Farmers
One year before the Great Depression, John C. Tyler and Thomas E. Leavey started Farmers Insurance in a small one-room office in downtown Los Angeles. What began as an auto insurance company for farmers has now become a multi-company insurance and financial services group. Now, Farmers serves over 10 million households with more than 19 million individual policies across all the nation. Farmers operates in all 50 states and is No. 6 in market share for private passenger auto insurance.
Farmers Insurance also offers business insurance, life insurance and umbrella insurance.
In addition to insurance policies, Farmers Insurance sells a variety of financial products such as mutual funds, annuities, IRAs and college savings plans.
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Average annual rate for good drivers:
$2,124
Average annual rate for drivers with a speeding ticket:
$2,743
Complaint level:
Higher than Industry Average
Pros
- Drivers for Uber or Lyft can obtain rideshare insurance coverage with Farmers.
- Has optional coverages that are helpful after an accident, such as new car replacement and accident forgiveness.
- Offers a usage-based insurance program (Signal) that can possibly lower the car insurance rates of decent drivers.
- Farmers offers SR-22 insurance filings and non-owner insurance policy.
Cons
- High average rates for every type of driver compared to top competitors.
- Farmers auto insurance costs are especially pricey for young drivers and senior drivers.
- Has a higher-than-average number of complaints made about its car insurance to state insurance departments. Most complaints against Farmers are related to claims handling.
- Received only a C grade from auto collision professionals on its claims process.
Details:
Grade from Collision Repair Professionals:
C
Accident Forgiveness:
Yes
New Car Replacement:
Yes
Gap Insurance:
No
Diminishing Deductible:
No
SR-22s:
Yes
Usage-Based Insurance:
Yes
Pay-Per-Mile Insurance:
No
Discounts:
- Good student discount: If you have a full-time high school or college student under age 25 with good grades (3.0 GPA, dean’s list, honor roll or top 20% of class), you could be eligible for reduced rates.
- Distant student discount: You can save if your child is at least 100 miles away at school and doesn’t have access to your vehicles.
- Youthful driver discount: If your policy has been in force for at least 12 months and has drivers under age 25 on it, you may get a youthful driver discount.
- On your own discount: If you’re under age 29 and moving out on your own, you can save when buying your own Farmers policy. To earn this discount, you must have been part of a Farmers policy in your previous household (such as being on a parent’s policy) for at least the last 12 months.
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