State Farm is the insurer most Americans can name without thinking. It has a local office in nearly every town, a jingle almost everyone knows, and the largest book of property and casualty business in the country. But being the biggest and being the right fit for you are two different things. This review looks at State Farm the way a careful shopper would: what the company actually is, what it sells, how its agent-first model changes the buying and claims experience, and where it tends to be a strong choice or a weaker one.
If you are comparing State Farm against another carrier or deciding whether to stay at renewal, this guide gives you the full picture in one place, with links to our deeper State Farm guides on pricing, discounts, claims and cancellation.
Table of Contents
State Farm at a Glance
State Farm Mutual Automobile Insurance Company is based in Bloomington, Illinois. It was founded in 1922 by G.J. Mecherle, a retired farmer who believed rural drivers were paying too much for auto coverage. That original idea, fair pricing sold through agents who live in the communities they serve, still shapes how the company works today.
According to State Farm’s own 2025 financial results, released in February 2026, the company serves about 97 million policies and accounts, works through more than 19,200 agent offices and employs over 62,000 people. It ranked No. 32 on the 2025 Fortune 500 list.
| Fact | Detail |
|---|---|
| Founded | 1922, Bloomington, Illinois |
| Ownership | Mutual company, owned by its policyholders |
| Policies and accounts | About 97 million (2025 results) |
| Agent offices | More than 19,200 |
| Employees | Over 62,000 |
| P&C ranking | No. 1 U.S. property and casualty insurer by 2025 net premiums written (AM Best) |
| How it sells | Captive local agents, plus app and website |
| Main phone | 1-800-STATE-FARM (1-800-782-8332) |
How Big Is State Farm, Really?
Size matters in insurance because it affects how well a company can absorb a bad year. State Farm reported a net worth of about $170 billion for 2025 and total revenue of roughly $132 billion. In the same year it paid around $78 billion in claims, including nearly $15 billion tied to catastrophes such as the January 2025 Los Angeles wildfires.
AM Best’s review of 2025 premiums kept State Farm in the No. 1 spot for all property and casualty lines combined. The picture in auto alone has shifted, though. S&P Global data for the 12 months ending March 2026 showed Progressive passing State Farm in private passenger auto premiums for the first time. State Farm is still enormous in auto, but it is no longer the clear runaway leader it was for decades. For you as a customer, that competition is good news, because it tends to push pricing and service in the right direction.
What “Mutual Company” Means for Policyholders
State Farm is a mutual insurer. There are no outside stockholders, so the company answers to its policyholders instead of quarterly market expectations. In practice, mutual insurers tend to favor long-term stability over short-term profit, and some share surplus back with customers.
State Farm did exactly that recently. With its 2025 results it announced a one-time $5 billion cash back dividend for qualifying auto customers, payable in 2026, along with auto rate reductions in 40 states. Its life insurance side paid a record $924 million in policyholder dividends. These payouts are not guaranteed every year, but they show how the mutual structure can work in your favor.
What State Farm Sells
State Farm covers almost every personal insurance need, which is a big reason people bundle with it.
Auto Insurance
Standard liability, collision, comprehensive, uninsured and underinsured motorist, medical payments and personal injury protection where required, plus rental reimbursement and roadside assistance. Its usage-based program, Drive Safe & Save, prices part of your premium on how you actually drive. Our Drive Safe & Save review explains who benefits and who should skip it.
Homeowners, Renters and Condo Insurance
Dwelling, personal property, liability and loss of use coverage, with options such as scheduled property for jewelry and other valuables. Availability for new home policies has tightened in some high-risk states, especially California, so check whether an agent in your area is writing new business. Our State Farm homeowners review covers this in detail.
Life Insurance
Term, whole and universal life. State Farm’s life company reported $1.2 trillion of individual life insurance in force for 2025, which makes it a serious player, not a side business.
Other Coverage
Motorcycle, boat, RV and other specialty vehicles, small business insurance, umbrella policies and some health-related products. State Farm also offers banking and investment products through partners and affiliates.
The Agent Model: Biggest Strength, Occasional Weakness
The thing that most separates State Farm from GEICO or Progressive is the local agent. When you buy from State Farm, you usually have a named agent with an office you can walk into. That person can explain coverage, review your policies when life changes, and help push a claim along when something stalls.
For many families, that relationship is worth a lot. A good agent catches gaps a website never would, such as a teen driver who needs to be added or a home that is underinsured after a renovation. The tradeoff is consistency. Each office is run by an independent business owner, so service quality varies from one agent to the next. If you choose State Farm, choosing the right agent matters almost as much as choosing the company.
State Farm agents are captive, meaning they sell only State Farm. They cannot shop your coverage with other insurers the way an independent agent can, so it is still on you to compare quotes elsewhere.
State Farm Pros and Cons
| Strengths | Weaknesses |
|---|---|
| Huge financial cushion and top P&C ranking | Often not the cheapest option for drivers with clean records who shop online |
| Local agent for advice and claim help | Service quality depends heavily on the individual agent |
| Broad product line that bundles well | Captive agents cannot compare other insurers for you |
| Strong options for young drivers and families | New homeowners policies limited in some high-risk states |
| Mutual structure that has returned money to customers | Dividends and rate cuts are not guaranteed year to year |
Pricing and Discounts
State Farm’s prices are usually competitive rather than rock-bottom. It tends to do especially well for young drivers, families with several vehicles and people who bundle home and auto. Drivers with a recent accident or a lapse in coverage sometimes find better prices with carriers that specialize in higher-risk profiles.
The fastest way to lower a State Farm quote is to stack discounts: bundling, good student, accident-free history, Steer Clear for young drivers and Drive Safe & Save. See our complete list of State Farm discounts and our State Farm car insurance cost guide for how rates are built. You can also get a ballpark with our car insurance calculator before you call an agent.
Claims Experience
You can file a State Farm claim through the app, online, by phone at 1-800-SF-CLAIM (1-800-732-5246) or through your agent. Having an agent in the loop is a real advantage when a claim gets complicated, because you have someone local to call instead of starting over with a new representative each time.
Like every large insurer, State Farm gets complaints, and they rise after big catastrophe years when adjusters are stretched thin. Document everything, keep photos and receipts, and follow up in writing. Our step-by-step State Farm claim guide walks through the process, and if you are worried about premiums afterward, read whether State Farm raises rates after a claim.
How State Farm Compares
The right comparison depends on what you value most.
- Against GEICO and Progressive: State Farm wins on in-person help and often on young-driver pricing. The direct writers often win for self-service shoppers with clean records. See State Farm vs. GEICO and State Farm vs. Progressive.
- Against Allstate: Both are agent-based. Pricing and discounts differ by profile, so get quotes from both. See Allstate vs. State Farm.
- Against USAA: If you are eligible through military service, USAA is usually worth quoting first. See USAA vs. State Farm.
Who State Farm Fits Best
State Farm is a strong fit if you want one company for car, home and life, you like having a local person to call, you are adding a teen driver, or you value financial stability above shaving the last few dollars off your premium.
It may not be your best option if you want the lowest possible price and are comfortable managing everything online, if you have a recent at-fault accident or DUI, or if you live in a state where State Farm is limiting new home policies.
Frequently Asked Questions
Is State Farm a good insurance company?
For most households, yes. It is the largest U.S. property and casualty insurer, it has a large financial cushion, and its local agents make it easier to get advice and claim help. Whether it is the best choice for you depends on your price quotes and your local agent.
Is State Farm the largest auto insurer?
It is the largest property and casualty insurer overall. In private passenger auto alone, S&P Global data for the 12 months ending March 2026 showed Progressive moving ahead of State Farm in premiums for the first time.
Who owns State Farm?
Its policyholders. State Farm is a mutual company with no outside shareholders, which is why it can return surplus to customers through dividends.
Is State Farm cheaper than GEICO or Progressive?
Sometimes. State Farm often prices well for young drivers and bundled households, while GEICO and Progressive are frequently cheaper for drivers with clean records who buy online. The only reliable answer is to compare real quotes.
Can I buy State Farm insurance online?
You can get quotes and manage policies online and in the app, but most policies are still tied to a local agent who services your account.
Does State Farm offer gap insurance?
State Farm handles this differently from many insurers. Read our guide on whether State Farm offers gap insurance for the details and alternatives.
How do I contact State Farm?
Call 1-800-STATE-FARM (1-800-782-8332) for general service, 1-800-SF-CLAIM (1-800-732-5246) for claims, use the State Farm app, or contact your local agent directly.
How do I cancel State Farm insurance?
Contact your agent or State Farm directly, set the cancellation date to match the start of your new policy so you have no gap, and ask about any refund. Our State Farm cancellation guide covers each step.
The Bottom Line
State Farm earns its reputation. It is financially massive, it sells nearly every type of personal insurance, and its local agent network gives you a real person to lean on when something goes wrong. Its mutual structure has also put money back in customers’ pockets recently.
It is not automatically the cheapest, and your experience depends a lot on the agent you choose. Get a State Farm quote alongside at least two other carriers, ask the agent how they handle claims, and decide based on both price and service. If State Farm comes in close on price, the agent relationship is often worth the difference.
Want help comparing? Use our insurance calculators to estimate your coverage needs, or contact the Matrix Insurance team for a no-pressure review of your options.
