Farmers Insurance auto insurance

Overview

Farmers Insurance is one of the country's largest home and auto insurers and the sixth-largest auto insurer. The Farmers Insurance Group ranked #6 among U.S. private passenger auto insurers by 2025 direct premiums written, with $13.24 billion and a 3.56% market share, according to NAIC market share data.

Its ownership is unusual. The three core insurers — Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange — are reciprocal insurance exchanges owned by their policyholders, who elect a board of governors. The exchanges are run, for a fee of up to 20% of premium under the subscription agreement, by their attorney-in-fact, Farmers Group, Inc., which is owned by Switzerland's Zurich Insurance Group. Neither side owns the other. Raul Vargas has been CEO of Farmers Group, Inc. since January 2023.

Farmers sells through a network of exclusive Farmers agencies — captive agents — plus tens of thousands of independent agents, direct online and call-center sales, and workplace and affinity programs. Across its brands it serves customers in all 50 states and Washington, D.C. Its customer-service mailing address is 6301 Owensmouth Ave in Woodland Hills, part of Los Angeles.

History

John C. Tyler and Thomas E. Leavey founded the Farmers Automobile Inter-Insurance Exchange in 1928 in a one-room office in downtown Los Angeles. Both had farm backgrounds and believed farmers and ranchers had fewer accidents and deserved lower rates, so they went farm to farm for their first policies. Farmers says it paid Depression-era claims in cash rather than IOUs, and that when an earthquake struck Los Angeles a few years into the Depression, paying for customers' damaged cars made it the first insurer to offer comprehensive auto coverage.

The company bought New World Life of Seattle in the 1950s, offered an interest-free monthly payment plan and drive-in claims service in the 1960s, and introduced a non-smoker discount in the 1970s. British American Tobacco acquired Farmers Group, Inc. in 1988, and Zurich acquired it in 1998.

Farmers also operates several other brands:

• Bristol West, a nonstandard auto insurance brand sold nationally.
• Foremost, which writes standard and specialty auto, home and umbrella policies and insures mobile homes, motorcycles and boats.
• 21st Century, which now sells auto insurance direct to consumers only in California.
• Farmers GroupSelect, the former MetLife Auto & Home business, bought for $3.94 billion on April 7, 2021, and sold through employers and affinity groups.
• Toggle, an online renters and auto brand, and Farmers New World Life.

Auto insurance coverage

Farmers offers liability, collision, comprehensive, uninsured/underinsured motorist (including uninsured motorist property damage where offered), medical payments and roadside assistance. Optional coverages include:

• New car replacement / vehicle replacement plus, which in some states replaces a car totaled in its first two years and under 24,000 miles with a new one of the same make and model.
• Original equipment manufacturer (OEM) parts for cars up to 10 years old; see OEM parts endorsements: guaranteeing factory parts.
• Accident forgiveness, which forgives one at-fault accident every three years.
• Customized equipment for aftermarket wheels, audio and similar items.
• Glass deductible buyback, with a $100 glass deductible ($0 in some states) and no deductible for chip repairs.
• Rental car reimbursement for up to 30 days, or a rental alternative daily stipend usable for transit, taxis or rideshare.
• Rideshare and food delivery coverage for the gaps in Uber and Lyft coverage.
• Loan/lease gap coverage, up to 25% of actual cash value.

Discounts and programs

Signal is Farmers' smartphone telematics app. It tracks phone use, hard braking, time of day and miles driven, gives an initial discount for enrolling, and adjusts your price at renewal — Farmers says riskier driving can raise the renewal premium. Signal is not available in Florida, Hawaii or New York, the Signal discount is not offered in California, and it works only with certain policies (Farmers Smart Plan Auto, Farmers Flex, Farmers GroupSelect and Foremost Signature). An optional CrashAssist feature can detect a crash and call for help.

Farmers advertises more than 20 auto discounts, including:

• Bundling (10% or more for home and auto) and multi-car
• Safe driver (three years clean), five-year accident free, loyalty and good payer
• Good student (3.0 GPA, dean's list, honor roll or top 20%), distant student (under 23, more than 100 miles away), youthful driver, "on your own" for young adults leaving a Farmers household, and shared family car
• Mature/defensive driver for drivers over 55 who complete an approved course
• ePolicy (paperless), auto pay/EFT, pay in full, homeowner and anti-theft
• Farmers GroupSelect discounts through participating employers and associations

Claims

Report claims online, in the Farmers app or through the Farmers Claims Center at 800-435-7764, open 24/7; Spanish-language claims help is at 877-732-5266. Farmers dispatches roadside help through a network of more than 20,000 towing and road service facilities and 10,000 locksmiths; if you already paid for a tow or roadside service, you can file online for reimbursement and upload the receipt. Farmers GroupSelect customers report claims at 800-854-6011. For large disasters Farmers sends catastrophe teams and Mobile Claims Center buses; its exchanges responded to 62 catastrophe events in 2025, including the January 2025 Los Angeles wildfires.

Ratings and reputation

Financial strength. On September 3, 2026, AM Best affirmed the A (Excellent) financial strength rating of the Farmers Insurance Group members and revised the outlook on their "a" issuer credit ratings to positive from stable, citing a trend of underwriting profitability, significant organic surplus growth and "considerable improvement" in results through 2024 and 2025. AM Best also flagged elevated catastrophe exposure and reliance on about $2 billion of surplus notes. Farmers' A rating is a notch below the A+ or A++ of the largest auto insurers; see AM Best financial strength ratings explained.

Market retreat. In July 2023 Farmers nonrenewed its Farmers-branded auto, home and umbrella policies in Florida to reduce catastrophe exposure, while Bristol West, Foremost and Farmers GroupSelect — about 70% of its Florida policies — continued.

Customer satisfaction. In the J.D. Power 2026 U.S. Auto Insurance Study, Farmers ranked second in Florida (675) and was above average in the Central region (646), but below average in the other nine regions and last in New England (567) and New York (558). Its Bristol West brand finished last in the Southwest (571). In the J.D. Power 2025 U.S. Auto Claims Satisfaction Study, Farmers scored 690, 17th of 20 and below the 700 average.

Who it suits

Farmers suits drivers who want a local agent and like to customize, with a long list of add-ons such as OEM parts, new car replacement and rental alternatives. The trade-offs are weaker satisfaction scores in much of the country, a financial strength rating below the industry leaders, and a telematics program that is unavailable in several states and can raise premiums.

• Strengths: Broad optional coverages; more than 20 discounts; local exclusive agents plus GroupSelect workplace discounts; AM Best outlook raised to positive in September 2026.
• Weaknesses: Below-average J.D. Power scores in nine of 11 regions in 2026 and 17th of 20 for claims in 2025; A (Excellent) rather than A+ or A++; Signal not offered in Florida, Hawaii or New York and can raise rates; Farmers-branded policies withdrawn from Florida in 2023.

How to contact Farmers Insurance