Farmers Insurance Review
Farmers Insurance Review 2026
A complete, unbiased guide to Farmers Insurance's financial products and services.
Farmers Insurance is a multi-line insurance company headquartered in Los Angeles, California, founded in 1928, that operates primarily through independent agents across 48 states. The company serves homeowners, auto insurance customers, and small business owners who prefer working with local agents rather than purchasing policies directly online or over the phone. Farmers particularly appeals to customers in California, Texas, and other western states where it maintains its strongest agent networks and market presence. Farmers competes directly with State Farm, Allstate, and GEICO in the auto and home insurance markets. Unlike GEICO's direct-to-consumer model or Progressive's heavy digital focus, Farmers emphasizes its network of approximately 48,000 exclusive and independent agents who provide face-to-face service and local market expertise. The company holds an A rating from AM Best for financial strength and an A+ rating from the Better Business Bureau, positioning it as financially stable among major insurers. Farmers offers bundling discounts of up to 25% when customers combine auto and home policies, and provides specialized coverage options like earthquake insurance in California and flood coverage through partnerships. The company's claims process includes 24/7 reporting and a mobile app for photo submissions, though some customers report longer settlement times compared to competitors like GEICO or Progressive. The most important factor for consumers considering Farmers is whether they value agent relationships over potentially lower premiums available through direct writers, as Farmers' rates typically run 10-15% higher than online-focused competitors but include more personalized service.
| Full Legal Name | Farmers Insurance Group |
| Founded | 1928 |
| Headquarters | Los Angeles, CA |
| FDIC Insured | Yes — deposits insured up to $250,000 per depositor |
| SIPC Member | No |
| BBB Rating | A+ |
| AM Best Rating | A |
| Industries / Products | Insurance |
| Data Last Verified | April 5, 2026 |
Farmers Insurance delivers solid coverage options and financial stability through its extensive agent network, earning an A rating from AM Best and maintaining operations across 48 states since 1928. The company excels in bundling discounts, offering up to 25% savings when combining auto and home policies, and provides specialized coverage like earthquake insurance in California. Compared to State Farm and Allstate, Farmers offers more flexible payment options and competitive coverage limits, while its agent network of 48,000 professionals provides more personalized service than direct writers like GEICO. However, Farmers' premiums typically run 10-15% higher than online-focused competitors, and its claims satisfaction scores lag behind Progressive and USAA in J.D. Power rankings.
- Auto
- Home
- Renters
- Condo
- Life
- Business
- Motorcycle
- Boat
- RV
- Umbrella
- 24/7 phone
- Mobile app
- Online portal
- Local agent
- Catastrophe response teams
Farmers processes claims through multiple channels including 24/7 phone support, mobile app photo submission, and in-person agent assistance, with most auto claims settled within 7-10 business days. The company's mobile app allows customers to file claims, upload photos, and track settlement progress, matching capabilities offered by Progressive and Allstate. Farmers maintains catastrophe response teams for natural disasters and offers guaranteed repair networks for auto and home claims. However, customer satisfaction surveys consistently rank Farmers below USAA, State Farm, and Amica for claims handling speed and customer communication during the settlement process.
Farmers' pricing sits in the middle tier among major insurers, typically 5-10% higher than State Farm and Allstate for comparable coverage, but 15-20% less expensive than specialty carriers like Chubb for high-value homes. The company offers standard discounts including safe driver (up to 15%), multi-policy bundling (up to 25%), and good student rates, along with usage-based insurance through its Signal tracking program. Farmers provides competitive coverage limits with standard policies including $100,000/$300,000 liability for auto and $300,000 dwelling coverage for homeowners. While not the cheapest option compared to GEICO or Progressive, Farmers delivers better value than premium carriers while maintaining broader coverage options than budget insurers like The General.
Farmers Insurance maintains an A (Excellent) rating from AM Best, indicating strong financial stability and claims-paying ability, placing it on par with State Farm and slightly below USAA's A++ rating. The company reported $20.8 billion in direct premiums written in 2023 and maintains risk-based capital ratios well above regulatory minimums. Farmers' financial strength compares favorably to regional insurers like Auto-Owners and Kemper, while remaining smaller than industry giants State Farm and Berkshire Hathaway's GEICO. The company has maintained its A rating consistently for over a decade, demonstrating stable financial management and adequate reserves for catastrophic events.
✓ Best For
- Homeowners in California, Texas, and western states who want local agent support for complex coverage decisions
- Auto insurance customers who prefer face-to-face policy reviews and claims assistance
- Small business owners seeking commercial coverage bundled with personal policies
- Consumers who own high-value homes or specialty vehicles requiring customized coverage options
✗ Look Elsewhere If
- Budget-conscious drivers who prioritize the lowest possible premiums over agent service
- Customers who prefer managing all insurance interactions through mobile apps and websites
- Consumers in northeastern states where Farmers has limited agent networks
- Military families and veterans who qualify for USAA's superior coverage and pricing
Farmers Insurance works best for consumers who value agent relationships and personalized service over rock-bottom pricing, particularly in western states where the company maintains strong market presence. The combination of financial stability (A rating from AM Best), extensive coverage options, and local agent support makes Farmers a solid middle-tier choice for homeowners and auto insurance customers willing to pay 10-15% more than direct writers. However, price-sensitive consumers and those comfortable with digital-only interactions should consider GEICO, Progressive, or State Farm for potentially lower premiums and faster claims processing.
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This rating reflects publicly available information as of 2026-04-10 and has been verified by a brand representative.