If you need dependable insurance, you need to look no further than a reputable firm such as State Farm Insurance. The company’s main business focus is auto insurance, although State Farm also operates in other areas such as life and accident insurance, homeowner’s insurance, health insurance, and many others. In fact, the company offers nearly 100 different products and services. State Farm is one of the Fortune 500 companies, another reason why you can feel safe by betting your money on them.
Roots of State Farm Insurance
To give you insight into the State Farm company, you might as well get to know about its history.
State Farm was established in 1922 by George Jacob “G. J.” Mecherle (pronounced as Ma-herl) The company initially started as an automobile insurance for farmers.
Mecherle had a successful career as a farmer for about two decades, but he decided to retire to take care of his wife, who was suffering from rheumatoid arthritis. The couple relocated to Florida but then moved back to their original home state of Illinois, settling there in Bloomington.
Affordable, fair insurance policy
Mecherle found a second career as an agent for an insurance company and later became successful in his new field. However, he found some flaws in the insurance policies during that time, which charged farmers the same rates as the other policyholders. Considering that farmers typically drove less and were less likely to be involved in vehicular accidents as those who worked in traditional 9-5 jobs, he thought their rates should be lower.
Mecherle suggested this as a sales pitch to the company he was working with, but his idea was rejected. So he went on his way and established his own insurance agency, called State Farm Insurance. He put his emphasis for an affordable, fair insurance policy as his company’s business platform. Mechrele’s business was established in Bloomington, Illinois in June 1922.
Contrary to the name, State Farm wasn’t established to provide insurance for crop farmers, but rather as a company that offered affordable automobile insurance policies for the farming community. It was a mutual insurance company owned by its policyholders. Mecherle included other services such as semi-annual payment plans as well as low-risk rates for the convenience of the company’s clients.
From a small-town insurance firm to one of America’s largest insurance giants
Automobile owners who weren’t farmers soon found out about the attractive policy that State Farm offered, so they drove in (pardon the pun) to purchase their car insurance plans from Mecherle.
State Farm proved to be really successful. It went from a small-town firm to one of the insurance giants in the US. It’s also the leading insurance company in Canada. Its headquarters remain in Bloomington, Illinois, where Macherle’s dreams started and formed.
Aside from auto insurance, State Farm also offers other policies such as life insurance, health insurance, homeowners insurance, business, and so many others. In the not too distant past, it has added banking and financial services to their clients as well.
State Farm’s growing numbers
Today, State Farm currently employs almost 19,000 insurance agents. As of 2010, it had over 81 million accounts, including 43 million for auto insurance accounts. Its accessibility and reliability are also part of the company’s stellar assets, a rare quality found in most of today’s insurance companies. Its commitment to giving reliable service to its policyholders is evidenced by the nearly 39,000 claims that the company processes day by day.
Despite its unstoppable growth as one of the major insurance companies in North America, State Farm Insurance still holds true to its promise in carrying out George Mecherle’s vision of offering fair and reliable services to its clients.
- History of State Farm Insurance | eHow
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- History of State Farm Mutual Automobile Insurance Company – FundingUniverse
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- State Farm Insurance – Wikipedia, the free encyclopedia