Auto Insurance FAQs
What does "full coverage" mean?The term full coverage generally means that the insurance policy has both liability coverage and coverage for damage to your vehicle. The term full coverage does not mean that "everything" is covered no matter what happens. Your auto insurance Policy Declaration page lists the coverage you have selected. A Farmers agent will discuss with you available coverages to help you select the insurance coverage that fits your needs and budget.
Am I covered if I drive someone else's vehicle?
Generally speaking, the insurance goes with the car. For example, if you have an accident while driving someone else's car, the owner's insurance would apply toward damages first. Your auto insurance would generally apply in the event the owner of the vehicle had no auto insurance or did not have enough auto insurance to pay the damages. For specific information and guidance on your coverage in this situation, contact your local Farmers agent.
If I rent a car, do I have coverage?
Car rental companies charge daily fees for "CDW" coverage (which means their insurance will pay for all damages covered in your rental agreement). Rental car coverage under a private passenger policy varies state by state. Check your policy or contact your local Farmers agent.
Will my policy be cancelled if I have an accident?
Generally, being in an accident will not cause your policy to be canceled. However, after the facts of the situation are reviewed, you may be required to pay a higher premium for your policy upon renewal. Your personal Farmers agent will help you understand the potential increases if an accident does occur.
Premium Questions
Why do auto insurance premiums change?
Auto insurance premiums change for the same reasons that the price of other goods and services you buy change.
Insurance companies incur the same costs you do in buying goods and servcies, and these costs can ultimately affect your insurance premium. Costs affecting the ultimate price of auto insurance include:
- Medical costs to treat injuries
- Auto repair costs
- Costs to adjust claims
- Inflation
- Uninsured drivers (your policy pays when the other driver doesn't have an auto insurance policy if you purchase Uninsured Motorist coverage)
Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, auto premiums must be adjusted. These costs can affect your auto insurance premium whether or not you individually have had an accident or claim.
Changes you make to your auto insurance policy or coverage may also change the premiums. Adding or removing a driver, buying a new car, moving to a new location or changing how you use your car may influence the cost of your auto insurance.
Controlling Insurance Costs
What is Farmers doing to control car insurance costs?
- We have a network of reliable auto repair facilities for the highest quality repairs at competitive prices.
- We vigorously oppose frivolous lawsuits.
- We have an active Anti Fraud Unit.
- We offer a youth driving safety education program to all parents of young drivers.
- We actively support organizations devoted to auto safety, including funding anti-drunk driving efforts and those dedicated to improving youth driving safety.
- We offer Annual policies to keep your rates stable.
- We offer the Farmers Flex program to lock in your rates and forgive you for accidents.
The higher the deductible, the lower the premium - but the more you'll pay out of pocket in case of a claim. The lower the deductible, the higher the premium - but the less you'll pay if you have an insured claim.
Does the kind of car I drive influence my auto insurance rates?
The car you drive can have a substantial impact on your auto insurance premium, especially the amount you pay for your comprehensive and collision coverages. The insurance rates for comprehensive and collision coverage are determined by looking at the type of vehicle loss history - how often it is stolen, and how costly it is to repair or replace after an accident. Your Farmers agent can help you by letting you know which vehicles are better insurance values.
Discounts
What kinds of auto insurance discounts does Farmers offer?
Farmers offers many auto insurance discounts to help keep your auto insurance premiums as low as possible. Discounts vary by state.Types of discounts available include:
- Accident Free: In some states you may be eligible for a discount based on your driving history.
- Good Student: Drivers under 25 years of age who are full-time students in high school or college and have good grades may qualify.
- Auto/Home: You can save money on both auto and homeowners insurance by purchasing both of these policies from Farmers.
- Multi-Car: If you own two or more vehicles and insure both of them with Farmers, you may qualify for the Multi-Car discount.
- Teen Driver: Teens who complete the Y.E.S. (You're Essential to Safety) driver safety awareness program may qualify for a discount.
- Alternative Fuel - Owners who drive hybrids and other alternative fuel vehicles may save 5% on all major coverages.
Safe Cars
What are the safest cars to drive?
Even the safest cars are dangerous if not driven safely. However, discounts are available for drivers who drive cars with air bags, anti-lock brakes, and electronic stability control. Additionally, your Farmers agent can help you by letting you know which vehicles are better insurance values.
Does my financing affect my insurance needs?
Some leasing and auto loan companies require specific levels of coverage. Your Farmers agent can assist you in determining how much coverage best suits your situation.
Special Coverages
Are there special coverage options for new cars?
Farmers offers the New Car Pledge®, a guarantee for newly purchased vehicles. We'll replace it with a new one of the same make and model, at full market value without depreciation, as long as the car has less than 24,000 miles and is a maximum of two model years old. Additionally, if your new car is repairable, only original equipment manufacturer parts will be used when available.
I had a new CD player installed in my car. Am I covered?
Under the Comprehensive and Collision portion of your policy, optional equipment (a CD player for example) is covered only if permanently installed in the opening of the dash where the manufacturer would normally install such equipment.
An endorsement is available to provide coverage for optional equipment not permanently installed in the dash and for theft of items such as tapes, discs or other equipment designed for the reproduction of sound.
Collectible Auto Insurance FAQs
Does Farmers offer insurance for Collectible Autos?
Yes, Farmers has partnered with Foremost Insurance to offer collectible auto insurance in the continental United States. Foremost is part of Farmers.
Are there discounts available for collectible auto insurance coverage?
Yes, Foremost Insurance offers a multi-vehicle discount when you insure more than one collectible auto. Policy discounts vary by state.
Insurance Risk Indicators
Questions You May Have About Insurance Risk Indicators
When it comes to insurance, we know you want quality coverage from a solid, dependable company. You want the peace of mind that comes with knowing, in the event you need us, we'll be there to help you get your life back to where it belongs quickly, compassionately and with as little hassle as possible. And you feel, rightfully so, that if you are a good risk, you should be rewarded with lower insurance costs. We understand that you want all of the above at the best price possible. At Farmers, we are always looking for new ways to keep the cost of insurance affordable. To do this, we use a tool called the Risk Assessment Indicator.
What is a Farmers Risk Assessment Indicator?
A Farmers Risk Assessment Indicator is a code developed from and based upon credit report information. Depending on the kind of policy, Farmers' underwriters may use this indicator along with motor vehicle records, loss reports and/or other information to rate auto and/or homeowner insurance policies. Risk Assessment Indicators are highly predictive of future claims activities, and the use of indicators allows Farmers to charge customers a rate that is appropriate to the risk insured.
Where do Risk Assessment Indicators come from?
Risk Assessment Indicators are based on information from consumer credit reports from one of three institutions: Choicepoint, Equifax or CSC Credit Services.
Information used may include:
- Length of credit history
- Late payments, collections
What's not included in a Risk Assessment Indicator?
Risk Assessment Indicators do not use the following information:- Ethnic group
- Marital Status
- Religion
- Nationality
- Age
- Familial Status
- Income
- Disability
- Gender
- Address
Who at Farmers has access to my credit information?
We believe in your right to privacy. Your agent and members of the agency staff do not have access to your credit file. You can, however, obtain a copy of your credit report from the consumer reporting agency that provided the information used to calculate your Risk Assessment Indicator.
Why does Farmers use Risk Assessment Indicators?
Industry experts have proven that a strong correlation exists between credit history and insurance risk. Because credit history is generally accepted to be a fair and accurate way to predict probability of future loss, Farmers Risk Assessment Indicator uses credit data to determine discount availability for applicants and customers. Please keep in mind that this is only one of several factors used in determining your premium.
Can I improve my RAI and, if so, how?
You can improve your indicator over time by using credit responsibly. A Risk Assessment Indicator is a snapshot of your insurance risk based on information in your credit report. It's a good idea to periodically obtain a copy of your credit report from the major credit bureaus to check for any inaccuracies.
Farmers recommends that if you need assistance with understanding your credit history or advice on using credit responsibly, you should contact a qualified credit counselor. Farmers Agents and employees are not qualified credit counselors.
What if I don't get the best discount as a result of my Indicator?
The Federal Fair Credit Reporting Act (FCRA) requires that we tell you if we take adverse action based upon information contained in your credit report. We will give you the name of the credit bureau that provided the information and advise you of certain rights you have under the FCRA so you can address any errors that might appear on your credit report.
