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.
Benefits of used cars
In the recent world, in the market of recession, the people all across the word are facing huge crisis in the financial fields. And hence people are now-a-days finding it very difficult to purchase vehicles. It is very necessary to travel around, but affording a new car is quite tough for most of the people. The major advantage of buying used cars over that of the new ones is that they are much cheaper. However, many may have many misconceptions about the used cars. Some think that the cars may be defective, may be their engines don’t work or there may have battery problems and even rough. But this conception is totally wrong. The main thing is that, a minute after the car is out of the showroom, it is marked as used. Hence there is no problem in buying such a car.
Major affecting factors
The choice of the perfect model, car’s make and moreover, the budget, are the major factors that affect the purchasing of a used car. The source from which a person is going to buy the car also matter a lot. They are large number of cars which are sold just after the purchase due to some specific reasons. Buying such cars prove to be very much beneficial for the buyer as the price then gets to a less than the half of the original price of the car.
Going for the dream cars has become easy
Purchasing a used car even has many other advantages. If a person is willing to buy his/her dream car but is unable to go forward due financial lacks, then going for a second hand one is the most effective option. Getting the dream car within one’s own budget is like a real dream come true. Now-a-days people are getting very much choosy. For them purchasing a brand new car is become a matter of luxury. So buying bars from such people, selling their cars just after the purchase, certainly has many plus points with features being unaltered as well as with the guarantee or warrantee also being transferred with the car.
Selling of the used cars
The selling of the used cars even provides many advantages. Since new automobiles, after purchase, deplete in their values, it declines the resale assessment of the used cars. This is because the buying of the used cars is the best option for the middle class families with the minimum finance. The sellers even get advantage of opting for a new car, selling the old car at justified rates.
The used cars that are certified have value of their own. Sometimes the cost of these certified cars seem to be more for the buyers. However the other benefits along with this make it up. Many of the manufacturers offer these at lower rates. Special options of financing are also provided. While the main reason for going for a new car still depends on the affordability. People get the chance to fulfill their dreams of a new car.