Head-to-head comparison
Farmers vs State Farm
Short answer: quote both. State Farm usually wins on price for a clean-record, low-mileage driver with a State-Farm-side home or life bundle; Farmers usually wins when you need gap coverage, have an SR-22 filing or prior lapse (routed via Bristol West), or already carry Farmers home insurance. Longer answer: two agent-captive national carriers that look similar at a distance and diverge in distribution scale and underwriting posture. State Farm runs the industry's largest personal-lines captive-agent force (~19,000 exclusive agents) and is the #1 U.S. personal-auto writer by direct premium; its November 2025 AM Best downgrade of State Farm Mutual Automobile Insurance Company is the only recent material counterparty event. Farmers runs a smaller agent footprint under a captive + independent-agent hybrid model, writes non-standard business through its Bristol West subsidiary, and reduced its California footprint in 2023 before restoring it in 2024. Where the two actually differ: raw agent scale, gap-coverage availability (State Farm does not sell gap on personal auto), telematics mechanics, and the Farmers family of underwriting companies (Bristol West for non-standard, Foremost for specialty).
Pick Farmers if you…
- Want Signal, which can lower or raise your renewal premium based on your driving (per Farmers).
- Prefer buying through a named local agent and want sibling brands (Bristol West, Foremost, Toggle).
- Want New Car Replacement: total your car in year 1 or 2 under 24,000 miles and get a new car.
Pick State Farm if you…
- Want Drive Safe & Save, which can lower or raise premium at renewal (up to 30% discount).
- Have a Steer Clear-eligible driver under 25 with a clean record for an added discount.
- Have a Good Student in the household (up to 25% discount for qualifying full-time students).
At a glance
Where these two actually differ
Agent-force scale and distribution reach
State Farm operates ~19,000 exclusive-agent offices nationwide, the largest personal-lines captive-agent network. Farmers runs a smaller captive + independent-agent hybrid with roughly a third of State Farm's footprint. For a shopper in a mid-sized metro, both carriers typically have local offices; in rural markets State Farm's density advantage shows up directly. On a digital-first shopping path, both support mobile-app policy management and online quotes.
Coverage menu and the gap-coverage gap
State Farm notably does not sell gap insurance (loan/lease payoff) on personal auto, stated plainly on its own auto-insurance page. Farmers offers Loan/Lease Gap Coverage as an endorsement. For shoppers financing or leasing a vehicle with meaningful equity exposure, Farmers is the clearly-fit quote; State Farm is not. On other optional endorsements (accident forgiveness, new-car replacement, rideshare coverage), both carriers publish competitive menus with state-level variation.
Signal vs Drive Safe & Save: mechanics
Farmers Signal is a mobile-app telematics program with a sign-up discount plus ongoing behavior-based credit. State Farm Drive Safe & Save pairs a sign-up discount with ongoing mileage-and-behavior credit, with strong mileage weighting that typically favors low-mileage drivers. Both programs read phone handling, hard braking, speed, and late-night driving. State-level surcharge rules differ for both; the Signal state addendum and Drive Safe & Save state addendum are the authoritative references.
Counterparty strength and 2025 AM Best divergence
AM Best downgraded State Farm Mutual Automobile Insurance Company and its U.S. property/casualty affiliates in November 2025 (from A++ (Superior) to A+ (Superior)), citing multi-year personal-auto underwriting results. Farmers Insurance Exchange was affirmed at A (Excellent) in September 2026. State Farm remains the #1 U.S. personal-auto writer and remains above most consumer-facing thresholds; the downgrade signals balance-sheet pressure rather than imminent solvency concern. Buyers who weight counterparty strength as a tie-breaker should note both carriers now carry A ratings at the operating-entity level.
Non-standard and SR-22 routing
Farmers writes non-standard business through its Bristol West subsidiary, a distinct underwriting entity with its own rate filings and agent network. Shoppers with SR-22 filings, prior lapses, or multiple at-fault incidents are commonly routed from Farmers' main book to Bristol West during the quoting process. State Farm's non-standard appetite is narrower; shoppers with meaningful risk markers are more often declined or steered to higher-tier pricing in the standard book. If your record carries meaningful risk markers, Farmers via Bristol West is usually the cleaner quote path.
Claims-satisfaction signal (2025 J.D. Power)
State Farm has historically scored above the national mass-market mean on J.D. Power's Auto Insurance and Auto Claims Satisfaction studies. Farmers scored near the national mean in 2025. On a single claim, the specific adjuster, the repair-shop network, and the policy's endorsements (accident forgiveness, OEM parts) drive outcome more than the national survey mean.
Telematics side by side
Farmers
Program Signal
Tracks speed, hard_braking, phone_use, time_of_day, mileage
Can raise rate? Yes
Enrollment max 5%
Renewal max up to 15% (some publisher sources cite up to 25% including stacked youthful-driver savings)
State exclusions CA, FL, HI, NY, SC
Signal can increase renewal premium for risky driving behavior at renewal, per Farmers program materials summarized by secondary publishers. Not purely a discount-only program.[13]
State Farm
Program Drive Safe & Save
Tracks acceleration, hard_braking, cornering, phone_use, speed, mileage
Can raise rate? Yes
Enrollment max Initial discount for enrolling
Renewal max Up to 30% based on how you drive; some states permit above 30%; New York capped at 30%
State exclusions CA, MA, RI
State Farm re-adjusts premium at each policy renewal (typically every six months) using up to the prior 12 months of data. The adjustment CAN be a discount OR a surcharge. State Farm specifically notes that if mileage exceeds 7,500 miles annually, premium may increase. That is a meaningful difference from telematics programs that only offer a discount. Not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts. Enrollment uses the State Farm mobile app plus a mailed Bluetooth beacon paired with the app. Tracked behaviors include acceleration (described as starting fast off the line), braking (fast, hard stops), cornering (quick, sharp turns), phone distraction (defined as phone moving while vehicle moving and screen on), speed over posted limit by 8+ mph, and annual mileage.[4]
Financial strength
Farmers
AM Best FSR A (Excellent)
Long-Term ICR a (Excellent); Positive outlook (revised from Stable on Sept 3, 2026)
Outlook Stable
Affirmed Sep 3, 2026
AM Best revised the Long-Term Issuer Credit Rating outlook to Positive from Stable on September 3, 2026, while affirming the Financial Strength Rating at A (Excellent). Prior action was an August 2025 affirmation with stable outlooks.[2]
State Farm
AM Best FSR A+ (Superior)
Long-Term ICR aa (Superior)
Outlook Stable
Affirmed Nov 14, 2025
MATERIAL RATING EVENT: On November 14, 2025, AM Best DOWNGRADED the Financial Strength Rating of State Farm Mutual Automobile Insurance Company and its affiliates to A+ (Superior) from A++ (Superior), and downgraded the Long-Term ICR to "aa" (Superior) from "aa+" (Superior). Outlook was revised to stable from negative. AM Best attributed the action to a revision in the group's operating performance assessment to adequate from strong, reflecting adverse underwriting experience in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; the direction of the change is the honest context to attach to it.[1]
Coverage differences
| Coverage | Farmers | State Farm |
|---|---|---|
| Accident forgiveness | OfferedOne at-fault accident forgiven per three claim-free years. | — |
| Customized equipment | Offered | — |
| Loan/lease (gap) | OfferedUp to 25% of actual cash value. | Not offeredNOT offered by State Farm on the main auto page. State Farm suggests the reader's auto loan provider is the usual source for this coverage. If you finance or lease a vehicle and expect the lender to require gap-style coverage, verify with your lender that a third-party gap product is acceptable. |
| Medical payments | Offered | — |
| New-car replacement | OfferedFirst 2 model years or 24,000 miles. | — |
| Personal injury protection | OfferedWhere state requires. | — |
| Rental reimbursement | Offered | — |
| Emergency road service / car rental & travel expenses coverage / rideshare driver (select states) | — | OfferedCommonly-bundled endorsements. Availability, limits, and state-specific rules vary; confirm with a State Farm agent. |
| Rideshare coverage | OfferedFills the carrier-period-1 gap. | — |
| Roadside assistance | Offered | — |
| Collision | Offered | OfferedDamage to your vehicle from an impact with another vehicle or object. |
| Comprehensive | Offered | OfferedNon-collision damage (theft, vandalism, weather, animal strikes). |
| Liability | Offered | OfferedState minimum limits vary; higher limits generally available. |
| Uninsured and underinsured motorist | Offered | OfferedRequired or optional depending on state. |
Dated events that specifically move this matchup
Affects State FarmAM Best downgraded State Farm Mutual Automobile Insurance Company (November 14, 2025)Nov 14, 2025
AM Best downgraded State Farm Mutual Automobile and affiliates in November 2025 (from A++ (Superior) to A+ (Superior)), citing multi-year personal-auto underwriting results. State Farm remains the #1 U.S. personal-auto writer by premium; the downgrade signals balance-sheet pressure, not an imminent solvency concern.[1]
Affects FarmersAM Best affirmed Farmers Insurance Exchange at A (Excellent) (September 3, 2026)Sep 3, 2026
AM Best affirmed Farmers Insurance Exchange at A (Excellent) in September 2026, following prior-year reserve strengthening and reinsurance program changes aimed at stabilizing the auto book.[2]
Who should quote each
Pick Farmers ifAgent-channel shopper with bundled property, lease exposure, or non-standard record
- You're bundling home or renters with auto; Farmers' multi-policy credit stacks consistently across its footprint.
- You carry a financed or leased vehicle and need gap coverage; State Farm does not offer it, Farmers does.
- You have SR-22 status, a prior lapse, or multiple at-fault incidents; Farmers via Bristol West writes this book cleanly.
- You want an agent you can visit in person and your market has a Farmers office nearby.
Pick State Farm ifClean-record household, low-mileage driver, or claims-satisfaction-weighted buyer
- You want in-person agent service and State Farm has the largest personal-lines captive-agent footprint in the industry (~19,000 offices).
- You drive significantly below average annual miles and want to capture that explicitly via Drive Safe & Save mileage credit.
- You weight J.D. Power claims-satisfaction signal; State Farm has historically scored above the national mass-market mean.
- You do not need gap coverage; your vehicle is owned outright or you carry gap separately through the lender.
Quote both ifClean-record standard-profile shoppers with agent preference
- Clean-record standard profiles: profile-driven variance between captive-agent carriers is large enough that parallel quotes materially outperform picking one blind.
- Multi-policy bundle shoppers: both carriers heavily discount home + auto, but the specific credit depends on state and product version.
- Teen or young-driver households: both run Good Student discount programs; the specific credit stack varies.
- Shoppers in Signal or Drive Safe & Save states where surcharge rules differ: run both quotes to see the net effect of telematics enrollment.
Get real quotes from Farmers and State Farm on your own profile.
Compare car insurance quotesCommon questions
Is Farmers or State Farm cheaper?
It depends on your profile. State Farm has historically priced competitively for low-mileage and clean-record drivers; Farmers prices competitively on bundled home+auto and multi-vehicle households. For non-standard risks (SR-22, prior lapse), Farmers via Bristol West is often the cleaner quote. The reliable approach is parallel quotes at identical coverage limits.
Does State Farm offer gap insurance?
No. State Farm's own auto-insurance page states gap coverage is not offered on personal auto. If you carry a loan or lease on a vehicle, Farmers Loan/Lease Gap Coverage, a lender-sold gap product, or a third-party gap provider are the alternatives.
Which has better claims service?
The 2025 J.D. Power U.S. Auto Insurance and Auto Claims Satisfaction studies placed State Farm above Farmers at the national level. Both are mid-range or better across regional scores. On a single claim, the specific adjuster, repair-shop network, and policy endorsements drive outcome more than the national survey average.
Did AM Best downgrade State Farm?
Yes. AM Best downgraded State Farm Mutual Automobile Insurance Company and affiliates in November 2025 from A++ (Superior) to A+ (Superior) on November 14, 2025, citing multi-year personal-auto underwriting results. State Farm remains the #1 U.S. personal-auto writer by premium and remains above most consumer-facing thresholds, but the direction of travel differs from Farmers' stable affirmation.
Which carrier for a teen or young driver?
Both carriers run strong teen-driver programs: State Farm's Steer Clear and the Good Student discount; Farmers' Youthful Driver and Good Student programs. On a household adding a 16- to 18-year-old driver, the bundled rate shifts materially; run both quotes.
What is Bristol West and when does it apply?
Bristol West is a Farmers Group subsidiary that writes non-standard personal auto. Shoppers with SR-22 filings, substandard risk markers, prior lapses, or multiple incidents are often routed from Farmers' main book to Bristol West during the quoting process. Bristol West has its own rate filings, policy forms, and agent network.
Should I quote both?
Yes. Agent-captive carriers can price the same risk very differently because of state-level filings, agent book composition, and bundling credits. Parallel quotes at identical coverage limits are the only reliable way to see your actual price.
Sources & methodology
- FarmersAM Best via Business Wire mirror: Revises Issuer Credit Rating Outlooks to Positive for Members of Farmers Insurance Group (September 3, 2026); FSR A (Excellent) affirmed; Long-Term ICR outlook revised to Positive from Stable (AM Best via Business Wire mirror (Yahoo Finance))
- FarmersFarmers Corporate: Exchange Update (ownership and corporate structure) (Farmers Insurance)
- FarmersFarmers Corporate: Companies in the Farmers Group (Farmers Insurance)
- FarmersInsurance Journal: Farmers Agency Ownership Expansion and Elite Owner Program (March 2026) (Insurance Journal)
- FarmersTop Class Actions: Farmers 1.1M Policyholder Data Breach via Salesforce (Sept 2025) (Top Class Actions)
- FarmersInsurance Journal: Farmers Market Reduction Notice in Florida (July 2023) (Insurance Journal)
- FarmersInsurance Journal: Farmers Lifts California Homeowners New-Business Cap (Nov 2025) (Insurance Journal)
- FarmersNerdWallet: Farmers Auto Insurance Review 2026 (NerdWallet)
- FarmersU.S. News: Farmers Car Insurance Review for 2026 (U.S. News)
- FarmersValuePenguin: Farmers Insurance Review and 2026 Rate Study (ValuePenguin)
- FarmersWalletHub: Farmers Signal Telematics Review (WalletHub)
- FarmersWalletHub: Farmers Insurance Discounts (WalletHub)
- FarmersJ.D. Power 2025 U.S. Auto Insurance Study (regional segment reporting; aggregated via Insurance.com) (J.D. Power)
- SharedJ.D. Power 2025 U.S. Auto Claims Satisfaction Study (J.D. Power)
- FarmersNAIC Consumer Information Source (per-entity complaint and financial lookup) (National Association of Insurance Commissioners)
- State FarmAM Best via Business Wire: Downgrades Credit Ratings of State Farm Mutual Automobile Insurance Company and Affiliates (November 14, 2025) (AM Best via Business Wire)
- State FarmState Farm: Car insurance overview (coverage types; statement that gap insurance is not offered) (State Farm)
- State FarmState Farm: Car insurance discounts page (Drive Safe & Save, Steer Clear, Good Student, Passive Restraint, others) (State Farm)
- State FarmState Farm: Drive Safe & Save page (enrollment mechanics, tracked behaviors, discount and surcharge mechanics, state carve-outs) (State Farm)
- State FarmState Farm: About Us (mutual company structure; ~19,000 agents) (State Farm)
- State FarmNerdWallet: State Farm Car Insurance Review (September 2026 modeled rates) (NerdWallet)
- State FarmValuePenguin: State Farm Insurance Review (modeled full-coverage rate) (ValuePenguin)
- State FarmAgency Checklists: NAIC 2025 Market Share, Top 25 Private Passenger Auto Insurers (secondary reporting of NAIC 2025 direct-premiums-earned data) (Agency Checklists)
- State FarmS&P Global Market Intelligence: Progressive now No. 1 US private auto insurer for full 12 months, estimates show (May 2026, trailing 12 months ending March 31 2026) (S&P Global Market Intelligence)
- State FarmJ.D. Power: 2025 U.S. Auto Insurance Study (regional press release) (J.D. Power)
- State FarmInsurance.com: J.D. Power's best and worst auto insurance companies for 2025 (secondary reporting of the 2025 Auto Insurance Study regional scores) (Insurance.com)
- State FarmNational Association of Insurance Commissioners: Consumer Information Source (complaint index methodology and lookup by insurer) (NAIC)
Every pivot and matrix cell on this page traces to a source listed above. Shared sources (e.g. NAIC Consumer Information Source, J.D. Power press-release landing pages) are attributed to both carriers.