Farmers vs State Farm Car Insurance

Farmers

Program Signal

Tracks speed, hard_braking, phone_use, time_of_day, mileage

Can raise rate? Yes

Enrollment max 5%

Renewal max up to 15% (some publisher sources cite up to 25% including stacked youthful-driver savings)

State exclusions CA, FL, HI, NY, SC

Signal can increase renewal premium for risky driving behavior at renewal, per Farmers program materials summarized by secondary publishers. Not purely a discount-only program.^{TIER 3}

State Farm

Program Drive Safe & Save

Tracks acceleration, hard_braking, cornering, phone_use, speed, mileage

Can raise rate? Yes

Enrollment max Initial discount for enrolling

Renewal max Up to 30% based on how you drive; some states permit above 30%; New York capped at 30%

State exclusions CA, MA, RI

State Farm re-adjusts premium at each policy renewal (typically every six months) using up to the prior 12 months of data. The adjustment CAN be a discount OR a surcharge. State Farm specifically notes that if mileage exceeds 7,500 miles annually, premium may increase. That is a meaningful difference from telematics programs that only offer a discount. Not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts. Enrollment uses the State Farm mobile app plus a mailed Bluetooth beacon paired with the app. Tracked behaviors include acceleration (described as starting fast off the line), braking (fast, hard stops), cornering (quick, sharp turns), phone distraction (defined as phone moving while vehicle moving and screen on), speed over posted limit by 8+ mph, and annual mileage.^{TIER 1}

Farmers

AM Best FSR A (Excellent)

Long-Term ICR a (Excellent); Positive outlook (revised from Stable on Sept 3, 2026)

Outlook Stable

Affirmed 2026-09-03

AM Best revised the Long-Term Issuer Credit Rating outlook to Positive from Stable on September 3, 2026, while affirming the Financial Strength Rating at A (Excellent). Prior action was an August 2025 affirmation with stable outlooks.^{TIER 1}

State Farm

AM Best FSR A+ (Superior)

Long-Term ICR aa (Superior)

Outlook Stable

Affirmed 2025-11-14

MATERIAL RATING EVENT: On November 14, 2025, AM Best DOWNGRADED the Financial Strength Rating of State Farm Mutual Automobile Insurance Company and its affiliates to A+ (Superior) from A++ (Superior), and downgraded the Long-Term ICR to "aa" (Superior) from "aa+" (Superior). Outlook was revised to stable from negative. AM Best attributed the action to a revision in the group's operating performance assessment to adequate from strong, reflecting adverse underwriting experience in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; the direction of the change is the honest context to attach to it.^{TIER 1}