Farmers Insurance vs State Farm

Verdict

State Farm and Farmers Insurance both sell mainly through exclusive local agents, and both are owned by their policyholders, in different ways. State Farm is a mutual and the largest U.S. auto insurer, with $69.16 billion of private passenger auto premium in 2025 (18.61%). Farmers' core insurers are reciprocal exchanges managed for a fee by Farmers Group, Inc., which Zurich Insurance Group owns. The group wrote $13.24 billion (3.56%). Besides exclusive agents, Farmers also reaches customers through independent agents, direct sales and workplace programs.

State Farm has the edge on ratings and service. AM Best rates it A+ (Superior), after a November 2025 downgrade from A++. Farmers is rated A (Excellent), affirmed in September 2026 with the outlook raised to positive. In the J.D. Power 2026 U.S. Auto Insurance Study State Farm beat the regional average in nine of 11 regions. Farmers did so in two, Florida and the Central region, and finished last in New England and New York. In the 2025 claims study State Farm scored 716 (tied 8th of 20) and Farmers 690 (17th). Farmers' strength is its coverage menu, with new car replacement, OEM parts, accident forgiveness, glass deductible buyback and a rental alternative stipend.

Prices depend heavily on the driver and the state, so get quotes from both agents.

Choose Farmers if

• You want to customize your policy with add-ons like OEM parts for cars up to 10 years old or new car replacement.
• You want accident forgiveness that forgives one at-fault accident every three years.
• You live in Massachusetts or Rhode Island, where State Farm doesn't write new auto policies.
• Your employer or association offers Farmers GroupSelect discounts.
• You live in Florida, where Farmers ranked second in J.D. Power's 2026 study. Note that Farmers-branded policies were withdrawn there in 2023, and Florida business now runs through other Farmers brands.

Choose State Farm if

• You weigh customer satisfaction heavily. State Farm was above average in nine of 11 J.D. Power regions in 2026.
• You want the higher AM Best rating (A+ vs. A).
• You want a mutual that paid a $5 billion auto dividend in 2026 and cut rates an average of 10% in 40 states.
• You live in Florida, Hawaii or New York and want a usage-based discount. Farmers' Signal isn't offered there.

Key differences

Both agents represent one company, so you'll need two separate quotes. Price the same base coverage first, then add the extras you actually want; add-ons can make a quote look higher without making it a worse deal. captive agents vs independent agents vs buying direct explains how exclusive agents work, and the car insurance quote comparison worksheet keeps the line items straight.