Farmers Insurance Review

As with any other insurance company- it’s very important to understand some research on what company and policies work best for you. Farmers Insurance is known as the company that started before the Great Depression. That was 1928, to be exact. When they started out, it was in a one-room office in Los Angeles and grew steadily. The founders, John C. Tyler and Thomas E. Leavey were looking to find farmers as customers for their insurance. 

Leavey being from Humboldt County and Tyler from South Dakota brought a variety of perspectives to the company. Before getting into insurance, Tyler was a successful paint contractor and served in World War I. Leavey had extensive life experience being from a dairy farming family. In the forties and fifties, the company put serious effort into supporting World War II by providing employees work before and after their service, in solidarity with the need to serve. 

By the 60s and 70s, Farmers was the first insurance company to offer a monthly payment plan that didn’t charge customers any interest and became active in creating a non-smokers discount. Another notable effort or effort that the company made was providing aid by forming Partners in Pride. 

This organization aimed to give employees the ability to help rebuild projects throughout the country after the 1994 Northridge earthquake and engage in other fundraising activities. In the modern-day, Farmers has grown a lot with over 48,000 agents and still tries to maintain the same customer service, and being available in all 50 states doesn’t hurt either.

Farmers Insurance Coverage & Cost 

The overall expenses of Farmers insurance are flexible to the types of policies one can afford and are subject to other factors such as discounts and what you need coverage on. This section will delve into the different policies and coverage you can get, including home and auto insurance. 

Home Insurance Overview

Farmer offers three packages that you have a choice of; Basic, Enhanced, and Premier. They can suggest the best package for you on their website through the quote tool. In that sense, it’s a very straightforward process. With any package, you can add discounts if need be. The overall cost that is close to the average for the US would be $1,502, which is yearly. But overall, it’s standard to use the quoting tool and can be similar to other companies. Here are the types of coverage you can have:

  • Condo Insurance
  • Homeowner Insurance
  • Mobile Home insurance
  • Specialty Home Insurance
  • Renters Insurance
  • Pet Insurance

Discounts For Home Insurance

You may think that with a name like Farmers, it would be a company with a vested interest in farmers alone, but that is not the case. And their discounts reflect that and are great for the average homeowner, business owner, or anyone else that shows their commitment to their customers. But here is a list of possible discounts that anyone can qualify for:

  • Good Payer Discount: Which is a helpful perk for when you pay on time and can lead to other possible discounts.
  • Claims free or Claim Forgiveness: A claims-free discount is exactly the way it sounds. A discount will be awarded when you go claims free for three years consecutively. Claim forgiveness is awarded when you file a claim after being claim-free for five years and will keep your premium lower. 
  • Rent to Own: This is great because it is encouraging for renters to be able to own their perspective home and have a definite plan or reason to plan for that. But it requires the policy to be switched.
  • New Home: An exclusive discount for less than 14 years old homes.

 Pros:

  • Farmers has been named the AM best Insurance company for years. 
  • They offer numerous discounts and can be found in every state they are found in.
  • They also work with an ever-growing network of independent local agents that can be contacted via modern online communication or phone calls.
  • Furthermore, they have expanded use with their mobile app that can be used to pay bills, receive notices and make interaction with the company and agents more convenient. 

Cons:

  • They have some expensive policies which, most likely, will not be as affected by discounts. 
  • The overall digital experience with the website and the app are lacking in terms of updates and accessibility. 
  • The quoting process is overly lengthy, and much of your personal information is needed. 

Auto Insurance Overview

Farmer’s Auto Insurance has good options in terms of policies, and nowadays, auto insurance is a requirement in most states. The policies are extensive enough to provide coverage for 

various needs. Here is what’s offered:

  • Uninsured and underinsured motorist coverage: This coverage fits into medical costs or property damage after an accident with an underinsured or uninsured motorist.
  • Bodily injury and property damage liability: This coverage is able to cover the costs of injuries, deaths, and/or property damage that you have caused.
  • Collision coverage: This is for the cost of repairs to the vehicle from traffic accidents, no matter who’s responsible. 
  • Comprehensive coverage: This is specific to covering the costs of events that may be caused by extreme weather events or events outside your control or when a deer or theft strikes your car.
  • New Car Replacement and Loss of Use: This is two-part coverage. If the car you have is newer, as it has 24,000 miles or lower, it will be replaced if totaled. For loss of use coverage, an agent can help you get temporary transportation and reimburse you for rental, rideshare, or public transit costs.  
  • Rideshare Insurance: This optional coverage option, only applies to Uber and Lyft drivers and rideshare delivery drivers. It works through the app when it’s running in the background while on the job.

Discounts For Auto Insurance

Farmer’s has great discounts that can benefit every lifestyle, especially for multi-policy setups. They have a good driver discount, good student discount, electronic payments discount, paperless discount, and even a discount for an alternative fuel vehicle. These are a few of the possible discounts. 

Pros:

  • Various discounts are available 
  • Farmer’s has fewer complaints than expected.
  • Car Insurance is customizable to the needs of the customer.

Cons:

  • Rates can be more expensive for really young drivers and senior drivers.
  • The rates for the basic package are more expensive compared to other insurance providers.
  • Has only received a C grade from AM best.

Farmers Insurance rates compared to other competitors.

This section will go over both Home insurance rates and Auto insurance rates in detail. Moreover, it is also important to understand that your rates may not reflect these numbers exactly, but these charts may still be useful for research.

Farmer’s home insurance VS Competitors.

As far as affordability goes, Farmers’ is somewhat above the national average and is second to Nationwide for the pricing of home policies, and this doesn’t include bundling.  

Overall, for Farmer, it is more expensive Than most other auto insurance providers, and this is for drivers with a good record. It could cost up to $2,743 for drivers who caused an accident, $ 3,133 for drivers who have been charged with a DUI, and $2,980 for drivers with poor credit, which is the only amount that is lower than other Auto insurance providers. 

Other Considerations

The overall experience may only benefit long-time customers of Farmer’s insurance. It will cause higher expenses for those who are more inclined to work harder to get the price they want, if even possible. There is also RV insurance, motorcycle insurance, and even life insurance. 

The comprehensive Auto coverage has a better reputation than some other companies and provides discounts and a behavior-based coverage per mile system. A big issue is the wait time for claims processing, which could create more inconveniences than is okay. 

As Farmers have grown a lot since its early days, they may have a harder time connecting to the communities they serve. As the 5th largest insurance company in the nation, it still manages to insure more than 10 million families and is accessible in every state while still maintaining a headquarters in California. And while most policies are expensive, there are various offers and options for every kind of homeowner and driver. 

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