The consumer's point of view
State Farm and Allstate seems to have a tough competition between them where they have almost equal votes in their favor. Both State Farm and Allstate share the same amount of criticism too from agents as well as consumers. Individuals have accused one of the 2 companies of denying claims for absurd reasons and the other of not paying claims again for absurd reasons.
The community has a State Farm agent putting his vote in favor of both the companies. The agent says that State Farm gives more importance to professionalism and a sense of healthy competition.
Complaints against State Farm
- This company is accused of not being clear in their contract with the agents.
- They have the reputation of overcharging consumers.
The fact of the matter is that, all insurance companies seem to have unhappy customers or employees. Each company has different policies and hence they may or may not suit a customer or an individual looking for employment with that organization.
- Creating an agency through State Farm or Allstate?
- Who provides better auto insurance rates?
- Becoming an Allstate independent agent
- What consumers say about State Farm
- Consumer views on Allstate
- Pros and cons in State Farm
Total Comments: 91
Posted: Wed Nov 04, 2009 02:34 pm Post Subject: INDEPENDENT INS AGENCY
When you say independent, please explain. How do you go about opening your own agency?
Posted: Thu Dec 31, 2009 01:58 am Post Subject: STATE FARM
As an employee of statefarm all I have to say is State Farm is the BEST AllState and all others BLOW!!!!!!!!!!
Posted: Wed Feb 10, 2010 07:08 pm Post Subject: What 60 million
"State Farm is known to employ more than 60 million individuals dedicated to provide serving millions and providing them with insurance solutions." That should solve our employment situation in the USA
Posted: Thu Feb 11, 2010 12:47 am Post Subject:
"State Farm is known to employ more than 60 million individuals dedicated to provide serving millions and providing them with insurance solutions."
State Farm doesn't EMPLOY more than 60 million individuals, they INSURE more than 60 million individuals. That kind of makes a bit of a difference, now doesn't it?
Where did you get that quote?
Posted: Fri Feb 19, 2010 04:27 pm Post Subject:
The only way to really compare the two would be have coverage from both companies. Compare apples to apples. Frankly sometimes the only way to decide who to go with who saves you the most money.
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Posted: Thu Feb 25, 2010 06:35 am Post Subject: State Farm
I went to an interview with State Farm today. Doesn't seem like they are all up front with a lot of to the things. I slowly found out that being an Independent agent is not as great as they make it sound. If you calculate your monthly cost: Rent=$2,500, Staff = $2,000/mo x2=$4000 + commission, Benefits=$500, Marketing cost: $1000, Utilities, E&O insurance, etc. You are looking at at lease $8000/mo in expense. The whole deal of SF giving you $11,000 a month for New Market, that's IF you meet their minimum production requirement (which they didn't tell me of course.) Otherwise you better have a lot of money to back you up for a year. So you better think long and hard before jumping in.
Posted: Thu Feb 25, 2010 06:37 am Post Subject: State Farm
* i meant State Farm Agent, not Independent agent
Posted: Fri Mar 12, 2010 06:47 am Post Subject: State Farm
I slowly found out that being an Independent agent is not as great as they make it sound. If you calculate your monthly cost: Rent=$2,500, Staff = $2,000/mo x2=$4000 + commission, Benefits=$500, Marketing cost: $1000, Utilities, E&O insurance, etc. You are looking at at lease $8000/mo in expense. The whole deal of SF giving you $11,000 a month for New Market , that's IF you meet their minimum production requirement (which they didn't tell me of course.) Otherwise you better have a lot of money to back you up for a year. So you better think long and hard before jumping in.
Seriously, you do realize you are starting a business right? They are willing to pay all your major expenses and let's not forget provide a lot of brand recognition and some advertising, training, lines of credit, etc... and then according to your math about $3,000 to help you live off of to boot. I do not know about you, but that sounds about, as good as, it ever gets for starting a business.
Sure it is not perfect or, as good as, it may once have been, and there is risk especially if selling is not your thing, or if you cannot actually hit the ground running, but really they seem to be giving you everything you need to succeed.
Many might say you do not own your book so it is not a true business. Maybe that is true, but you have the ability to control your income to some degree and quite a bit of freedom so it is close enough for me.
I had no idea that they provided that much support and assistance not to mention some great training on how to run your business as others have mentioned. So you have to have some money to actually survive until you get past the first 3-5 years. That is true for any business you start and 99% of other business startup opportunities do not have anywhere the support structures or assistance available.
I am not an agent, but I have thought about it before. I just did not think there was that much support available and thus I would need $150K or more to really start and survive.
I think both companies are good companies and sure being an independent agent you could make way more and would have way more freedom, but that is because you have way more risk and would be on your own. Which is ok if you have the $150k+ to start. Anything less and you are taking on too much risk for me.
if you can take the risk and have a lot saved go independent. Otherwise one of the big three seem to be a great way to get in with lower than average level of risk for starting a business. Remember though it is real work and a business so the first 5 years especially are going to be really hard. To think anything else would be foolish and just pure fantasy in my opinion.
Posted: Mon Sep 06, 2010 07:41 am Post Subject: State Farm better than All State
My personal experience is State Farm better than AllState. State Farm rate is cheaper also.
Posted: Thu Sep 09, 2010 07:54 pm Post Subject:
I just switched from State Farm to Allstate, by doing so I am saving over $120 a month. That's even adding another car, and full coverage to an existing one. The biggest difference was in my motorcycle, that alone went from $103 a month to $25.23. The coverage is all the same as State Farm, plus I went from $1000 deductable to $500.