Navigating Insurance Options: Understanding The Exchanges Available For Farmers

Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange (Exchanges) are inter-insurance exchanges owned by their policyholders. The Exchanges, directly or through their subsidiaries, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States. The three primary insurers that make up the Farmers organization are managed by Farmers Group, Inc. as attorney-in-fact on behalf of their respective policyholders.

Farmers Insurance Exchange

FUA is the business name used by Farmers Group, Inc. (FGI) to describe its functions as the AIF for Farmers Insurance Exchange. FGI is part of the Zurich Insurance Group, Ltd (ZIG), a Swiss company. Neither FUA, FGI, nor ZIG has any ownership interest in Farmers Insurance Exchange, which is solely owned by its subscribers (insureds).

In 2022, Farmers Insurance Exchange expanded its digital-focused eCheckout initiative to improve the customer experience for purchasing and onboarding. The eCheckout feature is now available in 26 states for various Farmers insurance products, including auto, home, renters, condo, and umbrella insurance.

Fire Insurance Exchange

The premium dollar covers Exchange costs, including losses incurred, acquisition costs, taxes, license fees, the AIF fee, and any contributions to surplus. For 2022, the AIF fee was 12.4% of the premium dollar, which included the AIF profit of 6.70% of the premium dollar for that year.

Truck Insurance Exchange

The Truck Insurance Exchange (TIE) is one of the insurers that make up Farmers Insurance Group (FIG). It has been in operation since 1935 and is headquartered in Woodland Hills, California.

TIE offers comprehensive commercial truck insurance, including specific policies for food trucks. It combines truck insurance with business liability coverage for restaurant protection. TIE also offers auto, homeowners, business owner and personal umbrella insurance.

TIE is owned by its active members or subscribers, who appoint a governing board to supervise the Exchange's financial affairs. The Exchange is a reciprocal insurance company, organised under the California Insurance Code, which allows insured parties to exchange their insurance covers with other insured parties. Insured parties appoint a third party, an attorney-in-fact (AIF), to perform the duties of issuing policies, collecting premiums, paying commissions to agents, etc. on their behalf for a fee.

The AIF fee is typically 20% of the premium, although less than that amount may be taken. The fee for 2022 was 14.1% of the premium dollar, which included an AIF profit of 6.70%.

TIE members can exercise their right to vote in three ways: online through their Farmers.com account, at the annual members' meeting in California, or by mail via a paper proxy.

Homeowners insurance

Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange (Exchanges) are inter-insurance exchanges owned by their policyholders. The Exchanges, directly or through their subsidiaries, offer homeowners insurance, auto insurance, commercial insurance, and financial services throughout the United States.

• Property damage coverage: Protects your home or belongings if they are damaged or destroyed by certain causes.
• Liability coverage: Pays if you cause another person to be injured or another person's property to be damaged or destroyed.
• Medical payments coverage: Pays for medical treatment for certain persons injured in an accident in your home and certain situations away from your home, whether or not you were at fault.
• Additional living expenses coverage: Pays for you to move into temporary accommodation and will cover certain other additional living expenses when you cannot live in your home because of damage that is covered by your policy.

Automobile insurance

Farmers Insurance Exchange, Fire Insurance Exchange, and Truck Insurance Exchange (Exchanges) are inter-insurance exchanges owned by their policyholders. The Exchanges, directly or through their subsidiaries, offer automobile insurance throughout the United States.

Farmers Insurance Exchange was founded in 1928 as Farmers Automobile Inter-Insurance Exchange. It was named the leading reciprocal in earned premiums for auto insurance by National Underwriter. Today, Farmers Insurance Exchange, along with Fire Insurance Exchange and Truck Insurance Exchange, and their subsidiaries and affiliates, provide automobile insurance to more than 10 million households across all 50 states.

Farmers Insurance offers a variety of automobile insurance coverage options, including:

• Liability insurance coverage, which pays for bodily injury and property damage to another party resulting from covered losses for which you are at fault.
• Collision coverage, which helps repair your vehicle if it is damaged or compensates you for its value if it is a total loss.
• Comprehensive coverage, which helps when your car is damaged by something other than a collision, such as hail, wind, theft, fire, vandalism, or animal damage.
• Uninsured and underinsured motorist coverage, which covers the costs of your bodily injuries and damage to your car caused by an uninsured or underinsured driver.
• Medical payments coverage, which helps with medical expenses if they are caused by a covered accident, regardless of fault.
• Personal Injury Protection (PIP), which helps cover medical and rehabilitation expenses, as well as lost wages resulting from an accident, regardless of fault.

Farmers Insurance also offers a range of discounts and allows customers to bundle their auto insurance with other policies to save money.

Frequently asked questions