Farmers vs. GEICO: Which Insurer Is Better for You?

GEICO and Farmers Insurance are two of the biggest names in car insurance. Both companies advertise sizable discounts and great rates, but it can be difficult to know which one is best for you.

While GEICO auto insurance has cheaper rates and is a great choice for most drivers, Farmers has more insurance coverage options and better policyholder perks. Let’s dive into the details to compare the two auto insurance companies to find the best fit for you.

Key Takeaways:

• GEICO’s average rates are cheaper across the board, making it an affordable choice for most drivers, even if you have a less-than-perfect driving record.
• Farmers has a broader selection of coverage options, letting you customize your policy to your specific needs and situation.
• Customer satisfaction is higher with Farmers, but GEICO has a stronger industry reputation.

How GEICO and Farmers Stack Up

Choosing between top car insurance companies requires more than just looking at price. That’s why we’ve researched dozens of insurers to rank them with our proprietary Compare.com Rating. It checks factors like cost, customer happiness, ease of use, overall availability, and industry reputation, all to help you pick the best car insurance company for you.

So, how do Farmers and GEICO auto insurance compare? Let’s take a look.

Both Farmers Insurance and GEICO earn solid overall scores, but GEICO comes out slightly ahead.

You’ll notice that GEICO’s biggest strengths are its cost, availability, and industry reputation. Farmers is just as easy to use and even scores a bit higher for customer experience. At the end of the day, the best company depends on what you’re looking for.

Let’s take a closer look at how each company stacks up in each category.

Farmers vs. GEICO: Average Auto Insurance Premiums Breakdown

Insurance companies base rates on a lot of variables, like marital status, credit history, ZIP code, and what your driving record looks like. Prices can vary significantly from driver to driver, so your quote might be different from what you see advertised.

Check out this table to get a sense of how Farmers and GEICO measure up for different types of drivers.

Based on these averages, GEICO tends to be the cheapest car insurance company of the two. Its rates are especially affordable for seniors and good drivers who only need liability insurance coverage. Teen drivers can also save a good chunk of change with GEICO.

The surprising twist is how much you can save on auto insurance with GEICO even if you have a few dings on your driving record, like an at-fault accident or DUI. You can even get the best rates from GEICO if you have a low credit score.

GEICO vs. Farmers: Average Car Insurance Rates by State

Where you live affects how much you pay for car insurance. Each state has different laws and risk factors that can drive rates up or down.

Car insurance comparison sites can help you nail down an affordable quote. To help you out, we’ve put together this table showing how affordable Farmers and GEICO auto insurance quotes are across the states where they compete directly against one another.

As you can see, GEICO comes out on top in every state. But the size of its lead varies quite a bit. In some states, like Oklahoma, the difference is pretty small — just a few bucks per month. But in others, like Illinois and New Mexico, GEICO’s rates are almost half of what the average driver pays with Farmers.

Of course, these are just averages. Your rate will depend on your particular situation. Still, GEICO is worth checking out for a quote.

Farmers vs. GEICO: Average Rates by Age

Your age plays a key role in how much you pay for car insurance every month. Insurers look at data showing how likely different age groups are to get into accidents and file claims.

Generally speaking, younger drivers (especially teens) pay the most because they’re statistically more likely to get into a car accident, but auto insurance rates typically go down as you get older and gain more experience behind the wheel.

Here’s how Farmers and GEICO perform across different age groups.

GEICO has lower average rates for every age group. But take a look at teenagers — GEICO’s average rates for teens are less than half of what Farmers offers. The difference could add up to some serious savings for families with young drivers.

The gap between rates isn’t as big for older age groups, but GEICO still has a clear advantage. Even in your 70s, you could save around $60 each month by choosing GEICO over Farmers.

If you’re looking to save money, GEICO is a great place to start, no matter how many candles were on your last birthday cake.

GEICO vs. Farmers: Average Rates by Driving Record

Your driving history might be the most important piece insurers look at when setting your rates. You’ll pay less if you have a clean record than someone with accidents or violations. Auto insurance companies see a spotty driving record as a sign that you’re more likely to file an insurance claim in the future and often charge higher rates to offset the added risk.

Use the table below to compare how Farmers and GEICO line up for drivers with different types of incidents on their records.

No matter your driving history, rates from GEICO are considerably cheaper than those from Farmers. The biggest difference is for drivers with a DUI — Farmers charges $145 more per month compared to the average cost of GEICO. But even with a clean record, your monthly bill could be over $90 less if you choose GEICO instead of Farmers.

Still, driving record is just one factor influencing your rates, so it’s always a good idea to compare personalized quotes before selecting your next insurance company.

Comparing GEICO and Farmers Car Insurance Discounts

Car insurance discounts are an easy way to save money on your premiums. Discounts are price breaks insurers offer to policyholders who meet specific criteria, like having safety features on their vehicle or being a student with good grades.

You’ll find tons of discounts out there, and each company offers its own unique set. Let’s take a look at some of the most common discounts and see how Farmers and GEICO stack up.

Both insurers have a wide range of offers, including many of the same discounts, like airbags, anti-lock brakes, good student, multi-vehicle, and multi-policy (bundling) discounts.

While GEICO slightly edges out Farmers in total number of discounts, Farmers offers several opportunities to save that GEICO doesn’t, including automatic payments, paperless billing, paying in full, and distant students. On the other hand, GEICO has discounts for new vehicles, federal employees, and an additional emergency deployment discount for military policyholders.

Comparing Farmers and GEICO Customer Satisfaction

When picking a car insurance company, you want to make sure the company will treat you well, especially if you ever need to file a claim. So how do Farmers and GEICO rank in terms of customer satisfaction?

Both companies scored slightly below average in the J.D. Power 2023 Auto Insurance Study. We also checked out ratings from a few other notable sources to see how happy customers are with both companies. Here’s what we found.

The ratings show a mixed bag, but both insurers have some pretty low scores on several sites. When digging into the actual reviews, we found some common complaints, with increasing premiums at the top of the list.

Many Farmers policyholders are upset about big rate hikes, even when they haven’t filed any insurance claims and have kept a clean driving record.

Some also feel that Farmers’ customer service representatives care more about saving the company money than helping them out.

As for GEICO, a few loyal customers who stayed with the company for years switched and saw their rates drop significantly.

Others said that GEICO lures you in with a good price for the first six months but then jacks up your rates later, even if you haven’t had any accidents.

More About GEICO and Farmers

We’ve covered a lot of ground comparing prices and customer reviews from GEICO and Farmers. But car insurance policy options, policyholder perks, ease of filing a claim, and mobile apps are also worth considering before you make a financial decision.

Let’s take a closer look at how each company compares for each.

Coverage options

Both auto insurance companies offer the basics you’d expect, like liability, collision, and comprehensive insurance. But Farmers takes the lead here — it provides more options than GEICO, like rideshare insurance, new car replacement, and loss of use, which covers public transit, taxis, and rideshare services while your car is in the shop.

Company perks

You’ll get free glass repair from both companies, as well as a chance to lower your rates for safe driving behavior through a telematics program. Farmers has more lenient accident forgiveness — your rates won’t go up after an accident for every three years you drive without one. With GEICO, you need to be accident-free for at least five years to get accident forgiveness.

Claims processing

You can file claims online or over the phone with Farmers and GEICO, but Farmers scored higher in J.D. Power’s 2023 Auto Claims Satisfaction Study.

After filing a claim, Farmers lets you choose your own repair shop or one from the company’s network. On the other hand, GEICO requires a 30-minute damage inspection before you can schedule car repairs.

Mobile apps

The two companies earn high ratings for iOS and Android apps. These apps allow you to access your digital insurance ID cards, file a car insurance claim, get a quote, and call for roadside assistance. The Farmers app also lets you pay your bill and manage payment options, giving it a slight edge.

Farmers vs. GEICO FAQs

Now that we’ve covered the main points of comparison between Farmers and GEICO, let’s examine some commonly asked questions to help you find the best company.

What are the best car insurance companies?

The best car insurance company for you depends on your individual needs and preferences. If cost is the most important factor, you might choose GEICO over Farmers. But a Farmers car insurance policy is a better choice for customer service, customized insurance policies, and policyholder perks, like accident forgiveness.

At the end of the day, the best way to find the best fit is to compare personalized quotes from as many companies as possible.

Which companies are better than Farmers?

Our research suggests that USAA outranks Farmers (and GEICO) in cost, customer service, and claims handling. It also scored the highest in J.D. Power’s 2023 Auto Insurance Study. The downside is it’s only available for military members and their families. If you don’t meet that criteria, you might consider Allstate, Progressive, or State Farm for car insurance. We recommend getting a quote from each.

Why is Farmers auto insurance so expensive?

There’s no single reason why Farmers auto insurance is more expensive than other companies, including GEICO. The higher rates might be from higher overhead costs due to its brick-and-mortar locations and agent network throughout the U.S. You’ll also find fewer car insurance discounts with Farmers. But it largely depends on your unique driving profile.

Why is GEICO so cheap?

GEICO is known for offering some of the cheapest car insurance products around. The lower rates are likely a combination of available discounts and the company’s online business model, which means it doesn’t spend money on things like physical office space.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Rating Methodology:

Compare.com’s mission is to help our readers make more informed decisions about their personal finances. Our editorial staff has crafted a proprietary, objective rating formula — the Compare.com Rating — to make it easier for our readers to analyze and compare many of the industry’s most well-known insurers. The score you see referenced in this article is based on several factors, including:

• Cost: How the insurer’s average rates compare to its direct competitors and the industry as a whole. This includes available savings opportunities, such as discounts and other factors.
• Customer satisfaction: How satisfied existing customers are with the service they receive. This includes the insurer’s scores among various third-party studies, such as the J.D. Power U.S. Insurance Shopping and Claims Satisfaction studies and the National Association of Insurance Commissioners (NAIC) Complaint Index, among others.
• Ease of use: How easy it is for policyholders to utilize their policies. This includes mobile app availability, customer service availability, payment flexibility, and other related factors.
• Availability: The overall scope of the company’s insurance offerings. This includes available coverage types, national footprint, and other related factors.
• Industry reputation: A measure of the insurer’s overall standing within the industry. This includes its AM Best Financial Strength rating, BBB accreditation, and other related factors.

Sources:

1. J.D. Power, “Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge,” last accessed April 10, 2024.
2. Trustpilot, “Farmers Insurance,” last accessed April 10, 2024.
3. Clearsurance, “Farmers Insurance Group,” last accessed April 10, 2024.
4. ConsumerAffairs, “Farmers Auto Insurance Reviews,” last accessed April 10, 2024.
5. Better Business Bureau, “Farmers Insurance,” last accessed April 10, 2024.
6. Consumer Reports, “Car Insurance Ratings,” last accessed April 10, 2024.
7. Trustpilot, “GEICO,” last accessed April 10, 2024.
8. Consumer Affairs, “GEICO Reviews,” last accessed April 10, 2024.
9. Better Business Bureau, “GEICO,” last accessed April 10, 2024.
10. J.D. Power, “Auto Insurers Manage Customer Expectations as Repair Cycle Times Double in Two Years,” last accessed April 10, 2024.