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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 services, and these costs can ultimately affect your insurance premium. Costs affecting the ultimate price of Auto insurance include:
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.
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.
The car you drive can have a substantial impact on your Auto insurance premium, especially the amount you pay for your comprehensive and collision coverage. 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 have better insurance values.
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.
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.
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.
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.
Yes, you can get a quote and purchase Collectible Auto insurance through your Farmers agent.
Yes, Farmers offers a multi-vehicle discount when you insure more than one collectible auto. Policy discounts vary by state.
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.
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.
Risk Assessment Indicators are based on information from consumer credit reports from one of three institutions: LexisNexis Consumer Services, Equifax or CSC Credit Services.
Information used may include:
What's not included in a Risk Assessment Indicator? (Risk Assessment Indicators do not use the following 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.
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.
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.
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.
If you find an error in your credit history, you should report the error to the credit bureau. The credit bureau must investigate and respond to your request. Once you are certain that your report has been updated, please contact your Farmers agent. He/she will re-order a new Risk Assessment Indicator. Farmers will apply any changes to your premium retroactively to the original application or renewal date. Make sure the information in your credit report is correct by reviewing your credit report from each credit bureau at least once a year. Call these numbers to order a copy (a fee may be required):
