Is the Farmers Signal app worth it?

The Farmers Signal app is a usage-based insurance (UBI) program that uses an app to track your driving behaviors. Policyholders who sign up for the Farmers Signal program earn a 5% discount and up to 15% off at each policy renewal. The Farmers Signal app tracks driving behaviors such as speeding, braking, mileage, and more.

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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: Dec 16, 2021

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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)

Usage-based insurance programs that allow safe drivers to earn discounts on their car insurance are becoming increasingly popular with major car insurance companies. Farmers car insurance offers Signal, a UBI program that offers both current Farmers’ customers and those searching for a new policy a way to save.

If you’re considering Farmers Signal, read our full Farmers Signal app review below to learn how it monitors driving behaviors and reduces your car insurance rates.

Enter your ZIP code into our free quote comparison tool above to find a car insurance company that rewards safe drivers like Farmers Signal.

What is the Farmers Signal app?

Signal by Farmers is a usage-based insurance (UBI) program that uses telematics to track people’s driving habits and reward them with discounts.

Many major car insurance companies have begun offering usage-based insurance programs to customers to give safe drivers an additional opportunity for savings.

There are a few ways that UBI programs can work, including diagnostic systems such as OnStar, a plug-in device, or an app. These technologies can track your driving habits, so the company can give you a discount based on how safely you drive.

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What does the Farmers Signal app monitor?

The Farmers Insurance Signal app tracks certain behaviors to get a comprehensive look at how well you drive in general. Some of the behaviors the app tracks include:

  • Distracted driving — The Signal app can track phone use while you are driving and other indicators (such as more frequent drifting) that you may be driving while distracted.
  • Hard braking — If you brake hard consistently, this could indicate that you are driving too fast or following too closely, which puts you at a higher risk of being involved in an accident.
  • Speeding — If you regularly go over the speed limit or accelerate too quickly, this puts you at higher risk of an accident.
  • Mileage — The app will track how many miles you drive since you are more likely to be in an accident if you travel long distances or often.
  • Time of day — If you drive primarily during rush hour or at night, you are more likely to be involved in a traffic incident.

The Signal app also tracks your routes, so you can see maps from your recent trips that show you where specific incidents occurred. For example, if the app tracks one hard braking incident, it will show you where you braked too hard on your route.

In most cases, the app is supposed to distinguish whether you are the driver or passenger, but you can contact an agent to adjust this manually if needed.

How much does Farmers Signal insurance cost?

Farmers Signal allows you to save on your Farmers car insurance policy by giving you discounts for safe driving habits. So, let’s first look at Farmers’ Signal car insurance rates by age and gender:

Farmers Average Annual Car Insurance Rates by Age and Gender
DemographicFarmers Average Annual Rates
Married 60-year-old female$2,336.80
Married 60-year-old male$2,448.39
Married 35-year-old female$2,556.98
Married 35-year-old male$2,557.75
Single 25-year old-female$2,946.80
Single 25-year old-male$3,041.44
Single 17-year old-female$8,521.97
Single 17-year old-male$9,144.04
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Next, we’ll look at Farmers’ average annual car insurance rates by state:

Farmers Average Annual Car Insurance Rates by State
StatesFarmers Average Annual Rates
North Dakota$3,092.49
South Dakota$3,768.80
New Mexico$4,315.53
South Carolina$4,691.85
New Jersey$7,617.00
AlaskaData Not Available
ConnecticutData Not Available
District of ColumbiaData Not Available
DelawareData Not Available
FloridaData Not Available
GeorgiaData Not Available
KentuckyData Not Available
LouisianaData Not Available
MarylandData Not Available
MassachusettsData Not Available
MississippiData Not Available
North CarolinaData Not Available
New HampshireData Not Available
New YorkData Not Available
PennsylvaniaData Not Available
Rhode IslandData Not Available
TexasData Not Available
VirginiaData Not Available
VermontData Not Available
West VirginiaData Not Available
Average U.S. Rates$3,907.99
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Finally, we’ll look at Farmers’ average annual car insurance rates by coverage level:

Farmers Average Annual Car Insurance Rates by Coverage Level
Coverage TypeFarmers Average Annual Rates
Low coverage$3,922.47
Medium coverage$4,166.22
High coverage$4,494.13
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Even with Farmers Signal, your rates will be affected by the above factors and more. If you decide to opt into the Signal program, you will earn discounts. How affordable Farmers Signal car insurance will be depends on your driving.

When you first sign up for Farmers Signal, you will receive a 5% enrollment discount. After that, you can earn up to a 15% discount at each policy renewal, depending on your driving habits. In addition, if you enroll drivers under 25 who live in your household, you can earn an additional 10% discount.

How else can safe drivers save on car insurance?

One of the main reasons people sign up for Farmers Signal or another UBI program is to take advantage of the discount. However, there are other savings opportunities available to safe drivers.

Safe drivers are likely to pay lower rates even without discounts because they pose less risk to the insurance company.

On top of lower rates, good drivers can also receive the safe driver discount, which rewards you for a clean driving record. Some companies also have claim-free discounts that you can receive after a specified period without filing a claim.

If you’ve never been in an accident before, some companies will also have accident forgiveness policies so that your rates won’t increase after your first accident.

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How are Farmers’ industry ratings and customer reviews?

Farmers’ parent group, Zurich Insurance Group Ltd, has an A rating from A.M. Best, which means that they have an excellent ability to meet their financial obligations, such as paying claims.

Unfortunately, Farmers has an NAIC complaint index of 1.92, almost double the national average of 1.00. A high complaint index means that Farmers gets more complaints than companies of a similar size.

Farmers Signal app reviews vary. Some customers are pleased with the program and the customer service they receive from their Farmers agent. In contrast, others complain of issues with the app (specifically, the app not distinguishing between driver and passenger).

According to customer reviews, one of the critical parts of having a good experience with Farmers is making sure that you connect with a reliable agent.

Should I buy Farmers Signal car insurance?

The Farmers Insurance app for Signal may be a good choice for safe drivers who want to earn a discount on their next policy renewal. However, some customers report dissatisfaction with the app and program.

When you use the app for long periods, it could drain your data if you have limited usage through your phone plan.

Some customers also don’t like that the app deducts for phone usage since someone else may be using the phone or you may want to change the music.

Farmers Signal is available in only a limited number of states, so you would have to check with your agent to see if it’s available in your area.

On the other hand, the Farmers Signal car program does a great job at rewarding safe and young drivers. It also helps drivers improve their driving habits since they can look back and see where they made mistakes to correct next time.

Farmers Signal is also a UBI program that does not punish drivers if they don’t display safe driving habits. Therefore, you will never see a rate increase from the data gathered by the Signal app.

If you need help finding a car insurance plan that rewards safe drivers like Farmers Signal, enter your ZIP code into our free quote comparison tool below to find a policy that is right for you.

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