Do we like them?

Do we like State Farm?

Largest US home and car insurer, also banking and life cover. Based in Bloomington, Illinois.

Our score: 4 out of 10. A big, policyholder-owned insurer, which is a plus. But it is under investigation over its handling of the LA wildfire claims, and it pushed through steep rate rises. We'd hold off.

State Farm started in 1922 and is still a mutual, so its policyholders own it and it has no stock market listing. That is a different setup from most big companies, and it counts in its favour.

Jon Farney joined in 1993 and worked as chief financial officer. He took over as CEO from Michael Tipsord on 1 June 2024, after becoming president at the start of that year.

The trouble is in California. In June 2025 Insurance Commissioner Ricardo Lara launched an investigation into whether State Farm followed claim-handling laws after the LA fires. It looks at things like adjusters being swapped around and smoke-damage claims.

A month earlier the state approved an emergency 17% homeowners rate rise, after State Farm asked for 21.8%. Lawmakers and consumer advocates opposed it. LA County has also opened its own investigation. We didn't find the outcomes, so we're marking it down until they're clear.