State Farm is the better fit for most drivers who want simplicity, scale, and easy bundling, while Farmers works better for drivers who want more granular coverage customization. Both are large, captive-agent carriers with solid financial strength, telematics programs, and broad state availability. The right choice usually comes down to how you shop, what you drive, and whether you rent or own a home.
Farmers vs State Farm: Quick Auto Insurance Comparison
The table below covers the five factors most drivers care about when choosing between these two carriers.
| Factor | Farmers | State Farm |
|---|---|---|
| Agent model | Captive agents, some online quoting | Captive agents, online + app quoting |
| Coverage add-ons | Accident forgiveness (add-on), new car replacement, rideshare | Accident forgiveness, rental reimbursement, rideshare |
| Telematics program | Signal app | Drive Safe and Save |
| Discount style | Bundling, loyalty, Signal app savings | Bundling, Drive Safe and Save, good student |
| Who it fits best | Drivers who want custom coverage layers | Drivers who want simplicity and broad agent access |
Both companies operate through captive agents, meaning the agents they use sell only their products. You can start a quote online with either carrier, but most drivers end up working with a local agent to finalize the policy and add endorsements.
Is Farmers Or State Farm Better For Auto Insurance?
State Farm is better for drivers who want simplicity, easy bundling, and a huge agent network, while Farmers wins on deeper coverage customization.
That split comes down to product philosophy. State Farm has scaled its offering to work well for the largest possible audience. The Drive Safe and Save telematics program, online quoting, and seamless home-and-auto bundling are all built for convenience. If you are a homeowner who wants one carrier, one agent, and one bill, State Farm makes that easy.
Farmers takes a different approach. Its coverage menu includes optional accident forgiveness, a new car replacement add-on that goes further than most carriers, and a customizable policy structure that lets drivers build more precisely for their situation. That extra depth is genuinely useful if you have a newer vehicle, a household with mixed driving histories, or a need for rideshare gap coverage.
Neither carrier is guaranteed to be the cheapest option for every driver profile, but that is partly the cost of the captive-agent model, which delivers personalized service that online-only carriers do not.
What Does Each Carrier Offer For Coverage?
Both Farmers and State Farm offer liability, collision, and comprehensive coverage. The real differences show up in their optional add-ons and endorsements.
Standard Coverage Both Carriers Include
Liability coverage pays for the other driver’s injuries and property damage when you are at fault. Collision covers your own vehicle after an accident. Comprehensive covers non-collision events like theft, fire, hail, and animal strikes. Both carriers offer medical payments, uninsured/underinsured motorist coverage, and roadside assistance as add-ons.
Add-On Coverage Compared
| Coverage add-on | Farmers | State Farm |
|---|---|---|
| Accident forgiveness | Optional add-on; forgives one at-fault accident for every three years of clean driving | Earned automatically after a long accident-free history |
| New car replacement | Yes, for vehicles in the first two model years | Not a standard add-on |
| Rideshare coverage | Gap coverage for TNC drivers (Uber/Lyft) | Rideshare endorsement available |
| Rental reimbursement | Yes | Yes |
| Roadside assistance | Yes | Yes, as optional emergency road service coverage |
Farmers sells accident forgiveness as an optional add-on: for every three years you drive without an at-fault accident, Farmers forgives one. State Farm’s accident forgiveness applies after a clean driving record and forgives the first qualifying at-fault accident without a premium surcharge.
The new car replacement add-on from Farmers is a meaningful differentiator. If your car is totaled and it is within the first two model years, Farmers pays to replace it with a new vehicle rather than paying only the depreciated actual cash value.
Farmers Auto Insurance Pros And Cons
Pros
- Optional accident forgiveness you can buy up front rather than wait to earn
- New car replacement covers vehicles in the first two model years
- Rideshare gap coverage fills the period when TNC app insurance is limited
- Signal telematics app can reduce premiums for careful drivers
- Customizable policy structure lets you build more specifically
Cons
- Premiums tend to run higher than the national average
- Agent network is smaller than State Farm’s
- Availability varies more by state than some large carriers
- Online quote-to-bind is less seamless than direct carriers
Best For
Farmers auto insurance works best for drivers with newer vehicles who want new car replacement coverage, for rideshare drivers who need gap protection, and for households that want accident forgiveness in place from day one.
State Farm Auto Insurance Pros And Cons
Pros
- Largest auto insurance carrier by market share in the US
- Massive agent network across nearly every state
- Drive Safe and Save telematics program is easy to use via the app
- Bundling home and auto is straightforward and can produce meaningful discounts
- Strong financial strength ratings from AM Best
Cons
- Add-on coverage options are less granular than Farmers
- No new car replacement add-on
- Premiums can be higher than regional or direct-to-consumer competitors
- Some discounts require enrollment in telematics, which some drivers prefer to avoid
Best For
State Farm auto insurance works best for homeowners who want to bundle policies with one carrier, for new drivers who benefit from the good student discount, and for drivers who want a large, stable carrier with an agent in nearly every zip code.
How Do Discounts And Telematics Compare?
Both carriers price coverage partly on how you actually drive. Farmers uses the Signal app, and State Farm uses its Drive Safe and Save program.
Farmers Signal App
The Farmers Signal app tracks driving behavior including speed, braking, phone use, and time of day. Drivers who enroll can earn a discount at renewal based on their measured behavior. The initial enrollment itself may unlock a small discount just for signing up In many states Signal data is used for discounts rather than surcharges, though program terms vary by state..
State Farm Drive Safe and Save
State Farm’s Drive Safe and Save program works through the State Farm mobile app, typically paired with a Bluetooth beacon. It measures similar behaviors and applies the resulting discount at renewal. Potential savings can be meaningful for low-mileage or careful drivers Like Signal, the program is opt-in.
Other Discounts
Both carriers offer multi-policy discounts for bundling auto with home, renters, or life insurance. Both offer good student discounts for young drivers maintaining a qualifying GPA. Safe driver discounts apply when a household has no at-fault accidents or violations over a set period. Neither carrier publishes universal discount percentages that apply in every state, so actual savings vary
If comparing auto insurance rates online, running quotes through a comparison tool gives you a real number rather than a theoretical range.
How Much Does Auto Insurance Cost At Each?
Neither Farmers nor State Farm publishes one national rate. Your actual premium depends on your state, driving record, vehicle, and credit history.
What Drives Your Premium
The biggest cost factors at both carriers are the same. Your state of residence sets the regulatory floor and affects the base rate significantly. Your driving record is the single most controllable factor: at-fault accidents and serious violations raise premiums at both carriers, though how much depends on the carrier’s individual rating formula.
Your vehicle’s age, value, and safety features affect collision and comprehensive costs. Credit-based insurance scores affect premiums in most states, though California, Hawaii, and Massachusetts prohibit the practice.
Where Rates Tend to Land
Farmers premiums tend to run above the national average for full coverage, particularly for younger drivers State Farm premiums are also above average for some driver profiles but are often competitive for homeowners bundling policies The only accurate way to compare is to run your own quotes with your actual information at both carriers.
How to Get the Best Rate
Ask both carriers about every discount you might qualify for: telematics enrollment, bundling, good student, defensive driving course, and low-mileage status. Rate differences between carriers for the same driver can be substantial, which makes getting multiple quotes worth the time.
Which Should You Choose?
The right carrier depends on your household situation. State Farm suits bundlers and new drivers, while Farmers suits customization-focused and rideshare drivers.
Families bundling home and auto: State Farm’s bundling is easier to manage, the agent network is larger, and the multi-policy discount is built into the standard workflow. State Farm is the more natural choice here.
Drivers with a recent at-fault accident: Farmers sells accident forgiveness as an add-on you can have in place before you ever need it. If rate stability post-accident is a priority, Farmers is worth a close look.
Rideshare drivers: Both carriers now offer rideshare endorsements. Farmers’ rideshare gap coverage specifically addresses the period when a TNC app’s liability coverage is limited, which is the window most Uber and Lyft drivers are actually exposed. Farmers has a slight edge for active rideshare drivers.
New drivers and students: State Farm’s good student discount and its massive agent network make it approachable for first-time buyers. The Drive Safe and Save app also gives young drivers a path to earning lower rates through their own behavior.
Neither carrier is the wrong choice if the price is right for your zip code and profile. Run quotes at both before committing.
Frequently Asked Questions
Does Farmers offer accident forgiveness?
Yes. Farmers offers accident forgiveness as an optional add-on: Farmers forgives one at-fault accident for every three years of accident-free driving, protecting your rate from a surcharge. State Farm’s accident forgiveness is earned automatically after years of claim-free driving with the company rather than purchased.
Is State Farm cheaper than Farmers?
It depends on the driver. Neither carrier is universally cheaper. State Farm tends to be competitive for homeowners bundling auto and home policies, while Farmers can run higher for some profiles, particularly younger drivers. The only reliable way to answer this for your situation is to get current quotes from both carriers using your actual vehicle, address, and driving record.
Do Farmers and State Farm both cover rideshare driving?
Yes, both carriers offer rideshare endorsements. Farmers provides gap coverage designed to address the period when a TNC platform’s insurance is limited, specifically between when the app is on but no ride is accepted. State Farm also offers a rideshare endorsement. If you drive for Uber, Lyft, or another TNC platform, confirm the exact coverage window with your agent before relying on either policy.
Which carrier handles claims faster?
Neither carrier publishes a universal average claims resolution time. Claims speed at both Farmers and State Farm depends on the complexity of the accident, the state, and current claim volume. State Farm’s size gives it a large claims staff, which can help with routine claims. Farmers also offers digital claims tools through its app. Checking recent customer satisfaction scores from J.D. Power gives the most current picture for your region.