Farmers Insurance – An Overview

Farmers Insurance is a subsidiary of the Farmers Insurance group which provides automobile, life, commercial and life insurance. The Farmers Insurance Group employs close to 24,000 workers and has over 50,000 dedicated agents working. Alongside the other companies, Farmers Insurance caters to more than 10 million homes across the country with as much as 20 million active individual policy holders. The company operates in 50 states.

History of Farmers

Farmers Insurance was founded in 1928 by Thomas E. Leavey and John C. Tyler. At the time, the company only offered automobile insurance and was known as known as the Farmers Automobile Inter-Insurance Exchange. However, by 1935, the increased demand for new insurance products led to the launch of Truck Insurance Exchange—a subsidiary that catered to the needs of truck insurance. This was swiftly followed by Fire Insurance Exchange, another insurer that this time specialized in home insurance. As the insurance company grew, it acquired several companies such as the Mid Century Insurance Company in 1950 and the New World Life Insurance Company in 1953. In 1988, Farmers was taken over by BATYS Inc. for $5.2 billion. Following several costly disasters that spanned a period of 5 years, in 2000 the Farmers Exchange acquired the Foremost Insurance Group—a leading provider of recreational vehicles and boat insurance among other features. In 2009, the Farmers Insurance Group announced a $1.9 billion acquisition of the 21st Century Insurance Company, making it the third largest insurer of personal lines in the country.

What Makes Farmers So Special

Farmers offers customers the opportunity to cut down on their expenses by providing discount options for multiple polices. Buyers of auto and home insurance can end up trimming hundreds of dollars from their annual expense. There are other avenues that can be used to secure additional discounts. Farmers Business insurance package can be tailored to fit with each individual’s needs. Farmers insurance can be contacted at any time of the day online. The company also offers a special claim assistance option for people who are hearing impaired.

Farmers is not only focused on personal insurance. For businesses, Farmers Insurance provides coverages for a diverse assortment of fields, from housing to real estate. Industries are supported alongside commercial businesses, with each set of policies tailored to the needs of the company. Health and Life insurance packages are also supported through workplace incentive programs. Farmers Insurance is an all-in-one solution for families, small, and even large companies. The wide range of plans and coverages make it possible to customize each person’s policy to effectively fit their own personal needs.

For savings, Farmers insurance offers plans that include:

  • IRAs
  • 401(k)s
  • 529 College Savings Plans
  • Coverdell Educational Savings
  • UGMAs/UTMAs
  • Individual, Joint, and Corporate Savings

What consumers are saying about Farmers

Like most insurance companies, Farmer Insurance enjoys a mixture of both positive and negative reviews. Customers appreciate the company’s warm friendly policy. Its products are widely considered to be reasonably priced. The company’s customer service has also won a lot of positive feedback including an Outstanding Customer Service Award by J.D Power and Associates.

However, other customers have expressed dissatisfaction with the company, particularly the pace and efficiency with which claims are processed. Farmers Insurance is scored 2.5 out of a possible 5 stars on Epinions.com—a customer oriented review site. It has an A+ BBB rating based on the number of registered and successfully resolved complaints made against the company.

Conclusion

Farmers Insurance offers some of the most competitive rates in the industry today. Despite the negative press and feedback recorded in recent years, the company has strived to improve the quality of its services. Farmers Insurance offers a broad range of products which makes it a suitable option for people who wish to buy multiple insurance policies.

Farmers Company Information

Parent Company:
Zurich Financial Services

Insurance subsidiaries:
Foremost Insurance Group

Lines of Insurance
Vehicle Coverage: Auto/Truck/SUV, Antique/Classic, RV, ATV, PWC
Other Coverages: Homeowners, Renters, Specialty Home, Life, Travel, Business

Coverage Options

Licensed to sell insurance in:
AZ, AR, CA, CO, ID, IL, IN, IA, KS, MI, MN, MO, MT, NE, NV, NM, ND, OH, OK, OR, SD, TN, UT, VA, WA, WI, WY

A.M. Best Company Rating: A-
(Rating Explained)

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