State Farm Insurance is a chain of financial and insurance companies, which have operations in both United States and Canada. State Farm Mutual Automobile Insurance Company is the group’s major business. It is a mutual insurance company, which also owns several State Farm Insurance companies. State Farm Insurance corporate headquarters are located in Bloomington, Illinois. In 2013, State Farm was featured in the 44th position in the list of largest companies in America by revenue.
Company overview and history
State Farm Insurance was started in 1922 as a small mutual insurance company by a retired farmer, George J Mecherle. Initially, the firm offered auto insurance services to farmers. Later, the firm started other insurance services such as banking, homeowners, financial and life insurance services.
By December 2008, the firm boasted a total of 17,000 agents and 67,000 employees. In the following year, 2009, State Farm serviced 77 million policies in both Canada and the United States. Out of the total 77 million policies serviced by the firm, automobiles comprised of 44 million while 2 million comprised of bank accounts. The current CEO and chairman of State firm is Edward B. Rust, Jr.
State Farm is revered for providing clients with a variety of auto insurance services at an affordable price. That is why it features in the list of some of the greatest American companies in terms of revenue. The firm provides a source of livelihood for more than 60,000 people in Canada and the US, either through permanent or temporary employment. The firm is credited for being the best companies to pay its policyholders the largest amount of dividend. This was after the firm paid $1.25 billion to its policyholders hailing from 46 states in 2007. The firm is also one of the biggest insurance companies; it is a parent company of a vast number of subsidiaries. Some of the State Farm subsidiaries include State Farm Bank, State Farm Florida Insurance Company and State Farm Lloyds just to mention a few. On matters of giving back to the community, State Farm offers scores of students in America numerous scholarship grants in order for them to pursue their studies.
Apart for academic sponsorships, State Farm also sponsors games and tournaments such as the State Farm Classic, which is offered to professional American women golfers. The firm has also been sponsoring varsity athletics competitions, sports events and concerts. Through State Farm Holiday Classic, State Farm hosts the annual high school basketball tournament which is held during school holidays.
Pros of State Farm Insurance
Here are some of the pros of State Farm based on customer reviews:
- The insurance company offers its clients with a wide variety of insurance plans and numerous discounts.
- State Farm boasts of having thousands of agents in Canada and US. There are local agents in more than 46 states in America alone.
- State farm Insurance has been rated as one of the best insurance companies ideal for drivers involved in higher risks such as big truck drivers.
- State Farm has strong financial ratings.
The firm equally has its own cons. They include;
- An investigation conducted by CNN in 2007 revealed that State Farm Insurance was among the insurance firms fighting compensation claims from their clients.
- There are some injured parties who claim that there are unfair practices at State Farm, though the firm has denied such allegations.
- It is also said that the firm didn’t wholly compensate victims of Hurricane Katrina.
Who is State Farm best suited for?
State Farm Safety Patrol, which is a subsidiary of State Farm Insurance partners with America’s highway authorities and run a service called ‘Farm Safety Patrol’. This service aims at offering assistance to all stranded and disabled motorists driving in American highways. The insurance company is also ideal for American and Canadians interested in getting world class banking services such as certificates of deposit, saving and credit services. It’s an ideal firm for American and Canadian citizens interested in getting car loans, health insurance and insurance services against accidents, riots and natural calamities such as floods and earthquakes. The insurance company also offers mortgage and loans at affordable rates. Their loans are available country wide, in all states where State Farm has its operations. One can also get business loans from this firm. State Farm Insurance Company started offering business loans back in 1950. For existing Farm Insurance policyholders, they can easily get auto loans with a slightly lower interest rate.