Farmers Signal Review: Compare Rates, Discounts, & Requirements [2024]

Signal by Farmers Car Insurance Company is a usage-based insurance program (UBI) that monitors your driving behaviors for a discount. In this Farmers Signal program review, learn how to save up to 15% on your policy.

Below, we’ll cover how to use Farmers Signal app and which driving habits it monitors to help you determine if this program is right for you.

After reading about Farmers Signal car insurance quotes, remember to enter your ZIP code into our free rate tool above to compare quotes from the top companies near you.

What is Farmers Signal?

Signal by Farmers is a usage-based car insurance program offered to customers for free. UBI programs typically use a mobile app or plug-in device to gather data about your driving habits.

Farmers Signal program uses a mobile app to evaluate your data and calculate a discount amount based on your performance.

Your phone must use either Android 7.0 or iOS 12.0 or newer for the app to function correctly.

For those wondering how to sign up for Farmers Signal, call a Farmers agent and ask to enroll. Then you’ll download the app from a unique link sent to you by the agent.

Afterward, simply start driving. Check the status of your trips and find tips for safer driving habits right in the app.

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How does the Signal app by Farmers work?

The app runs in the background on your mobile device, so there’s no need for you to manually start or stop tracking. 

You will need to have Wi-Fi or cellular data turned on to see your records, and location services must be enabled. Don’t worry, it won’t eat up your cellular data, because while in the cellular network it collects and stores the data, not performing large uploads or downloads until your phone is connected to a secure Wi-Fi network.

How much can I save on car insurance with Farmers Signal?

You’ll earn a 5% rate reduction just for enrolling in the Signal program. But customers have the opportunity to save up to 15% on their policy with Farmers Signal car insurance rates.

Younger drivers between the ages of 15 and 24 can earn an additional 10% discount through the program if at least one other driver meets the qualification requirements.

The initial discount lasts until your policy is up for renewal. At that time, your earned deal replaces it. The app continues to track your driving so that you might see fluctuating discount rates at your next renewal term.

Plus, each month, you’re eligible to win sweepstake prizes if you maintain a driving score of 80% or higher. Just spin an interactive wheel within the app to win.

Prizes include monetary gifts of up to $100 redeemable through a selection of gift cards.

Driver’s can also voluntarily sign up for CrashAssist within the Signal app. It uses sensors to detect if a crash has occurred and sends you push notifications for verification.

If you confirm a crash, an emergency responder contacts you for further assistance. The app sends emergency services to your location automatically if you’re unable to respond.

Farmers encourages all drivers on the policy to participate. Maximizing household participation as well as improving your driving habits may lead to more significant discount rates.

You can opt out of the program at any time by calling a Farmers agent or deleting the app. However, you’ll lose the discount at your next policy renewal period.

What driving behaviors does Farmers Signal monitor?

According to the National Association of Insurance Commissioners (NAIC), the original UBI programs initially tracked only your total mileage.

However, as technology improved, so didn’t UBI programs. Now, the apps can accurately gather information about the speed you drive, how you use your brakes, and if you’re the driver or passenger of a car.

According to the Farmers website, Signal looks at the bigger picture of your driving style. So the more trips you log, the more accurate your score is.

Some of the driving habits monitored by the Farmers Signal car insurance company include attentive driving, hard braking events, speed, time of day, and total miles driven.

According to the website, unlocking your mobile device, touching the screen, making calls or texts, and adjusting your navigation are considered driving distractions that impact your focused driving score.

Changing a song or podcast, clearing notifications, and making hands-free calls also count as distractions. But automatic text responses do not affect your score.

Farmers suggests avoiding phone use entirely while driving, even when stopped, to help improve your score.

Even if another passenger accesses your phone while you’re driving, it still negatively affects your discount.

What can drivers do to maximize their discounts and rewards? Here are some examples:

• Avoid using your mobile phone. Cell phone use while driving is one of the main distractions, so curtailing this habit will give you a better score.
• Avoid excessive and hard braking. The app would interpret excessive braking and hard braking as distracted driving as if the driver is constantly required to hit the brakes at the last minute.
• Avoid speeding. Speeding is considered riskier, so minimizing speeding would lead to better score results.
• Choose your drive times carefully. While this is not always possible, driving during peak traffic hours is also considered risky. If you can, schedule your driving for off-peak hours.
• Avoid unnecessary driving. High mileage translates into higher risk. So don’t make unnecessary trips. Try to consolidate your trips to maintain lower mileage.

Just as safe driving behavior results in a discount at renewal, risky driving could mean that when it’s time to renew your rates go up. So it’s important to pay close attention to your driving habits if you use this option for car insurance.

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Is the Signal app by Farmers available everywhere? 

The app itself is available on Google Play Store and the Apple App Store for Android devices running Android 7.0 or higher and iOS devices running 12.0 or higher. But the UBI program is not available in all states. It is unavailable in:

• California
• Hawaii
• New York
• South Carolina

You’ll need to verify details of availability with your agent before signing up.

Is Farmers Signal worth it?

Ultimately, using Signal encourages you to drive safer and provides you with the opportunity to win monthly sweepstakes as well as a discount.

Plus, you can opt into the CrashAssist feature for free, and your rates never increase based on your participation in the program.

You can also earn stackable car insurance discounts from Farmers outside of the program. So for many customers, it’s worthwhile.

If you’re already a Farmers customer and you’re a decent driver, consider enrolling in the Signal program.

Signal is beneficial if any drivers on your policy are younger than 25.

However, phone use while driving negatively impacts your score, including using the navigation system or music and podcast platforms.

So for some drivers, it may be challenging to earn a substantial discount using this app.

For people concerned with privacy, the Farmers Signal app privacy policy does claim it can use your information from the app to perform research. However, while it anonymizes and aggregates the data, Farmers may share the information with affiliates, business partners, and users.

This kind of data usage is not uncommon for UBI programs. However, some people may prefer to maintain their privacy and avoid using this style of app.

Farmers Signal Program Review: The Bottom Line

With a free UBI program that only benefits the driver, many customers could earn savings using affordable Farmers Signal car insurance.

Your rates never increase based on your performance during the program, and you can earn additional benefits beyond the final discount.

A 15% rate reduction is by no means the most considerable discount offered through a company’s UBI program. But you gain access to the CrashAssist feature and the additional 10% discount for young drivers.

Now that you’ve learned how to buy Farmers Signal car insurance, find the right coverage for you by entering your ZIP code into our free comparison tool below to receive rates from the best companies in your region.