Questions You May Have About Auto Insurance Risk

At Farmers, we are always looking for new ways to keep the cost of insurance affordable When it comes to insurance, we know what you want. 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 get your life back to whereit belongs quickly, compassionately and with as little hassle as possible. We also understand that you want all of the above at the best price possible.And you feel, rightfully so, that if you are a good risk, you should be rewarded with lower auto insurance costs. This page provides you with information on the Risk Assessment Indicator - a tool we use during the rating process to help us determine the premium you pay. We'd like to take this opportunity to thank you for your business, and we hope this page will answer any questions you have.

What is a Farmers 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 claimsactivities, and the use of indicators allows Farmers to charge customers a rate that is appropriate to the risk insured.

Where do Risk Assessment Indicators come from?

Risk Assessment Indicators are based on information from consumer credit reports from one of two institutions: Choicepoint or Trans Union, to develop acustomer's Risk Assessment Indicator.

Information used may include:

• Length of credit history
• Late payments, collections

What's not included in a Risk Assessment Indicator?

Risk Assessment Indicators do not use the following information:

• Ethnic group
• Marital Status
• Religion
• Nationality
• Age
• Familial Status
• Income
• Disability
• Gender
• Address

Who at Farmers has access to my credit 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.

Why does Farmers use Risk Assessment Indicators?

Industry experts have proven that a strong correlation exists between credit history and insurance risk. Because credit history is 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.

Can I improve my indicator and, if so, how?

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. 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.It's also a good idea to periodically obtain a copy of your credit report from the major credit bureaus to check for any inaccuracies.

What if I don't get the best discount as a result of my indicator?

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.

What if the information in my credit report is wrong?

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 numbersto order a copy (a fee may be required):

• Choicepoint: (800) 456-6004
• Trans Union: (800) 645-1938
• Trans Union - Texas: (800) 605-9488