Geico vs Farmers
Founded in 1936, Geico is a major insurance carrier known for offering lower average rates and efficient online tools. Headquartered in Chevy Chase, Maryland, Geico is known for its car insurance policies and the gecko mascot featured in commercials. As of 2023, the company had more than 18 million auto policies in force and was the second-largest private passenger auto insurer in the United States. However, the insurance company offers more than just car insurance; it also offers a variety of other products to customers, including homeowners insurance, pet insurance, commercial insurance and more, many of which are underwritten through third party companies. As of 2023, Geico was also ranked by Bankrate as one of the best overall auto insurance companies.
Founded in Los Angeles in 1928, Farmers Insurance currently insures over 10 million households with approximately 19 million individual policies. As of 2021, Farmers was the ninth-largest property and casualty producer by direct premiums written with 3.2% of the total market share. With over 48,000 local agents across the country, Farmers offers a wide network of insurance representatives to customers, along with a user-friendly website and mobile application. In addition to auto and homeowners insurance, Farmers offers other insurance policies to customers, including life insurance options.
Geico | Farmers | |
|---|---|---|
Bankrate score | 4.4 | 3.8 |
Tier 1 | 4.5 | 4.2 |
Tier 2 | 4.0 | 3.5 |
Tier 3 | 4.7 | 3.5 |
Bankrate Score methodology
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
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Our verdict
Compared to Farmers, Geico offers lower average car insurance premiums for most drivers, from young and inexperienced to those with a few marks on their driving records. With a lack of brick-and-mortar locations, however, Geico may be better suited to those who prefer to purchase and manage their policies digitally. Farmers has higher average rates for most types of drivers compared to Geico, but it takes a more traditional approach to insurance, offering thousands of brick-and-mortar locations to customers with a network of insurance agents.
Geico vs. Farmers comparison
Every insurance company offers potential benefits and downsides to customers, which can be helpful to consider if you are trying to choose between two companies. Here are some of the pros and cons for Geico and Farmers that may be worth considering:
Geico pros and cons
Pros | Cons |
|---|---|
Highly rated mobile app that offers numerous policy management features | Brick-and-mortar access is limited |
Other policy types available for bundling | Uses partners and third parties underwrite certain types of policies |
Cheaper annual average premiums | No gap insurance option available |
Farmers pros and cons
Pros | Cons |
|---|---|
Offers a range of policy types (9+), rideshare coverage and other related financial solutions | More expensive premiums on average |
Access to a network of agents via thousands of brick-and-mortar locations | Lower AM Best rating |
Unique discount opportunities available | Customer service is not available 24/7 |
Is Geico cheaper than Farmers?
The cost of insuring a vehicle is typically one of the main considerations that drivers take into account when shopping for new car insurance. After all, the cost of car insurance needs to fit into drivers’ budgets, so the average premium information can help determine which option may work best for your finances. According to Bankrate’s analysis of average premium data from Quadrant Information Services, Geico’s average rates for full and minimum car insurance coverage are cheaper than the rates offered by Farmers. The following table breaks down the average annual premium for both minimum and full coverage policies for both companies.
Car insurance company | Average annual premium for full coverage | Average annual premium for minimum coverage |
|---|---|---|
Geico | $1,353 | $373 |
Farmers | $1,598 | $534 |
Car insurance rates methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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Geico is generally cheaper for drivers with poor credit
Your credit score can impact car insurance premiums in most states, meaning that a lower credit score could cause your car insurance costs to be higher in certain states. That’s because drivers with a lower credit rating are statistically more likely to file a claim, and insurance companies will typically compensate for the higher risk by charging a higher rate. Drivers with excellent credit scores, on the other hand, typically enjoy lower premiums. However, insurance-based credit ratings cannot be used to calculate car insurance rates in California, Hawaii, Massachusetts and Michigan. Here are the average rates from Geico vs. Farmers based on credit score:
Credit Score | Geico | Farmers |
|---|---|---|
Poor | $1,865 | $2,768 |
Average | $1,437 | $1,699 |
Good | $1,353 | $1,598 |
Excellent | $1,258 | $1,335 |
Rates by credit score methodology
Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
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Geico is generally cheaper for young drivers
Young drivers have less experience behind the wheel and are statistically more likely to be involved in accidents and other incidents on the road. In turn, younger drivers can generally expect to pay higher insurance premiums compared to older drivers who have more experience behind the wheel. There are certain states, however, that do not allow age to be used as a rating factor. While your actual quote will vary based on numerous factors, generally young drivers pay cheaper rates through Geico on average. The following table shows the average premium for young drivers on their parents’ policy for each company.
Geico | Farmers | |
|---|---|---|
$2,977 | $3,085 | |
$2,753 | $2,900 | |
$2,523 | $2,762 | |
$2,212 | $2,549 | |
$2,054 | $2,406 |
Rates by age (young drivers) methodology
The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy.
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Geico is generally cheaper for adult drivers
As drivers get more experience on the road, the likelihood of causing an at-fault accident decreases. In turn, the average premiums also tend to decrease as the risk of insuring these drivers is lower. The following table breaks down the average annual premiums for Geico and Farmers customers by age. Adult drivers with their own policy may expect to pay less with a Geico policy on average.
Geico | Farmers | |
|---|---|---|
Age 18 | $4,048 | $6,567 |
$1,584 | $1,834 | |
$1,389 | $1,641 | |
$1,353 | $1,598 | |
$1,264 | $1,375 |
Rates by age (adult drivers) methodology
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
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Geico is generally cheaper for high-risk drivers
One major factor used to determine car insurance rates is your driving record. Drivers with clean driving records, and those without serious incidents, generally pay less on average for car insurance. On the other hand, those with at-fault accidents, DUIs or speeding tickets will generally pay higher rates for car insurance on average. The table below shows the average annual premium charged for a driver with a clean driving record compared to a driver with a speeding ticket, accident, and a DUI. It is important to note that not all companies will insure a driver who has a DUI conviction on their record.
Geico | Farmers | |
|---|---|---|
Clean driving record | $1,353 | $1,598 |
$1658 | $1,986 | |
$1,988 | $2,244 | |
$3,351 | $2,727 |
Rates by driving record methodology
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
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Geico vs. Farmers: discounts
Both Geico and Farmers offer car insurance discounts that can help drivers save money on their car insurance premiums. Like many other car insurance companies, both Geico and Farmers offer discounts for multiple vehicles, multiple insurance policies (bundling), and various vehicle safety features, but each company sets its own discount percentage. Additionally, both Geico and Farmers offer discounts that are unique to the company which may benefit drivers who qualify for a specific discount.
Geico unique discount
Good student discount: Drivers who are full-time students in either high-school or college who maintain a “B” grade average or higher may qualify for a 15 percent discount.
Good driver discount: Drivers who have been accident-free for 5 years or more may qualify up to 22 percent off most insurance coverages.
Eagle discount: Both active and retired federal employees may be able to save up to 12% on their auto insurance premium in most states.
Farmers unique discounts
Distant student discount: Families with a young driver on their policy who is attending school at least 100 miles from their home, and is therefore not regularly driving, could receive a discount.
Alternative fuel discount: California policyholders with hybrid or electric vehicles may qualify for an alternative fuel discount (CA only).
Affinity discount: Members of specific businesses, professional or occupational groups and military members may be eligible for an additional discount.
ePolicy discount: Policyholders who enroll in Farmers’ ePolicy and Go Paperless options may qualify for an additional discount.
Usage-based insurance comparison: Geico vs Farmers
Many drivers are opting to allow insurance companies to track and analyze their driving habits as part of a usage-based insurance program. These types of insurance programs utilize telematics technology through vehicle devices or mobile applications to track your driving habits, and if you display good habits behind the wheel, you may be eligible to receive lower rates or discounts on your car insurance. The table below compares Geico’s DriveEasy program to Farmer’s Signal program.
Farmer Signal | ||
|---|---|---|
Device | Mobile app | Mobile app |
Can it raise your rate? | Yes | Yes |
Availability | 33 states + District of Columbia | 46 states; not all policies are eligible. Monthly sweepstakes not available in all states. |
Discount | Varies based on driving habits | Initial enrollment discount; variable renewal discount possible for safe driving. Monthly high driving scores make you eligible to win rewards of up to $100. |
What it monitors | Driving behaviors, phone use, mileage | Braking habits, phone use, speed, and mileage |
Geico vs. Farmers: customer experience comparison
Both Geico and Farmers offer a user-friendly website and mobile app that allows customers to get insurance quotes, manage their policies, and check claim status as needed. However, it can also be helpful to review other customer experience factors, like rankings on the 2022 J.D. Power Auto Claims Satisfaction Study or AM Best ratings, to see how each company stacks up and determine which is best for your needs.
Geico | Farmers | |
|---|---|---|
Apple store | 4.8 out of 5 | 4.6 out of 5 |
Google play | 4.8 out of 5 | 4.6 out of 5 |
J.D. Power | 874 / 1,000 | 882 / 1,000 |
Frequently asked questions
Do Geico and Farmers offer homeowners insurance?
Yes; both Geico and Farmers offer homeowners insurance, but Geico does not underwrite homeowners insurance policies and instead partners with other companies to offer coverage. What that means is that if you were to purchase coverage for your home through Geico, you would be dealing with another company for claims and other issues rather than dealing with Geico. Still, both companies offer a multi-policy discount for binding homeowners insurance with your auto insurance coverage, even though Geico works with partner agencies to issue homeowners insurance policies.
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How much does car insurance cost?
In the United States, the average cost of car insurance is $2,014 per year for a full coverage policy according to Bankrate’s 2023 study of quoted annual premiums. However, the actual rate you will pay depends on factors like your driving and claims history.
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How much car insurance do I need?
Car insurance is a legal requirement in almost every state and the minimum coverage requirements are different everywhere. At a minimum, you will probably need personal liability insurance, and in a no-fault state, you will also need to carry personal injury protection (PIP).
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Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket conviction and single DUI conviction.
