What’s Better for Auto Insurance – Farmers or Progressive?
Last Updated on April 21, 2023
Farmers and Progressive are two of the biggest insurance companies in the United States.
Progressive has a market share of around 9%, making it the fourth-largest insurance company in the country, while Farmers has a market share of around 3% nationwide.
Both Farmers and Progressive offer similar insurance products and services. They also charge similar prices.
Which company is better for auto insurance – Farmers or Progressive? It depends on what you’re looking for. Keep reading to discover the differences between Farmers and Progressive.
Farmers is one of the top ten largest car insurance companies in the United States. The Los Angeles-based firm has a 3% market share nationwide. Farmers sells car insurance and other insurance products in all 50 states.
You can obtain Farmers car insurance through one of the thousands of captive agents nationwide. Farmers also offers free insurance quotes online.
Progressive is an Ohio-based insurance company founded in 1937. The company insures motorcycles, boats, RVs, and commercial vehicles, among other items.
Progressive is also one of America’s largest companies, ranking at number 99 on the Fortune 500 list of the largest corporations in the United States by total revenue (Farmers is number 270 on the list).
Like Farmers, Progressive sells car insurance online and through insurance agents. The company offers car insurance in all 50 states, although specific products and services vary slightly between states.
Farmers Versus Progressive for Car Insurance Rates
Farmers and Progressive offer similar pricing, although rates vary by gender, age, and credit score in most states.
Both Progressive and Farmers charge similar rates to drivers with minor incidents on their records. However, Farmers is more tolerant of drivers with more serious accidents on their record. In one comparison, Farmers charged $600 less per year, on average, to drivers with an at-fault accident (damages over $1,000) on their record.
However, Farmers seems to treat DUIs and DWIs more seriously. In that same comparison, Farmers charged $1,000 more per year than Progressive for a driver convicted of DUI/DWI.
Rates also vary by age. Teenage drivers pay high rates with both Progressive and Farmers, although Progressive tends to be slightly cheaper for teenage drivers. Both companies offer competitive rates for drivers in their 20s, 30s, 40s, 50s, and 60s, with rates different by just 1% to 5%, on average.
Farmers and Progressive are two of America’s largest car insurance companies, so it makes sense the two would offer similar pricing.
In some states, Farmers is the cheaper option. In others, Progressive is better. The two companies charge different rates based on your age, gender, ZIP code, and other demographic information.
Overall, it’s a good idea to compare car insurance quotes from Progressive and Farmers to find the best car insurance in your region.
These are the discounts offered by both insurers:
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What Makes Farmers Unique?
Farmers has several features that distinguish it from Progressive and other insurers, including:
Signal: Farmers has a driver tracking program called Signal, which monitors your driving habits and rewards you for safe driving. Signal monitors your braking, mileage, speed, and phone habits, then offers a discount based on this data.
Incident Forgiveness: Farmers offers incident forgiveness in certain states, allowing drivers to strike one incident from their driving record every three years. That incident can be an accident, a speeding ticket, or another event. Most companies offer accident forgiveness, but Farmers is one of the few offering incident forgiveness.
Rideshare Coverage: Uber and Lyft drivers can obtain rideshare coverage through Farmers, filling the gaps left by traditional rideshare insurance.
What Makes Progressive Unique?
Progressive is a large insurance company offering a wide range of products and services. Some of the features that differentiate Progressive from the competition include:
Snapshot: Progressive offers a driver tracking program called Snapshot. It’s a free opt-in program that tracks your driving habits, then gives you a discount based on the collected data. Drivers can save anywhere from 5% to 20% with Progressive Snapshot.
Gap Insurance: Progressive is one of a handful of major insurance companies offering gap coverage. Progressive pays up to 25% above the value of your car if it’s totaled, allowing you to cover a loan or lease balance even if there’s a “gap” between your vehicle value and loan amount.
Custom Parts and Equipment Coverage: If you have custom parts and equipment on your vehicle, then Progressive covers these items after a loss.
Rideshare Insurance: Progressive offers rideshare insurance in some states but not others.
Deductible Savings Bank: Drivers with comprehensive and collision coverage can opt into Progressive’s deductible savings bank, which lets you build up a deductible discount. You get $50 off your deductible for every six months you go without a claim, dropping it all the way down to $0.
Farmers Versus Progressive: J.D. Power Rankings
J.D. Power ranks America’s largest car insurance companies by claims satisfaction, customer service, and other metrics.
Farmers and Progressive had virtually identical J.D. Power ratings in 2019. Both companies received 3/5 stars for all seven categories, indicating they were “about average.” The seven categories included overall satisfaction, first notice of loss, estimation of process, repair process, rental experience, claim servicing, and settlement.
Although both companies received identical scores, J.D. Power placed Farmers five spots above Progressive in the overall ratings. Farmers ranked 13th overall, while Progressive placed 18th overall.
Farmers Versus Progressive: Financial Strength
Financial strength ratings play a crucial role in the insurance industry. A company with a good financial strength rating (FSR) has a better ability to cover its claims. A company with a poor FSR may be just a few bad disasters away from bankruptcy.
A.M. Best audits insurance companies to assess financial strength, checking the company’s debts, assets, and liabilities to ensure stability.
A.M. Best awarded Farmers an A (Excellent) rating in the latest audit.
Progressive scored a better rating, receiving an A+ (Superior) rating from A.M. Best. Only about 13% of companies in the United States score A+ or A++ (the two highest scores), which means Progressive is among the most financially stable insurance companies in the United States.
Final Word: Should You Go with Farmers or Progressive?
Farmers and Progressive are two of America’s largest insurance companies. Both companies offer similar insurance products and services and similar pricing. They serve all 50 states, with both companies scoring average ratings for customer service and claims satisfaction (including identical 3/5 scores overall in the latest J.D. Power rankings).
Because Farmers and Progressive are so similar, it’s a good idea to request a quote from both companies. Farmers is the better option in some areas, while Progressive is the better option in others.