Farmers Insurance is pleased to bring these rebates to our Farmers Insurance Exchange customers and we encourage those customers to visit with their local Farmers agents to review their current insurance protection. Farmers Insurance is proud to offer consistent coverage and pricing to all of its California auto customers through this agreement
Los Angeles, CA (Vocus) July 27, 2010
Farmers Insurance announced today that some of its auto insurance customers in California will be eligible to receive one-time, 10 percent insurance policy premium rebates under an agreement reached between the California Department of Insurance (DOI) and Los Angeles-based Farmers Insurance.
As a result of the agreement jointly announced by the California DOI and Farmers Insurance, current customers of the Farmers Insurance Exchange, whose auto insurance policies renew between July 15th, 2010 and January 15th, 2011, will be eligible for a one-time, 10 percent insurance premium rebate. Rebate checks, which would average about $50 per insured vehicle, will be mailed to eligible Farmers Insurance Exchange customers in February 2011. The Farmers Insurance Exchange insures about 640,000 vehicles in California. California consumer groups also participated in the discussions, which led to the agreement to issue the rebates.
In California, Farmers Insurance protects more than 2 million vehicles in two companies, the Farmers Insurance Exchange and Mid-Century Insurance Co. The Farmers Insurance Exchange insures an estimated 640,000 vehicles of the more than 2 million vehicles, while Mid-Century Insurance Co. insures about 1.4 million vehicles in California. (Farmers Insurance customers currently insured by Mid-Century Insurance Company are not part of the agreement and, thus, not eligible for the one-time, 10 percent insurance premium rebates).
The agreement between the California DOI and Farmers Insurance brings the Farmers Insurance Exchange into full compliance with the California DOI's Auto Rating Factors (ARF) regulations. (Mid-Century Insurance Company is already in compliance with the ARF regulations). The agreement, in effect, brings balance and consistency to Farmers Insurance pricing and coverages across its two California auto insurance companies. As a result of the agreement, customers in the Farmers Insurance Exchanges will ultimately receive the same premium price structure as Mid-Century Insurance Company customers now receive. The 10 percent, one-time rebates for eligible Farmers Insurance Exchange customers, who renew their policies between July 15th, 2010 and January 15, 2011, is an effort to immediately equalize the premium pricing for customers of the two companies.
"This agreement with the California Department of Insurance enables Farmers Insurance to streamline and balance our pricing, product and coverage offerings in California for the benefit of our customers and our agents," said Jeff Dailey, President of Personal Lines for Farmers Insurance.
"Farmers Insurance is pleased to bring these rebates to our Farmers Insurance Exchange customers and we encourage those customers to visit with their local Farmers agents to review their current insurance protection. Farmers Insurance is proud to offer consistent coverage and pricing to all of its California auto customers through this agreement," Dailey added.
Dailey thanked the Department of Insurance and other parties involved in the negotiations for their collaborative efforts in reaching an agreement that is in the best interests of California insurance consumers.
"As a customer-focused company in a highly competitive business, it is imperative that we are easy to do business with and that we offer our customers the most competitive and attractive prices and products as possible. This agreement with the Department of Insurance positions us accordingly for the benefit of our customers," Dailey added.
Farmers is a trade name and may refer to Farmers Group, Inc. or the Farmers Exchanges, as the case may be. Farmers Group, Inc., a management and holding company, along with its subsidiaries, is wholly owned by the Zurich Financial Services Group. The Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange), including their subsidiaries and affiliates, owned by their policyholders, and managed by Farmers Group, Inc. and its subsidiaries. For more information about Farmers, visit our Web site at http://www.farmers.com.