21st Century Insurance offers an array of insurance products but is best known as a provider of discount auto insurance that does most of its business online and over the phone. The company offers auto insurance directly and offers home, life and other insurance mainly through affiliated companies including Farmers Insurance Group, its parent company.
About 21st Century
Founded in 1958, 21st Century was purchased in 2009 by the Farmers Insurance Group, one of the nation’s largest insurers. Farmers says it services more than 20 million insurance policies in 50 states. 21st Century Insurance claims are serviced by Farmers’ 24/7 HelpPoint Claim Services.
While its parent company primarily uses agents to sell policies, 21st Century does business over the phone and via the Internet. The company says not having brick-and-mortar locations allows it to better provide service to policyholders. Representatives at regional centers can be reached by phone from 8 a.m. to 10 p.m. ET weekdays and 9 a.m. to 9 p.m. on Saturdays. The website and interactive voice response system are available 24 hours a day.
Many customers cite 21st Century’s rates as their main reason for switching to the insurance provider, helping to position the company as a competitor in the online discount auto insurance market, along with companies like Progressive and Geico. New policyholders save an average of more than $300 a year with 21st Century, according to the auto insurance company.
Overview of products
Through its robust online platform, 21st Century offers life, home, renters and other insurance products, such as for personal watercraft, ATVs, motorcycles and antique cars. Though the choices are broad, some policies are underwritten by Farmers and other affiliated and non-affiliated insurance companies. 21st Century offers an ample selection of discounts, though they vary by state and some are not available in all states. Customers shopping for home and life insurance are redirected to the Farmers website.
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Auto insurance
21st Century vies for business with other online discount auto insurance providers like Geico and Progressive. The company offers standard auto coverage, including liability, collision, comprehensive, medical payments and personal injury protection. It provides free, 24-hour roadside assistance for every covered vehicle.
Customers can choose to pay more to add uninsured and/or underinsured motorist coverages, which pay for injuries up to the policy’s limits when the at-fault driver can’t cover the medical expenses or has no insurance. Underinsured motorist coverage, however, is not available in all states, and uninsured motorist coverage can be rejected in some states, the company says. Gap coverage, for customers who have borrowed heavily on their vehicles, is available in some states.
21st Century offers several discounts. For example, if you’re a good driver, a good student or a homeowner, or if you carry more than one vehicle on your policy, you might qualify for savings. Discounts vary by state and are not available in Hawaii. Check with your agent for availability.
Here are other discounts 21st Century offers:
- New cars
- Cars that use alternative fuels
- Cars with anti-theft devices or passive restraint systems, including air bags and automatic seat belts
- Defensive driver (Discount valid for three years after completing a course recognized by your state’s Department of Motor Vehicles or Licensing.)
Home insurance
Homeowner insurance products are underwritten through Farmers Insurance Group affiliates of 21st Century or through non-affiliated companies, depending on the state where you live.
21st Century offers a 10% savings on homeowner insurance for combining auto and homeowners insurance policies, but the discounts are not available in all states. Nor is the company’s 24-hour-a-day online customer service.
Homeowners who don’t qualify for standard homeowners insurance due to poor credit or poor condition of their homes may qualify for specialty homeowners insurance through Foremost Insurance Company, a 21st Century affiliate which also insures mobile homes.
Renters insurance: 21st Century also insures renters through policies underwritten by Farmers Insurance, Foremost, and other affiliated and nonaffiliated companies.
Life insurance
Term, whole life, universal life and accidental death insurance are available through Farmers New World Life Insurance. Life insurance shoppers are redirected from the 21st Century website to the Farmers Insurance website. Products and features may not be available in all states and may vary by state.
Farmers offers term life, universal life, whole life and accidental death protection.
Website and apps
You can use the 21st Century website to report a claim, pay your bill and manage your account and policy documents. 21st Century’s website is easy to navigate, although customers looking for home and life insurance are redirected to Farmers.
21st Century offers apps for Android and Apple devices that allow you to pay your bill, call for roadside assistance, even find a place to eat. The 21st Policy Self-Service App gets a rating of 3.2 out of 5 stars among Android users. The iPhone app gets 2.5 stars.
Mixed reviews on customer service
21st Century gets mixed reviews for its customer service, with some praising the helpful agents, low prices and response on inquiries. Others complain about things like slow handling of claims, unexpected account changes and poor service in resolving claims, especially when a car is totaled.
The company’s own website includes more than 5,000 customer reviews, including some negative ones, with users giving 21st Century an average 4.3 of 5 stars. Many say they were drawn to the provider for what they consider affordable or reasonable rates.
21st Century ranked near the bottom of a list of national providers in J.D. Power’s 2015 insurance shopping study, ranking among “the rest” with only two out of five “Power Circles.” The company fared better in J.D. Power’s 2015 auto claims satisfaction study, where it ranked three out of five Power Circles.
21st Century is financially sound, with an “A” rating from A.M. Best. and an A+ rating from Standard and Poor’s. The Better Business Bureau also gives 21st Century an A+ rating.
21st Century best for drivers seeking low-cost insurance
If cheap car insurance is what matters the most to you, and you don’t care about having a personal agent, you’re not likely to go wrong with 21st Century. The company is probably best known for its low rates and as a worthy competitor in the online discount auto insurance market.
But keep in mind that savings may come at the expense of the type and quality of coverage and service. 21st Century gets high marks from many of its customers, but some have complained of not receiving adequate compensation for their vehicles after they were totaled in an accident. Others have reported being hit with increases to their premiums without notice or adequate explanation.
And if you’re the kind of insurance shopper looking for a one-stop experience, 21st Century may not be for you. While 21st Century offers many discounts, they vary significantly by state, and some aren’t available in all states. Home and life insurance are offered through its parent Farmers Insurance as well as affiliated and unaffiliated companies.
21st Century Insurance
This post was updated. It was originally published on Dec. 6, 2013.
Juan Castillo is a staff writer at NerdWallet, a personal finance website. Email: jcastillo@nerdwallet.com. Twitter: @JCastilloNerd.
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