What’s Better for Car Insurance – Farmers or GEICO?

Last Updated on June 6, 2022

Choosing a car insurance provider these days can be difficult – there are so many options, and it’s difficult to determine which ones have the best service. Two popular options today are Farmers and GEICO. While these companies are similar in many ways, they also have many differences, and one company may be better than the other for you, depending on who you are and what type of coverage you need. Here’s what you need to know when comparing Farmers and GEICO.

About Farmers

Farmers was started in 1928 and is based in Los Angeles, California. Their policies are sold mainly through insurance agents with offices around the country, although they do have a website and a mobile app where you can manage many different aspects of your policy. They also offer home insurance, life insurance, motorcycle insurance, business insurance, and other types of coverage, as well as financial products like annuities and mutual funds.

About GEICO

GEICO has also been in business for a very long time, having been founded in 1936. They were originally known as the Government Employees Insurance Company. The company initially catered to government employees, but they have always been a private organization and anyone can apply for insurance with them. They were originally founded in Fort Worth, Texas, but are currently headquartered in Maryland. They are currently the largest insurance company in the US, after State Farm. Their policies are mainly available online, and they offer a website and app catered to young, tech-savvy customers.

What’s the Advantage of GEICO?

The advantage of using GEICO for your car insurance is that they are generally one of the most affordable insurance policies on the market, and they provide excellent value for money as well. When compared to Farmers, they almost always offer cheaper quotes, particularly for younger drivers or drivers that are considered high-risk. For those on a budget, GEICO offers very affordable options. GEICO also has a no-drop policy, which means that you don’t have to worry about being dropped from coverage for any reason once your policy has started. Farmers does not offer this option.

GEICO also stands out because they make it very easy to manage your policy entirely online. While Farmers does have an app, they still use insurance agents to manage their policies. Many people like the convenience of being able to apply for a policy, pay your bill, and file claims entirely online. This has made GEICO particularly appealing to younger, tech-savvy customers.

Finally, GEICO has a slightly stronger financial rating from AM Best and other rating agencies. GEICO is rated at an A++, while Farmers is only rated an A. Both are very stable and can pay claims even in harsh economic climates. However, GEICO is a larger company with a slightly stronger financial base.

What is the Disadvantage of GEICO?

GEICO is a generally reliable insurance company that doesn’t have many disadvantages, which is why it is so popular. However, for customers who want a more personal customer service experience, GEICO may not be the best choice. GEICO also doesn’t offer many coverage options for people who have had accidents within the last several years or who are considered high-risk drivers.

What’s the Advantage of Farmers?

There are also many advantages to using Farmers. Farmers is known for its excellent customer service. If you prefer to work with a knowledgeable insurance agent who can guide you through the process of selecting a policy, Farmers will give you what you are looking for. You can also contact your insurance agent at any point for questions or assistance with filing claims. Farmers offers very robust policies with excellent coverage, and they offer great coverage options for rideshare drivers and other unique driving situations. They get fantastic customer service reviews as well.

Farmers also offers excellent discounts for seniors. Farmers and GEICO offer many similar discounts, but Farmers stands out with the discounts that they provide for older drivers. They also cater to families by offering discounts for having a student away at college or being a homeowner. They also offer discounts for people in specific occupations. If you’re interested in Farmers, be sure to talk to your agent about the discounts you could potentially qualify for.

What Is the Disadvantage of Farmers?

The biggest disadvantage of Farmers is that they are more expensive than GEICO and some of their other competitors. For people who are on a budget, Farmers likely won’t have the most affordable option. You also have to go through an insurance agent, which can be inconvenient for some people.

How Are Farmers and GEICO Similar?

Farmers and GEICO do offer many similar features and coverage options. For example, they both offer all the same basic discounts for bundling policies, having multiple cars, being a good driver, being a good student, etc. They both also have tracking apps that you can use to earn discounts. These apps monitor your driving habits and reward you by driving safely and defensively. Both companies also offer roadside assistance coverage options (Farmers / GEICO). This coverage will help you if you are stuck on the side of the road and need towing, gas delivery, emergency locksmith services, and more.

Ultimately, there isn’t one best choice when comparing GEICO and Farmers. It really depends on what you’re looking for and the specific quote you get from each company. GEICO typically has cheaper rates than Farmers, but Farmers stands out for their customer service and robust coverage. GEICO may be better for younger drivers or drivers on a budget, while seniors and families may prefer Farmers. When shopping for a car insurance policy, you should always get quotes from as many companies as possible to see what rates you qualify for. The company that is cheapest for one person may be more expensive for someone else, which is why it’s so important to get a quote.