If we’re honest, finding the right auto insurance company can be a difficult task. Today we will be comparing two well-known insurance companies.
In this State Farm vs Farmers car insurance comparison, we will take a look at a lot of important insurance factors to help you make the right choice.
Which car insurance company is the cheapest?
State Farm and Farmers both offer competitive car insurance rates and are well below the national average. On average drivers over 35 are able to save over $100 on auto insurance with State Farm. However, there are some individuals who were able to receive a cheaper month to month insurance plan with Farmer.
It is a must that you compare insurance rates to get the best price in your area. Insurance is dependent on various factors such as the state that you live in. For example, if you need auto insurance in NC, you might be paying less than someone who needs auto insurance in Florida. Your age, gender, and marital status are also major factors in determining your insurance rates.
Claims comparison
Using J.D. Power, we will compare the claims experience of both insurance providers. State Farm scored higher than Farmers in the auto, homeowners, and renter part of the 2017 J.D. Power Claims Study. When a company does better in one category that tells us a lot about how they handle claims in that specific category. However, when a company does well and outperforms another company in multiple categories that tells about how well they handle claims overall.
In the Auto Claims category both companies received 3 out of 5 Power Circles, but State Farm was ranked higher on the list. In the Homeowner’s Claims category, State Farm received 4 out of 5 Power Circles while Farmers received 3 out of 5 Power Circles. In the Renter’s Insurance category, State Farm received 3 out of 5 Power Circles while Farmers received 2 out of 5 Power Circles.
Customer complaints
Better Business Bureau gave both insurance giants an “A+” rating in their rating system. This “A+” grade signifies that both insurance providers handle customer complaints well, which is a great sign if you are thinking about insuring with a particular company.
Financial strength rating comparison
State Farm is one of the best insurance companies when it comes to having a large amount of assets. In 2015, it was reported that State Farm had over $240 billion in assets. This number has since increased. State Farm received the highest rating possible from A.M. Best which is an “A++” insurance rating. State Farm also received an “AA” rating from S&P Global Ratings.
In 2016, it was reported that Farmers Insurance Group had slightly over $16 billion in assets. Farmers received an Excellent “A” grade from A.M. Best.
In conclusion, both companies have an adequate amount of assets to pay any future claims. However, State Farm easily beats out Farmers in the financial strength category.
Features and insurance discounts comparison.
State Farm features/discounts
Accident-Free Discount – When you have been insured with State Farm for 3 continuous years without a chargeable accident, then you will be able to take advantage of their accident-free discount.
Homeowner discount – When you own a home you are able to save on auto and motorcycle insurance.
Drive Safe & Save – Safe driving habits can mean a cheaper auto insurance premium. On average State Farm customers have been able to receive a discount of 30% with the Drive Safe & Save program. Your discount is adjusted at each policy renewal.
Steer Clear Driver Program – This program is for safe drivers under the age of 25. Those who have had no at-fault accidents or violations during the past 3 years may be eligible. Not only will you be able to save with this program but you will be able to improve on your driving skills.
Good student discount – To be eligible for this discount the driver must either be ranked scholastically in the upper 20% of his or her class, have a grade average of B or higher, have a grade point average of 3.0 or higher, or be an honor roll student.
Multiple Car Discount – Are you a driver that needs to insure 2 or more cars? If so, then you can save with the State Farm multiple car discount. To qualify for this discount the owners of the vehicles must reside in the same household and must be related by marriage, blood, or adoption.
Farmers features/discounts
Small Claim Forgiveness – Small Claim Forgiveness is a great insurance option for teens and young drivers. With Small Claim Forgiveness, your auto insurance rates will not go up because of a small accident even if the accident is your fault.
Accident Forgiveness – Accident Forgiveness is great for drivers of all ages. Accident Forgiveness is better than Small Claim Forgiveness. With Accident Forgiveness, your rates will not go up after a major car accident. If you need peace of mind as a policyholder, then Accident Forgiveness will give it to you.
Business and Professional Group – If you are a member of a business or professional group, then you will be eligible for this discount.
Transfer discounts – When you switch to Farmers from another approved auto insurance company such as GEICO or State Farm, your rates can easily be reduced. Make sure that you are still insured at the time of making the switch so that you can qualify.
Bundle Discounts – When you bundle multiple Farmers policies such as home, auto, life, boat, or renter’s insurance, then you can save with Farmers.
Alternative Fuel – This is a perfect discount if you drive a hybrid or alternative fuel car.
The Inner Circle – The Inner Circle is a great knowledge base for policyholders who want to learn more about keeping premiums down, saving time and money, and maintaining their insured vehicles.
Roadside assistance comparison
Farmers roadside assistance offers reasonable and necessary services up to $150. The Farmers roadside assistance service covers emergency towing, dead battery/jump-start, flat tire change, lockout entry assistance, and roadside winching if your car is stuck in the mud, snow, or ice.
State Farm’s 24-hour Emergency Roadside Service covers an hour of mechanical labor, towing, locksmith, gas/oil, jumpstart, and a tire changing service.
Mobile app comparison
Farmers
The Farmers Mobile App allows you to easily view policy details, pay your insurance bills, stay connected to an insurance agent, report insurance claims, receive billing alerts via push notification, and more.
State Farm
The revamped State Farm mobile app comes packed with convenient features such as CarCapture, Steer Clear, Drive Safe & Save, file a claim, view your insurance card, roadside assistance, and more.
Bottom line
State Farm and Farmers are both popular insurance companies. State Farm does better in claims and in financial strength, but depending on where you live your rates will vary. I encourage you to start a quick quote now to compare the insurance rates near you.