Two of the most iconic auto insurance carriers on the market are Progressive and Farmers, with each company offering insurance products nationwide. Progressive’s rich history began in 1937 in Cleveland, Ohio, opening the industry’s first-ever drive-in claims location. Fast forward nearly 90 years later, and the carrier now holds a 5.7% market share, with more than 41 million direct premiums written.
Farmers Insurance is nearly 10 years older than Progressive, having opened its doors in 1928. Despite this, Farmers’ market share is less than half of Progressive’s, sitting at 2.8% with more than 20 million direct premiums written. In addition to a difference in market share, Progressive and Farmers differ in terms of affordability, available discounts, customer satisfaction and financial strength. Understanding these differences can help you decide which company has the best offerings to meet your unique needs.
Progressive vs. Farmers: car insurance rates comparison
Prospective policyholders will notice the difference in price between Progressive vs. Farmers Insurance. The following table illustrates the average annual premiums are for each company’s car insurance coverage and what each carrier’s ratings are for financial strength and customer satisfaction:
|Car insurance company||Bankrate Score||AM Best||J.D. Power||Average annual premium for minimum coverage||Average annual premium for full coverage|
Rates by credit score
It’s important to note that the table above reflects the average annual cost for coverage and does not account for factors that may affect the premium price — such as your credit score. In general, state insurance regulators won’t allow carriers to use a credit score as the sole reason for raising your rates; however, that doesn’t mean it can’t contribute to the decision to increase your premium*. The following table indicates how credit score could impact the cost of insurance in states where credit is a rating factor:
|Car insurance company||Poor||Average||Good||Excellent|
*Some states place stricter penalties on insurance companies for using credit scores as a factor in determining premium pricing. These states include California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Utah and Washington.
Rates by age
In addition to your credit score, your age will likely impact your auto insurance premiums. According to the Centers for Disease Control & Prevention (CDC), teen drivers aged 16 – 19 years old are at the highest risk of being involved in a car accident compared to every other age group. For this reason, younger drivers usually pay more for their auto premiums due to their increased risk and inexperience:
|Car insurance company||Age 16*||Age 18||Age 25||Age 30||Age 40||Age 60|
*16-year-old cost when added to parents’ policy, 18-year-old renter
Rates by driving record
An important factor used to determine price is one’s driving record. How much an incident on your driving history affects your premium largely depends on the severity of the incident. The table below illustrates how each carrier adjusts pricing for policyholders based on their driving records:
|Car insurance company||Clean driving record||Speeding ticket||Accident||DUI conviction|
Progressive vs. Farmers: discounts
Both Progressive and Farmers provide their policyholders with opportunities to save on car insurance costs by offering discounts. Each company offers savings unique to the policyholder’s geographic location, so actual discount options may vary depending on your information. Here are just a few of the most impactful discounts that you may earn when signing up for coverage through Progressive or Farmers:
- Sign online: When policyholders sign their documents electronically online when signing up for Progressive insurance, they save an average of 9% off premiums.
- Good student: Full-time student with a “B” average or better can save up to 10%.
- Safe driver: Using Progressive’s proprietary Snapshot® tool, policyholders have saved an average $145 a year.
- Multi-policy: When policyholders have more than one Progressive policy, they may save up to 5% on their car insurance premiums by bundling their policies.
- Affinity: Policyholders who are members of certain professional groups may receive an affinity discount.
- Safe driver: Using Farmers’ Signal® app to track your driving behaviors, drivers may save an initial 5% with up to an additional 15% savings for each policy renewal.
- Defensive driving: Farmers offers drivers in select states aged 55 and older the opportunity to save up to 15% for three years by taking an eligible defensive driving course.
- Alternative fuel: Owners of hybrid vehicles in California can save up to 5% on their coverage through Farmers’ Alternative Fuel discount.
Progressive vs. Farmers: online & mobile experience comparison
- Apple App Store — Progressive’s iOS app allows policyholders to view coverages, discounts, ID cards, documents and policy details, as well as report and add photos to a claim. The app is currently ranked a 3.5 out of 5 stars by 3,300 users.
- Google Play Store — The Google Play Store version of the Progressive app offers the same features seen in the Apple version. However, users gave the app a 4 out of 5-star rating on this platform, with more than 43,000 reviews recorded.
- Apple App Store — Farmers’ iOS app allows policyholders to review their bills, make payments, access ID cards, view policy documents, start claims, request roadside assistance, get a quote and find agent contact information. With more robust offerings at one’s fingertips, it’s no wonder that this app received a 4.8-star rating from more than 6,700 users.
- Google Play Store — All of the same features present on the Apple version are maintained in the Google Play Store version of the Farmers app. Farmers’ Android version received a 4.9-star rating from more than 5,700 reviews.
Frequently asked questions
What is the best car insurance company?
The best car insurance company depends on your unique needs, geographic location, driving record, as well as the carrier’s financial strength, average customer satisfaction, and affordability. Be sure to conduct thorough research to determine which car insurance company is best for your needs.
How can I save money on my car insurance premium?
Many auto insurers offer customers unique discounts that they can take advantage of to save on the cost of coverage. One of the best auto insurance discounts tends to be the multi-policy discount offered by nearly all carriers; however, there are others available that could save you even more depending on your location and eligibility. Another great way to save is by increasing your deductibles and committing to safer driving habits.
What is the average cost of car insurance?
The average cost of car insurance in the United States is $1,674 annually or $139,50 per month. However, it’s important to note that this cost will vary significantly depending on your location and personal factors, such as your age, credit score and driving record.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all 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 2019 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. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts, Michigan and Washington.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. 16-year-old rates were factored as the added cost to their parents’ policy; 18-year-old rates were calculated as drivers who rent their primary residence.
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction (BAC of >= .08) and lapse in coverage.