Farmers Insurance is solidly among the leading insurance companies in the US. However, brokers considering this insurer and its products for their clients shouldn’t take these rankings at face value. While Farmers does rank among the country's top 10 insurers, it is ranked in the lower half of most P&C insurance lines.
To recommend an insurer like this one, brokers must practice due diligence and check out Farmers’ insurance ratings and other key metrics. Although you may find that this insurer has done well and garnered some decent ratings on important performance indicators, it is advisable to dig deeper.
In this review, Insurance Business takes a closer look at critical metrics to help you make informed decisions for your clients.
Insurance professionals who need to assess the viability of an insurance provider and its products can first look at their financial strength ratings (FSR). In general, the agencies responsible for issuing these ratings are:
|
Ratings agency |
Rating |
Outlook for Farmers |
Details |
|---|---|---|---|
|
A.M. Best |
A (Excellent) |
Stable |
Strong ability to meet obligations |
|
Fitch |
Not rated |
n/a |
No current public rating for 2025 |
|
Moody’s |
A3 |
Under review |
Under review for downgrade due to underwriting challenges |
|
S&P |
A |
Positive |
Improved underwriting, upgraded from “stable” |
To know more about these ratings agencies, and their methodologies, you can check out our guide on insurance ratings agencies and their importance.
While there is no data yet from Fitch, the ratings of the other agencies should give a sufficient picture of the insurer’s financial strength. Farmers' insurance ratings from A.M. Best and S&P both affirm that it has solid financials and the ability to pay claims and meet other financial obligations.
S&P Global previously gave Farmers Insurance a BBB+ rating, but this is for their debt/surplus notes as of August 2024. The BBB+ rating is specifically for its surplus notes, but its overall financial strength and insurer credit rating from S&P is at an “A” level.
Moody’s has placed the company under review, although this is largely due to the industry-wide profitability challenges and exposure to natcats as of late. From the individual ratings referenced, Farmers has an overall positive and stable outlook for the rest of 2025.
|
Agency |
Long-term issuer credit rating |
Outlook |
Notes |
|---|---|---|---|
|
A.M. Best |
A (Excellent) |
Stable |
Affirmed in 2025; also assigned BBB+ issue credit rating to surplus notes in 2024 |
|
Fitch |
Not rated |
n/a |
No current public rating |
|
Moody’s |
A3 |
Stable |
Stable rating as of early 2025 with surplus notes rated Baa3 |
|
S&P |
A |
Positive |
Affirmed and revised outlook to “Positive” in June 2025 due to improved underwriting |
Farmers’ long-term issuer credit ratings for the year show the company is financially stable. The “A” rating from both A.M. Best and S&P, and Moody’s “A3” rating are reliable indicators of financial strength. Farmers is viewed by these ratings companies as having a high capacity for meeting its long-term financial obligations and paying claims to policyholders.
The revised outlook from S&P also shows that Farmers has made upward progress based on their improved underwriting.
Here’s a look at the overall sentiment about Farmers from the point of view of consumers. If A.M. Best, Moody’s and S&P reflect the insurance industry’s outlook, J.D. Power shows what consumers feel about the brand. Here’s what our research found:
|
Product Line |
J.D. Power ratings/score |
Notes |
|---|---|---|
|
Auto insurance |
809 out of 1000 |
Slightly below industry average |
|
Homeowners' claims |
Not among top-ranked |
Average to below-average customer satisfaction |
|
Digital tools |
Lower ratings |
Impacts customer shopping experience |
In terms of auto insurance, Farmers scored 809 out of a perfect score of 1000 in J.D. Power's latest auto insurance study. This ranking is slightly below the industry average of 818. The study based its score on metrics like trust, policy offerings, price, billing, customer interactions, and claims handling.
As for homeowners’ insurance, Farmers did not place among the top insurers in J.D. Power’s latest property claims satisfaction study. Farmers received average to below-average ratings in claims satisfaction in this department. This is rather disappointing, since Farmers is among the largest home insurance providers in the US.
Farmers’ digital experience and customer support scores did not fare well either, as their digital tools for auto insurance shopping got a lower score than the industry average. This impacted Farmers’ shopping experience with customers, despite having robust coverage options.
Farmers offers a diverse range of property and casualty insurance products, including:
Personal Lines – auto, homeowners’, renters, condo, mobile/manufactured home, motorcycle, boat, RV, and umbrella insurance
Specialty Products – landlord insurance, RV, and specialty dwellings
Commercial Lines – business insurance, including commercial property, commercial auto, liability, workers’ compensation insurance, and umbrella insurance
Life insurance – term, whole, universal, and indexed universal life insurance (available in all states, except for New York)
Financial products – while these are not insurance products, Farmers offers mutual funds, annuities, and investment products
Farmers also operates several subsidiaries and specialty brands that handle specific insurance products like:
This insurer has a broad range of insurance products that cover personal, commercial, specialty, and financial needs. Note that the availability of these products can vary according to product line and state regulations.
Farmers Insurance products that help individuals and families protect against financial losses include:
Farmers offers extensive and versatile auto insurance that covers many of the risks associated with owning and driving a car. Coverage includes standard policies like collision, liability, new car, replacement, roadside assistance, and uninsured/underinsured motorist coverage.
This covers a variety of damage or risks that can affect a policyholders’ home. These include cyber and identity shield, dwelling, other structures, loss of use, water backup, and other common offerings.
Designed for tenants, this covers high-value items, liability, loss of use, and other common cover associated with renters’ insurance.
This offers protection for the policyholders’ condominium unit and its interiors. This differs from the condo association insurance policy that covers risk for the building where the unit is housed.
This provides cover for rental homes, including loss of rent and liability, with specialty options for vacation, seasonal rentals, vacant rentals, or older homes.
This is specialized coverage provided by Farmers’ subsidiary Foremost, covering these types of dwellings.
This includes liability, comprehensive, collision, and optional add-on coverage.
This covers recreational vehicles like boats, travel trailers, ATVs, and more.
This provides additional liability protection if costs go over the limits of auto or home coverage.
This includes cover for a pet’s accidental injury, illness, and wellness treatments. This applies to both cats and dogs, and is offered via a subsidiary company, Pets Best.
Farmers’ lineup of business or commercial insurance products include:
Farmers’ life insurance products include:
Farmers offers several specialty insurance products like:
Additional products that Farmers has include financial products like college payment plans, mutual, funds, annuities, and other investment products.
Take note that the availability of Farmers insurance products, their features, and discounts vary by state and their underwriting criteria. You are advised to confirm this with a Farmers insurance agent for the latest and most appropriate insurance options for your area.
Farmers’ products are offered in almost every state in the US. The insurer is supported by an extensive network of captive and independent insurance agents. However, there are a few state-specific limits to these products. For instance:
In Florida, Farmers began voluntarily withdrawing its Farmers-branded home, car, and umbrella insurance policies in 2023, but continues to offer coverage via its subsidiaries like Foremost and Bristol West
In California, Farmers temporarily limited new home insurance policies in 2023 but resumed expansion of its offerings in 2025. Farmers is getting about 9,500 new home insurance customers per month
In New York, Farmers does not offer life insurance policies; Farmers’ underwriting company Farmers New World Life, is not licensed to solicit or sell life insurance there
|
Aspect |
Availability |
|---|---|
|
Product range |
Comprehensive P&C lines, life insurance, financial products |
|
State coverage |
Almost all states, with a few exceptions and subsidiary options like Florida and NY |
|
Specialty brands |
Foremost, Toggle, Bristol West, 21st Century |
|
Recent changes |
Some lines reintroduced in California, some lines withdrawn from Florida |
|
Agent network |
Large network of independent and captive agents nationwide |
Below is a summary of the average cost of premiums for the different types of policies offered by Farmers compared to the national average.
|
Insurance type |
National average |
Farmers average |
Approximate difference |
|---|---|---|---|
|
Auto (full coverage) |
$2,290 to $2,677/year |
$3,410 to $3,863/year |
30% to 60% higher |
|
Auto (minimum coverage) |
$623 to $807/year |
$1,141 to $1,174/year |
40% to 80% higher
|
|
Homeowners |
$1,300 to $1,500/year |
About $2,506/year |
Around 50% higher |
This insurer often emphasizes custom coverage options with a lot of add-ons and comprehensive coverage that can all raise prices. Farmers’ pricing structure tends to favor drivers with good records and customers who bundle multiple insurance policies.
Also, rates can be higher in specific markets due to increased risk in those areas. In this respect, Farmers may better fit customers who prioritize personalized service, coverage options, and bundling discounts – even if these are at a higher price.
Founded in 1928 with headquarters in Woodland Hills, California, Farmers has grown from a small auto insurance provider for rural drivers into a multi-line, multi-company insurance group. Farmers offers a broad range of insurance and financial products.
The company consistently ranks among the top 10 property and casualty insurers in North America by market share and premium volume. To date, Farmers has made approximately $26.6 billion in revenues and holds a 2.68 percent market share in the United States.
Farmers' insurance rating information shows that it is a financially sound, well-capitalized insurer with a strong capacity for paying claims. It’s supported by multiple long-term issuer credit ratings from respected agencies. The press release by A.M. Best reaffirms its credit rating and outlook revisions from S&P reflect its upward momentum in underwriting performance.
Rating opinions from ratings agencies are crucial. Whenever they issue a press release, it means they’ve carefully reviewed the company’s financial health. A high credit rating shows that Farmers is a solid, reliable insurer that’s very likely to pay claims, even years down the road.
However, brokers and consumers should be aware of the limitations of credit rating opinions and supplement this information by reviewing pertinent disclosures like regulatory filings, claims satisfaction, and policy terms. The rating activity web page, official press releases, and offices responsible for issuing these ratings are also good primary sources for authoritative and current rating opinions.
You can subscribe to our IB+ Data Hub to look for more of these disclosures.
As a broker, you should not confine your assessment of an insurer, even one that makes the top ten list of P&C insurers to only a couple of key metrics. Note that while Farmers is financially solid, it ranks slightly below average for auto insurance satisfaction. It is also not in the top tier for home insurance claims.
In summary, our research of Farmers' insurance rating suggests that while the insurer is financially sound, its day-to-day service can be average. Brokers should use all this rating information and look at other information to provide their clients with a more complete picture to make the most informed decision.
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