Farmers is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,044 per year, the average Farmers car insurance policy is a lot more expensive than the national average of $671 per year for a policy with minimum coverage.
Farmers insurance is even more expensive for drivers with certain characteristics, including young drivers and drivers who have recently caused an accident. For example, teenagers pay an average of $2,588 per year for Farmers insurance, compared to $1,019 per year for older drivers. Additionally, drivers who have recently had an at-fault accident pay an average of $1,431 per year for Farmers coverage, which is 37% more than drivers with a clean record.
Factors That Can Make Farmers Insurance More Expensive
- Commissions for agents
- Rising costs overall for insurance companies
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your Farmers policy, there are ways for you to lower your premium. For example, you can take advantage of Farmers discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if Farmers is charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's Farmers insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
