Friday, July 15, 2016

Farm Bureau Insurance Review 2016

As its name suggests, Farm Bureau was founded to serve farmers. Today it’s available to anyone, and under the Farm Bureau Financial Services umbrella it insures not only farm vehicles but also cars, motorcycles, recreational vehicles, homes, rentals and other residential properties. It also sells health, life and business insurance as well as investment products.

More than 1,700 local agents sell Farm Bureau policies in 14 states. Not all products are available in every state.

Where Farm Bureau Insurance shines

  • With auto insurance replacement coverage, cars up to 4 years old (5 in some states) can be replaced with a new one if they’re totaled.
  • Farm Bureau is a handy choice for farmers and ranchers interested in bundling their agricultural-related coverage with home, life, health or other insurance products.

Where Farm Bureau Insurance falls short

  • Some insurance and investment products are issued by other companies, meaning you might not be dealing with your primary insurance company.

» COMPARE: Car insurance rates comparison tool


NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Juan Castillo

At a glance

  • A.M. Best financial strength rating: A (Excellent)
  • Consumer complaints: Fewer than the median for a company of its size.
  • Size: No. 43 auto insurance company based on direct premiums written, according to A.M. Best.

In this article

Farm Bureau auto insurance and discounts
Farm Bureau homeowners insurance and discounts
Farm Bureau life insurance
Other products
Where you can get Farm Bureau insurance
Customer complaints
Website
Next steps

Auto insurance from Farm Bureau

Farm Bureau Insurance offers coverage options that are generally standard among auto insurance companies. They include:

  • Liability: Pays out for damage or injury you cause to others in an accident.
  • Comprehensive: Pays out for damage not resulting from a car accident, such as theft, vandalism, flooding or striking an animal.
  • Collision: Pays out when your car crashes into a vehicle or object.
  • Medical payments or personal injury protection: These pay out for medical costs if you or your passengers are hurt in an accident. Sixteen states require either PIP or medical payments coverage.
  • Uninsured/underinsured: Pays out if you and/or your passengers are injured in an accident caused by a driver who doesn’t have insurance or doesn’t have sufficient insurance.

Farm Bureau also offers these coverage options:

  • Replacement cost: Coverage pays out to replace your car with a new one of a similar model without subtracting for depreciation, the decline in value over time. The damaged car can be up to 4 years old (5 in some states).
  • Emergency roadside assistance: Available 24 hours a day in the U.S. and Canada; pays for up to $100 in towing, tire repair, battery jump-start and other services.

Farm Bureau also insures motorcycles, recreational vehicles and farm trucks.

Auto insurance discounts

Farm Bureau has some of the typical discount options available from most insurance companies, though not as wide a selection as some. You might qualify for discounts if you:

  • Are a good student with a minimum B average.
  • Drive 7,500 miles or fewer annually.
  • Maintain a good driving record.
  • Are under age 25 and you complete Farm Bureau’s young-driver safety program.
  • Carry more than one policy with Farm Bureau, such as auto and home insurance. By bundling policies you pay one premium through the insurer’s Member’s Choice feature.
  • Renew your Member’s Choice policies.

With the insurer’s One Deductible Advantage, if one event damages properties covered by more than one type of Farm Bureau insurance, you pay just one deductible. The feature is available when you combine policies, such as car, boat, home, motorcycle and others through Member’s Choice.

Homeowners insurance from Farm Bureau

Farm Bureau homeowners insurance covers your home if it’s damaged or destroyed by windstorms and hail, or by fire, lightning, smoke, explosions and other situations outlined in your policy. Homeowners insurance also covers theft and vandalism, and it pays out to repair or replace your personal possessions. It also covers you for liability; for example, if a guest is hurt on your property or if you accidentally hurt someone away from home.

A homeowners policy typically covers unattached structures on your property, such as a garage or storage shed, but Farm Bureau charges extra for this coverage.

In addition, Farm Bureau also offers these coverage options:

  • Residential equipment breakdown: Coverage pays to replace water heaters, air conditioners, furnaces, home electronics systems and other equipment.
  • Umbrella liability: Provides extra liability coverage beyond your home and car insurance liability limits.

Farm Bureau also insures condos, mobile homes, rental properties and townhomes.

Homeowners insurance discounts

Farm Bureau offers only two homeowners insurance discounts: for bundling car and home insurance and for renewing Member’s Choice policies.

Life insurance from Farm Bureau

Farm Bureau offers term life, whole life and universal life insurance, with policy choices varying by state. Whole and universal life are types of permanent life insurance, which covers your lifetime and accumulates cash value.

Other insurance products from Farm Bureau

Farm Bureau also offers identity theft insurance for $25 per year to existing home insurance customers; it can be purchased online.

Where you can get Farm Bureau insurance

Farm Bureau sells or markets insurance and financial services products in 14 states: Arizona, Iowa, Idaho, Kansas, Minnesota, Montana, North Dakota, Nebraska, New Mexico, Oklahoma, South Dakota, Utah, Wisconsin and Wyoming.

Customer complaints against Farm Bureau

Compared with the median for a company its size, Farm Bureau has fewer complaints, according to the National Association of Insurance Commissioners. Farm Bureau’s complaint ratio is .76 for auto insurance, lower than the industry median of 1. (Lower numbers are better.)

Website

By registering for an account, you can view your statement and pay your bill online, report a claim and get access to your policy information.

Next steps

You could take care of most or all of your insurance needs with Farm Bureau. It’s always wise to shop around before purchasing insurance: Compare price quotes from several companies, and consider their claims satisfaction and customer service records. When comparing auto insurance quotes, NerdWallet’s comparison tool can help.


NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Juan Castillo

Juan Castillo is a staff writer at NerdWallet, a personal finance website. Email: jcastillo@nerdwallet.com. Twitter: @JCastilloNerd.

No comments:

Post a Comment