State Farm – An Overview

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State Farm is one of America’s largest insurance and financial services companies. The Bloomington, Illinois-headquartered company has been selling car insurance for nearly a century. Today, State Farm sits at number 36 on the Fortune 500 list of the largest United States corporations by total revenue. The company sells insurance products in all 50 states and employs 66,000 people across the country. State Farm is not only the largest car insurance company in the United States: it’s also the largest property and casualty insurance provider in the country.

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State Farm History

State Farm was founded in 1922 by a retired farmer named George J. Mecherle. The company initially specialized in selling auto insurance to farmers. Over the years, State Farm expanded into home and life insurance. State Farm also opened its own bank and started to offer financial services to customers.

When many people hear State Farm, they think of the company’s famous jingle: “Like a good neighbor, State Farm is there.” That jingle was written by Barry Manilow in 1971.

Today, State Farm employs more than 70,000 people across the United States. The company has roughly 80 million policies across the United States and Canada, including 44 million car insurance policies, 27 million fire insurance policies, 7 million life insurance policies, and 2 million bank accounts. State Farm sold its operations in Canada to Desjardins Group. By the end of 2018, State Farm Canada will officially rebrand as Desjardins Insurance.

Today, the company we know as State Farm actually consists of a large group of companies. Those companies are all organized under a parent company called State Farm Mutual Automobile Insurance Company. Major companies under that name include State Farm Fire and Casualty Company, State Farm Life Insurance Company, and State Farm Bank, among dozens of other State Farm subsidiaries.

State Farm Insurance Rankings

State Farm is not only the largest car insurance company in the United States, but it’s also one of the best-rated of all major insurance companies. State Farm scored about average on its latest J.D. Power rankings, although the company scored very well overall due to its strong property insurance and life insurance claims satisfaction ratings.

Here’s how State Farm performed in the latest J.D. Power rankings:

Insurance Shopping (Auto): About average

Auto Insurance Claims Satisfaction: About average

Home Insurance: About average

Property Claims: Better than most

Life Insurance: Among the best (won top award)

A.M. Best has also given State Farm a top rating. The company scored an A++ or Superior rating on the latest A.M. Best rankings, indicating that State Farm has an excellent ability to cover its liabilities and pay claims. Many other insurance companies score between A- and A, so an A++ rating puts State Farm near the top of the list.

What Makes State Farm Insurance Unique?

State Farm has several features that make it unique, including all of the following:

America’s Largest Car Insurance Company: State Farm is America’s largest car insurance company. Customers generally enjoy competitive premiums, a range of car insurance options, good customer service, and all of the amenities you expect to find when dealing with one of the country’s largest companies.

Pocket Agent Mobile App: State Farm’s Pocket Agent mobile app functions like most other insurance company apps. You can view your insurance documents, get policy information, get a quote, or submit a claim, for example.

Multiple Insurance Products: State Farm offers a wide range of insurance options through its family of companies, including condo insurance, renter’s insurance, farm and ranch insurance, manufactured home insurance, umbrella insurance, identity theft insurance, boat insurance, business insurance, and more. If you want to bundle multiple insurance policies together, then State Farm is a good company to use.

Well-Rated Life Insurance: State Farm has won top awards for its life insurance products. The company’s life insurance policies include select term life insurance (for 10, 20, or 30 years, renewable up to age 95), instant answer term life (available from 16 to 45 to provide $50,000 of life insurance), and return of premium term life (available for 20 or 30 years with level premiums). State Farm also offers whole life, universal life, and variable universal life insurance policies, among other products.

Well-Rated Property Insurance: State Farm also scores very well for its property insurance and home insurance claims satisfaction. The company’s Premier Service program, for example, is a network of qualified contractors across America. If you order repairs from a Premier Service contractor, then those repairs are guaranteed for up to five years.

Is State Farm a Good Insurance Company? Our Review

State Farm is America’s largest car insurance company. Despite being one of America’s biggest corporations, State Farm has managed to consistently score high marks for its claims satisfaction, customer service, and other policy options. The company is well-rated in most J.D. Power surveys. Although it scores average in terms of auto insurance claims and satisfaction, State Farm scores very well in terms of life and property insurance. Overall, State Farm is one of America’s top-rated insurance companies in most surveys.

Many people appreciate the convenience of dealing with a larger insurance company. You have a network of thousands of agents you can call at any time to talk about your policy or make a claim. You can access a wide range of insurance products – including life insurance and property insurance for virtually anything – through State Farm’s large family of companies.

Many people also appreciate State Farm’s mobile apps. The company offers three mobile apps, including the standard Pocket Agent mobile app, the Steer Clear app, and the Drive Safe & Save program. The Pocket Agent app lets you manage your policy and make a claim. Steer Clear is for drivers under age 25. And the Drive Safe & Save app tracks driving behavior to give you lower, customized rates.

Overall, policyholders with State Farm enjoy all of the amenities of a larger insurance company with few of the downsides. Despite managing tens of millions of car insurance policies across the United States, State Farm is consistently well-rated for claims satisfaction. The company also offers some of the best-value insurance policies in the United States, and it’s often the cheapest insurance provider in certain states.

State Farm Auto Insurance Policies and Products

State Farm offers a number of unique auto insurance policies and products, including all of the following:

Rental Car and Travel Expenses Coverage: State Farm is very well-rated for its rental car and travel expenses coverage. State Farm will not only pay for a rental car if yours is in the shop after a covered collision, but the company will also pay for any meals, lodging, and transportation if you are stranded more than 50 miles from home.

Steer Clear Program: This mobile app and online course is for drivers under 25 who want to refresh their skills. If you complete the course and maintain a safe driving record, then you are entitled to an extra discount.

Rideshare Insurance: State Farm offers rideshare insurance in 46 states – more than most other insurance companies.

Drive Safe & Save Program: This is State Farm’s telematics driver tracking program. It calculates discounts based on your mileage, including safe driving measurements like smooth acceleration and braking. Risk factors like your speed and time of day are also taken into account. If you’re a safe driver as tracked through this program, then you’re entitled to savings of up to 50%.

Final Word

State Farm is the largest car insurance company in the United States, insuring more than 40 million vehicles across the country. Despite being a large company, however, State Farm consistently scores well for customer service and claims satisfaction. The company also offers good-value car insurance policies, often ranking as one of the cheapest providers in any state. Policyholders wanting to bundle multiple insurance products with the same company, meanwhile, can rely on the extensive State Farm network of insurance companies, banks, and financial service providers.

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