According to Farmers, 4,000 customers switch to the insurance company a day. The company bases itself in America, and it started in 1928. The company started with co-founders John C. Tyler and Thomas E. Leavey, who both wanted to prioritize insurance services to farmers and ranchers.
Their company started with a loan from the founder of Bank of America. At the time, they only had four employees to begin building the business. In 1958, the company became more involved in the community by participating in local parades.
The insurance company’s parent company is based in Switzerland. Zurich Financial Services owns an interest in Farmers and its sister companies.
Farmers’ Coverage Options
Farmers offers to pay liability in the form of bodily injury and property damage. Their collision coverage insures at-fault drivers with no other drivers involved. They also cover uninsured motorists, comprehensive claims, medical coverage, and personal injuries.
Farmers offers multiple discounts, but the costs of its policies reach well above average. Depending on the driver, expect to pay more for Farmers coverage.
Unlike most insurance companies, Farmers’ collision coverage includes animal accidents. Hitting an animal on the road is insured. Depending on the nature of the accident, their comprehensive coverage also covers animal damages. Colliding with other vehicles or objects is also covered by Farmers.
Uninsured Motorist Coverage
Farmers uninsured motorist coverage protects you and your passengers from an at-fault driver with no insurance. This also applies if their insurance coverage is not enough to pay for the damage. Any losses sustained during the accident are covered, including medical bills, lost wages, and damage to passengers.
Their personal injury protection takes a step further. They cover the customer’s medical expenses, no matter who is at fault. Passengers are also covered by personal injury protection. A combination of liability, uninsured motorist coverage, and personal injury protection fully cover the driver in the event of a serious accident.
Take an extra step with Farmers’ umbrella coverage. This type of coverage extends liability coverage and protects customers from million dollar lawsuits. Umbrella coverage is excellent for customers with millions in assets.
J.D. Power Review
Overall customer satisfaction is average for Farmers. Customers report a mediocre experience with the company. This includes their claims process, policies, call center, and settlements.
The insurance company’s website rates below average. Customers do not find the website to be informative enough. It is not readable, nor is it convenient for customers.
Criticism for the company’s methods is well above average. In Washington and Oregon, Farmers collected the most complaints out of any of its competitors. State insurance departments had to handle multiple claims and customer insurance complaints due to Farmers poor service.
In 2007, Farmers received the lowest possible score from J.D. Power. The company was severely lacking across the board. Customers reported major dissatisfaction with the claims process and settlements.
A.M. Best Review
A.M. Best rates Farmers’ financial strength an A. The company is financially stable, but there have been a few shifts in that stability. Mostly, it is due to natural disasters and lawsuits.
Despite its multiple lawsuits, A.M. Best rates Farmers’ enterprise risk management as satisfactory. Most of Farmers’ financial stability seems to stem from its relationship with Zurich Insurance Group.
Farmers have been subject to multiple lawsuits since 2005. The company has been accused of refusing to pay for claims because the “accident was intentional”. They have also been subject to multiple million-dollar fines due to not paying for negligence claims.
Another lawsuit was filed when the company refused to pay for the diminished value of a vehicle. Some female employees reported being paid less than male employees, which led to a recent suit in 2015.
Clearsurance Customer Reviews
Most long-term customers are satisfied with Farmers overall. Some customers wish that their policy was easier to update. This could be due to Farmers’ unsatisfactory website, which seems hard to navigate and lacks many key features. Many customers wish that the deals could be better for the price.
Below-average customer reviews reach 17% with Farmers car insurance. A few Texas-based customers report having a totaled car that was not considered totaled by the company.
Once a claim is filed, customers feel frustrated with additional fees. The extra costs for canceling a policy seem unethical to many customers. Many customers feel like they are overpaying for a generally simple policy.
Pros & Cons
- Upfront about insurance coverage
- New car replacement policy
- Accident forgiveness
- Sells car insurance in 39 states
- Unethical business practices
- High paying claims process
- Hidden policy and cancellation fees
- Poor customer service and little customer trust
- Very below-average ratings overall