Is Farmers Insurance Leaving California? The Farmers Insurance sent out letters to policyholders announcing a change in coverage as it restructures its industries. A major Insurance company is changing its rules in California auto and home policies.
Is Farmers Insurance Leaving California?
According to the latest reports, Farmers Insurance has declared to its policyholders informing them of a change in coverage. The company in a statement that approximately 78,000 auto insurance policies and 20,000 home insurance policies will be affected, after its change.
Whereas Farmers, like other insurance corporations, also is limiting the number of new policies it is writing in high-fire-risk areas, as per NBC Bay Area.
Why is Farmers Insurance Pulling Out of California?
The Insurance provider is pulling out of California affecting around ten thousand customers. Farmers Direct Property and Casualty Insurance Co. ceased issuing new policies as of Sept. 15 in the state.
The insurance companies are pulling out due to disaster risks.
Luis Sahagun, the Director of External Communication, said in an email, quoting “an ongoing initiative to increase operational efficiency and mitigate risk exposure. Sahagun said, “For the vast majority of affected customers, we will provide an offer to transition them to a different Farmers-related insurer.”
Farmers Insurance No Longer in California
Many people in California will have to get new insurance because one company is stopping their coverage in the state. Most people will be able to switch to a different insurance company that’s part of the same big company.
The company that’s part of Farmers Insurance Group, which is the second-largest insurance provider in California for property and casualty, has given up its permission to operate in the state. This means that Farmers Direct Property and Casualty Insurance Company will no longer offer insurance in California, including home, auto, and renters insurance.
Most of the people who had insurance with Farmers Direct will be offered a chance to renew their policies with another company within Farmers. Only a small number of Farmers Direct policyholders, around 2,800, may not get this opportunity.
