Have you ever purchased auto insurance at an incredibly low rate only to find out that the company offered terrible customer service and you got the run-around after filing a claim?
If so, you’re not alone. You can look online and find a lot of complaints about insurance companies and some of them have a lot more complaints than others.
Are you frustrated each time your renewal rates go up even though you haven’t gotten a ticket or caused an accident and your car is a year older?
Wouldn’t it make sense to check out a prospective car insurance company or companies thoroughly before you agree to purchase so that you’ll feel confident and be able to trust them with your business? If you agree (and we hope you do), here is our review of the personal auto insurance offered by Farmers Insurance Company.
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About Farmers Auto Insurance
Founded in 1928, Farmers Insurance Company was originally established to offer equipment, truck, and auto insurance to America’s farmers.
Since then, Farmers has dramatically increased its insurance footprint across the country and now offers a complete line of personal insurance as well as commercial insurance, and financial products.
Like many other large insurance companies who have experienced significant growth, Farmers offers its products through a substantial list of subsidiary companies:
- Foremost Insurance Group – Foremost markets and underwrites specialty products like mobile home insurance, specialty built homes, and RVs.
- Bristol West Insurance Group – Acquired in 2007 to offer auto insurance to Florida residents, Bristol West now offers personal auto insurance to vehicle owners across the country.
- The 21st Century Insurance Group – Acquired in 2009, Farmers uses 21st Century to market and sell auto insurance directly to consumers.
- Farmers New World Insurance Company – Farmers New World Insurance company offers life insurance and annuity products that are sold through neighborhood Farmers agents.
- Toggle – Toggle was launched last year and offers affordable renters insurance that can be purchased online.
Farmers also has an extensive list of subsidiary companies that are in place to offer insurance products for residents and businesses in specific states.
Farmers Financial Stability
The only thing worse than purchasing car insurance from a company that gives unacceptable service would be to find out they are in financial trouble and have been mismanaged.
To eliminate any guesswork, auto insurance shoppers can check out a prospective company’s ratings before they sign on the dotted line. Remember, insurance is just a promise to pay in return for a premium.
Make sure your company can keep its promise.
|Moody’s Investors Service|
J.D. Power Claims Satisfaction
|Better Business Bureau|
Farmers Insurance Products
Although this article is about Farmers Auto Insurance, we think it’s important that insurance shoppers are made aware of other insurance products that are offered by a company, especially when it comes to bundling different kinds of policies.
Here are all the options you’ll have with Farmers Insurance Company:
- Car Insurance
- Home Insurance
- Renters Insurance
- Landlord/Rental Properties
- Life Insurance
- Business Insurance
- Motorcycle Insurance
- RV Insurance
- Personal Umbrella Insurance
- Pet Insurance
Farmers Auto Insurance Coverage and Options
Farmers offers the standard Personal Auto Policy package of coverages and shoppers can pick and choose the coverages and limits that best meet their needs and budget.Here are the standard coverages available in the Personal Auto policy:
|Bodily Injury Liability||Pays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy.|
|Property Damage Liability||Pays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy.|
|Medical Payments||Medical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy.|
|Personal Injury Protection (PIP)||PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states.|
|Uninsured/Underinsured Motorist||Uninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well.|
|Comprehensive Coverage||Comprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible.|
|Collision Coverage||Collision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible.|
|Emergency Roadside Assistance||Roadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy.|
|Rental Reimbursement||Rental reimbursement helps pay for rental expenses if you are in an at-fault accident or|
hit by an uninsured driver. Most policies will have a limit per-day and per-accident.
Along with the standard coverages, Farmers also offers important optional coverages that can be added for an additional premium:
- New Car Replacement Option – This option provides for Farmers to replace your car with a new one if it is totaled within the first 2 model years or 24,000 miles.
- Vehicle Loss of Use – Farmers will reimburse the policyholder for car rental and public transportation expenses while your car is under repair due to an accident.
- Accident Forgiveness – Farmers will forgive you and not increase your rates for one accident for each three year period that you are covered and do not have an accident.
- Custom Equipment – Farmers will pay to replace or repair custom equipment you have added to your vehicle such as stereo system or custom rims.
- OEM Coverage – When you select this option, any replacement parts for your damaged vehicle will be replaced with original manufacturer equipment rather than aftermarket parts.
- Rideshare Coverage – This optional coverage provides for Farmers to extend your liability coverage in between customers.
How Farmers compares with other Car Insurance Companies
Although your Farmers Car Insurance rate will be predicated on the underwriting information for the drivers and vehicle(s) listed on your application, we can compare Farmer’s insurance rates with other companies based on national averages to determine if they are competitive in a broad market snapshot:Here is how Farmers stacks up next to Allstate and State Farm’s annual Premiums:
|21-year-old Female||35-year-old Male||55-year-old Female|
By reviewing the above-listed rates, it’s apparent that Farmers is very competitive in the marketplace but remember, these rates are subject to discounts that you may qualify for.
By qualifying for as many discounts as possible, most car insurance shoppers can reduce their premiums significantly.Here is what Farmers offers:
|Multi-Policy||Bundle multiple policies like home and auto|
|Multi-Car||Insure more than one vehicle on your policy|
|Pay-in-Full||Pay your policy in full rather than monthly|
|Transfer (new customer)||Switch from another company to Farmers|
|Distant Student||If your child is away at school (minimum 100 miles) and doesn’t have regular access to your cars|
|Good Student||Maintain a 3.0 average or higher in high school or college or rank in the top 20%|
|Loyalty to Farmers||Stay covered with Farmers for 3 consecutive years or more.|
What Farmers’ Customers are Saying
Finding out about a prospective car insurance company is much easier than you might think. Although you can spend a lot of time looking at online consumer reviews and complaints, we prefer to go to various rating platforms that we consider credible. These are platforms that have sampled a large quantity of current or former customers and have rated the company based on the data.Here is a list of rating companies we normally check with:
|NerdWallet||3.5 out of 5 stars|
|Wallet Hub||4 out of 5 stars|
|US Insurance Agents||3 out of 5 stars|
|J.D. Power – Overall Satisfaction||4 out of 5 stars|
The Bottom Line
If you’ve learned anything here it should be that you’ve found Farmers should on your shortlist of car insurance companies to do business with. They are financially stable, have competitive rates, offer many discounts, earned above-average consumer reviews, and have a comprehensive insurance portfolio that can make Farmers a one-stop-shop if that’s what you’re looking for.