Farmers Insurance Exchange’s average rate increase by +8.48% — effective 1/1/2027
12/01/2026
Farmers Insurance Exchange has filed new California workers’ compensation base rates with the California Department of Insurance for policies effective January 1, 2027.
How are average rates changing?
| Issuing Company | Average Rate
1/1/2026 | Average Rate
1/1/2027 | % Change |
|---|
| Farmers Insurance Exchange | 10.61 | 11.51 | +8.48% |
*Average rate calculation does not include per capita or per race rates (7707 – Firefighters – volunteers, 7722 – Police, Sheriffs – volunteers, or 8278 – Jockeys).
Does the average change apply to every policy?
Not necessarily. A carrier’s average rate change provides useful context, but individual class rates may move differently. The effect on a specific policy depends on the classifications and exposures involved.
The examples below show how some of Farmers Insurance Exchange’s individual advisory rates are changing compared with the prior policy period.
| Class – Description | Advisory Rate
1/1/2026 | Advisory Rate
1/1/2027 | % Change |
|---|
| 9066 - Homeowners Associations | 8.08 | 9.20 | +13.86% |
| 8834 - Physicians’ Practices/Outpatient Clinics | 2.14 | 2.30 | +7.48% |
| 9080 - Restaurants – full service | 6.19 | 6.63 | +7.11% |
| 8871 - Clerical Telecommuter Employees - N.O.C. | 0.24 | 0.24 | 0.00% |
| 8046 - Stores–auto/truck parts/accessories | 8.74 | 8.72 | -0.23% |
| 8388 - Rubber Tire Dealers | 12.95 | 12.78 | -1.31% |
What does this mean for an individual account?
The average rate increase is only a starting point. To understand the potential effect on a specific policy, review the applicable classifications and compare how those rates changed.
With WorkCompare, users can generate a Pre-Quote Estimate to evaluate how current rate changes may affect potential pricing before formal quotes arrive.