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Farmers Insurance Wikipedia

Farmers Insurance Review 2018: Complaints, Ratings and Coverage

Farmers reviews and ratings

  • Customer satisfaction ratings are average for both home and auto insurance
  • Fewer customer complaints than the median for auto, home and life insurance products
  • Compared to other insurers, Farmers has a lot of options to customize home and auto policies

Farmers Insurance is the fifth-largest home insurer and seventh-largest auto insurer in the country . It offers an array of other insurance products as well as financial products such as mutual funds and annuities.

Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies , earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “ about average ” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “ about average ” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies , earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “ about average ” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “ about average ” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Farmers auto insurance

Farmers offers standard coverage choices for auto insurance, in addition to several types of optional coverage, including:

  • New car replacement: If your new car is totaled in the first two model years or 24,000 miles of ownership, Farmers pays to replace it with a new one.
  • Accident forgiveness: One accident is forgiven, meaning your rate won’t go up if you have one, for every three years you drive without an accident.
  • Small-claim forgiveness: Your rate stays the same even if a small accident is your fault.
  • Incident forgiveness: Don’t sweat that speeding ticket. If nobody files a claim related to the incident, your rate stays the same. Not available in all states.
  • Loss of use: When your car is in the shop or totaled after an accident, Farmers reimburses you for a rental, cabs or public transit.
  • Extended customized equipment: If you have custom parts installed in your car, such as chrome rims or a new stereo system, this option expands your policy to cover those parts if they’re stolen or damaged.
  • Rideshare insurance: Companies such as Uber or Lyft typically provide limited liability insurance for drivers while the app is on, with full coverage that kicks when you accept a ride and have passengers. Farmers rideshare insurance extends your personal auto policy to fill in the gaps, providing coverage between rides, so you’re always covered during your rideshare job.

Farmers home insurance

Like its auto policies, Farmers homeowners insurance starts with the basics and allows customers to add features they want or need.

Farmers Smart Homeowners Policy is an upgraded policy that includes standard homeowners insurance, plus:

  • Claim forgiveness, which waives the surcharge if you go six or more years without filing a claim.
  • Cosmetic damage coverage, which covers the cost of any reasonable cosmetic fixes when you file a claim for functional damage to your home. (Availability varies by state.)

There are other individual options you can add to any Farmers homeowner policy, if it is available in your state:

  • Identity Shield: For $65 or less per year, this feature allows you to add on identity theft coverage, including credit monitoring and assistance replacing identity or travel documents
  • Eco-rebuild: Receive up to $25,000 for extra costs to repair, replace or rebuild your home with green materials after you file a claim
  • Contents replacement: When an item in your home is damaged or destroyed, you receive reimbursement for the value of a new one
  • Trees and shrubs: Pays up to $750 per item if your trees, shrubs, plants or lawn are damaged — for a total of up to 5% of your dwelling coverage

Farmers life insurance

Farmers offers several types of life insurance policies, including term, whole and universal life insurance. All of Farmers’ term life options are convertible to lifelong coverage.

Simple Term Life fast-tracks the application process, allowing you to skip the medical exam and get insured more quickly.

  • Coverage starting at: $75,000
  • Terms offered: 10, 20, or 30 years

Value Term Life from Farmers comes with a guaranteed death benefit amount, and your premiums won’t increase during the term you sign up for. If you convert to whole life or a longer term, your rates might increase.

  • Coverage starting at: $150,000
  • Terms offered: 10, 20, or 30 years

Decreasing Term Life is for people who want a policy to cover only a mortgage or other debt. The death benefit decreases to 20% of the original value over time, while premiums remain level.

  • Coverage starting at: $25,000 in most states; $50,000 in Texas and California.
  • Terms offered: 15, 20, 25 or 30 years.

Other types of insurance from Farmers

In some cases, you may be able to save money by bundling these products with a Farmers homeowners or auto insurance policy.

Farmers Insurance Review 2018: Complaints, Ratings and Coverage

Farmers reviews and ratings

  • Customer satisfaction ratings are average for both home and auto insurance
  • Fewer customer complaints than the median for auto, home and life insurance products
  • Compared to other insurers, Farmers has a lot of options to customize home and auto policies

Farmers Insurance is the fifth-largest home insurer and seventh-largest auto insurer in the country . It offers an array of other insurance products as well as financial products such as mutual funds and annuities.

Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies , earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “ about average ” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “ about average ” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Auto insurance rating

Farmers ranked 14th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies , earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for customer service, claims satisfaction and shopping satisfaction
  • Consumer Reports customer satisfaction ratings
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

Farmers had fewer than the median number of complaints to state regulators for auto insurance in 2017 relative to its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • Farmers ranked “ about average ” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study
  • It ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • Farmers ranked “ about average ” for overall satisfaction in J.D. Power’s 2017 Homeowners Insurance Study
  • It also ranked “ about average ” for overall customer satisfaction in J.D. Power’s 2017 Property Insurance Claims Study

Financial strength: A (Excellent)

Farmers’ financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

Farmers auto insurance

Farmers offers standard coverage choices for auto insurance, in addition to several types of optional coverage, including:

  • New car replacement: If your new car is totaled in the first two model years or 24,000 miles of ownership, Farmers pays to replace it with a new one.
  • Accident forgiveness: One accident is forgiven, meaning your rate won’t go up if you have one, for every three years you drive without an accident.
  • Small-claim forgiveness: Your rate stays the same even if a small accident is your fault.
  • Incident forgiveness: Don’t sweat that speeding ticket. If nobody files a claim related to the incident, your rate stays the same. Not available in all states.
  • Loss of use: When your car is in the shop or totaled after an accident, Farmers reimburses you for a rental, cabs or public transit.
  • Extended customized equipment: If you have custom parts installed in your car, such as chrome rims or a new stereo system, this option expands your policy to cover those parts if they’re stolen or damaged.
  • Rideshare insurance: Companies such as Uber or Lyft typically provide limited liability insurance for drivers while the app is on, with full coverage that kicks when you accept a ride and have passengers. Farmers rideshare insurance extends your personal auto policy to fill in the gaps, providing coverage between rides, so you’re always covered during your rideshare job.

Farmers home insurance

Like its auto policies, Farmers homeowners insurance starts with the basics and allows customers to add features they want or need.

Farmers Smart Homeowners Policy is an upgraded policy that includes standard homeowners insurance, plus:

  • Claim forgiveness, which waives the surcharge if you go six or more years without filing a claim.
  • Cosmetic damage coverage, which covers the cost of any reasonable cosmetic fixes when you file a claim for functional damage to your home. (Availability varies by state.)

There are other individual options you can add to any Farmers homeowner policy, if it is available in your state:

  • Identity Shield: For $65 or less per year, this feature allows you to add on identity theft coverage, including credit monitoring and assistance replacing identity or travel documents
  • Eco-rebuild: Receive up to $25,000 for extra costs to repair, replace or rebuild your home with green materials after you file a claim
  • Contents replacement: When an item in your home is damaged or destroyed, you receive reimbursement for the value of a new one
  • Trees and shrubs: Pays up to $750 per item if your trees, shrubs, plants or lawn are damaged — for a total of up to 5% of your dwelling coverage

Farmers life insurance

Farmers offers several types of life insurance policies, including term, whole and universal life insurance. All of Farmers’ term life options are convertible to lifelong coverage.

Simple Term Life fast-tracks the application process, allowing you to skip the medical exam and get insured more quickly.

  • Coverage starting at: $75,000
  • Terms offered: 10, 20, or 30 years

Value Term Life from Farmers comes with a guaranteed death benefit amount, and your premiums won’t increase during the term you sign up for. If you convert to whole life or a longer term, your rates might increase.

  • Coverage starting at: $150,000
  • Terms offered: 10, 20, or 30 years

Decreasing Term Life is for people who want a policy to cover only a mortgage or other debt. The death benefit decreases to 20% of the original value over time, while premiums remain level.

  • Coverage starting at: $25,000 in most states; $50,000 in Texas and California.
  • Terms offered: 15, 20, 25 or 30 years.

Other types of insurance from Farmers

In some cases, you may be able to save money by bundling these products with a Farmers homeowners or auto insurance policy.

Farmers Insurance Group

Farmers Insurance Group (informally Farmers) is an American insurer group of automobiles, homes and small businesses and also provides other insurance and financial services products. Farmers Insurance has more than 50,000 exclusive and independent agents and approximately 22,000 employees.

1922 to 2000

Farmers’ future co-founders John C. Tyler and Thomas E. Leavey first met after Tyler moved to California. [2] Tyler and Leavey had both grown up with rural backgrounds and believed that farmers and ranchers, who had better driving rates than urbanites, deserved lower insurance premiums. [2] [3] [4] During the 1920s, farmers across the United States were establishing their own mutual insurance firms and cooperatives in order to have less expensive policies. Tyler, the son of South Dakotan insurance salesman, and Leavey, who had formerly worked for the Federal Farm Loan Bureau and the National Farm Loan Association, recognized that these farmers, ranchers, and other rural drivers were an overlooked market and wished to create their own auto insurance firm. [2] [3]

Tyler and Leavey received a loan from the founder of Bank of America, enabling them to start their company. [2]

Tyler and Leavey opened the doors to their newly founded company, Farmers Automobile Inter-Insurance Exchange, in downtown Los Angeles, California. [2] Tyler served as president with Leavey as vice president. A sales manager and secretary completed the four-employee team.

On March 28, 1928, the first meeting of the board of governors was convened. [3] Two days later, Charles Brisco insures his 1925 Cadillac Phaeton and becomes the first Farmers customer. [5]

Truck Insurance Exchange, a new reciprocal insurer, was launched to specialize in truck insurance. [3]

Farmers Insurance Exchange was named the leading reciprocal in earned premiums for auto insurance by National Underwriter. [3]

Fire Insurance Exchange, the third reciprocal insurer, was launched, specializing in home insurance. [3]

Mid-Century Insurance Company became a subsidiary of the Farmers Insurance Exchange. Aside from the insurance coverage provided by the original three exchanges, Mid-Century offered insurance coverage for Inland Marine, robbery, burglary, personal lines, plate glass, selected bonds, and floaters. [3]

Seattle-based New World Life Insurance Company was acquired by Farmers. [3]

Farmers began annual participation in the Pasadena Rose Parade, launching its involvement in parades and community events nationwide. [3]

John C. Tyler died at the age of 86. [3] Thomas E. Leavey, the remaining co-founder, took the CEO position. [3]

Thomas E. Leavey retired. [3]

After an eight-month takeover battle, BATUS Inc., the American subsidiary of British conglomerate B.A.T. Industries Plc, acquired Farmers Group, Inc. for $5.2 billion and becomes the sole stockholder of the company’s 68 million shares of common stock. [2] [6]

1989, 1991, and 1994

Multiple, large-scale disasters posed financial challenges to Farmers Insurance. The 1989 San Francisco earthquake, 1991 Oakland fire, and 1994 Northridge, California, earthquake were the three most significant disasters. [3] It was estimated that the losses from the Northridge earthquake alone were $1.3 billion. [3]

In September 1998, the Zurich Financial Services Group was created from the merger with the financial services business of B.A.T. Industries through a dual holding structure. [7]

2000 to present

In March 2000, the Farmers Exchanges acquired Foremost Corporation of America (Foremost Insurance Group), [8] a leading writer of manufactured homes and a prominent insurer of recreational vehicles, boats and other specialty lines.

In August 2000, Farmers Financial Solutions registered with the U.S. Securities and Exchange Commission as a broker-dealer. Through it, Farmers began offering mutual fund and variable insurance products. [9]

In October 2000, the Zurich structure was simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares were replaced by shares of the newly incorporated Zurich Financial Services with a primary listing on SWX Swiss Exchange (ticker symbol: ZURN) and a secondary listing in London. Zurich Financial Services American Depositary Receipts (ADRs) are traded on the American Stock Exchange.

In 2005, after Hurricane Rita hit Beaumont, Texas, leaving it without power, Farmers Insurance brought in almost 300 insurance adjusters to assess exterior property damage in order to expedite the reconstruction effort, provided $100,000 for the emergency operations center, and two badly needed megawatt electric generators. [10]

In July 2007, the Farmers Exchanges acquired Bristol West Holdings, Inc., the parent of a group of insurers specializing in non-standard auto insurance, which provides insurance coverage for drivers whose driving records or other problems make obtaining insurance difficult. [11]

During the October 2007 California wildfires, Farmers was one of only a few companies [12] to set up facilities to aid their customers. In addition to writing checks for evacuation costs, damage claims, lodging and meals, the company ran commercials urging their customers to take advantage of these facilities. [13] The company now also has 2 buses serving as Mobile Command Centers, [12] [14] This mobile claim center arrived at the Qualcomm Stadium only two days after the fires started. [15]

In April 2009, Farmers announced that it would acquire 21st Century Insurance from AIG for $1.9 billion. The acquisition made Farmers the joint third-largest personal lines insurer in the U.S. [16] The acquired assets included AIG Hawaii. [17]

Operations

  • The Farmers Exchanges, headquartered in Los Angeles, CA, are three reciprocal insurers or inter-insurance exchanges (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) owned by their policyholders. The Farmers Exchanges, directly or through their subsidiaries and affiliates, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States. Farmers Group, Inc. (dba Farmers Underwriters Association) and its subsidiaries, Truck Underwriters Association and Fire Underwriters Association, provide certain non-claims administrative services for the Farmers Exchanges as their attorneys-in-fact. The Farmers Exchanges do not hold an ownership interest in Farmers Group, Inc., and neither Farmers Group, Inc. nor its ultimate parent, Zurich Financial Services Ltd., a Swiss company, holds an ownership interest in any of the Farmers Exchanges.
  • The Foremost Insurance Group, headquartered in Grand Rapids, Michigan, is a group of companies that primarily insure specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings, motorcycles, off-road vehicles, boats and personal watercraft. It was founded in 1952 and was acquired by the Farmers Exchanges in March 2000. The Foremost companies are subsidiaries of the Farmers Exchanges.
  • The Bristol West Insurance Group became a part of Farmers in July 2007. In 1973, it began providing private passenger auto insurance to residents in Florida and now provides liability and physical damage insurance – focusing exclusively on private passenger vehicles – across the United States. The Bristol West companies are subsidiaries of the Farmers Exchanges.
  • 21st Century Insurance, headquartered in Wilmington, Delaware, became a part of Farmers in July 2009. Using the internet and direct response marketing channels, 21st Century markets personal auto insurance to consumers throughout the United States. The 21st Century Insurance companies are subsidiaries of the Farmers Exchanges.
  • Farmers New World Life Insurance Company started as Catholic Life Insurance Company in Spokane, Washington in 1910. Later that year it was renamed New World Life Insurance Company. In 1953, it was acquired by Farmers Group, Inc. In 1954, its name was changed to the current Farmers New World Life Insurance Company. Farmers New World Life Insurance Company is now based in the Seattle suburb of Mercer Island, Washington. It offers flexible universal life insurance, traditional term life insurance, whole life insurance and annuities. Farmers New World Life Insurance Company is a subsidiary of Farmers Group, Inc.
  • Farmers Financial Solutions, LLC. was created by the Farmers Exchanges in 2000 to provide financial products to customers. [18]

Products and services

Farmers’ products and services include:

  • auto insurance;
  • home insurance, including homeowners, condominium and renters insurance, mobile and manufactured home insurance, specialty home insurance, including landlord and rental properties, seasonal homes, and vacation homes, and flood insurance through the National Flood Insurance Program;
  • motorcycle insurance;
  • life insurance, including term, whole and universal life insurance;
  • recreational insurance, such as insurance for boats, ATVs, RVs, and travel trailers;
  • business insurance for small and medium-sized businesses, such as liability and property insurance, commercial auto and workers compensation insurance for apartment and commercial property owners, artisan contractors, condominium homeowner associations, retail stores, service providers, offices, religious organizations, educational and non-profit organizations, hotels, motels, bed & breakfasts, and other businesses in the light manufacturing, restaurant, wholesale, and auto service & repair industries; and
  • financial services and products, such as mutual funds and variable annuities.

Sponsorships

Farmers Field

On February 2011, Farmers announced that it had agreed to sponsor a football stadium in the city of Los Angeles. This stadium would have been located downtown, close to the Staples Center. The contract was signed for 30 years, and its estimated cost is $700 million. This deal starts with $20 million for the first year, and then eventually increases. This stadium was planned to be named as “Farmers Field”. Even though Los Angeles does not officially own a football team yet, the NFL has given their approval to build the stadium.

The Farmers Insurance Open

Farmers became the title sponsor of the Farmers Insurance Open PGA tournament in Torrey Pines, CA in 2010. The event raises millions for local San Diego charities each year. www.farmersinsuranceopen.com

Farmers is the sponsor of the No. 5 Chevrolet SS driven by Kasey Kahne for Hendrick Motorsports in the Sprint Cup Series since the 2012 season. Farmers was the first to introduce a #hashtag on a racecar. Kahne’s first victory in the No. 5 was at the 2012 Coca-Cola 600 at Charlotte Motor Speedway. Farmers promotes its motor-sport relationship through the Farmers Racing website. [19]

Complaints to state insurance departments

In 2006, Farmers Insurance received the highest number of complaints to state insurance departments in Washington [20] [21] and Oregon. [22]

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