As you begin your search for an insurance provider, the cost of coverage is only one aspect of many to consider.
If you are deciding between Progressive vs. Farmers, you should examine many factors, such as how each company services its claims, and its overall financial stability.
After careful research and study, you should be able to make an informed choice between Farmers vs. Progressive and discover the best insurance provider for your needs.
The Farmers Insurance Group of Companies is one of the largest auto insurance providers in the nation, providing policies for over 10 million households.
Founded in 1928, it has since grown to a successful nationwide business with 48,000 agents and 21,000 employees. In 2018, Farmers was awarded “Carrier of the Year” during the Insurance Nexus Innovation Awards Ceremony.
Progressive, which has nearly twice the market share as Farmers, is the fourth-largest auto insurance provider in the nation.
It was founded in 1937 and has made a significant impact on the auto insurance industry. It was the first insurer to provide side-by-side cost comparisons with other carriers, the first to let customers pay their premium in monthly installments, and the first to include a discount for safe drivers.
To help you figure out which company is better suited to your needs, we’ve compared them by evaluating these elements: equipment, monitoring, reputation, contract, overall price, and technology integration.
Then, to see how they compare to one another, we’ve summarized each insurer’s coverage offerings, benefits, customer experience, financial strength, pricing, and available discounts.
Progressive vs. Farmers Car Insurance Coverage Compared
When choosing between Progressive vs. Farmers, it’s important to note that while the two companies offer the same standard coverage options, their add-ons vary slightly.
Progressive and Farmers’ policyholders alike have access to liability, collision, and comprehensive coverages.
Both companies also offer other basic coverages that are not available from all insurers, such as personal injury protection, medical payments, and uninsured/underinsured motorists.
However, the two companies differ in the additional coverage options offered.
Though both offer rental reimbursement, towing, and labor cost coverage, Farmers also provides glass coverage. Conversely, Progressive has coverage available for sound systems and vet bills.
When deciding between Farmers vs. Progressive, you should consider not only how many types of coverage are available but whether it will meet your needs.
For example, if you have an extended warranty on your vehicle that covers towing and labor costs, then it’s unlikely that you’d need that coverage from your insurer.
Therefore, whether or not an insurer offers that coverage shouldn’t influence your final decision.
By the same token, if you do not have a pet or rarely travel with your pet in tow, whether a company offers vet bill coverage is irrelevant to your purchasing decision.
What Do Their Customers Think?
Most people don’t spend much time communicating with their auto insurance provider until they need to file a claim.
Given that claims servicing is one, if not the most stressful interaction between a policyholder and their insurer, it’s one of the driving factors that affect overall customer satisfaction.
As you’re comparing Farmers vs. Progressive, take note of the ease, efficiency, and fairness with which each company handles claims, to help you determine which insurer provides better service.
J.D. Power considers three key performance indicator categories, or KPIs: communication, ease of service interaction, and timeliness.
These KPIs are an integral part of its rating categories and include how easy it is to file a claim, how efficiently and effectively a representative handles the claim, whether repairs were satisfactory, and the rental car experience, if available.
|Overall Satisfaction||Satisfaction with Initial Claims Reporting Process||Satisfaction with Representative Handling the Claim||Satisfaction with the Repair Process||Satisfaction with the Rental Car Process|
|Progressive||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||4 out of 5 stars|
|Farmers||3 out of 5 stars||3 out of 5 stars||3 out of 5 stars||2 out of 5 stars||3 out of 5 stars|
According to the 2017 U.S. Auto Claims Satisfaction Study conducted by J.D. Power, both Progressive and Farmers are rated 3 out of 5 stars for overall satisfaction.
However, Progressive scores higher than Farmers in two out of four metrics. While both companies received 3 out of 5 stars in the initial claims reporting process and claims servicing, Progressive scored 3 out of 5 stars in satisfaction with the repair process and 4 out of 5 stars in satisfaction with the rental car process. Farmers scored 2 out of 5 stars and 3 out of 5 stars in these metrics, respectively.
In addition to considering how an insurer handles the claims settling process, it’s important to look at how many justified complaints an insurer has. This shows the number of reported cases in which an insurer breached its contract with a policyholder.
The California Complaint Ratio calculates complaint ratios reported in California, which is the most populous state in the United States.
According to the 2016 data, Farmers ranked 8 out of 50 major auto insurance providers, receiving just 32 justified complaints out of 1,345,327 policies for a justified complaint ratio of 2.4 per 100,000 policies. Progressive, on the other hand, fielded 36 complaints out of 639,233 risk exposures (or written policies) for a justified complaint ratio of 5.6 per 100,000 policies.
The National Association of Insurance Commissioners also keeps a complaint database and calculates a ratio of complaints vs. total premium dollars.
In the national study, Progressive scored a 1.11 ratio which is very close to the national average of 1.00, but Farmers outdid them with a 0.7 ratio, 30 percent below the national average.
Comparing Financial Strength
Most auto insurance policyholders assume that if they pay their monthly premiums, whenever they file an insurance claim they’re guaranteed to receive fair and prompt compensation for a covered loss.
However, auto insurance providers aren’t federally insured like banks, so in the event of a natural disaster that results in thousands of claims, individual insurers must have the financial strength to settle those claims.
The Insurance Information Institute provides insight on how to evaluate an insurer’s financial strength by deciphering the ratings used by agencies like Standard & Poor’s, A.M. Best, and Moody’s Investor Services.
A.M. Best gave Farmers an “A,” which is its third highest rating and Progressive a slightly lower “a.” Standard & Poor’s also rated Farmers a little higher with an “A+” while Progressive received an “A,” but both are excellent scores.
These ratings indicate that both Farmers and Progressive have the financial strength to meet all of their long-term obligations.
Pricing and Discounts
When calculating your insurance premium, your insurer uses a sophisticated algorithm to determine how likely you are to file a claim. Some factors pertain directly to your driving history, such as how many claims you’ve presented and how many traffic violations are on your record.
Others have a more roundabout relation to your driving, such as whether you rent or own your home, and whether you’re single or married.
Just as there are factors that can drive up your car insurance rates, there are other variables that can reduce the cost of your insurance. An insurer adjusts for these by offering discounts.
As with the factors that negatively affect your premium, some discounts relate directly to your driving history while others do not.
While not all auto insurance providers offer discounts, both Progressive and Farmers do. Knowing which discounts are available and what you qualify for can help you make sure you’re getting the best price.
|Multiple Vehicle||YES||VARIES BY STATE|
|Multiple Policy||YES||VARIES BY STATE|
|Vehicle Safety||YES||VARIES BY STATE|
|Teen Driver||YES||VARIES BY STATE|
|Good Student||YES||VARIES BY STATE|
|Student Away from Home||YES||VARIES BY STATE|
|Completed Driver Training Course||YES|
|Completed Safe Driving Course||YES||VARIES BY STATE|
|Safe Driver||YES||VARIES BY STATE|
|Homeowner||YES||VARIES BY STATE|
|Length of Membership||YES|
|Sign Up Online||YES|
|Receive Online Quote||YES|
|Paperless||YES||VARIES BY STATE|
|Pay in Full||YES||VARIES BY STATE|
|Anti-Theft||YES||VARIES BY STATE|
|Hybrid||NO||VARIES BY STATE|
Overall, Progressive offers more discounts than Farmers does.
However, it’s important to note that Farmer’s available discounts vary widely by state, so it’s essential to explore the options available to you before determining which insurer can save you the most money.
As you can see, there is more to comparing insurance companies than just looking at costs.
Weighing the above factors and obtaining a personalized quote can help you purchase the best auto insurance policy for your needs and budget.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.