Farmers Insurance: A Comprehensive Shield For California's Agricultural Heartland

Farmers Insurance is a well-known insurance company that offers a range of insurance products in California, including home and auto insurance. In recent years, there have been some changes to Farmers Insurance's presence in the state. In 2023, Farmers Direct Property and Casualty Insurance, a subsidiary of Farmers Insurance, announced that it would stop offering insurance in California. This decision impacted around 100,000 Californians and was attributed to a variety of factors, including climate-related risks and operational efficiency. Despite this, Farmers Insurance continues to serve the state, and customers can still find home and auto insurance policies through the company. The company offers various discounts and coverage options designed to meet the needs of California drivers and homeowners.

Farmers Insurance California car insurance

Farmers Insurance is available in California, but it is one of the more expensive options for car insurance in the state. In 2024, Farmers Insurance was rated the eighth-best car insurance company in the US by U.S. News, which noted that the company performed well in subcategory ratings for customer loyalty and likelihood to renew. However, Farmers Insurance also had some of the highest sample rates in the publication's analysis.

According to U.S. News, Farmers Insurance's overall sample premium is $3,253 per year, which is significantly higher than the national average of $1,176 per year for full coverage. The company's rates are also higher than the national average for teen drivers, young adult drivers, adult drivers, and senior drivers.

In California, a car insurance policy with a minimum amount of liability coverage is required. As of December 2022, the minimum required coverage is $15,000 per person and $30,000 per accident for bodily injury liability, and $5,000 per accident for property damage liability. A typical car insurance policy in California also includes optional collision and comprehensive coverage in case of covered damage or theft.

Farmers Insurance offers a variety of discounts for drivers in California, including a 10% discount for new drivers who take a safety quiz and sign the New Driver Agreement. However, drivers with poor driving records or teen drivers may pay more with Farmers than with other insurers.

In recent years, several insurance companies have pulled out of California or limited their operations in the state due to increasing insurance claims and difficulties raising policy rates. In March 2024, Farmers Auto Insurance announced that it was pulling out of California, with a Farmers representative stating that the decision was made to increase operational efficiency and manage risk exposure. Despite this, Farmers Insurance continues to offer policies in California and is not exiting the market entirely.

Farmers Insurance California home insurance

Farmers Insurance is one of the largest providers of homeowners insurance in California. However, in recent years, the company has made changes to its operations in the state, including limiting new homeowners insurance policies and non-renewing some existing policies.

In July 2023, Farmers Insurance announced that it would be capping the number of new homeowners insurance policies in California due to high costs and wildfire risks. This decision followed similar announcements from other major insurance providers, State Farm and Allstate, who cited similar reasons for their choices. According to a statement from Farmers Insurance, the company is committed to serving its customers while effectively managing its business in the face of rising inflation, severe weather events, and increasing reconstruction costs.

Despite these limitations, Farmers Insurance still offers a range of home insurance options in California. The company allows customers to build their own coverage, with policies tailored to their specific needs and lifestyles. Standard coverages in California typically include dwelling coverage, which helps pay for damage to the home from events such as fire, windstorm, lightning, or hail. Other structures coverage protects fences, sheds, and other non-connected structures, while personal property coverage helps repair or replace stolen or damaged belongings. Loss of use coverage assists in finding temporary accommodation if the home becomes uninhabitable, and personal liability coverage provides protection against accidental property damage or injuries caused by negligence.

Farmers Insurance also offers various discounts and additional coverage options for eligible home insurance customers in California. These include the Multi-Policy Discount, Fortified Home Discount, and Wildfire Mitigation Discount. Customers can further customise their policies with options like Extended Replacement Cost, Water Backup and Sump Overflow coverage, and Emergency Mortgage Assistance.

While Farmers Insurance continues to serve California homeowners, the company's recent decisions reflect the challenges posed by climate-related risks and the impact of rising costs on the insurance industry in the state.

Farmers Insurance California GroupSelect policies

Farmers Insurance offers GroupSelect policies for auto, home, and landlord insurance. GroupSelect policies are available in California, although recent changes in the state's insurance landscape have made Farmers unable to renew current GroupSelect home and auto policies upon expiration.

Farmers GroupSelect Auto Insurance

Farmers GroupSelect auto insurance offers discounted rates that can be customized based on your needs and budget. You can access special savings and discounts based on where you work or the associations you belong to. You can also save by bundling your auto insurance with other Farmers policies, such as home, life, umbrella, small business, or specialty insurance.

Optional coverages that may be available to you include new car replacement, major part replacement, glass repairs, legal defense, and lease or loan gap coverage.

Farmers GroupSelect Home Insurance

Farmers GroupSelect home insurance provides discounts and customizable insurance policies for houses, condos, or apartments. You can access special savings and discounts based on where you work or the associations you belong to. You can also save by bundling your home insurance with auto insurance.

Farmers GroupSelect home insurance offers outstanding customer service and 24/7 claim reporting. Their policies provide coverage to rebuild your home after a covered loss, even if it exceeds the policy's limit. As an added benefit, ID protection services are also provided to customers.

Farmers GroupSelect Landlord Insurance

Farmers Insurance offers two types of landlord insurance policies: Landlord's Rental Dwelling Insurance and Landlord's Rental Condo Insurance. These policies provide coverage for rental properties, including private structures on the property and personal property stored on the property or used by tenants. Landlords can also obtain loss of rental income coverage, which provides coverage for lost rent if the rental property becomes uninhabitable due to a covered loss. Liability coverage is also included, protecting landlords from injuries that occur on their rental property.

Farmers Insurance California auto policies

Farmers Insurance offers a range of auto insurance policies in California, including the Farmers® Smart Plan Auto policy. This policy is designed to offer coverage options based on individual driving habits. The Smart Plan Auto policy includes liability, collision, and comprehensive coverage. In 2020, the average cost of full coverage in California was $1,217 per year, slightly higher than the national average.

California law requires drivers to have a minimum amount of liability coverage. As of December 2022, the minimum requirements in California are $15,000 per person and $30,000 per accident for bodily injury liability, and $5,000 for property damage liability. However, drivers may want to consider additional coverage beyond the minimum requirements.

Farmers Insurance offers various discounts for California drivers, including the New Driver Discount, which offers savings of up to 10% for new drivers who take a safety quiz and sign the New Driver Agreement. Additionally, Farmers Insurance provides optional coverage options such as collision and comprehensive coverage, uninsured motorist coverage, personal injury protection, and rental car reimbursement.

In recent news, Farmers Direct Property and Casualty Insurance, a subsidiary of Farmers Insurance, has announced its exit from the California market. This decision affects approximately 100,000 customers and is attributed to operational efficiency and risk exposure management. However, Farmers Insurance has clarified that they are not entirely exiting the California market, and this change only affects a small portion of their business in the state.

Farmers Insurance California subsidiary Farmers Direct

Farmers Direct Property and Casualty Insurance, a subsidiary of Farmers Insurance, has recently announced that it will stop offering insurance in California. This decision comes as Farmers Direct begins sending non-renewal notices to its customers, adding to the growing list of insurers exiting the California market.

Farmers Direct, also known as Farmers Direct Property and Casualty Insurance, provides home, renters, and auto policies for around 100,000 Californians. The subsidiary has cited the need to increase operational efficiency and manage risk exposure as the reason for its withdrawal from the state. This move is expected to impact approximately 58,000 auto policies, with more than half of the nearly 100,000 policies in force being for vehicles, including motorhomes and motorcycles.

Farmers Insurance has assured its customers that this decision does not reflect a complete exit from the California market. In an emailed statement, a spokesperson for Farmers Insurance stated that the move is "an effort to strengthen our ability to serve California customers." Farmers Direct represents about 2% of its overall business in the state, and the company will continue to service existing policies while helping affected customers transition to different Farmers insurers.

The California Department of Insurance has been notified of Farmers Direct's withdrawal and has released tips for finding residential insurance for impacted customers. The department also advises customers to file a complaint if they believe their non-renewal was unfair and provides a list of alternative insurance providers.

Farmers Direct's departure from California is part of a larger trend of insurers scaling back their operations in the state. Companies like Kemper Corp. and Farmer's Insurance have also reduced their coverage in California, citing challenges with profitability and the state's strict regulations on policy rate increases.

Frequently asked questions