With a mission statement to help people handle the risks that can occur during day to day life, get back on their feet after unexpected events, and reach their goals and dreams, you may realize early on that State Farm is not JUST a company that offers insurance.
The jingle alone, ‘Like a good neighbor, State Farm is there’, has been their calling card for decades and illustrates the kind of service they strive to provide each customer.
Most people have heard of State Farm but you may not know all that they offer and whether they would be a good choice to handle your own insurance needs. The information provided below will give you a detailed look at this popular insurance company so you can decide if they are right for your needs.
History of State Farm
State Farm was founded by a retired insurance salesman and farmer George Jacob Mecherle, known to others as G.J. back in 1922. When they first started out they were a single-line insurance company for automobiles. Now this well-known company insures more homes and automobiles than any other US insurance company.
Mercherle had a vision for his company to do the right things for their customers and run the company fairly. They have stuck with that original vision and much more. State Farm currently holds spot #33 on the Fortune 500 list of the largest US companies for 2017.
Over the years, State Farm has been a leader in efforts to improve auto safety by helping to get multiple seat belt laws passed. They continue that endeavor by being an active advocate for teen driving safety and seat belt safety. There are now nearly 19,000 State Farm agent offices on and offline, making the statement ‘State Farm is there’ more than true.
Financial strength
State Farm has been financially strong, paying their customer’s claims reliably and promptly since the very beginning back in 1922. The financial strength of an insurance company is very important. State Farm excels in this area with excellent ratings from both A.M. Best and S&P Global, two of the most well-known insurance rating companies around.
Their A++ rating with A.M. Best is the highest rating an insurance company can get. They achieved this rating because of their performance in operations and their excellent financial condition. Their AA rating with S&P Global is earned from their superior claim-paying ability.
State Farm’s assets include a net worth of $97 billion at year’s end in 2017 up from 2016’s total net worth of 87.6 billion. The total assets of the company are $241,183 billion US dollars.
State Farm home insurance rates
There are several factors that are considered when it comes to getting a home insurance policy. There is no ‘one-rate-fits-all’ with any insurance company. State Farm’s home insurance rates will vary depending on what you want to cover, the deductible you choose, and other factors.
The only way to get an accurate rate quote is to speak to an agent over the phone or in person or you can go online and get a quote. The quote will involve answering several questions about the type of coverage you are looking for, what you want to include in that coverage, and the value of the home and its furnishings.
Homeowner’s insurance coverage options
There are many different coverage options that you will be able to choose from. State Farm offers coverage for homeowners that can include losses to the property due to many different forms of weather, non-weather related losses including vandalism and theft, and what is called accidental direct physical loss that includes such things as damage to the heating and cooling systems, water damage from faulty plumbing, etc.
State Farm additionally offers insurance coverage for condominium owners, renter’s insurance, manufactured home coverage, and farm/ranch insurance that includes coverage over your farm home and its contents, the personal property of the farm, farm buildings and structures, and more.
Keep in mind that insurance coverage may NOT cover intentional harm or damage to property or people. It also may not cover business services that you conduct out of your home. This will require business owner’s insurance. To get the best and most accurate idea of what insurance will cost, you will need to contact a State Farm agent so you can tell them exactly what you need.
Insurance products available
State Farm offers a variety of insurance coverage including:
- Vehicle Insurance – Includes motorcycle, boat, car, motorhome, and off-road options.
- Home & Property – Includes manufactured home, condo, farm or ranch, renters, and traditional homeowner offerings.
- Life Insurance – Includes term, whole and universal life policies with different options within each including final expenses, survivorship, and other products.
- Health & Disability – Includes short and long-term disability, and individual credit disability. Health insurance options include Medicare supplement insurance, individual medical coverage and supplemental health insurance.
- Small business – Small business insurance coverage is based on the type of business you own so it is tailored to fit what you need specifically. The agent you speak with will get information about your type of business and design coverage that works great for your industry.
Home Insurance claims
- Claims comparison – When it comes to claims, State Farm has earned high ratings from two well-known insurance rating companies and for good reason. On the J.D. Power site they are on par with the majority of others.
- Homeowners – For home insurance policies, State Farm performed about average when compared to others in all areas. They are very consistent in how they handle things and ensure a stable process the whole way through.
- Property Claims – When it comes to property claims, State Farm performs better than most other insurance companies and is among the best when it comes to the estimation process.
- Automobile – For automobile coverage, State Farm performs about average when compared to others and is better than most when it comes to the representatives handling the different claims.
BBB Complaints Rating
State Farm holds an A- rating with the BBB and is not accredited with the BBB. There have been 1,420 complaints total with 122 in advertising and sales, 346 in billing and collections, 30 with delivery issues, 915 with products and services, and 7 with warranties and guarantees. In the last three years 1420 complaints have been closed.
State Farm discounts and features
Although discounts will vary by state, State Farm offers the opportunity for many discounts if you qualify. These potential discounts can include safe driving discounts, active military service member discounts. Multiple vehicle, veteran discounts, multiple insurance bundle discounts, and students. Your agent will be able to determine which discounts you may be eligible for so you can enjoy even more savings.
Locations served
There are over 19,000 State Farm agent offices across the US to choose from. These include community offices, online and offline offerings. With so many offices and agents to choose from, chances are no matter where you are in the US you can find a State Farm Insurance Agent.
Mobile app
The State Farm mobile app offers users the ability to perform a variety of tasks regarding insurance. You will be able to manage your insurance and State Farm banking accounts, get roadside assistance, contact your agent, access your ID cards and even save money with the communities section that offers deals on travel, entertainment, fitness, dining and electronics.
Website
There is a lot you can do on the State Farm website once you are a customer. You will be able to access your account, see your policy, make changes, email your agent, add a vehicle or remove one, pay your bill, print out ID cards and Dec pages and much more. The site is easy to navigate and makes accessing your insurance policy super easy. If you are not a customer yet, you will be able to find out a little about the products State Farm offers but to get any real information you will need to get a quote which you can do for free right on the website.
Bottom Line
If you are looking for a reliable insurance company that has been around for decades, State Farm is an excellent choice. Since day one the company has aspired to fulfill their mission of taking care of every customer by providing them fair rates, special discounts, rewards for good driving, ease of use, fast claims, and help every step of the way. The rates are competitive and the coverage offerings are expansive. You will certainly be able to find what you are looking for when it comes to all your insurance coverage needs.