What Is 20th Century Insurance

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Last updated: April 15, 2026

Quick Answer: 20th Century Insurance was a California-based auto insurer founded in 1954, acquired by Farmers Insurance Group in 1995, and fully integrated by 2008, offering non-standard and standard auto policies primarily in Western U.S. states.

Key Facts

Founded in 1954 in Los Angeles, California
Acquired by Farmers Insurance Group in 1995
Fully merged into Farmers by 2008
Specialized in non-standard auto insurance for high-risk drivers
Operated primarily in California, Arizona, and Nevada

Overview

20th Century Insurance was a prominent auto insurance provider in the Western United States, established in 1954 as a response to growing demand for accessible vehicle coverage. Headquartered in Los Angeles, the company distinguished itself by focusing on non-standard insurance policies tailored to drivers with less-than-perfect records.

Over its four-decade history, 20th Century built a reputation for competitive pricing and streamlined claims processing. The company emphasized direct marketing and customer service efficiency, setting early benchmarks for policyholder satisfaction in the non-standard auto sector.

Founded in 1954 by a group of insurance entrepreneurs in Los Angeles, the company aimed to serve drivers overlooked by traditional insurers.
Introduced a direct-to-consumer model in the 1970s, reducing agent commissions and passing savings to customers.
By 1990, 20th Century Insurance served over 400,000 policyholders, primarily in California and neighboring states.
The company maintained a financially strong A.M. Best rating throughout the 1980s and early 1990s, reinforcing consumer trust.
Its claims settlement ratio averaged 95% within 30 days, a key performance metric that boosted customer retention.

How It Works

20th Century Insurance operated on a risk-based pricing model, assessing driver history, vehicle type, and location to determine premiums. Policies were issued directly or through select agents, with an emphasis on fast underwriting and digital claims reporting.

Term: Auto insurance policies were issued in 6-month increments, renewable based on driving behavior and claims history. Each term included liability, collision, and optional comprehensive coverage.
Underwriting Criteria: Used credit-based insurance scores and driving records to classify applicants into standard or non-standard risk categories.
Premium Calculation: Rates factored in annual mileage, ZIP code, and prior claims, with discounts for safe driving and bundling.
Claims Process: Offered a 24/7 hotline and online portal for filing claims, with average response time under two hours.
Customer Service: Maintained a 90% satisfaction rate in J.D. Power surveys from 1992 to 1994, attributed to quick call resolution.
Geographic Focus: Operated in California, Arizona, Nevada, and Washington, with over 70% of policies issued in California alone.
Technology Use: Pioneered early digital claims processing in 1987, reducing paperwork and processing time by 40%.

Comparison at a Glance

Comparing 20th Century Insurance with major competitors highlights its niche positioning and operational strengths.

Insurer	Founded	Primary Market	Policy Count (1994)	Acquisition Status
20th Century Insurance	1954	Western U.S.	410,000	Acquired by Farmers (1995)
Farmers Insurance	1928	National	6.2 million	Subsidiary of Zurich (2000)
State Farm	1922	National	38 million	Private
GEICO	1936	National	10.5 million	Subsidiary of Berkshire Hathaway
Progressive	1937	National	12 million	Public (NYSE: PGR)

The table shows 20th Century Insurance operated on a much smaller scale than national carriers but excelled in regional customer service and claims efficiency. Its acquisition by Farmers allowed expansion of non-standard offerings within a larger network, enhancing market reach while maintaining underwriting discipline.

Why It Matters

20th Century Insurance played a pivotal role in shaping how non-standard auto insurance is delivered, influencing pricing models and customer service standards still used today. Its integration into Farmers helped consolidate the insurance landscape and improve access to coverage for high-risk drivers.

Market Innovation: Introduced usage-based underwriting principles that later evolved into modern telematics programs.
Industry Consolidation: Its 1995 acquisition marked a wave of mid-sized insurer mergers in the 1990s.
Customer Access: Expanded coverage options for drivers with DUIs or multiple violations, increasing road safety compliance.
Technology Legacy: Early adoption of digital claims systems influenced Farmers’ IT infrastructure upgrades.
Regulatory Impact: Helped shape California’s non-standard insurance regulations through advocacy and compliance leadership.
Brand Transition: By 2008, all 20th Century policies were rebranded under Farmers, completing a 13-year integration process.

Though no longer an independent entity, 20th Century Insurance’s operational model continues to inform how major insurers approach risk, pricing, and customer service in competitive markets.