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.
FAQs
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.
Why is my farmer's home insurance so high? ›
Cost by Credit Score
Your credit score affects the cost of homeowners insurance significantly. Farmers charges an average of $9,982 a year to insure people with a poor credit history. This average is slightly higher than the national average for the same homeowners.
Is farmers the most expensive insurance? ›
Farmers Insurance's average auto insurance rate for full coverage is $3,169 per year, which puts it above the national annual average of $2,008. Farmers is more expensive than most companies because its insurance agents get commission, and insurance costs are rising as well.
Why did my car insurance go up 700 dollars? ›
Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.
Why is farming getting more expensive? ›
In percentage terms, the largest increases in input costs were experienced in fertilizers, financing, crop protection tools, livestock, and fuels and oils.
What is the biggest expense for farmers? ›
Feed, at $83.6 billion, was the largest expense item, accounting for 18.5% of farm expenditures. Feed (up $18.4 billion), fertilizer, lime, and soil conditioners (up $7.3 billion), as well as labor (up $4.8 billion) were the three categories with the largest increases between 2021 and 2022.
How much will homeowners insurance increase in 2024? ›
While an intense hurricane season has the potential to cause premium increases next year, Insurify predicts Americans will see a more modest premium increase of 6% in 2024, putting the average annual homeowners insurance rate at $2,522 by the end of the year.
How much do top farmers insurance agents make? ›
Farmers Insurance Agent Salary in California
| Annual Salary | Weekly Pay |
|---|
| Top Earners | $98,197 | $1,888 |
| 75th Percentile | $76,000 | $1,461 |
| Average | $58,781 | $1,130 |
| 25th Percentile | $43,900 | $844 |
Your rates are based heavily on how much dwelling coverage is in your policy — this is the part of your home insurance that pays to rebuild your home if it's damaged. Higher rebuild costs due to inflation means homes are requiring higher dwelling coverage limits to keep up with the rising prices.
What insurance is better than farmers? ›
After comparing State Farm vs. Farmers, we believe both are reputable companies and solid choices for auto insurance. We give State Farm a higher overall score and stronger recommendation because of these factors: Its car insurance rates are much lower than Farmers' on average.
Both Farmers and Progressive offer standard coverage that likely will suit your situation. Progressive offers lower rates for many potential policyholders. However, Farmers' customer satisfaction with claims ranks higher among the major insurers.
Did farmers insurance increase their rates? ›
All 10 of the top auto insurers in the U.S. imposed double-digit increases throughout 2023.
Why did my auto insurance go up in 2024? ›
Increasing Car Repair Costs
Expensive cars like luxury vehicles and high-end sports cars — those with higher repair costs to begin with — were always pricier to insure. But now that repair costs have increased across the board, insurance companies have begun to quickly hike rates to keep up.
Why is my car insurance suddenly so high? ›
Car insurance rates can change based on factors like claims, driving history, adding new drivers to your policy, and even your credit score.
Why did my car insurance go up when nothing changed? ›
Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes. Additionally, economic factors, such as inflation and changes in interest rates, can impact insurers' investments, prompting them to adjust premiums to maintain their financial stability.
Why do farmers get so much government money? ›
A subsidy is money from the government that is intended to keep the price of a commodity low. In the agriculture industry, there exist a whole slew of farming subsidies designed to help out farms and keep prices low, including direct payments, commodity purchases and disaster payments.
Why did my car insurance go up by $300? ›
Reasons that might make car insurance rates go up
Common among them are speeding tickets, DUIs, credit and moving violations. But beyond that, insurers also consider specific risks like the rates of accidents, vandalism and theft in your area, which result in higher claim rates.
