Federated Insurance Review

RATINGS BY CATEGORY
Premium Price
Claims Process
Consumer Feedback
Financial Strength
OVERALL
Products  |  Price  |  Claims  |  Complaints  |  Financials  |  Bottom Line

Federated Mutual Insurance Summary

A group of Minnesota business people who wanted more insurance value founded Federated Mutual Insurance in 1904. From the beginning, the company emphasized insurance for select businesses that adhered to high safety standards, and the concept continues today. In the early years, equipment dealer Charles Buxton ran the company with just one assistant. From the beginning, the group emphasized safety standards and only businesses that adhered to those standards were accepted as clients.

Because Federated was able to minimize losses through tight risk assessment and management, it was able to expand coverage, even moving to personal insurance for automobiles, property, liability, and health insurance for Minnesota residents by mid-century. By the early 70s, life insurance was available in Minnesota with group plans available to businesses in certain areas. The company then focused its efforts on state and national industry organizations and trade associations.

 
Looking for Insurance Quotes? We Recommend:
Auto - Liberty Mutual
Home - Liberty Mutual
Life - QuinStreet Life
Health - eHealthInsurance

Insurance Products

For businesses in certain niches, Federated offers not only business coverage, but also group health plans, liability insurance, and “key person” insurance.

Much of the company’s expertise in the preferred niches stems from business interests of the founders. The company focuses especially on farm & industrial equipment dealers, auto dealers, parts stores, service and repair shops, tire dealers, building material dealers and cabinetry shops, specialty trade contractors, funeral service providers, machine and tooling shops, printers, petroleum marketers and convenience stores, and retail and wholesale businesses, especially jewelry retailers.

Private policies, including auto insurance, homeowners insurance, renters insurance, personal umbrella, and individual life insurance, are available only to Minnesota residents.

For those residents, though, Federated offers auto insurance policies with annual rather than six-month renewals so rates are locked in longer. There is also a deductible reduction plan, safe driving discounts and lease gap insurance. Additional discounts are available by bundling auto and homeowner insurance.

Federated Mutual Insurance Price (Rates)

Quote Test Results
N/A
Rate Test Details

Because Federated is a mutual company, it operates on narrower profit margins than a public company, generally allowing lower rates for most customers. Federated is sold through its own agents who focus on customizing both business and personal policies to the client’s needs.

Citizens of Minnesota can obtain a free rate quote from Federated’s website.

Claims

Customers can file claims online or get assistance by phone at 888-333-4949 from 7 a.m. – 6 p.m. Life and disability income claimants should call 800-533-0472.

Consumer Research and Complaints

Federated has an A- rating with the Better Business Bureau. There have been eight complaints with BBB in the last 3 years, including six complaints on product/service problems, one complaint on advertising/sales issues, and one complaint on a billing/collection issue. Three complaints were closed within the last 12 months.

Financial Strength

Rating CompanyGradeFinancial Outlook
AM BestA+Stable
FitchN/AN/A
S&PN/AN/A

Bottom Line

Federated is primarily a business insurance company that provides a number of different coverage options for specific industries. Their personal insurance policies are only offered in Minnesota, so unless you live there you do not really have a reason to look into Federated.

Summary
Reviewer
Eric Stauffer
Review Date
Reviewed
Federated Mutual
Author Rating
3

Best Insurance Quote Providers:

Auto Insurance - Liberty Mutual
Home Insurance - Liberty Mutual
Life Insurance - QuinStreet Life
Health Insurance - eHealthInsurance
Business Insurance - Hiscox Insurance
Auto
Car Insurance Comparison Quotes
Zip Code:
Continue

About the Author

Eric Stauffer

I am a former insurance agent turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.


Comments

  1. randy says

    i have federated heath and they don’t want to pay for a medication i NEED to get better. Please help.

    • Eric Stauffer says

      Hi Randy,

      If you are having a problem with your insurance company and believe they are treating you unfairly, I would recommend filing a formal complaint with the insurance commissioner’s office in your state. If you want to post which state you are in, I would be more than happy to find the contact information for you.

Leave a Reply