Farmers Insurance is making headlines as it continues to be a major player in the U.S. insurance market. Founded in 1928 and based in Woodland Hills, California, Farmers has grown from a small auto insurance provider into a comprehensive insurance group offering a wide range of products. As of 2025, it ranks among the top ten property and casualty insurers in North America, holding a 2.68% market share with reported revenues of approximately $26.6 billion.
Despite its strong standing, Farmers Insurance has received mixed reviews regarding its performance in various insurance sectors. While the company is recognized for its financial strength, brokers and consumers are advised to look beyond the rankings. Farmers Insurance has been noted for ranking in the lower half of many property and casualty insurance lines, which raises questions about its overall customer satisfaction.
In terms of financial strength ratings, Farmers has received solid evaluations from several agencies. A.M. Best rates it as "A" (Excellent) with a stable outlook, indicating a strong ability to meet its financial obligations. S&P also gives it an "A" rating with a positive outlook, reflecting improvements in underwriting performance. However, Fitch has not rated Farmers for 2025, and Moody’s has placed the company under review due to industry-wide challenges.
Customer satisfaction ratings tell a different story. According to J.D. Power, Farmers scored 809 out of 1000 in auto insurance, slightly below the industry average of 818. In homeowners’ insurance claims satisfaction, Farmers did not rank among the top insurers, receiving average to below-average ratings. Furthermore, the company’s digital tools have been criticized for not meeting customer expectations, impacting the overall shopping experience.
Farmers offers a variety of insurance products, including personal lines like auto and homeowners’ insurance, specialty products, and commercial insurance. However, the availability of these products can vary by state. For example, Farmers has withdrawn some of its home and car insurance policies in Florida but continues to operate through subsidiaries like Foremost and Bristol West. In California, the company had temporarily limited new home insurance policies but is now expanding its offerings again.
The average cost of Farmers’ insurance premiums is notably higher than the national average. For full coverage auto insurance, customers can expect to pay between $3,410 and $3,863 per year, which is 30% to 60% higher than the national range of $2,290 to $2,677. Homeowners’ insurance premiums are also approximately 50% higher than the national average.
As Farmers Insurance moves forward, it faces both opportunities and challenges. The company’s strong financial ratings suggest it is capable of paying claims, but its customer satisfaction ratings indicate room for improvement. Brokers and consumers alike should consider these factors when evaluating Farmers Insurance as a potential provider.