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State Farm Auto Insurance - State Farm



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Overview

Founded in 1922 by a farmer George J. Mecherle (pronounced Ma-herl), State Farm Insurance Company is a group of US insurance and financial services institutions. With its corporate headquarters at Bloomington, Illinois, State Farm was initially established as a mutual automobile insurance company, although the name may suggest that it was started as a crop insurance company. The reason for the name was the fact that the company served the auto insurance needs of farmers. The founder had conceived the idea that the insurance costs for farmers have to be lower as they are less involved in accidents. The idea was received well and very soon, the company became a huge success. Since the policyholders also had a share of the ownership, the concept was even more popular.



Over the years, the company has grown rapidly and has explored other insurance markets as well, including home and life insurance. Currently, the company employs around 79,200 people, with over 16,700 agents operating 71.6 million policies in the US and Canada.

State Farm Ratings

6 Reviews | Submit Review|More Reviews
Coverage:
3 out of 5
Cost:
2.33 out of 5
Customer Service:
2.17 out of 5
Claims:
2.4 out of 5
The company is presently chaired by Edward B. Rust, Jr. He is also the CEO of State Farm Mutual Automobile Insurance Company. Additionally, he is also the President and CEO of State Farm Fire and Casualty Company, State Farm Life Insurance Company as well as other main State Farm affiliates.

History of the Company

Since its inception in 1922, the company has evolved into one of the world's largest financial institutions from the small time farming-community based mutual auto insurer that it was in the beginning. However, the basic principle of the company hasn't changed even a little. They still continue to offer insurance coverage at fair rates and the company's claims settlements have also been widely appreciated.

In the year 1921, the founder George Mecherle was forced to quit his farming occupation and take up an insurance salesman's job due to his wife's prolonged illness. The couple had moved to Bloomington, where George achieved success very soon. However, the fact that farmers continued to pay the same insurance rates as other drivers had made George think about a feasible solution. He believed that the accident rates were lower in the case of farmers and hence, they were entitled to lower premiums. Since his employer dismissed the idea, George planned to state an insurance firm himself. And this led to the birth of State Farm, which was started as a mutual automobile insurance company with the policyholders sharing the ownership. Farmers soon benefited from low-risk rates, safe-driver discounts, and semi-annual payment plans offered by this company. Over the last 80 years, the company has grown rapidly to find itself listed in Fortune 500.

Important Facts and Figures of State Farm

In North America, State Farm is the largest insurance provider in terms of auto policies sold. The company is a leading US auto insurer, with around 17, 800 and 68,000 employees helping 74 million people in the US and Canada receive the best rates for auto, fire, life and health insurance coverage.

State Farm also operates in the banking, annuities and mutual fund product markets. State Farm Mutual Automobile Insurance Company is the parent company for the State Farm group of insurance institutions.

The company is ranked No.22 on the Fortune 500 list of largest companies in the World. For more information, please visit statefarm.com® or in Canada statefarm.ca™.

State Farm Automobile Insurance Company

Established on June 7, 1922, State Farm Auto Insurance Company is the parent company for the State Farm Insurance Group. By 1942, the company had emerged as the largest auto insurance provider and has continued to hold its position. Statistics suggest that 1 in every 5 cars is covered by State Farm insurance policies. In the year 1965, the company had ventured into the health insurance domain as well.

Subsidiary Companies of State Farm Automobile Insurance Company

State Farm Life Insurance Company: This entity was formed in the year 1929. State Farm Life and Accident Assurance Company had begun to operate from 1961 and offered life insurance policies in New York, Connecticut, and Wisconsin. State Farm Life Insurance Company and State Farm Life and Accident Assurance Company have been operating under the name - State Farm VP Management Corporation since 1998.

State Farm Fire and Casualty Company: It was founded in 1935 to offer property coverage for the customers of the company in the United States and Canada. The list of customers includes homeowners, boat owners and many commercial lines. Since 1964, it has been the largest home insurance provider in the US.

State Farm County Mutual Insurance Company: This entity was based in Texas and had joined the State Farm Group in the year 1961. The company offers insurance coverage for motorists in Texas. Based on a quota-share arrangement, the State Farm Mutual Automobile Insurance Company handles the risk claims for this entity and manages it in partnership with the original owner.

State Farm Indemnity Company: It was founded in 1991. This company is an insurance writer for the State Farm Group in New Jersey. Basically, this entity handles the pricing and risk assessment aspects of the group. In 2006, State Farm Guaranty Insurance Company had joined the State Farm Indemnity Company as a wholly owned subsidiary.

State Farm General Insurance Company: It was formed in 1962 to act as a property insurance affiliate. Currently, it is the main insurance writer for home insurance and property coverage for the State Farm Group in the state of California.

State Farm Florida Insurance Company: Founded on Feb. 1, 1999, this company is the main insurance writer for home and property coverage in the state of Florida.

State Farm Lloyds: It is an association of underwriters, which functions as per the Lloyds Plan specified in Texas law. The company is an underwriter for home and commercial multiple peril insurance in Texas and has been operating since 1983. The association is headed by its attorney as per the Texas Law.

State Farm Bank, F.S.B.: Known as the State Farm Bank®", this company was formally approved for a thrift charter by the Office of Thrift Supervision (OTS) in November 1998. It offers insurance for consumer-oriented financial products. It doesn't function like other traditional institutions and operates out of a single office. The bank handles its customers directly and through its agents. As of December 31, 2005, the Bank had recorded total assets of $12 billion.

State Farm Investment Management Corp. (SFIMC): It is the investment advisor for the State Farm Associate and Retail Mutual Funds. Additionally, it is also the advisor for the basic funds offered through State Farm Variable Products. The company is also the transfer agent for the State Farm Associate and Retail Mutual Funds. With more than 35 years of experience in the management of investment company assets, State Farm VP Management Corp. (SFVPMC) is the broker as well as the dealer for the State Farm Associate and Retail Mutual Funds and State Farm Variable Products.

State Farm Insurance Agents: The insurance agents of the company are an integral part of its business. With expertise in policy management, the agents help the customers of the company select the right policy for their insurance coverage pertaining to auto, life, home or health needs. They offer invaluable advice about the risk-profile of the customer based on which the rates are fixed. At the same time, they keep the customers informed about loan and deposit options that are offered by State Farm Bank® at reasonable rates. They also help in the management of a customer's financial profile with the help of a Free State Farm Insurance and Financial Review®.

State Farm Auto Insurance and State Farm Home Insurance are committed to offering quality insurance products to their customers, at the most competitive rates. They offer auto insurance coverage to insure a customer against any potential damages, loss or injuries. At the same time, the auto coverage also offers protection when a customer faces an automobile-related lawsuit. Home insurance offers protection for customers' property and covers all damages.

State Farm is a registered trademark of State Farm. State Farm is not affiliated with, nor does it endorse or sponsor, the contents of this webpage or the QuoteCarInsurance.com website. Trademarks referring to specific providers are used by QuoteCarInsurance.com for nominative purposes only: to truthfully identify the source of the products about which information is provided. Such trademarks are solely the property of their respective owners.



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State Farm
 
6 Customer Reviews
they do not want to pay for damage when both cars are insured by state farm!!
Date: 07/07/2009
Cov: 3 Cost: 3 Serv: 1 Claim: 1
Anonymous
Beverly Flint very rude - she uses obscenities at customers, use of F word, She makes mistakes, then claim she never does. She acts as agent but is only office manager , Abe is the manager.He acts like he is deaf and dumb and she goes off on everyone putting them down. She throws money at custome
Date: 05/29/2009
Cov: 3 Cost: 2 Serv: 1 Claim: 2
Anonymous
I was in an accident last june, and when I needed to speak with someone and get my car fixed, they were there for me. The people at State Farm were great, they handled my claim very professionally not trying to get the most money out of me as possible but instead, made sure that I was emotionally st
Date: 08/07/2008
Cov: 5 Cost: 5 Serv: 5 Claim: 5
Karen
State Farm really doesn't deserve to be charging a substantial amount more for their car insurance then other companies do. They don't have good service at all, and if you have an urgent message to get to them....It's impossible to speak with anyone intelligent.
Date: 08/07/2008
Cov: 3 Cost: 1 Serv: 2 Claim: -
Anonymous
This company does not act above board in paying claims for their clients. I had the misfortune of being hit by one of their customers and it seems to be one nightmare after another. Luckily my insurance company took care of the vehicle and most of the medical, but state farm has only reimbursed th
Cov: 1 Cost: 1 Serv: 1 Claim: 1
Disappointed
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