A Good Neighbor: State Farm Insurance

A Insurance Article Contributed by Jessie Hart

The Beginnings of State Farm Insurance

State Farm Insurance Company was founded by George J. Mecherle in 1922. Mecherle had established and worked his own farm near Bloomington, Ill. at the age of 22. After 20 years of farming, he and his wife decided to moving into Bloomington due to George's declining health. Not content to simply retire and situate himself in a rocking chair, he got a job selling insurance policies with a local insurance company.

Although he turned out to be quite a successful salesman, he didn't feel that the rates and business actions of the company which employed him were suited to the farmers to which he sold the policies. George had a few ideas which he felt could be of benefit to both the company and the farmers, but when he suggested them to his employer, he was laughed off and told, "If you think you have such great ideas, go start your own company."

He did.

He dubbed his company State Farm Insurance and it was a mutual auto insurance company proudly owned by it's policy holders. By 1928, the decision was made to decentralize in order to make service more accessible to customers. An office was purchased in Berkeley, California. Since then, the company has expanded to 25 operations centers, employing over 79,200 workers. State Farm has grown from a small farm mutual auto insurer to one of the world's largest financial institutions. But one thing State Farm hasn't grown out of is it's philosophy of being a good neighbor.

The Philosophy of State Farm Insurance

State Farm's trademark signature reads, "Like a good neighbor, State Farm is there." George J. Mecherle's idea was that "The standard of success will eventually be the measure of the service given." The primary focus of State Farm is to provide Good Neighbor Service. The current President of State Farm Insurance, Edward B. Rust, Jr, stated, "Definition of a good neighbor: someone to be trusted; a courteous, friendly source of help when help is needed; someone you can count on; someone who cares."

To State Farm Insurance Companies, what this means is that they will be there when they are needed, and that they will provide the service that they have promised. State Farm agents are require to abide by the company's code of conduct which demands strict honesty and ethical excellent in their business dealings.

The Policy Holders at State Farm Insurance

State Farm Insurance Companies handle over 30,000 claims per day, all with a combination of deft professionalism and specific personal attention. They have been the number one provider of auto insurance since 1942 and the primary provider of home insurance since 1964. Today, they insure 1 out of 5 cars and homes.

State Farm currently has more than 64 million policies. And 80% of State Farm policy holders said that they would heartily recommend State Farm to their friends and family as the best Insurance Company. Offering a wide variety of discounts and affordable rates, this insurance company offers policies that fit the needs of the individual.