Farmers Union Insurance is a member-owned cooperative that sells property, auto, and life insurance through local agents
Farmers Union Insurance operates differently from most insurance companies because it is owned by its members rather than by shareholders. The organization began as an agricultural cooperative and still focuses on serving rural communities, though it now covers people in cities too. You buy a policy through a local Farmers Union agent, and part of your premiums go toward the cooperative structure rather than toward distant corporate profits.
The company is not a single national insurer. Instead, Farmers Union Insurance operates through separate regional cooperatives in different states — so the one in North Dakota works differently from the one in Colorado, and not all states have a Farmers Union Insurance presence. This matters because your rates, coverage options, and the claims process depend on which state's cooperative you join.
If you are shopping for homeowners, auto, or life insurance and want to understand how a cooperative model differs from a traditional insurance company, or if you already have a Farmers Union agent nearby and want to know what to expect, this guide explains how the organization works and what you need to know before you buy.
Key Takeaways
- Farmers Union Insurance is owned by its members and operates through separate state cooperatives, so coverage and pricing vary by location.
- You purchase policies through local agents, not online or by phone from a national call center, which means you work with someone in your community.
- The cooperative structure means you may receive patronage dividends — refunds of surplus earnings — though this is not may provide and varies by state and year.
- Coverage types include homeowners, auto, life, and farm insurance, but not all types are offered in every state.
- Claims are filed through your local agent or directly with the state cooperative, depending on the type of claim and your state's process.
How the Cooperative Ownership Model Works
When you buy insurance from Farmers Union, you become a member-owner of the cooperative, not just a customer of a company. This means the organization is run for the benefit of its members rather than for outside investors. Any profits the cooperative makes can be returned to members as patronage dividends — essentially a refund of part of what you paid in premiums.
Patronage dividends are not may provide. The cooperative only pays them if it has surplus earnings after covering claims and operating costs. Some years a state cooperative pays dividends; other years it does not. The amount and timing vary by state. You should not count on a dividend when budgeting, but if one arrives, it is a real benefit of membership.
Because Farmers Union is structured as separate state cooperatives rather than one national company, each state's organization sets its own rates, decides which coverage types to offer, and manages its own claims. This decentralized approach means you cannot straightforward move your policy from one state to another — you would need to contact the cooperative in your new state and start fresh.
Types of Insurance Farmers Union Offers
Farmers Union Insurance primarily sells homeowners insurance, auto insurance, and life insurance. Some state cooperatives also offer farm insurance, which covers agricultural property and liability. Not every state cooperative offers every type, so you need to check with your local agent or the cooperative in your state to see what is available where you live.
Homeowners policies cover your house structure, personal belongings inside, liability if someone is injured on your property, and additional living expenses if you cannot stay in your home due to a covered loss. Auto policies cover liability (damage you cause to others), collision (damage to your own car), comprehensive (theft, weather, vandalism), and uninsured motorist protection. Life insurance through Farmers Union is typically term life, which covers you for a set number of years at a fixed rate.
The specific coverage limits, deductibles, and add-ons available depend on your state's cooperative. Some offer discounts for bundling policies (buying multiple types from the same cooperative) or for safety features like smoke detectors or anti-theft devices in your car. Ask your local agent what discounts explore in your area.
How to Find and Work With a Local Agent
Farmers Union Insurance does not sell policies online or through a national phone line. Instead, you work with a local agent who represents the cooperative in your area. To find an agent, visit the Farmers Union Insurance website and use their agent locator tool, or search for "Farmers Union Insurance" plus your state name. You can also contact your state's Farmers Union organization directly — many have phone numbers and websites listed.
Once you find an agent, you meet with them (in person, by phone, or sometimes by video) to discuss your coverage needs, get a quote, and purchase a policy. The agent handles policy changes, answers questions about your coverage, and helps you file claims. Because agents are local, they often know the area and can advise on coverage that makes sense for your region — for example, an agent in a flood-prone area may recommend additional water damage coverage.
The relationship with your agent is part of the cooperative model. You are not a policy number in a national database; you are a member of a local organization, and your agent is your point of contact for everything related to your insurance.
What Happens When You File a Claim
If you have a loss — a car accident, a break-in, storm damage to your home — you contact your local agent or the state cooperative's claims department directly. The process varies slightly by state and type of claim, but generally you will need to provide details of what happened, photos if possible, and any police reports or other documentation.
The cooperative assigns a claims adjuster who inspects the damage, reviews your policy, and determines what is covered and what the payout will be. The timeline for approval depends on the complexity of the claim — a straightforward auto accident might be resolved in days, while a major home damage claim can take weeks. Your agent can tell you what to expect in your state.
One advantage of the cooperative structure is that claims decisions are made by the state cooperative itself, not by a distant corporate office. This can mean faster decisions and someone local who understands your situation, though the actual speed depends on how busy the claims department is and how complex your claim is.
Comparing Farmers Union to Traditional Insurance Companies
The main differences between Farmers Union and companies like State Farm or Allstate come down to ownership, how you buy, and potential dividends. Farmers Union is member-owned and local-agent-based; traditional companies are shareholder-owned and often sell online or through national call centers. Farmers Union members may receive patronage dividends; traditional insurance customers do not.
Pricing is not inherently cheaper or more expensive at Farmers Union — it depends on your specific situation, your state, and the cooperative's underwriting. You should get quotes from multiple insurers, including your local Farmers Union agent, to compare. Some people find Farmers Union rates competitive; others find better prices elsewhere. The cooperative model appeals to people who value local service and the possibility of dividends, not necessarily the lowest price.
Another consideration is availability. Farmers Union does not operate in every state, and even where it does, not all coverage types may be offered. If you live in a state without a Farmers Union cooperative, or if you need a type of insurance they do not offer, you will need to look elsewhere.
Membership, Fees, and What It Costs to Join
Membership in a Farmers Union Insurance cooperative is typically free or requires only a small one-time fee, which varies by state. When you buy a policy, you automatically become a member. There are no separate membership dues beyond your insurance premiums. Some cooperatives ask for a nominal membership fee — sometimes five to twenty dollars — but this is not universal.
Your cost is the insurance premium itself. The premium is based on the same factors that traditional insurers use: your age, driving record, home value, location, claims history, and the coverage limits you choose. The cooperative structure does not automatically make premiums lower, but it does mean that if the cooperative has a profitable year, you may receive a dividend as a member.
Ask your agent whether your state's cooperative has paid dividends in recent years and what the typical amount was. This gives you a realistic sense of whether dividends are a regular benefit or an occasional one in your area.
Frequently Asked Questions
Can I buy Farmers Union Insurance online?
No. Farmers Union Insurance is sold only through local agents, not online. You must contact an agent in your area to get a quote and purchase a policy. Some agents may offer phone or video consultations, but you cannot complete the entire process on a website.
Does Farmers Union Insurance operate in my state?
Farmers Union Insurance does not have cooperatives in every state. The best way to find out is to search "Farmers Union Insurance" plus your state name, or visit the national Farmers Union website and look for your state's cooperative. If there is no cooperative in your state, you will need to buy insurance from another company.
What is a patronage dividend and will I get one?
A patronage dividend is a refund of part of your premiums if the cooperative has surplus earnings. It is not may provide — it depends on whether the cooperative was profitable that year and whether the board votes to distribute dividends. If your state's cooperative pays them, you receive the dividend automatically as a member; you do not have to do anything.
Can I cancel my policy anytime?
Yes, you can cancel at any time, though some policies have cancellation fees or require notice. The specific terms depend on your state's cooperative and your policy. Contact your agent to ask about cancellation terms before you buy, so you know what to expect if you need to leave.
How do I know if Farmers Union Insurance rates are competitive?
Get quotes from at least three insurers, including your local Farmers Union agent. Compare the same coverage limits and deductibles across all quotes so you are comparing apples to apples. Rates vary widely based on your personal situation, so the cheapest option for one person may not be the cheapest for another.