Negotiating a Settlement with Farmers: Insurance Claim Tips & Tactics

If you’re thinking of negotiating a settlement with Farmers or in the middle of the battlefield with their adjusters, this article is for you.

Here we will discuss 10 tips and tactics on how to effectively negotiate your auto accident claim against Farmers.

In addition, we cover Farmers claims frequently asked questions and go over 10 actual Farmers settlements.

Overview

Farmers Insurance was established in Los Angeles, California, in 1928 by two men, John C. Tayler and Thomas E. Leavey. Their idea was to sell insurance to farmers and ranchers since they knew that they experienced fewer risks with their automobiles. Both men thought these folks deserved lower rates.

Farmers was the first insurance company to offer comprehensive auto coverage, which covers damage to automobiles that have been damaged by something other than an auto collision.

Farmers is now the seventh largest auto insurance company in the U.S. by direct premiums written. They are only behind State Farm, Progressive, GEICO, Allstate, USAA, and Liberty Mutual in this ranking.

Farmers, like the other large insurance companies, will fight tooth and nail to minimize your auto injury claim. They will use the standard Delay, Deny, and Defend strategy to make you think there is no hope. There is hope. It just takes an understanding on how insurance claims works and what the law really is. Don’t let them fool you into believing they are doing everything by the book. I can assure you they are not.

Read on and learn from the 10 tips below and continue on into the answers to frequently asked questions and real settlement examples before you do anything with your Farmers claim:

1. Don’t Settle Prematurely

Farmers will do their best to get you to agree to an unfair settlement once they know their driver was at fault. What they’re trying to do is get you early on when you may still be disoriented and overwhelmed with what just happened.

The best thing to do is just ignore their calls and emails until you’ve gathered yourself and preferably after you talked to a lawyer.

If you accept their offer now before knowing what the full extent of your damages are, you will be shortchanging yourself. You may have injuries that are dormant and aren’t apparent. If they surface in the future and you’ve settled your case, you can’t go back and ask Farmers for more money. They won’t care!

My advice is if you’re injured, even if you think it’s minor, get checked out thoroughly by a doctor. And see a doctor as soon as possible after the accident. You don’t want too much time to go by without seeing a doctor and documenting your injuries. If you wait too long, Farmers may try to blame your injuries on something else besides the accident or may say your injuries are worse now because you neglected them. If they say this, they may not want to pay for some of the damages.

Avoid this by seeing a doctor as soon as possible and go to the emergency room or urgent care if you think your injuries can’t wait. It’s better to be safe than sorry. This is your health, after all.

2. Minimize Communications with Farmers

The more you communicate with Farmers, the more likely you are to jeopardize your case. If you’re handling your case on your own, Farmers will have a low-level adjusters assigned to your claim. Their job is to get you to settle your case for what’s called a “nuisance” amount. This means an amount that’s enough to make you go away. This is usually $1,000 to $5,000 and they may even offer to pay for a couple weeks of medical treatment.

Do yourself a favor and avoid speaking with the Farmers adjuster. Call a lawyer and get some free advice from them. Maybe you can even hire one to help.

If you decide to handle your own case, don’t feel urged to answer Farmers calls. Farmers may try to say they are closing your file to get you to respond. Don’t let them fool you. There aren’t any actual deadlines other than the statute of limitations.

Also, if Farmers is the other driver’s insurance company and asks you for a recorded statement, DO NOT do it!

3. Try to Find Out the Policy Limits

Knowing Farmers policy limits will be helpful in guiding your negotiations. Every state has their own requirements for auto liability coverage. Here are some examples:

Arizona

Bodily injury: $25,000 per person; $50,000 per accident
Property damage: $15,000

California

Bodily injury: $30,000 per person; $60,000 per accident
Property damage: $15,000

Florida

Bodily injury: Not required
Personal Injury Protection: $10,000
Property damage: $10,000

Texas

Bodily injury: $30,000 per person; $60,000 per accident
Property damage: $25,000

So, why is knowing the Farmers policy limits so important in your negotiations strategy? Well, it may be your ceiling for total compensation in your case. If there are no other insurance policies, such as your own underinsured motorist coverage, it will likely be all there is to recover.

Although some states, like Florida, have a disclosure requirement, most states do not require insurance companies to disclose their policy limits. That doesn’t mean you can’t get this information. You can try the following:

Asked the Farmers adjuster nicely—they may be able to get permission from their insured.
Hypothesize based on at-fault driver’s profile:
- Check their social media; what do they do for a living?
- Vehicle year, make, and model; is it a jalopy?
- Home address (i.e., affluent area, low-income area, etc.)
File a lawsuit—the at-fault party will need to disclose their policy limits in the “discovery” phase of litigation.
Hire a lawyer—they have ways to find the policy limits before filing a lawsuit.

4. Build Your Case

You’ll want to build your case before you even think about settling with Farmers. Medical treatment is crucial to building your case. This includes getting both initial and continuing medical treatment that’s reasonable given the injuries.

Going to the emergency room or urgent care as soon as possible will be the best thing you can do to build your case. Following up with the proper medical treatment will also ensure that you’re maximizing your case value.

Listen to your body when it comes to where to start with your medical treatment.

If you’re experiencing symptoms consistent with muscle sprains and strains, the ideal treatment will likely be with a chiropractor or physical therapist since there isn’t much a medical doctor can do for soft tissue injuries beyond pain medication.

If you’re not responding to conservative treatment and still experiencing similar pain or symptoms that indicate it’s something more than soft tissue injuries, you may need to get imaging done (e.g., MRI, CT scan, X-Rays). If there are any positive findings in either of these tests, you may need to see a specialist, such as a pain doctor or orthopedic surgeon. They can give you alternatives to alleviate the pain and other symptoms you are having as a result of your injuries. They may recommend continuing conservative treatment and following up with them at a later date, or injections or surgery.

This process will not only help your health but will also help your case against Farmers.

5. Highlight Your Injuries

Highlighting your injuries to Farmers will ensure that they’re aware of injuries that might be permanent. You want to provide specifics about your injuries. Don’t just say my neck and back are sore. If you just rely on your statements of pain to them for your case, it will be weak, and they’ll only value your case as a soft tissue injury case with no medical treatment.

You want to show them medical records that you went to the doctor and your complaints are consistent with what you’re claiming against Farmers. Showing them your MRI, CT scan, or X-Rays will even be better. These tests you can’t fake. If there is a positive finding in one of these tests, Farmers will likely add more value to your case. What they’ll be looking for in these imaging tests are fractures, herniated discs, and spinal stenosis. These are all objective evidence of pain.

Also, take pictures of any bruises, cuts, or scars and send them to the Farmers adjuster. Also, send them pictures of any orthopedic devices such as a cervical collar or braces. You’ll also want to send them pictures of the bottles of the prescription pain medication you’re taking.

6. Know Your Case’s Value

The value of your case will be dependent on several factors, including:

Property damage

The extent of property damage is important in valuing your case. Farmers will look at the vehicles involved in the accident to see if your injuries are reasonable given the extent of damage.

Severity of injuries

More severe injuries such as traumatic brain injuries, fractures, and herniated discs are valued more than less severe injuries like whiplash. This is obvious. But keep in mind, an injury doesn’t need to be visible to be severe (e.g., herniated disc).

Impairment

Injuries that are permanent are worth more than those that heal over time. Farmers will take your case way more seriously if they know you’ve been permanently injured. Examples of permanent injuries are traumatic brain injuries, herniated discs, loss of sensation/numbness, paralysis, or scarring.

Immediacy of medical treatment

Seeking medical treatment immediately after the accident will give your case the best chance of success. It’s even better if you are taken to the emergency room by ambulance. Waiting to see a doctor will only give Farmers a reason to question your injuries and their cause.

Consistency of medical treatment

If your doctor has given you a treatment plan, it’s the best thing for your case to follow it. This means you shouldn’t miss appointments or just stop going without being formally released.

Comparative fault

If Farmers determines you are partially at fault for your accident, it may reduce the total value of your case. Now, it will depend on the state in which the accident occurred how being partially at fault will affect your case’s value.

Most states, like Florida and Texas, have what’s called “Modified Comparative Fault.” Under this form of comparative negligence, if you’re more than either 50% or 51% at fault for your accident, you are completely barred from recovering your damages.

Other states, like Arizona and California, have a more favorable type of comparative negligence called “Pure Comparative Fault.” In this system, even if you’re 99% at fault for your accident, you can still recover some of your damages.

There are also a minority of states, including Alabama, Maryland, North Carolina, Virginia, and the District of Columbia, that have what’s called “Contributory Negligence.” This archaic rule bars any recovery if you are even 1% at fault. Thankfully, this rule is in the minority.

Farmer’s policy limits

As we discussed in Tip #3, Farmer’s policy limits may be the ceiling at which your case value tops out at, if there are no other insurance policies available.

First-party insurance coverage

Your own insurance coverage may provide additional compensation and increase the total value of your case. Coverage such as uninsured/underinsured motorist coverage, Personal Injury Protection, and Medical Payments coverage can supplement your recovery against Farmers.

Health insurance

Having health insurance pay your medical bills can affect your case value. It will depend on which state your accident occurred as to whether health insurance payments can have a negative effect on your value. The reason for this is some states have rules that say you must submit the amount your health insurance actually paid to the court for your damages as opposed to what the original bill amount was.

States like California, Florida, and Texas have rules like this. So, you need to be careful how you use your health insurance for your medical bills in these states.

Defendant’s profile

Who the defendant is can affect your case value. Their criminal history, appearance, and driving record will all affect how they ultimately present to a jury. Also, if the defendant is a business, they may certainly be viewed negatively by a jury. Farmers knows this and will place more value on cases with bad or corporate defendants.

Venue

The county in which your accident occurred can affect the value of your case. In more liberal counties (e.g., Broward County, Florida) values tend to be greater than more conservative counties (e.g., Montgomery County, Texas).

7. Make a Formal Demand

Once you’re released from medical treatment or reached maximum medical improvement, you can start to gather all your medical records and bills.

You’ll also want to calculate your lost wages you had as a result of your injuries. Make sure you have a doctor’s excuse for this time showing that you were unable to work. Get your pay stubs that show the time you missed, as well.

Add up all your damages and come up with a number that you feel is reasonable to start your settlement negotiations. You want this number to be quite a bit more than what your bottom line is. So, if you want to settle your case for $10,000, you don’t want to demand $10,000. You may want to demand $30,000 in this case, so you have room to negotiate your case.

Your formal demand doesn’t need to be long, but it should be written in a letter format, and you should include all your proof of damages such as medical records and bills, proof of lost wages, and photos.

Make sure you state how much you want clearly and give them a time limit to respond. This can be 14 days to 30 days.

8. Negotiate Properly

Once you’ve sent Farmers your demand and they’ve made their initial offer, it’s important that you don’t just quickly come down to your bottom-line number. You need to go back and forth with the adjuster at least four to five times. Farmers adjusters are required to show their supervisors that they negotiated the settlement and didn’t just give you all their money they have budgeted to the claim all at once. So, you need to help them help you.

If you get stuck and Farmers isn’t coming up any more in their settlement offers, make sure the adjuster is considering all your medical treatment. Go line by line over the medical bills and lost wages you submitted and see what they’re considering. Many times, they won’t consider each bill in full, it will be discounted using their own data for “usual and customary” charges.

If Farmers is still stuck at a number, see if you can have their supervisor reevaluate your file. Tell the adjuster you’d like a second set of eyes on your file to see if they’ve missed anything. Also, ask the adjuster if there’s anything else you can provide that would help them increase their offer.

If they still won’t budge, you may want to just let it sit. Showing that you’re not eager to settle may help your case. Of course, make sure you have plenty of time under your state’s statute of limitations to file a lawsuit, if you need to.

At this point, if your negotiations with Farmers has stalled, you may need to discuss your case with a lawyer. Having a professional take over might be the best strategy at this point.

9. Increase Your Net Recovery

There are two fronts that will affect your net recovery from a settlement: the settlement amount and the amount of your bills or liens that need to be paid out of the settlement. Certainly, increasing your settlement amount will put more money in your pocket but reducing the amount that you have to pay out from the settlement will also help.

If you have any outstanding medical bills or liens, make sure you negotiate them. Don’t just pay them in full. Most medical providers will take reductions. Send them a formal reduction request asking them to reduce their bill or lien.

Important: Make sure you reduce your medical bills and liens AFTER you’ve already settled your case with Farmers.

10. If All Else Fails, Call a Lawyer!

There may be nothing more you can do to get full value for your case on your own. It’s best, at this point, to at least call a car accident lawyer. The good news is that these lawyers will not charge you to get their advice, even if you decide not to hire them.

There are three main objections as to why an injured person wouldn’t want to involve a lawyer in their case:

My case is too minimal for a lawyer to take it.
I don’t want the attorney’s fees to cut into my settlement.
I don’t trust lawyers.

As for the first objection, that your case is too minimal for a lawyer to take it, you should use this standard: If there is more than just minor property damage, you should consult a lawyer. The fact is even minor fender benders can cause injuries. And remember injuries include sore or stiff muscles, headaches, or anxiety. Don’t minimize your own case without consulting with a lawyer first.

The second objection that the attorney’s fees will eat up your settlement is unfounded. As soon as an attorney gets involved in an auto accident case, the value of the case immediately increases. Once Farmers gets a letter of representation from your attorney, your file will immediately be transferred to a higher-level adjuster with more settlement authority. In addition, a lawyer will work-up your case, putting you in front of the right doctors, and helping you highlight all of your injuries. They have the know-how to maximize your case value. Even studies support that you’ll end up with more than you would without a lawyer.

As for the third objection, it seems this is more of an irrational, fundamental trust issue with lawyers than anything. There are bad apples in every industry, including the legal profession but they are certainly the exception and not the rule. 99% of lawyers are ethical, trustworthy, and go above and beyond for their clients. Many times, in the personal injury space, lawyers may receive nothing for their time consulting potential clients and even later when a case doesn’t go as planned. If you feel this way, give lawyers another chance. It’s only fair.

Frequently Asked Questions

Is Farmers Known for Denying Claims?

Yes, they are. You have to remember insurance companies are businesses. Any opportunity to save a buck and they’ll do it. Claims are an expense for an insurance company. The more they deny, delay, or defend, the more they can put on their bottom line.

Farmers typically denies claims for three reasons: liability, coverage, or fraud.

Denied liability

The most common reason Farmers denies a claim is for liability reasons. If your claim was denied for this reason, you need to try to gather as much evidence as you can to overcome their position. The best evidence for this is independent witness statements or video footage, if it exists.

Denied coverage

Another common reason Farmers denies a claim is for a coverage issue. They may deny for a coverage reason for different scenarios but the most common are that the policy lapsed (e.g., non-payment), the driver wasn’t a permissive user (e.g., stolen vehicle), or the driver took part in an activity that was excluded by the policy (e.g., rideshare).

Fraud

Fraud is also a common reason claims are denied by Farmers. There are all types of fraud cases but the most common is the M.I.S.T. type of case. M.I.S.T. means Minor Impact Soft Tissue. These are claims made where the visible property damage is minor and only soft tissue injuries are claimed. Farmers may think there is fraud involved in these types of cases and deny them immediately. If your M.I.S.T. case was denied, don’t give up. There are strategies to overcome Farmers’ position.

Should I Hire a Lawyer for My Farmers Case?

It will depend on the type of case you have.

In minor property damage cases with no injuries, you likely won’t need to hire a lawyer.

If you have more than minor property damage or you’re not sure if you’re injured, you should at least talk to a lawyer. Some people don’t know that they qualify for compensation even if their injuries are relatively minor.

How Does Farmers Value Claims?

Farmers relies heavily on claims adjusting software to calculate case values, as do most other large insurance companies. They’ll use it to discount the medical bills you’ve submitted to them and also to calculate the pain and suffering component of your case.

Do You Have to Sue Farmers?

Sometimes you do. When you’ve exhausted every strategy there is, pre-suit, and still not getting through to the adjuster, a lawsuit may be the best way to get some movement. This doesn’t mean you have to go all the way to trial, however. But holding them accountable by suing is your right as a citizen and the best way to get justice.

How Do I Handle a Farmers’ Low-Ball Offer?

Make sure you’ve followed the tips in this article first. Then, if that still doesn’t work, try to understand why the adjuster is offering a low-ball offer. The most common reasons for a low-ball offer are minimal or no medical treatment, minor property damage injury claims, or shared fault cases. In all these types of cases there are strategies to overcome a low-ball offer. So, don’t feel like you have no hope. But the best thing you can do with a low-ball offer case is to discuss it with a lawyer.

How Long Does It Take to Get a Settlement Check from Farmers Insurance?

After Farmers has received the signed release back from you, it typically takes 10-14 days to receive the settlement check. It will really depend on the mail in your area.

What are Farmers Claims Phone Number and Address?

Phone: (800) 435-7764

Fax: (877) 217-1389

P.O. Box 268994

Oklahoma City, OK 73126-8994

Farmers Car Accident Settlements

Below are some actual Farmers settlements, some of which are our own. You should use this as just examples about how Farmers views specific cases.

Case Study #1: Clients v. Farmers Insured (Harris County, Texas)

Our clients, husband and wife, were traveling on Wallisville Road through the Sam Houston Parkway intersection in Houston, Texas, when a drunk driver T-boned them.

They were taken from the scene by ambulance to the emergency room. Client 1 suffered injuries to his neck and right upper arm. Client 2 suffered a fracture to her right patella (knee) and contusions all over her body.

They both followed up with treatment at a chiropractor and underwent MRIs.

Once our clients were released from therapy, we demanded that Farmers pay their policy limits of $50,000 each, which they later did.

Case Study #2: Client v. Farmers Insured (Harris County, Texas)

Our client was traveling on I-10 eastbound in Houston, Texas, when defendant changed lanes, striking her vehicle on the left side and pushing her into the vehicle on her right.

She presented to a chiropractor two days later with complaints of pain in her neck and back, headaches, and tingling and numbness in her extremities. As a result, our client was referred out for MRIs where the radiologist noted disc herniations in her neck and back. Most noteworthy was a herniation at her C5-C6 measuring 2.5 mm, containing an annular tear.

Our client was then referred out to a pain doctor. She then underwent an epidural steroid injection in her neck and thoracic trigger point injections.

We later sent a demand for Farmers policy limits. Farmers responded with an initial offer of $24,909. We immediately filed a lawsuit. We were able to eventually settle our client’s case for $37,500, which included $2,500 from her own personal injury protection coverage.

Case Study #3: Client v. Farmers Insured (Jones County, Texas)

Our client was traveling on US Highway 83, as a passenger, near Abilene, Texas, when he was rear-ended by the vehicle behind him.

He was taken to the emergency room from the scene by ambulance and complained of neck, back, shoulder pain, and a contusion to the head.

Our client later followed up with a chiropractor and treated five times. He also saw a neurologist for his headaches.

Although our client did not have substantial medical expenses, we felt this accident aggravated the preexisting conditions he had as a diabetic.

Partly due to our client’s uncontrolled diabetes, he underwent a right leg amputation below the knee.

We were able to successfully settle our client’s case against Farmers for their policy limits of $50,000.

Case Study #4: Client v. Farmers Insured (Nueces County, Texas)

Our client was attempting to enter her vehicle’s driver’s side door in a grocery store parking lot when defendant hit her.

She immediately presented to the emergency room with complaints of neck and back pain that was radiating down her extremities.

She continued treatment with a chiropractor and underwent cervical and lumbar MRIs. The radiologist noted several herniated discs in both her neck and back.

She was later recommended an epidural steroid injection at her C6-C7 vertebrae level and a rhizotomy at her L5-S1 vertebrae level.

We later sent our demand for policy limits to Farmers to which they accepted. We then negotiated a settlement from our client’s underinsured motorist carrier, USAA, for an additional $25,155.20, for a total of $55,155.20 in total compensation.

Case Study #5: Client v. Farmers Insured (Chambers County, Texas)

Our client was traveling north on State Highway 146 in Mount Belvieu, Texas, when defendant pulled out in front of her from a private drive, causing a crash.

Our client later presented to the emergency room with complaints of neck, back, right knee, and abdominal pain.

She later followed up with a chiropractor and was also referred out for MRIs of her cervical and lumbar spine. Several herniated discs with severe stenosis were noted. She later briefly treated with a physical therapist.

Once released from treatment, we were able to successfully settle her case for Farmers’ $30,000 policy limits and her own underinsured motorist benefits from GEICO for $23,000, for a total of $53,000.

Case Study #6: Plaintiff v. Farmers Insured (Riverside County, California)

Plaintiff was rear-ended by a vehicle that was rear-ended by another vehicle as he was stopped at a red light on La Sierra Avenue in Corona, California.

Plaintiff suffered injuries to his back, neck, and leg. He also claimed this accident caused deep vein thrombosis (DVT) and resulting pulmonary embolism. In addition, he claimed he suffered from anxiety as a result of this accident.

Plaintiff treated with a chiropractor for his muscle sprains and strains.

He was later hospitalized for his DVT.

Farmers later settled with plaintiff for their policy limits, which ended up being $10,000 since there were several other claimants. Plaintiff then later settled with his own underinsured carrier for $90,000, for a total of $100,000 in compensation.

Case Study #7: Plaintiff v. Farmers Insured (Los Angeles County, California)

Plaintiff was T-boned as he drove through the intersection of Roscomare Road and Mulholland Boulevard in Los Angeles, California.

Plaintiff suffered injuries to his neck and back. After conservative treatment failed, he underwent a cervical discectomy and lumbar laminectomy and discectomy at the L5-S1 level.

Farmers settled with plaintiff for $1,100,000 prior to trial.

Case Study #8: Plaintiff v. Farmers (San Mateo County, California)

Plaintiff, a pedestrian, was struck by an uninsured driver, as he attempted to retrieve something from inside his vehicle that was parked on the street.

Police determined plaintiff to be at fault for being in the street when struck.

Plaintiff was taken to the emergency room from the scene and underwent ankle surgery. He was then transferred to a nursing home for 10 days. He also claimed upper leg and lower back pain as a result of the accident.

In addition, plaintiff claimed to have lost business from the injuries.

Farmers later agreed to tender its $500,000 policy limits to plaintiff.

Case Study #9: Plaintiff v. Farmers Insured (Volusia County, Florida)

Plaintiff was T-boned as she traveled through an intersection on U.S. Highway 1.

Plaintiff presented the next day to a clinic and was diagnosed with a torn medial meniscus in her right knee. She also claimed aggravation to preexisting herniated discs in her neck and back.

Plaintiff treated with a physical therapist and underwent epidural steroid injections. She also had two surgeries on her knee including a meniscectomy.

Plaintiff wasn’t able to perform the duties of her job as a hairdresser and was forced to quit.

Farmers eventually paid $100,000, their policy limits.

Case Study #10: Plaintiff v. Farmers Insured (Los Angeles County, California)

Plaintiff was traveling through an intersection on Sepulveda Boulevard in Los Angeles, California when defendant turned left in front of her causing her to T-bone his vehicle.

Plaintiff presented to a chiropractor complaining of neck and back pain. She also treated with an orthopedic surgeon who diagnosed her with herniated discs and a possible compression fracture in her neck.

As a result of her injuries, she underwent a cervical discectomy and fusion at C4-5 and C5-6 levels.

At mediation, plaintiff settled her case with Farmers for $720,000.

Contact Our Experienced Car Accident Lawyers to Handle Your Farmers Claim

Call us today for a FREE consultation regarding your Farmers bodily injury claim. Our car accident injury lawyers can investigate your accident, determine the at-fault party, and help you present the best case possible to Farmers. Call (855) 545-1777 to speak to our personal injury attorneys directly.