Independent profile — not affiliated with State Farm
State Farm
State Farm is the largest US auto and home insurer, founded in 1922 by George J. Mecherle as a mutual company owned by its policyholders rather than shareholders. In 2025 it reported more than 96 million policies and accounts, $132.3 billion in revenue, $12.9 billion in net income, and issued a record $5 billion dividend to auto policyholders. Its corporate BBB profile carries an F rating and is not BBB accredited, with 4,506 complaints in the last 3 years and a 1.23-out-of-5 average across 1,726 customer reviews. In May 2026, California's Department of Insurance filed a formal accusation alleging State Farm mishandled thousands of January 2025 Los Angeles wildfire claims, finding 432 specific violations in a sample review; separately, internal documents surfaced in 2025-2026 litigation describe a company "Hail Focus Initiative" credited internally with cutting roof-replacement approvals by more than half and reducing claim payouts by a reported $1.4 billion in one year. State Farm paid $250 million in 2018 to settle a RICO lawsuit alleging it improperly influenced an Illinois Supreme Court election, and was fined $4 million by Montana regulators in 2024 over claims-handling practices, on top of $5.2 million in additional payments to Montana policyholders following a claims review.
Complaints & Reviews on USAComplaints
USAComplaints currently maintains 97 historical complaints about State Farm, published between 2000 and 2013. No approved complaints have been published on this site during the last three years. For a current reputation snapshot, see the independent sources below.
- Sam Francis State Farm Lewiston Maine - Insurance and financing
- The State Farm Insurance has decided that I no longer qualify for a Good Driver discount
- State Farm Ins. C. Martinez Agency Coral Gables State Farm prices and service is not the best anymore, not what it used to be. Overpriced and bad customer service. Other Carriers deserve a 2nd chance. You will be surprised at the savings. I found o
- AFNI Collections, AFNI Inc. Fraudulant Collections Claim that I owe State Farm Insurance Money (AFNI Scam)
- State Farm Insurance egregious
- Robin Bullard State Farm Insurance Co. Rip Off Fraud Unfair business practices, Lazy good for Nothing Cheats
- Marilyn Manzano, Cinawaye Elivert STATE FARM's Way of SCAMMING YOU!
- State Farm Insurance Theives, Charge you money and not protect your rights, Corporate Scum
- State Farm is investigating them for fraud in AZ
- State Farm Insurance denial
- Jose Gutierrez President I do believe that the insurance adjuster for State Farm is on the take with sudden impact
- State Farm - Providing Insurance and Financial Services Be Careful
- State Farm Ky Dickerson's office did not use fair and honest policies..in my dispute and conversation with he
- State Farm DANNY VENZ is very scary insurance company cancelling insurance for no reason
- State Farm Insurance Denial
- State Farm Insurance Denial
- State farm reviews - State farm
- Phenix City Al My local statefarm agent lied to the main office saying they was never notified of my accident last setember they lied because they did not want to pay the last of my medical bills
- Like a Bad Neighbor. State Farm Don't Care!
- Like a Bad Neighbor. State Farm Don't Care!
Complaint Themes
Independent Sources
Shown for context — not merged with USAComplaints' own numbers.
Contacts
- Official website: https://www.statefarm.com
Locations
| Type | Address |
|---|---|
| Headquarters | 1 State Farm Plaza Bloomington IL 61710 |
What State Farm Is
State Farm is the largest auto and home insurer in the United States, founded June 7, 1922 by George J. Mecherle, a retired farmer, in Bloomington, Illinois. Unlike publicly traded competitors, State Farm Mutual Automobile Insurance Company is a mutual company -- owned by its policyholders rather than shareholders, and not traded on any stock exchange. Jon Farney became President of State Farm Mutual on January 1, 2024 and CEO on June 1, 2024, succeeding longtime CEO Michael Tipsord, who resigned as Chairman in September 2024; Kenneth J. Worzel was elected Non-Executive Chair effective December 30, 2024. For 2025, State Farm reported more than 96 million policies and accounts across auto, home, life, health, commercial, and financial products, $132.3 billion in revenue, $12.9 billion in net income (up sharply from $5.3 billion in 2024), and announced what it called a record $5 billion dividend to auto policyholders (averaging $100 per insured vehicle across 49 million vehicles).
Is State Farm Legitimate?
State Farm's legitimacy as a real, massive, longstanding insurer is not in question. What's more directly useful to a prospective or current policyholder is its claims-handling record. Its corporate Better Business Bureau profile (Bloomington, IL) carries an F rating and is not BBB accredited, with 4,506 complaints in the last 3 years (1,138 closed in the last 12 months) and a 1.23-out-of-5 average across 1,726 customer reviews -- among the lowest review scores of any company profiled on this site. Note that State Farm also has numerous separate local BBB profiles by market/agent office with their own, different figures; the corporate figure above is the most consolidated one available. Independent state-level complaint-ratio data (the NAIC complaint index, where 1.0 represents the expected complaint volume for an insurer's market share) is published by state insurance regulators, but this research found only conflicting secondary-source figures (ranging from roughly 0.48 to 0.84 depending on year and line of business) rather than a single confirmed number pulled directly from NAIC's own database -- treat any specific NAIC complaint index you see cited elsewhere with the same caution.
The most significant current matter is a May 2026 California Department of Insurance accusation over State Farm's handling of January 2025 Los Angeles wildfire claims (see the related case entry), alleging hundreds of specific violations across a sample of reviewed claims. Separately, internal company documents surfaced through 2025-2026 litigation describe a program called the "Hail Focus Initiative" that internal materials credited with cutting a year's claims payouts by $1.4 billion and roof-replacement approvals by more than half. Historically, State Farm paid $250 million in 2018 to settle a RICO lawsuit alleging it improperly influenced an Illinois Supreme Court election to overturn an earlier $1+ billion aftermarket-parts verdict against it (that original 2005 reversal, Avery v. State Farm, is itself a landmark insurance-law case), and paid a $4 million fine to Montana regulators in 2024 over bad-faith claims handling, on top of $5.2 million in additional payments to Montana consumers following its own claims review.
What Complainants Allege
Across BBB complaints (dominated by Customer Service and Billing issues) and dozens of complaint reports submitted to USAComplaints over many years, the most consistent theme is disputed or denied claims: total-loss valuations complainants consider too low, denied theft or storm-damage claims, disputes over what a policy actually covers versus what an agent represented at the time of sale, and non-renewal or premium-increase notices following a claim. A recurring secondary theme involves communication breakdowns -- adjusters or agents allegedly not returning calls, conflicting information from different representatives about the same claim, and slow processing of paperwork required to release a settlement. These patterns are broadly consistent with the specific violation categories California regulators identified in the 2026 wildfire-claims accusation (delayed investigation, delayed accept/deny decisions, and inadequate settlement offers).
If You Have a Claim Dispute With State Farm
- Get every claim decision and settlement offer in writing, and keep a log of every call (date, representative's name, what was discussed).
- If your claim is denied or you believe a settlement offer is too low, ask State Farm in writing for the specific policy language and reasoning behind the decision.
- You have the right to get an independent estimate (for auto body work or home repairs) rather than relying solely on the insurer's own adjuster's estimate, and to compare it directly against what was offered.
- If you believe your claim was mishandled, you can file a complaint with your state's Department of Insurance (California residents specifically can reference the state's own 2026 findings against State Farm's wildfire-claims handling when filing) as well as the Better Business Bureau.
- For a bad-faith claim you believe was systematically mishandled (not just a single disputed decision), consult a licensed attorney in your state about whether your state's unfair-claims-practices law applies.
Court & Public Records
| Case | Authority | Dates | Type | Outcome | Source |
|---|---|---|---|---|---|
| California Department of Insurance v. State Farm General Insurance Company (2025 Los Angeles wildfire claims) | California Department of Insurance (administrative Accusation and Order to Show Cause before an Administrative Law Judge) | Filed | Filed, no ruling yet The California Department of Insurance filed a formal Accusation on May 4, 2026 alleging unfair claims practices in State Farm's handling of roughly 11,300 homeowner claims from the January 2025 Palisades/Eaton wildfires (about a third of all wildfire claims market-wide). A sample review of 220 claims found 398 violations in 114 of them, plus 34 more from direct consumer complaints (432 violations total), including failing to begin investigations within 15 days, failing to accept/deny claims within 40 days, allegedly lowball settlement offers, and failing to provide written denials for mold/environmental testing. Under California Insurance Code Sec. 790.035, penalties can reach $5,000 per violation ($10,000 if willful), potentially totaling millions of dollars; a license suspension for new business is also possible. As of March 3, 2026, insurers overall had paid $23.7 billion in wildfire claims, with State Farm accounting for more than $5.7 billion of that. This matter was pending before an ALJ as of this research, with no final outcome confirmed. | Source | |
| "Hail Focus Initiative" litigation (multiple plaintiffs, including Oklahoma hail-damage claimants) | Multiple state and federal courts (consolidated reporting; specific docket not confirmed in this research) | — | Allegation | Allegation only — no filing confirmed Internal State Farm documents disclosed through litigation discovery, reported by NPR in April 2026 based on internal documents, describe a company program internally called the "Hail Focus Initiative," which the company's own materials were reported to credit with roughly a $1.4 billion reduction in claims payouts in a single year and with more than halving roof-replacement approvals, while adjusters were reportedly directed toward repair estimates instead of replacements; these specific figures come from NPR's reporting on internal documents rather than from a public regulatory filing. A State Farm agent, Tracy Haus, is reported to have warned company leadership internally about reputational harm from the payout-reduction practice. This is an allegation surfaced through litigation and journalism, not a court's final finding of liability. Related enforcement and discovery matters are tracked as separate case entries below: an Oklahoma Attorney General lawsuit over the same practices, and an Alabama Supreme Court discovery-related ruling. | Source |
| State of Oklahoma ex rel. Gentner Drummond v. State Farm Fire and Casualty Company Docket CJ-2026-1066 | District Court of Cleveland County, Oklahoma | Filed | Filed, no ruling yet Oklahoma Attorney General Gentner Drummond filed a state enforcement lawsuit alleging State Farm's "Hail Focus Initiative" wind/hail claims-handling practices violated the Oklahoma Consumer Protection Act and Oklahoma's RICO statute, and constituted civil conspiracy and unjust enrichment. The petition seeks injunctive relief, civil penalties, disgorgement, and restitution. These are allegations in a pending state enforcement action, not an adjudicated finding of liability. | Source | |
| Ex parte State Farm Fire and Casualty Company (In re James M. Foor and Krystina Foor) Docket SC-2025-0918 | Supreme Court of Alabama | — | Judgment | Judgment entered In a discovery dispute within a bad-faith roof-claim lawsuit, the Alabama Supreme Court ruled on State Farm's request for a protective order, addressing whether the plaintiffs could use internal claims-handling discovery materials (related to the "Hail Focus Initiative" practices) in other similar bad-faith cases and share them with certain government agencies. This is a discovery/procedural ruling, not a decision on the merits of the underlying bad-faith claim. | Source |
| Chadwick v. State Farm Mutual Automobile Insurance Co. (total-loss vehicle valuation class action) Docket 4:21-cv-01161-DPM | U.S. District Court, Eastern District of Arkansas | — | Settled | Settled Class action alleging State Farm systematically undervalued total-loss vehicle claims. The court granted final approval of a class settlement establishing a $15,583,700 fund for class members, with an average estimated claim of roughly $489 per class member, without State Farm admitting wrongdoing. | Source |
| State Farm Mutual Automobile Insurance Co. v. Campbell Docket 01-1289 | Supreme Court of the United States | — | Judgment | Judgment entered Landmark U.S. Supreme Court punitive-damages case arising from a bad-faith failure-to-settle claim. State Farm had refused to settle a claim within policy limits, was found liable for the full excess judgment, and a jury separately awarded $145 million in punitive damages on top of $1 million in compensatory damages. The Supreme Court held the punitive award was grossly excessive and violated the Due Process Clause, establishing guideposts (including a general disfavoring of double-digit punitive-to-compensatory ratios) still cited in punitive-damages cases nationwide. | Source |
| Hale v. State Farm Mutual Automobile Insurance Co. (RICO — continuation of Avery v. State Farm) | U.S. District Court, Southern District of Illinois | — | Settled | Settled Federal RICO lawsuit alleging State Farm improperly influenced the outcome of an Illinois Supreme Court justice's election in order to overturn an adverse judgment from the earlier Avery v. State Farm case (over the use of non-original aftermarket auto-body parts). State Farm agreed to pay $250 million to settle the case on September 4, 2018, covering more than 4 million current and former policyholders from the original Avery class, without admitting wrongdoing. | Source |
| Avery v. State Farm Mutual Automobile Insurance Co. Docket 91494 | Illinois Supreme Court | — | Judgment | Judgment entered Landmark case in which a nationwide nationwide class of policyholders had won a jury verdict (reported as roughly $1.06-1.2 billion after appellate adjustments) alleging State Farm systematically used non-original, aftermarket replacement parts in covered auto-body repairs without properly disclosing this to policyholders. On August 18, 2005, the Illinois Supreme Court reversed the verdict and decertified the nationwide class, finding the plaintiffs had not shown actual, provable damages or deception across the class. | Source |
| Montana Commissioner of Securities and Insurance v. State Farm (bad-faith claims handling) | Montana Office of the Commissioner of Securities and Insurance (administrative settlement) | — | Settled | Settled Following a two-year review of claims-handling practices, State Farm agreed to pay a $4 million fine to resolve allegations of bad-faith claim denials, including improper use of a "contributory negligence" rationale. Separately, in October 2024, Montana's insurance commissioner announced State Farm made $5.2 million in additional payments to Montana consumers following the company's own review of roughly 18,000 loss-of-use and third-party liability claims. | Source |
Frequently Asked Questions
Is State Farm a legitimate insurance company?
Yes -- State Farm is the largest US auto/home insurer, a real mutual company owned by its policyholders. That said, its corporate BBB profile carries an F rating with 4,506 complaints in the last 3 years and a 1.23/5 average customer-review score, and it faces a significant 2026 California regulatory accusation over wildfire-claims handling.
What is State Farm's "Hail Focus Initiative"?
It's an internal company program, disclosed through litigation documents and reported by NPR in April 2026, that company materials credited with reducing a year's claims payouts by $1.4 billion and cutting roof-replacement approvals by more than half, reportedly by directing adjusters toward repair estimates rather than replacements. This is based on internal documents surfaced in litigation, not a final court finding.
Is State Farm facing regulatory action over California wildfire claims?
Yes. In May 2026, the California Department of Insurance filed a formal Accusation alleging State Farm mishandled thousands of January 2025 Los Angeles wildfire claims, citing 432 specific violations found across a reviewed sample. The matter was pending resolution before an administrative law judge as of this research.