits. Here are some helpful tips:

• Use a phone cradle: Put your phone in a cradle or stand so it doesn’t move around, which can cause false phone usage readings.
• Calibrate your phone’s accelerometer: Smartphones have built-in sensors that measure movement. Adjust yours to improve app accuracy.
• Follow the speed limit: Stay within the posted speed limit to earn a higher safety score.
• Avoid driving during peak times: If you can, don’t drive during peak times, like morning and evening rush hour or late at night.
• Keep your mileage low: Carpool, ride your bike, or take public transportation to reduce mileage.

Can your rates go up with Farmers Signal?

Yes. Farmers Signal can decrease or increase your discount based on your driving behavior. And while safe drivers can save on their insurance premiums, drivers with risky behaviors — like excessive speeding or phone use while driving — could see a rate increase.

You can also get a rate increase from other factors, such as:

• Not having all drivers in the household use the Signal Farmers app
• Driving through heavy traffic or late at night
• Letting a passenger use your cell phone while you’re driving

Is Farmers Signal Worth It? What Real Customers Are Saying

Though Farmers Signal may be worth it for the safest drivers who don’t drive many miles, it may not be worth it for everyone. Its low discount potential makes it one of the telematics programs least likely to offer significant savings.

With that said, the CrashAssist feature could help you receive emergency care faster if you get into an accident, and the potential to win Signal Rewards may make it worthwhile.

Looking at online reviews, Signal customers note that the program makes them more aware while driving, but many are frustrated by inaccurate trip logging, phone usage errors, and the app draining their phone battery.

One customer also mentions speed limit changes on a local road that the app hasn’t picked up, resulting in an inaccurate record of excessive speeding. But this doesn’t appear to have a significant effect on their score.

Check out the reviews below to help determine if Farmers Signal is worth it for you.

How to Sign Up for Farmers Signal

It’s easy to sign up for Farmers Signal. Follow the steps below to get started.

1. Get an auto insurance quote with Farmers or ask your agent

New and existing auto insurance customers can sign up for Signal through Farmers. If you’re new, ask about including the Signal discount when getting a quote. If you’re a current customer, contact your Farmers agent or call 1 (800) 709-7821 to enroll in the program.

2. Download the mobile app

To start the Signal program, you first have to download the mobile app. Farmers will text you a link; go to the link and download the Signal app on your smartphone. Then, enter your personal information and enable app permissions for location and tracking to get started.

3. Drive safely

Driving safely can help you get and keep a high focused driving score, lowering your premium and making you eligible for Signal Rewards. Farmers monitors the following driving behaviors when calculating your score:

• Hard braking
• Speeding
• Time of day you’re driving
• Mileage
• Phone use while the vehicle is in motion

4. Monitor your progress

The Signal app lets you view the last 30 days of your trip history. Click “My Driving Behavior” to view details and compare your driving score to other driver scores in your household.

5. Collect your discount

The Signal app shows your current discount on the home screen in the top right corner. Click on “My Discount” to see your estimated renewal discount. Your discount can change at each policy renewal.

Farmers Signal FAQs

These answers to the most common questions about the Farmers Signal app and program can help you determine if it’s the right choice for you.

Is Farmers Signal worth it?

It depends. With Signal, eligible Farmers customers can save up to 15% on their insurance premiums. It may be worth it for safer drivers who obey the speed limit and avoid hard braking, using their phones while driving, and driving during heavy traffic periods. Customers report average savings of around 10%.

What data does Farmers Signal collect?

Farmers Signal collects personal information you provide during enrollment. It uses cookies to track your location when you’re in motion and keep you logged in so the app can automatically run when you drive. The app may also gather anonymous data to determine the average miles driven and trips taken for all users.

Does Farmers Signal actually lower your bill?

It depends. Farmers Signal can lower your bill, but your premium can also go up if you practice risky driving behaviors. You can track your trips and driving score through the Signal app to see what your savings could be at your next policy renewal.

Can you track other drivers in the household through the Signal app?

The Signal app doesn’t allow you to see trip details for other household drivers. But you can see their focused driving scores by going to the “more” screen and clicking on “All Household Drivers.”

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.

Sources

1. Google Play, “Signal by Farmers,” Accessed April 1, 2024.
2. App Store, “Signal by Farmers,” Accessed April 1, 2024.