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A major U.S. mutual insurance group best known for auto, home, property and life insurance.

Last updated November 4, 2026

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Overview

State Farm is a group of mutually owned insurance companies headquartered in Bloomington, Illinois. Founded in June 1922 by retired farmer George J. Mecherle, the organization initially focused on automobile insurance for farmers. Its mutual structure meant that the business was owned by policyholders rather than public shareholders, while its rural orientation allowed it to pursue rates that were intended to be more attractive than those commonly charged to urban motorists. Over time, State Farm expanded from a specialized automobile insurer into one of the largest property and casualty, auto and life insurance groups in the United States. The brand operates primarily through an exclusive-agent model. State Farm agents generally sell State Farm products rather than competing insurers’ policies, and the company’s captive distribution network has been central to its local, relationship-based identity. Agents sell and service products covering automobiles, homes, renters, condominiums, landlords, businesses, personal liability and life insurance. The company has also offered financial-services products, including banking, investment and retirement-related services, although these activities are distinct from its core insurance operations. State Farm’s public identity has been shaped strongly by advertising. The phrase “Like a good neighbor, State Farm is there” became one of the best-known insurance slogans in the United States, supported by a musical jingle written by Barry Manilow in 1971. Campaigns such as “Get to a Better State,” “State of…” and the recurring “Jake from State Farm” character translated the company’s agent model into humorous, easily recognizable situations. In 2020, actor Kevin Miles assumed the Jake role in a broader campaign that placed the character alongside celebrities and entertainment properties. State Farm has also used sports sponsorships, including naming-rights relationships associated with State Farm Stadium in Arizona and State Farm Arena in Atlanta. The organization has periodically broadened and simplified its operations. It entered banking in 1999 through State Farm Bank, which provided services remotely rather than through a traditional branch network. State Farm later reduced or transferred some international activities. Its Canadian insurance operations were sold to Desjardins Group in 2014, with policy underwriting transferred in 2015 and the State Farm Canada branding ultimately replaced by Desjardins Insurance during a transition completed by 2019. State Farm remains a large U.S. insurer with a broad agent network and substantial consumer recognition. Its recent operating environment has been affected by severe weather, wildfire exposure, rising repair and construction costs, regulatory constraints and changing insurance economics. In California, the company announced in 2023 that it would stop accepting new homeowner policies, citing wildfire risk and higher construction costs. In 2025, it sought an emergency increase in California property-insurance rates after losses associated with Southern California wildfires. These developments illustrate the tension between State Farm’s broad consumer distribution model and the increasing difficulty of pricing catastrophe-exposed property risks.

History

State Farm began in June 1922 when George J. Mecherle, a retired farmer, established a mutual automobile insurer in Bloomington, Illinois. The original concept was tailored to farmers, who were viewed as lower-risk drivers than many urban motorists. Because the company was owned by its policyholders, it could organize around mutual insurance principles rather than the expectations of public equity investors. Automobile insurance remained the foundation of the business, but the brand’s local-agent system gradually gave it a broader presence across the United States. During the twentieth century, State Farm expanded into additional personal-lines categories, including homeowners, renters, property and life insurance. Its exclusive agents became the principal interface between the company and customers. This distribution system differentiated State Farm from independent-agent insurers: State Farm agents were associated with one insurer and generally sold the company’s own portfolio. The model supported a highly visible neighborhood-oriented identity and helped connect national advertising with local sales and claims service. State Farm’s advertising became a major part of its history. The company’s “Like a good neighbor, State Farm is there” jingle originated in the 1970s and developed into a durable brand asset. In the 2010s, campaigns such as “Get to a Better State” and “State of…” used humor to portray customers facing ordinary mishaps and then contacting an agent. The 2011 “State of Unrest” commercial introduced the original Jake from State Farm, initially portrayed by employee Jake Stone. The character was later reimagined with actor Kevin Miles beginning in 2020, allowing the campaign to incorporate sports figures, actors and other cultural references. State Farm also moved beyond traditional underwriting. In 1999, State Farm Bank began offering remote banking services, including deposit accounts and mortgages, through digital, telephone and agent channels rather than a conventional branch network. The broader organization has maintained affiliated insurance, investment and financial-services entities, although insurance remains its defining business. The company’s international footprint changed significantly in the 2010s. State Farm transferred its Canadian insurance business to Desjardins Group in 2014. Policies moved to Desjardins underwriting in 2015, while the State Farm name continued temporarily in agent and marketing contexts. The Canadian operation was progressively rebranded as Desjardins Insurance, with the transition completed by 2019. State Farm has also adjusted its physical and organizational footprint in the United States. In 2017, it announced plans to leave 11 facilities as part of an effort to streamline processes. At the same time, the company continued to maintain a large employee and agent base and to invest in digital customer service. Sports sponsorships and naming rights, including State Farm Stadium and State Farm Arena, reinforced its national visibility. In the 2020s, catastrophe exposure became a major strategic issue. State Farm announced in May 2023 that it would stop issuing new homeowners policies in California, pointing to wildfire risk and escalating construction costs. In February 2025, following severe Southern California wildfires, it asked regulators for an emergency average rate increase of 22% for certain California property lines. The proposed changes included separate increases for renters, condominium owners and rental dwellings. These actions reflect wider pressure on property insurers as climate-related losses, rebuilding expenses and regulatory approval processes affect underwriting capacity and pricing. Leadership also changed during this period. Michael L. Tipsord, who had served as chairman and chief executive of State Farm Mutual Automobile Insurance Company, announced his retirement for 2024. Jon Farney, previously the company’s chief financial officer, succeeded him as president and chief executive. State Farm therefore entered its second century as a large, privately held mutual insurer balancing a long-established agent-and-neighbor identity with digital distribution, catastrophe management and regulatory challenges.

  • 2024

    Jon Farney becomes chief executive

    [1]

    Jon Farney succeeds Michael L. Tipsord as president and chief executive of State Farm Mutual Automobile Insurance Company.

  • 2023

    New California homeowners policies are discontinued

    [1]

    State Farm announces that it will stop accepting new California homeowners policies because of wildfire risk and higher construction costs.

  • 2020

    Kevin Miles becomes Jake from State Farm

    [1]

    Kevin Miles takes over the Jake character in a national advertising relaunch first aired around Super Bowl LIV.

  • 2014

    Canadian operations are transferred to Desjardins

    [1]

    State Farm sells its Canadian insurance operations to Desjardins Group, beginning a transition that ultimately replaces the State Farm Canada brand.

  • 2012

    The tri-oval logo is redesigned

    [1]

    A simplified logo is introduced to mark the company’s 90th anniversary and update its visual identity.

  • 2011

    The “Get to a Better State” and “State of…” campaigns launch

    [1]

    State Farm introduces humor-driven advertising built around common problems, agent assistance and the brand jingle.

  • 1999

    State Farm enters banking

    [1]

    State Farm Bank begins offering remote banking and mortgage services through online, telephone and agent channels.

  • 1971

    The signature jingle is created

    [1]

    Barry Manilow writes the “Like a good neighbor, State Farm is there” jingle, which becomes a central brand asset.

  • 1922

    State Farm is founded

    [1]

    George J. Mecherle establishes State Farm as a mutual automobile insurer serving farmers and other lower-risk motorists.

Products and positioning

Mass-market, relationship-led insurance distributed through an extensive exclusive-agent network, combining familiar national branding with locally delivered service.

  • Personal lines insurance · 1922

    Auto insurance

    State Farm’s original and most recognizable business is automobile insurance. The product is sold and serviced through the company’s exclusive-agent network and is aimed at individual drivers and households. Its long-standing association with motorists, roadside support and local agents is central to the brand’s market identity.

  • Property insurance

    Homeowners insurance

    Homeowners insurance covers residential property and associated risks for eligible customers. It is one of State Farm’s major personal-lines offerings, although availability and underwriting conditions vary by state. In California, the company announced in 2023 that it would stop accepting new homeowners policies because of wildfire exposure and rising construction costs.

  • Property insurance

    Renters and condominium insurance

    State Farm offers insurance for renters and condominium owners, addressing personal property and related liability or unit-specific risks. These products are part of the company’s broader household-insurance portfolio and are distributed through its agent network.

  • Life insurance

    Life insurance

    Life insurance is provided through State Farm life-insurance affiliates and complements the company’s property and casualty offerings. It extends the local-agent relationship into protection and financial-planning needs, although specific policy types and availability depend on jurisdiction and underwriting.

  • Financial services · 1999

    Banking and financial services

    State Farm expanded into financial services in 1999 through State Farm Bank. The bank offered products such as checking and savings accounts, certificates of deposit, money-market accounts and mortgages through remote channels rather than branch offices. These services were separate from State Farm’s insurance products.

  • Roadside assistance service

    State Farm Safety Patrol

    The State Farm Safety Patrol operates with participating highway authorities in selected areas. Patrol personnel assist stranded motorists with services such as fuel, radiator fluid and engine oil, while also helping clear road hazards and reduce the duration of traffic incidents. Coverage is limited to participating roads and regions.

Controversies

  • 2026

    Oklahoma couple sues Insurance Commissioner over unreleased State Farm roof claims investigation

    An Oklahoma City couple, Craig and Elizabeth Gutierrez, filed a lawsuit against Oklahoma Insurance Commissioner Glen Mulready seeking the release of a state investigation report into how State Farm handles roof claims from Oklahoma policyholders. The couple, who were denied a new roof after 2024 hail damage, say the report is overdue and could reveal critical information in their two-year legal battle with State Farm. Commissioner Mulready said an independent examiner has not yet submitted the final report.

  • State Farm racketeering class-action settlement

    A class-action case involving State Farm included allegations that the company used corporate influence and financial relationships with organizations connected to Illinois legal and judicial affairs. The litigation concluded with a reported $250 million settlement. The allegations and settlement should not be treated as proof that every asserted claim was established.

Read more

Marketing campaigns

  • 2025Batman vs. Bateman

    United States

    State Farm used Batman, Jason Bateman, Jake from State Farm and other DC-related characters in a campaign contrasting the superhero Batman with the actor Bateman.

    Outcome. Expanded the brand’s entertainment-led advertising strategy through a high-profile pop-culture partnership.

  • 2024Like a Good Neighbaaa

    United States

    A Super Bowl advertisement used Arnold Schwarzenegger’s difficulty pronouncing “neighbor,” with Danny DeVito and Jake from State Farm completing the joke.

    Outcome. Selected by USA Today’s Ad Meter as the top advertisement of Super Bowl LVIII.

  • 2020Jake from State Farm relaunch

    United States

    Kevin Miles reimagined Jake from State Farm in a campaign that retained the red shirt and khakis while placing the character in celebrity collaborations and genre parodies.

    Outcome. Extended the character into a major contemporary brand spokesperson.

  • 2015The Hoopers

    United States

    A family-centered series used NBA players including Chris Paul, DeAndre Jordan, Kevin Love, Kevin Garnett and Damian Lillard to present State Farm as a helpful household neighbor.

    Outcome. Connected the brand with basketball audiences and celebrity-led entertainment.

  • 2011Get to a Better State

    United States

    Humorous commercials portrayed customers dealing with everyday misfortunes before a State Farm agent appeared to help resolve the problem.

    Outcome. Strengthened the connection between the national brand promise and the local-agent model.

  • 2011State of…

    United States

    The campaign dramatized recognizable emotional or domestic situations, including the “State of Unrest” commercial that introduced the original Jake from State Farm.

    Outcome. Created a durable advertising character and a widely repeated pop-culture reference.

  • 1971Like a Good Neighbor

    United States

    The campaign built State Farm’s identity around a neighborly promise of availability and assistance, supported by Barry Manilow’s memorable jingle.

    Outcome. Became one of the most recognizable insurance advertising platforms in the United States.

Brand decisions

  • 2025

    Emergency California property-insurance rate requestPrice change

    Background

    State Farm said payouts connected with the January 2025 Southern California wildfires had increased financial pressure on its California insurance operations.

    Action taken

    The company requested regulatory approval for an average 22% rate increase, including proposed increases of 15% for renters and condominium owners and 38% for rental dwellings.

    Aftermath

    The request required regulatory review. The supplied material also refers to earlier approved increases and another pending request, but does not establish the final disposition of every filing.

    Requested average California rate increase. 22% average increase; 15% for renters and condominium owners; 38% for rental dwellings (Requested effective May 1, 2025)

  • 2023

    Withdrawal from new California homeowners policiesStrategy

    Background

    The company cited wildfire risk and increasing construction costs as pressures on California property insurance.

    Action taken

    State Farm announced that it would stop issuing new homeowners policies in California.

    Aftermath

    The decision reduced the availability of new State Farm homeowner coverage in a major insurance market and highlighted the effect of catastrophe risk on underwriting.

  • 2017

    Facility-consolidation planStrategy

    Background

    State Farm announced plans to streamline processes and reduce its physical operating footprint.

    Action taken

    The company planned to exit 11 facilities in the United States.

    Aftermath

    The plan formed part of a broader effort to improve operating efficiency; the supplied sources do not specify the complete employment or cost impact.

  • 2014

    Transfer of Canadian insurance operations to DesjardinsM&A

    Background

    State Farm elected to transfer its Canadian insurance business as part of a change in international operations.

    Action taken

    The Canadian business was sold or transferred to Desjardins Group, with policies moving to Desjardins underwriting in 2015 and the brand transition completed by 2019.

    Aftermath

    Desjardins Insurance replaced State Farm branding in Canada, while State Farm concentrated its principal insurance operations in the United States.

Recent events

  • Reported

    UVA Health acquires former State Farm operations center[6]

    UVA Health acquired the 365,000-square-foot former State Farm operations center on Pantops for a gross purchase price of $48.3 million. The acquisition is intended to free up capacity at University Hospital for inpatient care.

  • Reported

    Oklahoma couple sues Insurance Commissioner over unreleased State Farm roof claims investigation[3]

    An Oklahoma City couple, Craig and Elizabeth Gutierrez, filed a lawsuit against Oklahoma Insurance Commissioner Glen Mulready seeking the release of a state investigation report into how State Farm handles roof claims from Oklahoma policyholders. The couple, who were denied a new roof after 2024 hail damage, say the report is overdue and could reveal critical information in their two-year legal battle with State Farm. Commissioner Mulready said an independent examiner has not yet submitted the final report.

  • Reported

    State Farm sues Tesla over alleged battery fire[4]

    State Farm sued Tesla in federal court in Indiana, alleging that a faulty electrical system design caused a Tesla Model S to catch fire while parked and charging. State Farm is seeking to recover at least $1.271 million it paid to the family under its insurance policy; the allegations are claims in the lawsuit.

  • Unconfirmed

    Reported

    State Farm sues At Home Auto Glass over windshield claims[5]

    State Farm sued At Home Auto Glass, accusing the company of fraudulent windshield replacement claims and seeking $1.4 million in damages. The article also reports that the case was closed on September 30, 2024, after a judge issued summary judgment in favor of At Home Auto Glass.

  • Reported

    State Farm teams up with fire department for Fire Prevention Week[7]

    State Farm Agent Chip Raines and the Honeoye Falls Fire Department teamed up to support Fire Prevention Week; State Farm agents were delivering campaign toolkits to fire departments, including Honeoye Falls.

  • Reported

    Screenvision Media announces State Farm and Kraft Heinz sponsorships of summer drive-in movie series[8]

    Screenvision Media announced State Farm and Kraft Heinz as the sole sponsors of its summer drive-in movie series. State Farm will be the presenting sponsor, and Kraft Heinz will sponsor the intermission between double-features.

  • Reported

    State Farm announces $30 million Pathways for the Future initiative[9]

    State Farm announced a $30 million Pathways for the Future initiative on the Arizona State University campus. The workforce development program targets high school and community college students and working adults.

  • Reported

    WUKY and God’s Pantry Food Bank teamed up on a child-hunger initiative[10]

    WUKY teamed up with God’s Pantry Food Bank and named sponsors on a holiday-season initiative under which donations to WUKY would result in food backpacks for children in Fayette County, up to 2,000 backpacks.

  • Reported

    Telemundo adds sponsors to the Latin American Music Awards[11]

    Telemundo signed Boost Mobile, Ford, L’Oreal Paris, State Farm, Verizon and Universal Studios Hollywood as new corporate sponsors of the Latin American Music Awards.

Read more

Sources12 sources

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