Founded by painting contractor and insurance agent John C. Tyler and banker and philanthropist Thomas E. Leavey in 1928, Farmers Insurance Group of Companies was originally known as the Farmers Automobile Inter-Insurance Exchange in Los Angeles, according to their website. Today, it operates primarily in 41 states and serves more than 15 million customers. The insurance rating company A.M. Best designates an A (Excellent) rating to Farmers based on its evaluation of Farmers’ financial strength and ability to meet its ongoing insurance policy and contract obligations.
Farmers is the country’s third-largest insurer of private personal lines passenger automobile and homeowners insurance. In addition to auto, life, and homeowners insurance, it also provides financial service products such as mutual funds and variable annuities. Farmers Insurance offers a number of discounts to auto insurance and other policy holders, although customers should note that discounts may vary by state.
Farmers’ customers can sign up for FarmersFlex, an optional program that provides additional perks and features. FarmersFlex offers Accident Forgiveness, which guarantees that Farmers will forgive one accident per three-year period. Other features include its New Car Pledge, which states that Farmers will replace a new car if it is totaled within the first two years of ownership. Some FarmersFlex features are not available in all states.
In some states, policy holders may be eligible for a discount based on their driving history. Those who go a certain amount of time without getting into an accident may see some savings in their insurance rate.
The affinity discount is available to policy holders who are members of an eligible business or professional group. Contact a Farmers agent for a list of qualifying organizations, as some organizations may qualify for a discount in one state and not another.
Alternative Fuel Discounts
Policy holders who own electric, hybrid, ethanol fuel, methanol gas, compressed natural gas, or propane vehicles will be eligible for this discount.
Farmers insurance offers Guaranteed Auto Protection (GAP) coverage to consumers who have new or unused cars. The coverage, available nationally, is useful for policy holders who have financed their vehicle. In the event of an accident that results in their car being totaled, GAP coverage ensures that they will not have to pay the difference between the actual cash value of the vehicle and the unpaid principal due; Farmers will cover the difference.
Long-term Policyholder Discounts
Known as the Persistency discount, this applies to households that have been insured with Farmers for three or more consecutive years.
The Farmers iClaim app allows users to find an agent, report claims, document accident details, find a Farmers preferred rental car vendor, and more. The app is available for free on iPhone, Android, and Blackberry phones.
This discount is available to households that have two or more cars insured with Farmers.
A multi-line discount is available to policy holders who have qualifying homeowners, renters, or life insurance policies with Farmers. Discounts are also available for individuals who have mobile home or specialty dwelling policies with Farmers. Any combination of Farmers insurance policies can provide a discount.
Named Non-Owner Policies
Farmers offers named non-owner policies, which provide liability protection to individuals who do not own a vehicle of their own, but who drive company vehicles, borrow cars from friends or relatives, or frequently use rental cars. Interested individuals should contact a Farmers agent for further information.
New Car Replacement
Farmers’ customers can enroll in FarmersFlex, which provides a number of perks to help drivers prepare for the unexpected. Among these special options and features is its New Car Pledge, which guarantees that Farmers will replace a new vehicle without accounting for depreciation in the event of total loss in the first two years, or 24,000 miles, of ownership. If the car needs minor repairs, Farmers will use original manufacturer parts. Policyholders must sign up for FarmersFlex to receive this benefit, and this feature may not be available in all states.
Other Lines of Insurance
In addition to auto insurance, Farmers offers the following types of insurance:
- Home insurance
- Renters insurance
- Condo insurance
- Mobile home/manufactured home insurance
- Earthquake insurance
- Flood insurance
- Motorcycle insurance
- Business insurance
- Boat insurance
- Personal watercraft insurance
- Off-road vehicle insurance
- RV/motorhome insurance
- Travel trailer insurance
- 5th wheel insurance
Farmers Auto Rental Service is a rental reimbursement program that provides drivers with a rental vehicle for their use should they encounter an accident. The pre-screened rental car companies will provide free pickup and delivery and will directly bill Farmers. Rental reimbursement only applies in situations in which the accident falls under a covered claim.
The Farmers Tow Program (FARMTOW) provides 24/7 access to roadside assistance through Farmers Helppoint. This program provides towing, locksmith services, battery jump starts, and more. In most cases, Farmers will be billed for these services.
Safe Driving Discounts and Bonuses
Farmers’ Good Driver discount takes 20% off their policy and is given to good drivers. The Safe Driving discount is an additional discount for drivers with clean driving records.
Farmers has designed the Y.E.S. (You’re Essential to Safety) Program for teen drivers. This driver education program is conducted by Farmers agents to help teens understand the importance of safe driving. Safe drivers cost less to insure, so educating your teen can decrease the cost of your auto insurance. Teens who complete this program may qualify for a discount.
In addition, Farmers offers a number of discounts for high school and college students who are named on a parent’s policy. The Good Student discount is available to full-time students in high school or college who are under the age of 25. They must maintain good grades, generally a B average, to qualify for this discount. Students may also qualify for the Distant Student discount, which applies to licensed drivers under the age of 23 who attend a school that is at least 100 miles from the nearest garaging ZIP code shown on the policy. The student must be a child of the primary policy holder and must not have regular access to a covered vehicle while away at school. Lastly, the Teen Driver discount applies to drivers under the age of 19 who are children of the primary named insurer. All of these discounts are subject to other qualifications.
Vehicle Equipment Discounts
Farmers offers a number of discounts based on the equipment in a vehicle. For instance, its Electronic Stability Control (ESC) discount is available for passenger cars equipped with the ESC feature. Vehicles with a factory-installed antilock braking system are eligible for the Antilock Brake discount.