Farmers Insurance: Competitive Edge Or Costly Coverage?

Farmers Insurance is one of the oldest auto insurance companies in the US, having opened in 1928. It is the seventh-largest auto insurance company in the country and offers standard coverage choices, a solid list of extras, and plenty of discounts. However, Farmers Insurance is also known for its higher-than-average rates.

Farmers Insurance offers a wide range of insurance products, including auto, home, life, landlord, and rental property insurance

Farmers Insurance is one of the oldest auto insurance companies in the U.S., having opened in 1928. The company offers a wide range of insurance products, including auto, home, life, landlord, and rental property insurance.

Auto Insurance

Farmers Insurance offers auto insurance in 42 states. The company provides standard coverage options, including liability, collision, and comprehensive insurance. In addition, Farmers offers several optional coverages, such as new car replacement, accident forgiveness, custom equipment protection, and loss of use. The company also offers specialty auto policies, such as ridesharing insurance, commercial auto insurance, and collector car insurance.

Home Insurance

Farmers Insurance offers homeowners insurance and renters insurance. The company's Smart Plan Home insurance policies are available in three tiers: Standard, Enhanced, and Premier. The Standard policy is designed for new homeowners and focuses on affordability, while the Enhanced and Premier policies offer higher coverage limits and additional protections. Renters insurance from Farmers protects personal property and covers relocation expenses in the event of a covered loss.

Life Insurance

Farmers Life Insurance offers term, whole, and universal life insurance policies, as well as accidental death insurance. Policyholders can choose a plan that best suits their financial and personal needs.

Landlord and Rental Property Insurance

Farmers Insurance provides coverage for landlords and rental property owners, helping to protect their investment and manage tenant-related issues.

Other Insurance Products

In addition to the core insurance products mentioned above, Farmers Insurance also offers a range of other insurance options, including motorcycle insurance, recreational vehicle insurance, business insurance, and umbrella insurance. The company also sells financial products such as mutual funds, IRAs, college savings plans, and annuities.

The company has received positive reviews for its customer service and claims handling

Farmers Insurance has received positive reviews for its customer service and claims handling. In a survey conducted by NerdWallet, the company received an overall satisfaction score of 72 out of 100, with above-average ratings for consumer satisfaction with auto insurance claims. WalletHub's editors gave Farmers Insurance a rating of 3.0/5, noting that consumer reviews tend to focus on quick response times, good customer support, and fast claims payouts.

According to US News, more than 46% of survey respondents were completely satisfied with the customer service provided by Farmers. The company also tied for 7th place in their subcategory rating for customer service. In terms of claims handling, 39% of Farmers customers surveyed were completely satisfied with the ease of filing a claim, and 44% were completely satisfied with the updates they received during the claims process. Notably, almost 58% of those surveyed were completely satisfied with how their claim was resolved. As a result, Farmers Insurance tied for 4th place in the US News subcategory rating for customer loyalty.

In addition to positive reviews, Farmers Insurance has also received recognition for its customer service and claims handling from J.D. Power. The company scored at or above the industry average for both auto and home claim satisfaction in the J.D. Power ratings.

Farmers Insurance is one of the oldest auto insurance companies in the US, founded in 1928

On March 28, 1928, the first meeting of the board of governors was held. Two days later, Charles Brisco insured his 1925 Cadillac Phaeton and became the company's first customer. In the decades since its founding, Farmers Insurance has grown and adapted to meet the changing needs of Americans. Today, Farmers Insurance serves more than 10 million households and offers a wide range of insurance and financial services products across all 50 states.

Farmers Insurance has a low level of car insurance complaints relative to its size, according to the National Association of Insurance Commissioners

Farmers Insurance has received a relatively low number of car insurance complaints, according to the National Association of Insurance Commissioners (NAIC). The NAIC reported that Farmers Insurance had a rating of 0.73, which means that the company has received fewer complaints than the average car insurance provider, adjusted for size.

In addition, Farmers Insurance has been rated 3.0 out of 5 by WalletHub's editors, based on factors such as customer reviews and watchdog-group ratings. WalletHub also reported that Farmers Insurance had fewer customer complaints than average, with a rating of 0.57 for homeowners insurance and 1.09 for auto insurance.

NerdWallet also gave Farmers Insurance a rating of 4.5 out of 5 stars for overall performance, taking into account consumer experience, complaint data from the NAIC, and financial strength ratings. Farmers Insurance had fewer complaints than expected for a company of its size, according to NerdWallet.

Overall, while there are some negative reviews and complaints about Farmers Insurance, the data suggests that the company has a relatively low level of car insurance complaints relative to its size.

The company offers a variety of discounts, including multi-policy, defensive driving, and good student discounts

Farmers Insurance offers a wide range of discounts to its customers, including multi-policy, defensive driving, and good student discounts.

Multi-Policy Discounts

Farmers Insurance offers discounts to customers who purchase multiple policies. For instance, customers can bundle their auto insurance with a homeowners, renters, condo, life, or umbrella insurance policy. Customers can also save by bundling their auto policy with additional cars, motorcycles, boats, or RVs.

Defensive Driving Discounts

Farmers Insurance offers defensive driving discounts to drivers over the age of 55 who have completed a state-approved safe driving course. The discount is valid for three years and can be renewed by retaking the course.

Good Student Discounts

Farmers Insurance offers good student discounts to full-time high school or college students between the ages of 16 and 24 who maintain a GPA of 3.0 or above. Students can also qualify by being in the top 20% of their class or by being on the Dean's List or Honor Roll.

Frequently asked questions