Is Founders Insurance Legit?

Last Updated on May 3, 2023

Founders Insurance Company is a Des Plaines, Illinois-based company backed by 114 years of industry experience.

With business in 22 states, Founders has an “A” (Excellent) rating from A.M. Best and mixed reviews from policyholders.

Is Founders Insurance a good insurance company? Should you buy auto insurance from Founders? Keep reading to discover everything you need to know about Founders Insurance and its insurance policies and products.

Key Takeaways:

  • Founders Insurance Company has been in the insurance industry for 114 years, with a surplus of $60 million and underwriting more than $100 million in insurance lines across 22 states.
  • The company offers a range of insurance products, including personal auto, renters, homeowners, liquor liability and special events, and light commercial auto insurance.
  • Founders Insurance Company is best known for providing high-risk auto insurance, SR-22 insurance, and other insurance products to risky drivers.
  • The company has mixed reviews from policyholders, but it has an “A” (Excellent) rating from A.M. Best, which indicates its financial strength and ability to pay claims.
  • Insurance Panda rates Founders Insurance 2.5/5

About Founders Insurance Company

Founders Insurance Company was launched in 1901 with $100,000 of capital and three employees. The company started by selling fire insurance to a small group of merchants, farmers, and homeowners in Illinois.

In the 1960s, the company merged with Founders Mutual Insurance Company.

Later, Founders Insurance Company was among the first insurance companies to issue payments to Chicago policyholders who lost property after the 1968 assassination of Martin Luther King.

In the 1980s, Founders Insurance Company did business under the name Illinois Founders. The company was purchased by the Lutz family in 1982. The company started to sell auto insurance in the 1990s, then dropped “Illinois” from its name in 1999 after expanding into other states.

Today, Founders Insurance Company has a surplus of $60 million while underwriting more than $100 million in insurance lines across 22 states. The company is headquartered just north of Chicago and employs 200 people across five states.

Founders Insurance Company Products

Founders Insurance Company offers several insurance products and services, including personal auto insurance and other types of insurance:

Personal Auto: Founders Insurance Company offers personal auto insurance for all types of drivers, although the company is particularly well-known among high-risk drivers or drivers requiring SR-22 coverage.

Renters Insurance: Founders Insurance Company offers renters insurance to cover apartments, homes, houses, condos, and townhouses. Founders’ renters insurance covers bodily injury liability, property damage liability, and medical payments coverage at various limits.

Homeowners Insurance: Founders Insurance Company offers homeowners insurance. You can buy homeowners insurance on its own or bundle it with an auto insurance policy. Founders offers HO3 special or standard policies, HO8 policies, and Ho6 policies with various coverage options.

Liquor Liability and Special Events: As far back as the 1960s, Founders Insurance Company was known as a leading liquor liability and special events insurance provider in Chicago and the area. Today, the company uses its 50 years of liquor liability and special events experience to serve policyholders in 18 states. These policies cover wedding receptions, beer gardens, fairs, festivals, farmers’ markets, shows, special occasions, and more.

Light Commercial Auto: Founders offers light commercial auto insurance on vehicles weighing 16,000 lbs or less that travel within a 200-mile radius. The company also specializes in insuring snow plows and landscapers in Illinois and Indiana. They also cover carpet cleaners, contractors, auto parts delivery, window installers, cleaning services, satellite installers, messenger services, and many other types of businesses.

How Does Founders Insurance Company Auto Insurance Work?

Founders Insurance Company offers several auto insurance products to meet drivers’ needs. However, the company is best known for providing high-risk auto insurance, SR-22 insurance, and other insurance products to risky drivers.

Here’s how Founders Insurance Company’s auto insurance products and services work:

Liability Coverage: Founders Insurance Company offers liability coverage, including bodily injury and property damage liability coverage, to cover damages you cause to other people and property. Virtually all states require liability coverage.

Collision Coverage: Founders Insurance Company offers collision coverage to protect your vehicle during a collision. Collision coverage is optional in all states. Without collision coverage, you must pay for vehicle damage out of pocket after a loss.

Comprehensive Coverage: Founders Insurance Company offers comprehensive coverage, which protects your own vehicle from non-accident damages. Comprehensive coverage covers hail damage, fire damage, theft, vandalism, and other losses. Founders Insurance Company has comprehensive coverage with deductibles up to $1,000.

SR-22 Coverage: Founders Insurance Company offers SR-22 certificates to drivers requiring a statement of financial responsibility. Many states use the SR-22 system to track high-risk drivers. If you have let car insurance lapse, or if you were involved in one or more serious driving incidents recently, then you may require an SR-22. Founders Insurance Company offers electronic SR-22 filings, and the company can file an SR-22 on your behalf to get you back on the road.

No Credit Check Car Insurance: Founders Insurance Company offers car insurance with no credit check required. If you have bad credit, no credit, or average credit, then you can ensure that your credit score doesn’t impact your premiums.

Non-Owner Coverage: If you want car insurance but do not own a vehicle, then you can buy non-owner car insurance through Founders Insurance Company. The company offers non-owner car insurance.

Insurance for Expired or Unverifiable Driver’s License: If your license cannot be verified, or if you have an expired or suspended license, then you may be able to buy a non-owner insurance policy through Founders Insurance Company. The company offers insurance for expired, suspended, foreign/international, out-of-state, and unverifiable driver’s licenses.

Accidental Death, Legal Expense, and Additional Coverage: Founders Insurance Company policies can come with accidental death benefits and legal expense coverage.

Insurance for Drivers with Prior Losses: Some insurance companies decline your business if you have prior losses – like one or more serious accidents in your past. However, Founders Insurance Company accepts drivers with prior losses, and drivers can buy car insurance even with a poor driving history.

What Makes Founders Insurance Company Unique?

You have plenty of options for insurance. Why pick Founders? What makes Founders Insurance Company unique?

Here are some of the good and bad things that make Founders Insurance Company unique:

  • Auto insurance for high-risk drivers, including SR-22 certificates and insurance for drivers with prior losses
  • Auto insurance for non-traditional drivers, including drivers with expired licenses, foreign licenses, and other license issues
  • Non-owner car insurance
  • Good financial strength ratings (A or Excellent rating from A.M. Best since 1923)
  • Poor reviews from policyholders, including a D rating from the Better Business Bureau with dozens of complaints
  • Available in 22 states, including Illinois and other states

Founders Insurance Company Discounts

Founders Insurance Company offers several auto insurance discounts. Like other high-risk insurers, Founders Insurance Company offers fewer discounts than some of its larger competitors. However, drivers can still save hundreds per year by taking advantage of discounts.

Multi-Car Discount: If you own multiple cars and insure those cars with Founders Insurance Company, then you’ll pay less for car insurance across all vehicles.

Transfer Discount: Did you transfer to Founders Insurance Company from a competing insurer? If so, then you may receive a transfer discount.

Homeowner Discount: If you own a home and have homeowners insurance with Founders Insurance Company, then you could qualify for a homeowners insurance discount. Most insurers provide bundling discounts of 5% to 15%.

Renewal Discount: Save money when you renew your policy with Founders Insurance Company. The company offers a renewal discount to qualifying policyholders.

Founders Insurance Company Reviews: What Do Drivers Say?

Founders Insurance Company has very poor reviews online from policyholders.

The company has a dismal 1.3-star rating on WalletHub, with 400+ reviews.

The BBB page for Founders Insurance Company shows 134 total complaints in the last three years.

Yelp has similarly poor reviews for Founders, with 100+ reviewers giving the company an average rating of 1 star out of 5.

Someone even started a Facebook page called “Founders Insurance Company exposed,” where policyholders share their dissatisfaction with the Founders claim process.

Founders is not large enough to be ranked by J.D. Power, which ranks the largest car insurance companies nationwide and at a regional level.

Customers have similar complaints, including:

  • Multiple drivers report having issues filing claims and receiving payment for damages
  • Some drivers have a poor experience dealing with Founders even when they’re not a policyholder with Founders; if you collided with someone who has Founders insurance, for example, then you may need to make a claim through Founders, and multiple reviewers have had a poor experience
  • Multiple drivers report having issues with customer service, including trouble contacting the company or trouble having the company’s representatives reach out to them

Most policyholders do not leave insurance company reviews unless they’re dissatisfied with a recent claim, which is why most online insurance company reviews are negative. However, Founders Insurance Company has particularly poor reviews online, which is similar to the reviews seen with other high-risk auto insurance companies.

Founders Insurance Company Financial Strength

Although Founders Insurance Company has mixed reviews for claims satisfaction and customer service, the company has average reviews for financial strength.

A.M. Best has awarded the company a rating of A (Excellent).

In fact, Founders Insurance Company has maintained that rating since June 30, 1923 – or nearly a century.

A.M. Best has also awarded Founders a long-term issuer credit rating of A (Excellent) and stable.

Frequently Asked Questions About Founders

Our Rating of Founders Insurance

Founders Insurance Company is an insurance company based in Des Plaines, Illinois, with over 114 years of industry experience. The company offers several insurance products, including personal auto insurance, renters insurance, homeowners insurance, liquor liability and special events insurance, and light commercial auto insurance. They are known for providing high-risk auto insurance, SR-22 insurance, and other insurance products to risky drivers.

Customer Service
Claims Satisfaction
Financial Strength


Founders Insurance Company has abysmal reviews online from policyholders, with an average rating of 1.3 stars on WalletHub, 1 star on Yelp, and 134 complaints in the last three years on BBB. While the company has above-average reviews for financial strength, customers report issues with filing claims, receiving payment for damages, and customer service.


Contact Founders Insurance Company

You can contact Founders Insurance Company via the following:

Founders Insurance Contact Information
Mailing Address1350 Eat Touhy Avenue, Suite 200W
Des Plaines, IL, 60018-3303
Phone Number1-847-768-0040

Final Word on Founders Insurance Company

Founders Insurance Company is a Chicago-area insurer with over 100 years of experience providing a range of insurance products.

Today, Founders Insurance Company specializes in providing high-risk car insurance to drivers who need to get back on the road. You can buy SR-22 coverage, minimum liability plans, and high-risk auto insurance policies through the company.

To learn more about Founders Insurance Company and the company’s lineup of auto insurance products and services, visit the official website today at

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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