Farmers Insurance Group’s First Target Market Segment
The Farmers Insurance Group, most commonly known as Farmers, was founded in 1928 in downtown Los Angeles, California by John C. Tyler and Thomas E. Leavey. Its original target audience were ranchers and farmers living in rural areas who demonstrated lower risk driving habits than their urban counterparts and needed less expensive car insurance premiums. Today as a subsidiary of Zurich Insurance Group, it ranks fifth among the top auto insurers based on market share, capturing 5.99% of the market.
Farmers’ Basic Types of Auto Insurance Coverages
Farmers Insurance offers customers six basic types of automobile coverage, ranging from liability insurance covering bodily injury and property damage, which is mandatory coverage for operating a motor vehicle in almost all of the 50 U.S. States and the District of Columbia, to Collision Coverage for repairs of damage to a vehicle struck by another, Comprehensive Coverage which covers losses related to events other than a collision such as extreme weather, fire and theft, Medical Payments to cover medical expenses and funeral costs for a driver or passengers, Fault or No-Fault Coverage providing protection no matter who is judged to be at fault in a collision, and Uninsured/Underinsured Motorist Coverage to protect a policy holder involved in an accident with a driver who carries little or no insurance. Permanently installed operating equipment such as navigation systems and CD players are automatically covered by Farmers Comprehensive and Collision policies.
Farmers’ Insurance Options for Extra Premiums
Farmers markets its automobile insurance using a network of more than 50,000 exclusive and independent agents, encouraging customers to “prepare for the unexpected” when tailoring their automobile insurance policy to their specific needs. Insurance options offered by Farmers for additional premiums include Accident Forgiveness in which the company overlooks one accident every three years to help prevent rate increases; New Car Pledge in which Farmers replaces any new vehicle totaled in an accident during the first 24,000 miles of ownership without depreciation; Personal Umbrella Insurance for extended liability coverage; the Farmers Tow Program providing 24/7 emergency roadside assistance; the Windshield Glass Repair Service operated in conjunction with 12,000 glass repair shops nationwide; Car Rental Reimbursement to provide temporary transportation while a car is being repaired; and Extended Customized Equipment Coverage to cover loss or damage to equipment inside the car which is not permanently installed on the dashboard.
Farmers’ Auto Insurance Discounts
Auto insurance discounts offered by Farmers vary from state to state and are offered for membership in an occupational group such as healthcare professionals, teachers and firefighters, to students with good grades, to households who also carry their homeowners insurance with Farmers or insure multiple vehicles, for cars equipped with safety features such as air bags and for those driving vehicles using alternative fuel systems such as hybrids.