State Farm is an insurance company that sells mostly automobile insurance in the United States. It is owned by its policyholders and is based out of Bloomington, Illinois. The main company is called State Farm Mutual Automobile Insurance Company. It is usually referred to as “State Farm” however; “State Farm” is the parent company to various insurance companies.
State Farm – Its History
State Farm was started in 1922 by George Merchele. It was owned by its policyholders right from the start. However, it originally catered to farmers. Merchele wanted to deal with an insurance company that recognized that farmer’s didn’t need to pay the same rates as city drivers. This didn’t exist at the time so he started his own company. As the company grew, it started to branch out into other insurance niches, like homeowner’s insurance.
The company has had five CEOs in its history, with family ties being an important part of the business. The first was founder George Merchele, followed by son Raymond Merchele. After the Mecherle’s came the Rust family. First Adlai Rust was CEO followed by his son Edward Rust, and then grandson Edward Rust Jr., who currently holds the title of CEO.
The company has become one of the largest, most profitable companies in the United States with over 67,000 employees and a high ranking in the Fortune 500.
(The company’s jingle, “Like a good neighbor, state farm is there”, was written by Barry Manilow.)
State Farm – Differentiating Factors
State Farm claims to offer up to 25 percent less than other customers on insurance prices. It has actual offices in many locations, and most of the states. The company advocates for military veterans, diversity and community work on its website. The company has left certain states because it didn’t agree with the insurance regulations stipulated by the state. During the 1960s and 70s the company was accused of discriminated against both staff and clients according to race or gender. Since then, it has started a diversity campaign to erase this blemish on its history.
State Farm – Let’s Hear What Their Customers Say…
State Farm has mixed reviews. Customers appreciate that the company has a long, proven, track record and that it is available with offices and agents in most metropolises. However, there have been many claims that the insurance company doesn’t want to pay legitimate claims and that customers have to fight to get money owed. Some of these denied claims were give publicity, particularly after events like Hurricane Katrina, where customers’ claims were denied. The company has a three out of five star rating on epinions.com
State Farm is easily accessible and affordable. Like most large insurance companies, it has mixed feedback. Individuals, who want to hire a company that has certain values, may find this company particularly appealing. It may also be a desirable option for people who want to have several types of insurance with the same company, since State Farm offers so many types of insurance.