Smart Auto Insurance Blog

According to the article “California’s Largest Auto Insurer Plans Layoffs” on insurancenewsnet.com, Farmers Insurance Group is planning to cut hundreds of jobs as reported on Friday. 

The Los Angeles based auto insurance company told their employees they would be eliminating 554 jobs by the end of 2009, and that the total would reach about 750 by the end of 2010.  The job losses will affect the newly acquired company, 21st Century Insurance at The Woodland Hills complex, which currently has 979 employees.  This information was found in the the LA Times. 

This decision was made after carefully evaluating 21st Century over two months.  Senior Vice President Mark Toohey said that they hope to streamline operations with this effort.  Some of the displaced workers may be offered positions at 21st Century’s executive offices in Delaware, or transferred to other Farmers operations in California.

Owners of hybrid cars can get a discount on their auto insurance for being environmentally friendly according to the article “US Hybrid - Auto Insurance Leader Says Being Green Pays” by Lavonne Kuykendall of Down Jones Newswires. 

Farmers Insurance Group offers their customers driving hybrids a 10% discount which they started back in 2005.  The Senior VP of auto for Farmers, Brian Dwyer, believes it was the responsible thing to do according to this article.  The discount was first offered in California which is home to about 25% of all hybrid cars registered in the US. 

Currently Farmers insures approximately 90,000 hybrids in the US which is about 7% of all hybrids sold in the last ten years.  This is according to research from Edmunds Inc.  Dwyer also pointed out that it’s probably good for auto insurance companies and the country if more drivers switched to hybrid technology which combines the use of gas and electric engines to save on fossil fuels, ultimately protecting the environment.  Edmonds shows that about .8% of cars sold in the US since ‘99 are hybrids and in ‘09 hybrids are up to 2.6% of all cars sold in the US.  This increase may seem small over a decade, but it’s movement in the right direction and is very encouraging.