Farmers Insurance Am Rating: Understanding The Financial Strength And Stability Of Your Insurance Provider

Farmers Insurance is a well-known insurance company that offers a range of coverage options, including auto, home, life, business, and general liability insurance. The company has received generally positive reviews from customers, with an average rating of 3.3 out of 5 on WalletHub. It has also been accredited by the Better Business Bureau (BBB), receiving an A rating. AM Best, a global credit rating agency, has affirmed the Financial Strength Rating of Farmers Insurance Group as A (Excellent), indicating that the company has a strong balance sheet and is capable of reliably paying out insurance claims. Overall, Farmers Insurance is considered a good choice for those seeking a wide range of coverage options and add-ons, as well as for those who value customer loyalty and satisfaction.

Farmers Insurance's AM Best Rating

Farmers Insurance has an AM Best rating of A, which translates to "Excellent" and reflects the company's strong balance sheet strength, adequate operating performance, favourable business profile, and appropriate enterprise risk management. The rating indicates that Farmers Insurance has a stable loss reserve position and a conservative investment risk profile, along with a comprehensive reinsurance program. This rating is a strong indicator of the company's financial health and ability to reliably pay out insurance claims.

In addition to the AM Best rating, Farmers Insurance has also earned positive ratings from other organisations. For example, it has an A rating from the Better Business Bureau (BBB) and an A- rating from Standard & Poor's. WalletHub editors have given Farmers Insurance a rating of 3.0 out of 5, while The Zebra gave it a 4 out of 5 rating. J.D. Power ranked Farmers Insurance above the industry average for claims satisfaction in 2021 but below average for customer satisfaction.

Farmers Insurance's customer service

Farmers Insurance has a mixed bag of customer reviews. While some customers praise the company's quick response times, good customer support, and fast claims payouts, others have complained about delays with the claims process and slow roadside assistance response times.

In a survey conducted by MarketWatch in August 2022, only about 3% of the 7,000 car insurance customers polled reported having a Farmers car insurance policy. When compared to the overall averages from the survey, Farmers customers rated the company similarly in overall customer satisfaction, discounts and savings programs, and the selection of coverage and add-ons. However, Farmers Insurance received a lower rating for the car insurance shopping process.

On Reddit, positive reviews for Farmers Insurance cite personalized customer service through the company's large network of local agents as an advantage. On the other hand, negative reviews on Reddit mention the company's high rates.

In the MarketWatch survey, 39% of Farmers policyholders had filed a claim, while over 60% had not. Respondents who had a Farmers insurance policy gave the company a rating of 4.0 out of 5.0 stars for customer service during the claims process and 3.9 stars for satisfaction with the claim outcome or settlement.

According to WalletHub, Farmers Insurance has an average rating of 3.3 out of 5 among users. WalletHub's editors gave Farmers Insurance a rating of 3.0 out of 5, citing the company's extensive coverage options and nationwide availability but noting that there is room for improvement in customer service and claims handling.

Overall, Farmers Insurance has a decent reputation for customer service, but there is still room for improvement. The company's ratings and reviews highlight a mix of positive and negative experiences, with some customers praising the company's responsiveness and efficiency while others express frustration over delays and high rates.

Farmers Insurance's financial strength

Farmers Insurance Group has a strong financial outlook and has been deemed financially stable by AM Best, a global credit rating agency specialising in the insurance industry. AM Best gave Farmers an 'Excellent' A rating for financial strength, which means that the company is capable of reliably paying out insurance claims.

Farmers Insurance Group's balance sheet strength is strong, with a stable loss reserve position, conservative investment risk profile and comprehensive reinsurance program. The group's operating performance is adequate and in line with peers, despite higher current accident year losses and elevated catastrophe losses in 2022.

Farmers Insurance Group has implemented measures to enhance its underwriting performance through targeted pricing actions and risk-mitigation strategies, revised product offerings and strengthened underwriting controls. The group's high exposure to catastrophe losses and reliance on almost $2 billion of surplus notes are partial offsets to these strengths.

Overall, Farmers Insurance Group has a strong financial health outlook, and policyholders don't need to worry about the company's ability to pay out claims.

Farmers Insurance's pros and cons

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 coverage options, add-ons, and generous discount offerings. It has more than 48,000 independent insurance agents across the country and is available in all 50 states.

Pros

• Great selection of coverage options and add-ons
• Available in all 50 U.S. states
• Many discount opportunities
• Well-reviewed mobile app

Cons

• Premiums can be high in some states
• Mixed customer service reviews
• Some customer complaints about slow roadside assistance

Farmers Insurance's coverage options

Farmers Insurance offers a wide range of coverage options for its customers. The company provides the six standard types of car insurance coverage, along with additional options like rideshare insurance, accident forgiveness, and new car replacement coverage.

Basic Coverage Options:

• Bodily Injury Liability: This covers medical expenses for individuals in other vehicles who are injured in an accident caused by the policyholder.
• Property Damage Liability: This covers the cost of property damage to other vehicles and items in an accident caused by the policyholder.
• Uninsured Motorist Coverage/Underinsured Motorist Coverage (UM/UIM): This covers the policyholder's property damage costs and medical expenses in an accident caused by an uninsured or underinsured driver.
• Medical Payments (MedPay): This covers medical expenses for the policyholder and their passengers following an accident, regardless of who is at fault.
• Personal Injury Protection (PIP): This covers rehabilitation costs and lost wages following an accident in a no-fault state.

Additional Coverage Options and Add-ons:

• Collision Insurance: This covers damages to the policyholder's vehicle resulting from a car accident.
• Comprehensive Coverage: This covers damages to the policyholder's vehicle from incidents other than a collision, such as vandalism, theft, or weather-related damage.
• Emergency Roadside Assistance: This covers roadside services such as towing, fuel delivery, tire repair or replacement, lockout assistance, and more.
• Rental Car Reimbursement: This reimburses the cost of renting a car for up to 30 days if the policyholder's vehicle is undrivable due to a covered accident.
• Rideshare Insurance: This covers drivers who work for rideshare services like Lyft or Uber. It ensures their vehicle is protected during the time they are waiting for ride requests.
• Glass and Windshield Coverage: This covers the cost of repairing or replacing broken auto glass, often with a $0 deductible.
• Accident Forgiveness: This prevents the policyholder's premium from increasing after an accident, but only for one accident every three years.
• New Car Replacement Coverage: This covers the full replacement cost of a new car if it is within the first two model years and has fewer than 24,000 miles on the odometer.
• Personal Umbrella Insurance: This provides additional coverage beyond the policyholder's liability limits and protects them from lawsuits.
• Loss of Use Coverage: This provides a flat sum to cover transportation costs when the policyholder's vehicle is undrivable due to a covered accident. The money can be used for public transportation, rentals, taxis, or rideshare services.
• Customized Equipment Coverage: This covers aftermarket parts and upgrades, such as custom wheels or infotainment systems, in the event of a covered loss.

These coverage options and add-ons may vary depending on the state and specific circumstances. It is always advisable to consult with a local Farmers Insurance agent to understand the coverage options available in a particular area.

Frequently asked questions