What’s Better for Car Insurance – Farmers or State Farm?

Last Updated on June 5, 2021

There are so many different car insurance companies on the market, and it’s very difficult to choose the one that’s best for you. Farmers and State Farm are two leading insurance companies, with coverage options throughout the United States. If you’re shopping for insurance, there’s a good chance you’re looking at these two companies, and you may be wondering which one is better. Here’s what you need to know when comparing Farmers and State Farm for car insurance.

About Farmers

farmers or state farmFarmers is an insurance company with a very long history in the US. They were founded in 1928 in southern California, and are still headquartered in Woodland Hills, just outside of Los Angeles. The company was initially created to appeal to farmers, ranchers, and other rural customers. In addition to their auto insurance, they also offer roadside assistance, home insurance, life insurance, and many other types of insurance, as well as financial products like mutual funds and annuities. Their products are mainly available through independent insurance agencies.

About State Farm

State Farm is one of the largest insurance companies in the US, with 18,000 agents all over the country. They are headquartered in Bloomington, Illinois, and were founded in 1922. Their products are only available through State Farm insurance agents. In addition to car insurance, they also sell roadside assistance, home insurance, life insurance, health insurance, and much more. They also offer financial services like banking and mutual funds.

What Are the Advantages of Farmers?

  • Farmers and State Farm are fairly comparable in price, but there are some instances where Farmers tends to have cheaper car insurance. Specifically, Farmers’ average rates for drivers with poor credit are much better than State Farm’s. Farmers also offers better rates for ‘high-risk’ drivers who have accidents or other driving infractions on their record, like speeding tickets or DUIs.
  • Additionally, Farmers offers excellent discounts for seniors, so they tend to be a reliable choice for older customers. They also offer discounts for homeowners, which usually tends to be a benefit for older customers.
  • Farmers also has plenty of options to help you customize your car insurance policy to suit your needs. For example, they offer car replacement coverage, coverage for a rental car if your car is damaged, custom equipment coverage, and much more. This can help you get a policy that addresses your unique needs as a driver.

What Are the Downsides of Farmers?

Farmers is a generally reliable company without many downsides. However, they don’t offer quite as many discount options as State Farm. They also usually aren’t the best choice for younger customers, who will see much higher premiums with Farmers.

What Are the Advantages of State Farm?

  • There are some areas where State Farm can offer more affordable coverage than Farmers. State Farm offers much cheaper rates for young drivers in their teens and twenties. Policies for teen drivers are usually very expensive, so this puts State Farm at a big advantage for families.
  • State Farm also offers very robust policies for rideshare drivers, so if you drive for Uber or Lyft, they may be a good choice. Their rideshare coverage is available in 46 states as well as the District of Columbia.
  • Another benefit of State Farm is that they are an incredibly large insurance company, with offices all over the US in both urban and rural areas. This makes State Farm slightly more accessible than Farmers for some people, depending on where you live.
  • State Farm has a slightly stronger financial rating than Farmers, which means they are more likely to be able to pay claims even in times of economic hardship. Although Farmers also has a good financial stability rating, State Farm is considered stronger.
  • State Farm has an excellent range of discounts to choose from. Because they are such a large company, they are able to offer discounts for so many different types of drivers. Since they offer many other types of insurance as well, you can save a lot of money by purchasing your life and home insurance with them.

What Are the Downsides of State Farm?

Generally, State Farm is slightly more expensive than Farmers, although it depends on who you are and what type of insurance you are trying to get. They focus on providing quality coverage and great customer service rather than offering the cheapest rates. If you’re on a budget, State Farm might not be the best choice for you.

Financial Strength – Farmers vs. State Farm

Agencies like AM Best rate insurance companies on their financial strength and stability. These ratings are very important because they indicate the insurance company’s ability to pay their claims regardless of the situation or economic climate. Both State Farm and Farmers have good financial strength ratings, meaning they are very trustworthy. State Farm has a slightly higher rating of Superior, while Farmers is rated Excellent.

Customer Service – Farmers vs. State Farm

State Farm and Farmers are also both considered to have generally good customer service. Because they both use insurance agents to sell their products, they are able to provide a very personal customer service experience. When you have a dedicated insurance agent, there is always someone you can go to when you have a question about your policy or need to file a claim. Both companies receive a lower-than-average number of complaints about their policies and get good ratings for customer satisfaction. In addition to their independent insurance agents, both companies have mobile apps that you can use to file claims, pay bills, and more, which makes them much more user-friendly to people who prefer to manage their policies this way.

So, What’s Better – Farmers or State Farm?

Both Farmers and State Farm have their advantages when it comes to car insurance. The right insurance company for one person might be very expensive for someone else, which is why it’s very important to get personalized quotes from several different insurers before committing to a policy. Depending on what type of car you drive, your driving record, and many other demographic factors, one company may be able to offer you a better price.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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