Farmers Auto Insurance

Farmers Insurance Group is the third-largest insurance company in the United States. Farmers insures over ten million households in 41 states. Famers is headquartered in Los Angeles, but its parent company, Zurich Financial Services, is located in Sweden. In addition to auto insurance, Farmers also provides homeowners and life insurance as well as a number of financial services. The company began in 1928 when two men from a rural background sought to offer discounted auto insurance protection to farmers, who tended to have better driving records than others. Originally known as the Farmers Automobile Inter-Insurance Exchange, Farmers has been serving its policyholders for over 80 years now. To help you decide if a Farmers car insurance policy is right for you, consult our insurer report card included below.

Customer Satisfaction

Farmers has not fared well in customer satisfaction surveys lately. Consumer Reports has ranked Farmers Insurance as one of the worst insurers for paying out claims. Farmers is notoriously tight-fisted when it comes to claims according Consumer Reports. Farmers did not do much better in the most recent J.D. Power & Associates rankings. Every year, J.D. Power & Associates surveys current Farmers auto insurance customers to evaluate their satisfaction with the carrier. Here is how Farmers did in the 2008 rankings:

Financial Strength

Farmers Insurance Group usually receives the highest ratings from agencies like Moody’s, A.M. Best, and Standard & Poor’s that evaluate insurers’ financial health. In 2008, Farmers received a financial strength rating (FSR) of A, or “excellent,” from A.M. Best. Farmers also received issuer credit ratings of “A” for all of its members. A.M. Best based the ratings on Farmers leadership position in the market as well as its wise risk management strategies. Farmers’ importance to its parent company, Zurich Financial Services, also helped boost its financial ratings.

Coverage Options

Farmers auto insurance customers can choose from standard coverage or collectible auto insurance. A standard Farmers policy includes liability, uninsured motorist, collision, comprehensive, and medical payments coverage. Collectible auto insurance is a cheaper form of coverage designed for classic cars that are driven rarely. Farmers offers collectible auto policies for muscle cars, antiques, hot rods, customs, and more. Farmers customers can also receive a quote, find an agent, make a payment, and manage their policies online.

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