Farmers vs. State Farm: Which Is Better?
Farmers and State Farm are two well-known American insurance companies, both built on the foundation of local agent service and bundling across multiple insurance lines. The two companies have similar business models but different strengths, pricing patterns, and unique features. For drivers comparing these major insurers, the decision often comes down to specific feature preferences and how each company prices your particular situation.
This guide compares Farmers and State Farm across pricing, coverage, customer service, claims handling, and unique features so you can identify which is the better choice for you.
The Core Similarity and Key Differences
Both Farmers and State Farm operate primarily through local agent networks. State Farm has approximately 19,000 agents while Farmers has more than 48,000 exclusive and independent agents (though many Farmers agents are smaller offices than typical State Farm agencies). Both companies offer comprehensive bundling across auto, home, life, and other insurance types. Both have strong digital tools complementing the agent service.
The key differences emerge in unique product features. Farmers offers Declining Deductibles, Signal telematics, the Farmers Friendly Review, and comprehensive specialty insurance through subsidiaries. State Farm offers Drive Safe and Save with up to 30% discounts, Steer Clear for young drivers, and integrated banking services through State Farm Bank.
Side-by-Side Comparison
| Feature | Farmers | State Farm |
|---|---|---|
| Distribution model | Captive and independent agents | Captive agents |
| Average annual premium | $1,900 to $2,400 | $1,400 to $1,800 |
| Market position | #7 auto insurer | #1 auto insurer |
| Number of agents | 48,000+ | 19,000+ |
| Telematics program max | Signal (up to 25%) | Drive Safe and Save (up to 30%) |
| Telematics rate increase risk | Limited | No (guaranteed) |
| Declining Deductibles | Yes ($50/year, max $250) | Not offered |
| Accident Forgiveness | Yes (paid) | Limited markets |
| Bundling discount | Up to 20% | Up to 25% |
| Financial strength rating | A (Excellent) | A++ (Superior) |
| Banking services | Limited | State Farm Bank (full service) |
Pricing Comparison
State Farm is generally cheaper than Farmers for most driver profiles. The pricing difference reflects different cost structures and market positioning.
| Driver Profile | Farmers | State Farm |
|---|---|---|
| 30-year-old, clean record | $1,800 | $1,250 |
| 45-year-old, clean record | $1,950 | $1,400 |
| 20-year-old single driver | $4,500 | $3,800 |
| Driver with one accident | $2,600 | $1,950 |
| Driver with poor credit | $3,000 | $2,250 |
| Senior driver, age 65 | $1,900 | $1,400 |
Where Farmers Tends to Win on Price
- Long-term customers benefiting from accumulated Declining Deductibles
- Customers benefiting from Accident Forgiveness coverage
- Households with newer vehicles using New Car Replacement coverage
- Drivers using the Farmers Friendly Review to optimize coverage
- Markets where Farmers’ specific rate filings are particularly competitive
Where State Farm Tends to Win on Price
- Standard driver profiles seeking competitive bundled pricing
- Customers wanting integrated financial services with banking
- Long-term loyal State Farm customers
- Multi-vehicle households with strong State Farm market position
- Drivers in markets where State Farm’s rate filings are most aggressive
Coverage Options Comparison
Farmers Unique Features
- Declining Deductibles ($50 reduction per claim-free year, max $250)
- Signal telematics with up to 25% discount
- Accident Forgiveness coverage
- New Car Replacement coverage
- Farmers Friendly Review (annual coverage assessment)
- Glass Deductible Buyback for windshield repairs
- Rideshare Coverage available
- Comprehensive specialty insurance through subsidiaries (Foremost, Bristol West, 21st Century)
State Farm Unique Features
- Drive Safe and Save with up to 30% discount and continuous monitoring
- Steer Clear program for young drivers
- State Farm Bank integration (checking, savings, mortgages)
- Personal articles policy for high-value items
- Strong roadside assistance program
- Largest local agent network in the U.S. (per individual agency)
- Comprehensive financial services beyond insurance
Customer Service Comparison
Farmers Customer Service
Farmers’ service centers on local agent relationships supplemented by strong digital tools. You typically have an assigned agent who handles your account, with online and mobile self-service available for routine matters. The Farmers Friendly Review provides annual personalized policy assessment.
State Farm Customer Service
State Farm offers similar local agent service through its network of approximately 19,000 agents. The company has invested heavily in digital tools while maintaining the personal relationship aspect.
Customer Satisfaction Rankings
Both companies typically score around industry average in major customer satisfaction studies. State Farm often scores slightly higher overall, while Farmers scores well in agent service quality and personalized claim handling.
Claims Experience Comparison
Farmers Claims
- 24/7 claims filing through app, website, phone, or agent
- Circle of Dependability repair network with lifetime guarantees
- Multiple filing channels available
- Local agent advocacy throughout process
- Average claims satisfaction scores
State Farm Claims
- Multiple filing channels (agent, app, website, phone)
- Local agent advocacy throughout process
- Select Service network of pre-vetted shops
- Above-average claims satisfaction scores
- Strong reputation for fair claims handling
Both companies handle most claims efficiently. State Farm tends to score higher in claims satisfaction surveys. Farmers’ agent network provides personal advocacy options.
Telematics Programs Compared
| Feature | Farmers Signal | State Farm Drive Safe and Save |
|---|---|---|
| Maximum discount | Up to 25% | Up to 30% |
| Tracking method | Mobile app only | Mobile app or beacon |
| Can rates increase? | Limited risk | No (guaranteed) |
| Initial discount | Yes (5% to 10%) | Yes |
| Tracks distracted driving | Yes (heavily weighted) | Yes |
| Tracks time of day | Yes | Yes |
Drive Safe and Save offers a higher maximum discount and provides both mobile app or beacon tracking options. Signal uses mobile-only tracking with a slightly lower maximum discount.
Bundling Comparison
Farmers Bundling
Farmers directly underwrites both auto and home insurance, providing true single-carrier bundling. The company offers comprehensive bundling across auto, home, life, motorcycle, boat, and other coverages with discounts up to 20% on auto and similar reductions on home.
State Farm Bundling
State Farm also directly underwrites both auto and home insurance with similar single-carrier bundling. The company offers bundling across an even wider range of products including banking services through State Farm Bank, providing potentially the most integrated financial services package among major insurers.
For households wanting the most comprehensive integration of insurance and financial services, State Farm’s banking integration provides additional value beyond what Farmers offers.
Who Should Choose Farmers?
- Drivers wanting Declining Deductibles for accumulated savings over time
- Customers wanting Accident Forgiveness from a major insurer
- Drivers benefiting from the Farmers Friendly Review approach
- Newer vehicle owners using New Car Replacement coverage
- Customers needing specialty insurance through Farmers subsidiaries
- People who value the specific Farmers feature set
Who Should Choose State Farm?
- Drivers seeking generally lower premiums with similar service quality
- Households wanting integrated insurance and banking services
- Customers who value larger individual local agent offices
- Long-term loyal customers benefiting from State Farm tenure
- Standard drivers without specific Farmers feature needs
- Multi-line households with diverse insurance and financial needs
The Verdict: Which Is Better?
For most standard driver profiles, State Farm typically offers better value through lower base pricing combined with comprehensive bundling and banking services. The company’s competitive pricing makes it the default choice for many customers.
For drivers who would specifically benefit from Farmers’ unique features (Declining Deductibles, Accident Forgiveness, Farmers Friendly Review, specialty insurance subsidiaries), Farmers often delivers better total value despite higher base pricing.
The right choice depends on whether the unique Farmers features outweigh the typically higher pricing for your specific situation. Get quotes from both, calculate the value of features you would actually use, and choose based on total value rather than just base premium.
For perspective on how all major insurers price coverage, our broader guide on how car insurance premiums are calculated walks through the rating factors used across the industry.
Frequently Asked Questions
Is Farmers or State Farm cheaper?
For most driver profiles, State Farm is cheaper than Farmers. The pricing difference can be 20% to 30% for similar coverage. Farmers’ premium pricing reflects the cost of unique features like Declining Deductibles and the comprehensive agent network.
Which has better customer service?
Both score around industry average in customer satisfaction. State Farm typically scores slightly higher overall. Farmers scores well in agent service quality. The right choice depends on which service aspects matter most to you.
Does Farmers offer Declining Deductibles?
Yes. Farmers offers Declining Deductibles automatically with auto policies, reducing your collision deductible by $50 each claim-free year up to a $250 maximum. State Farm does not offer this specific feature.
Which has better claims service?
Both companies score competitively in claims satisfaction. State Farm tends to score slightly higher in survey rankings. Farmers’ Circle of Dependability network provides streamlined repairs. The differences are marginal for routine claims.
Which has more agents?
Farmers has approximately 48,000 exclusive and independent agents while State Farm has approximately 19,000 captive agents. The Farmers number includes many smaller offices, while State Farm typically operates larger individual agencies. Agent availability varies significantly by market.
Which is better for bundling?
Both directly underwrite auto and home insurance for true single-carrier bundling. State Farm offers more comprehensive bundling including banking services through State Farm Bank, providing more integration than Farmers offers.
Should I switch from State Farm to Farmers?
The decision depends on your specific situation. If you would specifically benefit from Farmers’ unique features like Declining Deductibles or specialty insurance products, switching may make sense. If you are happy with State Farm’s pricing and service, switching primarily for marginal feature differences may not be worthwhile.
The Bottom Line
Farmers and State Farm offer similar agent-based service models with different unique features and pricing patterns. State Farm typically offers lower base pricing and more comprehensive bundling including banking services. Farmers offers unique features like Declining Deductibles, Accident Forgiveness, the Farmers Friendly Review, and specialty insurance through multiple subsidiaries.
The right choice depends on whether Farmers’ unique features outweigh the typically higher pricing for your situation, or whether State Farm’s lower pricing and more comprehensive integration better matches your needs.
The team at Matrix Insurance can help you compare Farmers, State Farm, and other top carriers to find the optimal combination for your situation. Use our Car Insurance Calculator for a starting estimate, or reach out to our team directly for a personalized comparison.
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