Pssst! I want to let you in on a big secret in the insurance industry. It’s a common misconception that finding affordable insurance to suit your unique needs is a tough process. The secret that most carriers and agents don’t want you to know is this: it is surprisingly simple to find the best company for you! I’ve started a series of reviews to help you in your research. If you have any questions, leave them in the comments below or give me a call today!
|Company Name:||FARMERS INSURANCE EXCHANGE|
|Address:||6301 OWENSMOUTH AVENUE
WOODLAND HILLS, CA 91367
|California Company ID #:||0937-3|
|Date Authorized in California:||04/06/1928|
|Company Type:||Property & Casualty|
|State of Domicile:||CALIFORNIA|
Farmers Insurance: Company History
In the early 1920s, John C. Tyler and Thomas E. Leavey, two men from rural backgrounds, sought to earn ranchers and farmers better insurance rates.
At the time, farmers from all over the nation were establishing their own mutual insurance firms in order to combat the expensive premiums they had previously paid for insurance coverage. Recognizing that these individuals were an overlooked market, the two men created their own auto insurance company.
In 1928, Farmers Automobile Inter-Insurance Exchange opened its doors and issues its first policy on a 1925 Cadillac Phaeton.
By 1936, Farmers had expanded to offer truck coverage and was named by National Underwriter as the leading reciprocal in earned premiums for automobile insurance. Today, Farmers is one of the leading insurance companies in the United States, handling over 19 million policies in all 50 states.
In addition to serving a wide network with over 48,000 agents, Farmers has come a long way since offering only automobile insurance. The company now offers products such as:
- Home insurance
- Life insurance
- Business insurance
- Annuities and mutual funds
- Pet insurance
- Motorcycle insurance
Farmers is the sixth-largest auto insurer and the fourth-largest home insurer in the United States. Read on to find out how Farmers Insurance stacks up in comparison to other carriers.
Farmers: Pros and Cons
Farmers has become a household name and carries with it a good reputation. The company has an A.M. Best rating of A, a Better Business Bureau rating of A+ and a Moody’s rating of A2, all of which indicate good financial strength.
The company also offers quite a few customizable car insurance options. These include accident and small claim forgiveness as well as new car replacement.
|High financial strength ratings||No quoting tools or access to rates from major competitors.|
|Large number of discount options||Below average customer satisfaction|
|Mobile friendly website and mobile policy management options||Not ideal for high risk drivers and vehicles|
Should you choose to purchase a homeowner policy through Farmers, your option includes a feature which will pay to replace your items without deduction for their depreciation.
The company’s website is also one of its selling points. Via the site and the Farmers Mobile app, you can manage your account, download your digital insurance cards, call for roadside assistance and even access a checklist for what to do in the event that you are involved in an accident.
There are several areas in which Farmers Insurance doesn’t stack up to its competitors.
For example, in Consumer Reports rankings, Farmers Insurance comes in last for auto insurance customer satisfaction. In fact, the company usually receives mediocre ratings for claims satisfaction among car and homeowner policyholders.
Another downside to using a name brand like Farmers is the fact that, while the company offers an array of options, these frequently won’t be as customizable as the policy offerings from smaller companies may be.
Discounts and Deals
Although you might find more options with another company, that is not to say that Farmers policies don’t come without customizable features.
|Discount Description||Discount Amount|
|Drivers Training||up to 35%|
|Good Student||up to 33%|
|Group Program Credit||up to 15%|
|Mature Driver Course||10%|
|Multi-Car||up to 23%|
|Multi-Policy Credit||up to 20%|
|Passive Restraint||up to 15%|
|Persistency Credit||up to 3%|
In addition to what we already mentioned, Farmers Insurance has a few optional coverages choices available for an extra fee, including:
- Loss of use, which reimburses drivers for rentals, cabs or public transit while their car is being repaired
- Incident forgiveness, which allows your rate to stay the same, even if you get a ticket (provided you don’t file a claim)
- “No fault, no foul;” an add-on available in select states that allows your rate to stay the same if the accident was not deemed to be your fault
In addition to these added deals that ramp up your existing coverage, Farmers offers multiple auto discounts. For example:
- Discounts for vehicles with safety equipment installed
- Discounts if your children are college-aged and go away to school, while leaving their cars behind
- Discounts for driving a hybrid
- Discounts for owning your own home
- Discounts for bundling your auto, homeowners and/or life insurance policies with Farmers
Farmers Complaint Information
In a Consumer Reports reader survey, among 24 auto insurance companies, Farmers Insurance tied for last place, with 80 out of 100 possible points. In this same report, consumers rated
Farmers “average” for service and price satisfaction.
Customer satisfaction with claims rated slightly better than average, according to the same report.
In another Consumer Reports survey, Farmers came in second-to-last out of 14 home insurance companies.
to be without Merit.
In other surveys, including a J.D. Power survey of claims satisfaction the company scored about average, with a tie for 12th place out of 20 companies.
I’d like to take a moment to note that it’s important to pay attention to reviews; however, if you’ve been paying attention to this series of reviews, you’ll notice that the only consistency in consumer reviews are their inconsistencies; every company has its high and low points. So, while you should pay attention to consumer complaints, they should not be the sole reason you choose to go with a company.
How Does State Farm Compare to Other Insurance Companies?
See how Farmers compares to other top insurance providers in California:
State Farm ranks among the top 10 property, casualty and life insurance companies in the US and ... Read Review
|$837||Rated 4 stars|
Compared to big name insurers like Allstate and State Farm, which have over 80 years under their ... Read Review
|$814||Rated 4 stars|
AAA’s history of providing roadside assistance and travel services have made them a go-to for ... Read Review
|$687||Rated 3.5 stars|
Allstate serves over 16 million people, and is best known for its auto insurance options. The ... Read Review
|$812||Rated 3.5 stars|
Infinity currently clocks in as the third largest provider of “nonstandard” car insurance ... Read Review
|$1012||Rated 3 stars|
If you are a driver with poor credit, a spotty driving record or a history of suspended/revoked ... Read Review
|$594||Rated 2.5 stars|
Farmers has become a household name and carries with it a good reputation. The company has an A.M. ... Read Review
|$973||Rated 2.5 stars|
When it comes to purchasing insurance, it is easy to go with what you know.
Household names like Farmers have been in the industry for years, but just because you are familiar with the company name, does not mean the reputation is all it’s cracked up to be.
Farmers stands out in many areas; however, it might not be the right choice for you. There are many components to choosing the best coverage for you; after all, your safety and your assets are on the line.
I would be happy to walk you through your many insurance possibilities, so reach out today to see what options are right for you.
High financial strength ratings
Large number of discount options
Mobile friendly website and mobile policy management options
No quoting tools or access to rates from major competitors
Below average customer satisfaction
Not ideal for high risk drivers and vehicles
Summary: Farmers has become a household name and carries with it a good reputation. The company has an A.M. Best rating of A, a Better Business Bureau rating of A+ and a Moody’s rating of A2, all of which indicate good financial strength.