From its very inception, the Farmer Insurance has made its own niche in providing wide range insurance coverage of highest quality to the people of America.
This organization was set up by two enterprising person in Los Angeles named John Tyler and Thomas Leavey in the year 1927.
Their first product was Farmers Automobile Insurance Exchange and was launched in Los Angeles.
These entrepreneurs had a family background of farming community and thus were very much conversant with the rural lifestyle. They had observed that the people in the country sides drove their vehicles slowly and were thus safe drivers with less chance of accident.
But on the other hand the urban riders were more adventurous while hitting the gas and hence are more prone to accidents. So, they perceived that forwarding auto insurances to low risk drivers would be beneficial to them because there is more chance that they don't have to reimburse insured amounts to them.
Taken From : economywatch.com