Farmers Insurance Group Review

The third-largest insurer in the nation, Farmers Insurance Group has provided Americans with auto insurance for over 80 years. Read our Farmers Insurance Group review to learn how the carrier compares to its rivals.

Company Overview

Farmers got its start in 1928, when two men from rural areas decided to begin offering auto insurance policies to farmers. The two founders believed farmers were better drivers than their urban counterparts and thus deserved lower car insurance premiums. Today, Swiss company Zurich Financial Services owns Farmers. Farmers employs 25,935 people and serves more than ten million households. In April of 2009, Farmers acquired AIG auto insurance, including 21st Century Insurance, for $1.9 billion.

Insurance Rates and Discounts

Farmers offers every type of major insurance policy, including auto, home, business, and life insurance. The auto insurance division also offers specialty insurance policies such as motorcycle and recreational insurance. Farmers customers have access to a wide range of financial services as well, including mutual funds and variable annuities. In terms of premiums, Farmers is not known for its affordability. In the 2009 J.D. Power survey, Farmers customers rated the company just two out of five stars on pricing. However, policyholders can save on their premiums by taking advantage of a number of car insurance discounts, such as the good-student and homeowner discounts.

Ratings and Awards

Farmers' performance on the 2009 J.D. Power and Associates National Auto Insurance Survey was fairly mediocre. The company earned a score of three out of five stars overall, with its lowest ratings in the pricing category. Financially, Farmers remains very strong. A.M Best rated Farmers as "A" (excellent), Moody's as "A2" (good), and Standard and Poor's as "AA-" (very strong).

Company Health

In spite of the global recession, Farmers Insurance Group has fared remarkably well. In fact, a new ad campaign that debuted in March of 2009 touted the company's financial strength in the face of economic turmoil. Farmers has become one of the fastest-growing multiple-line insurers in the U.S. and recently earned an upgrade in its financial ratings. You can view Zurich Financial Services' annual report online as well as a half-year report for the most current financials.

How to File a Claim

Farmers Insurance Group allows policyholders to file a home, business, or auto claim online. Policyholders may also file a claim over the phone. Farmers has a phone-based claims system called HelpPoint, whose goal it is to resolve all of your immediate needs, such as body shop and rental car arrangements, in a single call. You can reach HelpPoint at 1-800-435-7764.

Summary

Farmers Insurance Group is rapidly recovering from a tarnished reputation for customer service and prompt claims payment. Delayed payments and high premiums are likely responsible for the insurer's lackluster performance on the most recent customer-satisfaction surveys. However, Farmers is one of the healthiest and largest insurers in the country, providing reliability and strength to its policyholders.