Farmers Insurance – An Overview

Farmers Insurance Group, also known simply as Farmers, is a California-based insurance company with nearly a century of experience insuring drivers across the United States. Today, Farmers is a subsidiary of Swiss conglomerate Zurich Insurance Group. The company earned $12.5 billion in revenue in 2016 while employing over 13,000 people across the country.

Farmers History

farmers auto insuranceFarmers Insurance Group was founded by two men, John C. Tyler and Thomas E. Leavey, who believed that farmers and ranchers should pay lower insurance premiums than urban drivers because they were safer drivers. In 1928, the two entrepreneurs opened Farmers Automobile Inter-Insurance Exchange in downtown Los Angeles, California.

The two men would continue running the company well in the 1970s. Tyler died in 1973, with Leavey taking over as CEO until his retirement in 1978. The company faced significant financial challenges throughout the late 1980s and early 1990s, when three separate large-scale disasters rocked California, including the 1989 San Francisco earthquake, the 1991 Oakland fire, and the 1994 Northridge, California earthquake.

In 2000, Farmers was reorganized to become one of three core business segments underneath Zurich Insurance Group (along with General Insurance and Global Life). Today, Zurich Insurance Group is the largest insurance company in Switzerland and the 91st largest public company in the world. Farmers is headquartered in Woodland Hills, California.

Farmers Insurance Rankings

Farmers has higher ratings than virtually any other car insurance company in the United States. In 2018, Farmers earned a rating of 4/5 from J.D. Power for overall satisfaction. Only Erie Insurance, USAA, and Amica Mutual earned better scores, collecting perfect 5/5 ratings. GEICO, Nationwide, State Farm, Allstate, Esurance, Progressive, and others were all rated 3/5 for overall satisfaction.

Farmers score from J.D. Power included scores of 3/5 for first notice of loss (FNOL) along with scores of 4/5 for estimation process, repair process, rental experience, claims servicing, and settlement.

We also rate insurance companies based on their financial stability. In February 2019, AM Best affirmed the financial strength rating (FSR) of “A” or “Excellent” for Farmers Insurance Group. That’s slightly lower than the A+ and A++ scores achieved by certain other insurance companies (including GEICO), although it’s in line with many other major insurance companies. Overall, it means Farmers should have no trouble covering its liabilities.

Overall, Farmers had fewer customer complaints than the average compared to other car insurance companies. For customers who want to bundle other insurance policies, Farmers also had lower rates of complaints for home and life insurance customers.

What Makes Farmers Unique?

Some of the characteristics that make Farmers Insurance unique include:

Home, Life, and Car Insurance: Farmers offers more than just car insurance. The company also has popular life and home insurance coverage options. For customers looking to bundle, Farmers may be a great option.

Strong Claims Satisfaction Ratings: Farmers isn’t always the cheapest option countrywide. However, the company has some of the highest ratings in terms of claims satisfaction and overall satisfaction, training only Erie, USAA, and Amica Mutual, which all received perfect 5/5 scores in the latest J.D. Power rankings. With a score of 4/5, Farmers is one point ahead of some of the country’s largest insurers, including GEICO and State Farm.

Mobile App: Farmers has a mobile app where you can pay your insurance bill, update payment options, view your agent’s contact information, check policy details, and access digital insurance ID cards when you need proof of insurance.

Website: The Farmers Insurance website makes it easy to connect with an agent, get a quote, report a claim, or check on the status of a claim.

Is Farmers a Good Insurance Company? Our Review

Farmers Insurance is America’s fifth largest car insurance company. Rates vary widely across the country. While Farmers is not generally the cheapest car insurance provider in most states, the company’s rates are very competitive with other providers, especially considering the value customers get from their policies. It’s also important to note that Farmers has very strong rates for claims satisfaction, beating all but four of its competitors on the latest J.D. Power rankings from 2018 in terms of claims satisfaction and overall satisfaction.

Farmers also has many of the same coverage options and features you would expect from a major insurance company, including a well-designed mobile app, easy website access, and other helpful features.

Overall, Farmers Insurance is a popular, well-respected, and well-rated car insurance company serving customers in all 50 states.

Farmers Auto Insurance Policies and Products

Key features of Farmers auto insurance policies and products include:

Accident Forgiveness: Farmers will forgive one accident, which means your rate will not increase if you have gone without an accident for at least three years.

Loss of Use: Farmers will reimburse you not just for rental cars, but also for cabs or public transit costs if your vehicle cannot be used while it’s in the shop for repairs.

New Car Replacement: If your new car is totaled within the first two model years or 24,000 miles of ownership, then Farmers will pay to replace your vehicle with a new one.

Customized Equipment Coverage: Farmers can expand your policy to cover customized equipment like chrome rims or a new stereo system.

Original Equipment Manufacturer (OEM) Coverage: You can opt into OEM coverage on your Farmers insurance policy, which means your car will be repaired with parts from the car’s manufacturer instead of aftermarket parts (which are cheaper). To qualify, your car must be within 10 model years of the present day.

Rideshare Insurance: Like all other major insurance providers, Farmers has grown to provide rideshare insurance. Drivers who work for Uber or Lyft can add rideshare insurance to their policies to cover gaps in coverage.

Final Word

Farmers Insurance is one of the biggest and most popular insurance companies in the United States. The company is known for offering value-packed policies with high rates of claims satisfaction and overall satisfaction. Although Farmers may not be the cheapest option in most states, customers can access unique bundling opportunities by buying life or home insurance through Farmers as well.

Farmers Company Information

Parent Company:
Zurich Financial Services

Insurance subsidiaries:
21st Century
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:
AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

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

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