Farmers Signal Review: How It Works, Savings, and Whether It’s Worth It
Signal by Farmers may be good for existing customers but doesn’t stack up to the competition.
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Farmers Insurance offers various types of insurance policies and has been around since 1928. The company started offering a usage-based insurance (UBI) program called Signal by Farmers, which tracks driving data like speed, braking, phone usage, time of day, and mileage.[?]
Through the Farmers Signal program, policyholders with Farmers Insurance have the potential to score discounts for safe driving to lower their car insurance rates.
Here’s what you need to know about the benefits and drawbacks of the Farmers Signal Program.
Quick Facts
Signal by Farmers uses a mobile app to track driving behavior, not an in-car device.
You have the chance to win $100 in rewards every month if you have a good driving score.
You have to talk to an agent to sign up.
What is Farmers Signal?
Farmers Signal is a smartphone-based telematics program. Farmers Insurance policyholders can download the app and use it to qualify for potential discounts for safe driving. Through Signal by Farmers, you can get an initial discount when you enroll in the program. But this discount begins only if you complete 10 recorded drives within the first 30 days.
When the app has enough trip data, you may be eligible for a bigger discount and other rewards.[?] Discount amounts can vary and depend on multiple factors, like driving style, mileage, and more. A youthful driver discount is available if you have a 15- to 24-year-old enrolled in the program.
Farmers Signal is currently available only to Farmers Insurance customers with an auto insurance policy with the company. For low-mileage drivers and people with safe driving habits, Farmers Signal could be a good option if you’re looking for lower car insurance rates. Participation is optional, and Farmers Signal isn’t available in all states.
Currently, drivers in Florida, Hawaii, New York, South Carolina, and California don’t qualify for Signal by Farmers discounts.
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How Farmers Signal works
The Signal by Farmers app monitors your driving behaviors and performance, evaluates the data, and creates a Signal Renewal Factor for you. Safe drivers stand to benefit the most. The smartphone app records various data points, including:
Focused driving
Hard braking
Excessive speed
Time of day
Total mileage
Signal evaluates all these factors in different ways. For example, the app will even record when you pick up your phone to text or call someone while driving.
Based on the trip data, you may qualify for discounts for safe driving and low risk factors.
Unlike other insurance companies with telematics programs that have plug-in devices, the Signal by Farmers program uses only a mobile app.
To qualify for an initial discount, you must enroll in the program first. Then, you need to complete a minimum of 10 rides within the first 30 days of enrollment. When it’s time to renew your Farmers insurance policy, you may qualify for steeper discounts thanks to safe driving habits. On the other hand, your premiums may also go up if Farmers considers you a risky driver based on the data it recorded.
If you have multiple drivers at home, everyone must use the Signal by Farmers app if you want to get the maximum discount. If there isn’t full participation, it can affect the discount percentages and how much you stand to save. Additionally, if you’re a passenger in a car, you can edit this in the app so the trip isn’t included in your driving score.
Pros and cons of using Signal
While Signal by Farmers may result in savings on your insurance premiums, it’s essential to review the pros and cons first:
Pros
Potential discounts for safe driving
Optional CrashAssist safety feature
Highly rated mobile app
Cons
Insurance premiums may increase
All family members must participate for the best discounts
Not ideal for busy driving periods
How much you can save with Signal
How much you can save with Signal by Farmers depends on your driving behaviors and other factors. Farmers doesn’t specify how much the initial discount is or how much you can save from safe driving, so it’s important to ask an agent about this when you sign up.
You should also know that while using the Farmers Signal app could result in additional discounts for safe driving, it might instead lead to higher insurance premiums if you engage in risky driving behaviors. And each month, there’s a drawing to win $100 in rewards for drivers who maintain a focused driving score of 80% or more.
Signal reviews and customer feedback
Farmers Insurance doesn’t have accreditation from the Better Business Bureau, but it has low customer review ratings on the site. On Trustpilot, the insurance company also has poor customer reviews and ratings. But this is for the insurance company in general and not for Signal by Farmers. When looking at the first page of customer reviews and complaints, no one mentioned Signal.
Though there aren’t many Farmers Signal app reviews on some of the major sites, the app has high ratings. It ranks second in J.D. Power’s customer satisfaction survey for user-based insurance.[?]
Additionally, the Signal by Farmers app has more than 25,000 reviews on the Apple App Store and 4.8 out of 5 stars. One of the more recent reviews states that the app is easy to use and the user recommends it.
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On Google Play, the app has 4 out of 5 stars based on more than 7,000 reviews. One of the reviews from this year shows an alternative perspective. The user describes how the quality of the app has gone down and isn’t very accurate or relevant in some cases.
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How to enroll in Farmers Signal
If you’re interested in enrolling in Signal by Farmers, here’s how you can get started:
Farmers Signal data privacy
When you sign up for Signal, you consent to having your location services enabled and other types of data tracking for monitoring. Upon enrollment, the Farmers Signal app asks for personally identifiable information. This can include your full name, home address, phone number, date of birth, age, email, and more.
Additionally, the Signal app looks at your driving style, such as how hard you brake and your speed. Plus, the app looks at trip start and end times, routes, phone usage, hard stops, and mileage. Farmers uses your personal information to enroll you in the program and your driving behaviors to assess you for potential discounts.
Common privacy concerns include sharing and selling personal data. Farmers doesn’t sell or share driver information, according to the Signal privacy policy. But for transparency, the company does anonymize and aggregate data and may share it with partners and affiliates. In this case, you’re not personally identifiable. It’s key to read the terms and conditions, privacy policies, and any disclosures before signing on.
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Is Farmers Signal worth it?
The Farmers Signal app may be worth it for:
Existing Farmers Insurance customers
Low-mileage drivers (retired people, remote workers, or students who reside on campus)
Tech-savvy users
People who enjoy getting insights on their driving
Safe drivers
On the other hand, if one or more of the following applies to you, you may want to avoid the Signal by Farmers app:
Concerned about privacy
Don’t want to download a mobile app
Drive at peak times or odd hours
Don’t want driving data tracked
Have a history of speeding or braking hard
Live in a congested city
Want to avoid the risk of premium increases based on your driving habits
Talk a lot on the phone while driving (even hands-free)
Ultimately, you want to be honest about your driving behaviors and what you’re looking to get out of your auto insurance coverage. You can also look at competitors and research similar usage-based insurance programs.
Farmers Signal FAQs
If you’re considering signing up for the Signal telematics program to save on auto insurance, here are additional answers to some frequently asked questions.
How does Signal by Farmers work?
The Farmers Signal app works by tracking your driving data, including braking habits, speed, time of day, mileage, and focus. Once you complete a total of 10 trips within the first 30 days, you can receive an initial discount.
How much is the Farmers Signal discount?
Farmers doesn’t specify how much the initial discount is. But the discounts will likely increase if you have a solid driving record and good driving behavior.
Does the Signal app track speed?
Yes, the Signal mobile app tracks speed among other driving factors. If you’re going over the speed limit, it may affect the discounts you qualify for and, therefore, your insurance premium.
How does your phone know if you’re driving or a passenger?
The Signal smartphone app tracks your driving style and phone usage. To identify whether you’re a driver or a passenger, the app looks at the position of the phone and how it rotates based on sensor data.
You can also go into the app, select a trip, and change it from driver to passenger.
Does Farmers have a safe driving app?
Yes. Signal by Farmers is the company’s telematics and safe driving app. Drivers who maintain a focused driving score of 80% or above may qualify for additional rewards on top of existing discounts.
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