Is the Farmers Signal app worth it?

The Farmers Signal app is a usage-based insurance (UBI) program that tracks your driving behaviors, enabling customers to save money if they drive less or practice safe habits. Read on to learn if it will be worth it for you.

UPDATED: Oct 20, 2022Fact Checked

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: Oct 20, 2022

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Company Details
Address: 6301 Owensmouth Avenue
City: Woodland Hills
State: CA
ZIP Code: 91367
Phone Number: 888-327-6335
Year Founded: 1928
AM Best Rating: a
Company Rating 0 (0 reviews)

Auto insurance companies offer a way for drivers to earn discounts based on the way they drive. One way is by having a mobile app track the driver’s behavior and calculate points or a percentage representing risk. Insurance companies operate on the principle of measuring risk versus reward. High-risk car insurance costs more, but apps like the Farmers Signal app allow drivers that present less risk to be rewarded.

What is the Signal app and is signing up to use it really worth it? Find out below.

Is it worth signing up for the Farmers Signal app? 

Most third-party review sites give Signal by Farmers a rating of 4/5 or higher. 

For example, AppGrooves gave it a 4.0, and JustUseApp gave it a 4.8. It’s a good option for safe drivers who don’t mind having their habits monitored, but for some drivers, it could actually result in higher rates.

Those who sign up can earn up to 20% in discounts and up to $100 in monthly rewards.

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What is the Famers Signal app?

The Farmers Signal app is a mobile application used to track a driver’s habits as part of a usage-based auto insurance plan (UBI). Drivers who sign up for the program can save as much as 15% and receive rewards of up to $100 monthly.

For some years now, insurance companies have offered their customers UBI, or as it’s sometimes referred to, pay-as-you-drive (PAUD) or pay-how-you-drive (PHUD) as a way to earn car insurance discounts. By signing up for these offerings, drivers agree to have behavioral metrics tracked by a mobile app while they’re driving. 

Farmers Signal app measures certain driving habits, like braking, speed, mileage, and driving times. Additionally, it tracks any mobile device use while driving, since these habits determine how focused a driver really is.

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 do drivers save on car insurance with the Farmers Signal app?

Signing up to use the Signal by Farmers app can result in two separate discounts — 5% at signing and up to 15% at renewal. Additionally, it offers monthly rewards of up to $100 to drivers who maintain above 80% focused driving time. 

But what does a driver need to 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.

Bottom Line on Whether the Farmers Signal App Is Worth It

Signal by Farmers determines if the customer’s driving is “focused,” meaning that their driving and mobile device usage habits reflect focused rather than distracted driving. Drivers can earn discounts of up to 20%, and additional rewards if their focused driving time stays higher than 80%.

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