5 Facts About State Farm Auto Insurance
Just because you have heard of State Farm auto insurance, that does not mean that you know everything you need to know. If you are considering getting insurance with State Farm, curious about the insurer, or an existing client, you will appreciate these five facts about the company that you may not have known.
1. State Farm Is the Largest Auto Insurer in the Nation
When it comes to auto insurance, State Farm is the largest insurer in the country. The National Association of Insurance Commissioners (NAIC) reports that State Farm had a 16% market share in 2019, with more than 83 million policies and accounts. The company offers insurance across the country. The only caveat is that Rhode Island and Massachusetts residents cannot become new auto customers of State Farm. Existing customers from those states are not affected by this, though.
Not only is State Farm the biggest auto insurer in the country, but reviews of State Farm auto insurance are also consistently positive. This has led to an AM Best Financial Strength Rating of A++ (Superior) and a Better Business Bureau rating of A+.
2. State Farm Offers Ridesharing Insurance
Among the various add-ons offered by State Farm is the rideshare coverage. This is important because standard auto insurance doesn’t cover using your vehicle commercially, and driving for rideshares qualifies as commercial use.
Notably, most rideshare companies, including Lyft and Uber, will provide coverage during the actual drive with a passenger, as well as when you are on your way to make a pickup. However, they do not cover the time you spend waiting for a trip, and neither will your standard auto insurance.
Given the rise of rideshares, both as a sole job and a supplementary income, this is particularly important. It essentially ensures that you are always covered if you drive for a rideshare service.
3. State Farm Gives Students Discounts for Good Grades
State Farm stands out with its range of discounts, including the Good Student discount. This only applies to students and offers savings of as much as 25%. To get those savings, all you have to do is have a GPA of 3.0 or higher or be in the top 20% of the class.
State Farm also offers discounts to people for not having an accident in three years, taking a defensive driving course, and not having any at-fault accidents or moving violations in three years. There are even discounts for being a student away at school, driving a newer vehicle with advanced safety systems, having an anti-theft system, and having multiple insurance lines or insuring multiple autos. Additionally, you’ll get discounts for downloading and using the Drive Safe & Save App and the Steer Clear App.
4. State Farm Was Founded By a Farmer
George Jacob “G.J.” Mecherle founded State Farm in 1922. He was a retired farmer and an insurance salesman. From the start, Mecherle wanted to operate fairly and always do what was right for customers. The company began as an auto insurance company with a single line.
Originally, Mecherle founded the company because he was unhappy with the insurance rates that farmers were charged. Specifically, he disliked that farmers had to pay rates that accounted for the unique risks of city driving.
Before founding State Farm, Mecherle was a scientific farmer. His wife had rheumatoid arthritis, so he quit farming. The family moved to Florida to try to help her health in 1919. When she didn’t improve, they moved back to Illinois in 1921.
Instead of going back to farming, he sold tractors. It was at this time that he realized he excelled at selling to farmers. He then combined his skill selling to farmers with his belief that insurance companies charged farmers premiums that were too high. He decided to create “an honest insurance company,” and the beginning of State Farm was formed.
5. State Farm Also Offers Banking
When most people think of State Farm, they think of insurance. However, the company has expanded over the years and also offers banking services. It provides a full range of services that you would expect from a bank, thanks to alliances with U.S. Bank and others.
The alliance with U.S. Bank lets State Farm offer checking and savings accounts. There are also money market options, CDs, retirement CDs, and credit cards.
State Farm also has an alliance with Quicken Loans to offer home mortgages. In the near future, the company will resume offering vehicle loans as well, once again in partnership with U.S. Bank.