Farmers home insurance review and ratings 2024

Farmers Insurance is the No. 8 home insurance company in Insure.com’s 2024 Best Insurance Companies ranking with 3.8 stars out of 5. Higher than average rates affected the company’s score.

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Our take

Farmers Insurance had solid scores for home and auto bundling as well as for claims handling in Insure.com’s 2024 Best home Insurance Companies survey of insurance consumers. It ranks at No. 8 overall in our list of the top insurers.

Farmers – which offers home, auto and life insurance products – received 3.8 (actually, 3.77) stars. The company tends to have higher premiums than most of its competitors, according to the most recent Insure.com data, which may have hurt its star rating. Insure.com’s ranking rewards lower prices.  However, it was rated highly in several areas; 82% of its customers in the survey said they’d recommend the company. 

Farmers received an A rating from AM Best for its credit rating, which means it’s financially stable, and a J.D. Power score of 800 (out of 1,000) for overall satisfaction.

Farmers
Farmers Ratings
Overall Rating: 3.8
Average Premium: 2.2
NAIC: 0.54
Customer Satisfaction: 3.9
AM Best Rating: A

Pros and Cons

Pros:
  • Highly recommended by current customers
  • Low complaint ratio
Cons:
  • Rates are above average
  • Customer satisfaction scores are on the low side

Below is Insure.com’s review of the company. It’s based on third-party metrics, including two J.D. Power studies (Home Insurance Study and Property Claims Satisfaction Study) and an in-depth survey of insurance customers. Find the full methodology here.

How much Farmers insurance cost

Farmers rates are on the high end compared to many other big companies. Allstate’s rates are more than $1,000 lower, although Farmers and Progressive are on par with each other for high rates. The average rate nationwide is $2,604.

CompanyAverage annual rate
Amica$2,000
Allstate$2,098
Auto-Owners$2,160
State Farm$2,169
Erie$2,183
American Family$2,504
Nationwide$2,746
Progressive$3,193
Farmers$3,194
Travelers$3,701

How Farmers scores on customer satisfaction

A few companies scored lower than Farmers for customer satisfaction, but the company’s score was quite low. The winner in this category was Erie at 89%, but no company broke 90% in the 2024 survey. Farmers was also below the average of 819 in J.D. Power’s home insurance satisfaction survey.

Company Percent of customers that are satisfied J.D. Power overall satisfaction score (out of 1,000)
Farmers 70% 800
State Farm 85% 829
Allstate 83% 809

How Farmers scores on policy offerings

For policy offerings, 71% of Farmers’ respondents reported satisfaction with the company’s policy selection. In this category, several competitors scored in the 80s, putting Farmers on the lower end. Erie won the category at 86%.

Company Percent of customers satisfied with the company’s policy offerings
Farmers 71%
American Family 84%
Allstate 81%

How Farmers scores on ease of service

Like the other main categories of customer satisfaction, Farmers’ score was on the low side for ease of service. American Family topped this category at 89%.

Company Percent of customers satisfied with the company’s ease of service
Farmers 71%
Allstate 82%
Progressive 78%

Would current customers recommend Farmers to others?

Of the Farmers customers surveyed, 82% said they’d recommend the company. That was the lowest score among the ranked companies, likely reflecting the lower satisfaction ratings in key areas. At 95%, Erie won this category.

Company Percent of customers who would recommend the company to others
Farmers 82%
American Family 91%
State Farm 88%

How trustworthy is Farmers?

Farmers finished in the lower half in this survey category. At the top of the category, among ranked companies, were American Family (89%) and State Farm (83%).

Company Percent of customers who say they trust the company
Farmers 71%
American Family 89%
State Farm 83%

Do Farmers customers plan to renew?

Farmers, with a score of 87%, has a higher renewal rate than some of the satisfaction categories would indicate. However, only a few companies had lower scores, with many in the 90s on this metric. Erie topped the list at 97%.

Company Percent of customers who plan to renew with the company
Farmers 87%
State Farm 94%
Allstate 89%

How Farmers scores on claims handling

For claims handling, Farmers scored in the middle with a score of 70%. Only two companies score above 80% in this category: overall winner Erie at 92% and Allstate at 83%. Farmers’ J.D. Power 2023 Property Claims Satisfaction Study is just below average at 873, better than Allstate.

Company Percent of customers who are satisfied with claims service J.D. Power claims satisfaction score (out of 1,000)
Farmers 70% 873
Allstate 83% 868
Travelers 68% 867

How Farmers scores on digital experience

When asked to pick the top three categories in which their company is the best, 38% of customers chose digital experience as one of them. Farmers scored above several competitors here, landing in the middle. Travelers, Allstate and Progressive all tied for first at 44%.

The Farmers app is highly rated, with 4.8 stars in the Apple App Store and 4.6 stars in the Google Play store.

Company Percent of customers who say the company is best for digital experience
Farmers 38%
State Farm 40%
Amica 27%

How Farmers scores for bundling home and auto policies

Among Farmers customers, 43% chose auto and home bundling as one of the three things the company is best for. Most companies scored in the 40s here, making Farmers about average, although Erie topped the list at 73%.

Insurance company Percent of customers who say the company is best for bundling Average bundling discount
Farmers 43% 15%
Travelers 44% 12%
Allstate 39% 16%

How Farmers scores for discounts

Discounts aren’t Farmers best area; on the survey 38% chose discounts as one of the top three. But most companies score in the 40s here, with only American Family earning more than 50% at a score of 54%.

Company Percent who say the company is best for discounts
Farmers 38%
State Farm 46%
Allstate 45%

Farmers home insurance coverages

  • Renters
  • Homeowners
  • Condo
  • Mobile & manufactured homes
  • Vacation homes
  • Vacant homes
  • Landlord
  • Earthquake
  • Flood

Farmers home insurance discounts

  • Protective devices
  • Home safety
  • Multiple policy lines
  • Non-smokers
  • Specific careers/affinity groups
  • ePolicy
  • New home
  • UL-approved roofing
  • Green certifications
  • Claims free

Other policies offered

  • Auto
  • Motorcycle
  • Boat
  • RV and travel trailer
  • ATV
  • Collectible car
  • Life insurance
  • Business insurance
  • Pet insurance
  • Rideshare

States where Farmers offers coverage

Graph
Table
States where Farmers offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
Available
Not available

Company background

Farmers

Farmers launched from a one-room office in downtown Los Angeles in 1928, aiming to provide quality insurance at an affordable price. Farmers then expanded to acquire New World Life Company of Seattle, becoming the first major insurance provider with interest-free monthly payment plans.

Farmers Insurance provides about 19 million individual policies and recently introduced Spot, a digital dog, to help with property inspections and catastrophe claims. In 2021, Farmers acquired MetLife’s home and auto business. The company now serves more than 10 million households nationwide.

Farmers is the first U.S.-based insurance carrier to sign the Principles for Sustainable Insurance, a collaboration between the United Nations and global insurance companies to advance sustainable practices across the industry.

Resources & Methodology

Sources:

Daily News. “Farmers Insurance to deploy dog-like robot for claims, inspections.” Accessed January 2024. 

Farmers. “About us.” Accessed January 2024.

Farmers. “Home.” Accessed January 2024.

Farmers. “Homeowners Insurance Discounts.” Accessed January 2024.

J.D. Power. “2023 U.S. Property Claims Satisfaction Study.” Accessed January 2024.

J.D. Power. “2023 U.S. Home Insurance Study.” Accessed January 2024

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,151 people with home insurance). The survey was conducted by online market research company Slice MR.

Respondents were asked to name their home insurer and then grade it in the following categories: customer satisfaction, ease of service, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Respondents were then asked to pick their insurer’s top three attributes out of more than a dozen presented – including digital experience, discounts best for auto/home bundling and best for discounts. The number of responses for each attribute were totaled before dividing by the number of each company’s customers who responded to that survey question to create a percentage. 

Respondents were then asked if they would recommend their home insurer to someone else and if they planned to renew their policies. The percentage who said yes is presented in the results.

Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.

They then collected AM Best data, which measure financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in the calculations. If more than one underwriting company was identified for a line, the editors used a weighted average of the NAIC complaint index scores.

They also collected insurance rate data from Quadrant Information Services.

With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For home insurers, we took the following and gave each a weight.

  • Survey: 40% of the total score (10% customer satisfaction, 10% recommended, 10% renewal rate and 10% claims handling)
  • AM Best: 25% of total score
  • Annual premium: 20% of total score
  • NAIC: 15% of total score

Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.

author image
Leslie Kasperowicz
Managing Editor

 
  

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com.

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