Gap Insurance: 21St Century's Offering

21st Century Insurance does not offer gap insurance. The company, which is a subsidiary of Farmers Insurance, only sells auto insurance in California and has more customer complaints than average.

21st Century does not offer gap insurance

21st Century Insurance does not offer gap insurance. The company has not been selling new policies since 2023, and many of its customers have been transitioned to another Farmers brand, Toggle.

Gap insurance is optional car insurance coverage that helps bridge the financial gap for drivers whose car loan balance is more than the value of their vehicle if it is stolen or totaled. It covers the difference between what is owed on a car loan or lease and the amount paid out in a total loss settlement from an auto insurer.

21st Century Insurance is a subsidiary of Farmers Insurance that only sells auto insurance in California. The company has low rates and solid financial standing, but a higher-than-average number of customer service complaints.

While 21st Century Insurance offers standard coverage options such as liability coverage, collision coverage, and comprehensive coverage, it does not offer gap insurance, rideshare insurance, or accident forgiveness.

If you are considering 21st Century Insurance, it is important to note that the company has more than twice the number of customer complaints compared to the average insurer, according to the National Association of Insurance Commissioners (NAIC) Complaint Index. The majority of these complaints are related to delays in paying claims and unsatisfactory claims settlements and offers.

Therefore, if you are in the market for gap insurance, you may need to consider other insurance providers that offer this type of coverage.

Gap insurance covers the difference between what you owe and the value of your vehicle

21st Century Insurance does not offer gap insurance. However, gap insurance is a type of auto insurance that covers the difference between the amount reimbursed by the driver's car insurance policy and the amount they still owe on their financing.

Gap insurance is useful if you owe more on your car than it is worth. For example, if you owe $20,000 on your car but its actual cash value is $15,000, gap insurance would cover the $5,000 "gap" if your car was written off.

Gap insurance is typically purchased when a driver has made little to no down payment on their car, or if they plan to drive it in a way that will decrease its resale value. It is also a good option for those with a car loan term longer than five years.

Gap insurance is not mandatory, but it may be required by your financing agreement or lease contract. It is available from car insurance companies and car dealerships, but it is usually cheaper to purchase it from an insurer.

21st Century offers free roadside assistance

21st Century Insurance offers free roadside assistance to its policyholders. This benefit is available 24 hours a day and includes services such as towing and lock-out assistance. This is a notable feature, as some insurance companies charge extra for roadside assistance.

21st Century's roadside assistance program is just one of the benefits offered by the company. The company also provides a self-service portal and a mobile app, allowing policyholders to manage their policies and access information at any time. Additionally, 21st Century offers a range of discounts, including good driver, superior driver, good student, and mature driver discounts.

However, it is important to note that 21st Century Insurance only offers coverage in California. The company has received more customer complaints than average, and it does not offer certain types of coverage, such as gap insurance and rideshare insurance.

Overall, while 21st Century Insurance may be a convenient option for California drivers due to its free roadside assistance and other benefits, it is important to consider the limitations of the company's coverage and the high number of customer complaints.

21st Century has high customer complaint levels

21st Century Insurance has a high level of customer complaints, with a significantly greater number of complaints than the industry average. The company has a very poor resolution rate, with only 19% of complaints resolved, leaving 81% unresolved.

The majority of complaints are related to claims handling, with customers reporting issues with receiving unsatisfactory settlements or delays in paying out claims. Other common issues include poor customer service, long wait times, and unexpected rate increases.

One customer reported that they were unable to cancel their policy and were told by a representative that the company was attempting to hire new customer service representatives. Another customer reported being charged a fee when their automatic credit card payment failed, which they felt was unfair as it did not cost the company anything to process.

Given the high volume of complaints and the low resolution rate, prospective customers are advised to research the company and its handling of customer disputes thoroughly before signing up for any services.

21st Century is only available in California

21st Century Insurance is a subsidiary of Farmers Insurance and is only available in California. The company was founded in 1958 as 20th Century Insurance by Louis W. Foster, who believed that selling insurance directly to drivers with good records would lower rates. In 2009, Farmers Insurance acquired 21st Century Insurance.

While 21st Century used to provide car insurance in 48 states, Farmers has migrated many of its customers to Toggle, another of its brands. Now, only California drivers can buy 21st Century auto insurance.

The company has low rates and solid financial standing, but it has more than twice the number of customer complaints than the average insurer, according to the National Association of Insurance Commissioners (NAIC) Complaint Index.

Some of the coverage options offered by 21st Century include liability coverage, collision coverage, comprehensive coverage, uninsured or underinsured motorist coverage, and uninsured motorist property damage coverage.

In addition to the basic coverages, 21st Century also offers roadside assistance and rental reimbursement as standard with every policy, as well as classic car auto insurance for vehicles that are 19 years or older.

Although 21st Century Insurance has an A rating from AM Best, the company's rating was downgraded in 2019. The company also does not offer optional perks like vanishing deductible, accident forgiveness, or gap insurance.

Frequently asked questions