by Guest » Thu Dec 13, 2007 05:03 am
State Farm is known to employ more than 60 million individuals dedicated to provide serving millions and providing them with insurance solutions. All state has more than 70 000 professionals offering insurance solutions to millions of individuals.
The consumer's point of view
Consumers are divided in their opinion of the two companies. Some think that State Farm is the better provider while others think Allstate is. There are individuals in our community who believe that since both State Farm and Allstate are big names in the insurance industry, it is hard to compare them both.
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.
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.
Related Readings:
- 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
I am interested in opening my own auto insurance agency. Can you advise which one is better between Allstate and State Farm? thanks
Posted: Thu Feb 12, 2009 08:12 am Post Subject:
Since you were a medical representative for years you may look into the area of health and life insurance. The agent is required to carry license of operation in almost every state. So, that the place to start. Obtain the licensing requirements from the DOI and prepare yourself for the test.
The career of an insurance agent is definitely challenging and financially worthy, but it'd also depend upon the skills of the agent. You surely will get more suggestions from other members, so, pls, hang tight. :D
Posted: Mon Mar 16, 2009 04:11 pm Post Subject:
Yes. I know a lot of pharmaceutical reps and nearly 100% say that it was “fun” or “glamorous” in the beginning but after that wears off it is like running a bread route. No offense to bread route drivers… If you find the right home so to speak, you will be very challenged. Good luck.
Posted: Thu Mar 19, 2009 12:46 am Post Subject: allstate or state farm
Go independent!
With Allstate you better have 50k to spend getting started and be able to go 12 weeks without pay. You work for them and they can buy your book for 1.5 times the renewals and force you into bankruptcy. On the other hand if all goes well and you build or pay off a 2m book then you will be sitting pretty. Just hire some producers to maintain your growth.
State Farm is a whole different animal. You invest 20k and borrow 25k from them. Doesnt matter how much pnc or life you sell if you dont sell enough banking products then they non renew your contract and you are out the money.
Independent contracts are not perfect but they are better than the above mentioned ridiculousness. Also when you acheive your 2m book you will be drawing 15% renewals instead of 10% with allstate and even less with sf. 5% of 2m is 100k per year!
Posted: Thu Apr 30, 2009 01:45 am Post Subject: state farm
i am going to assume that you will need up front money to start with state farm??? Because if so, i am out.
Do they pay you for the "internship" period also?
reading some of these responses scarfes me
Posted: Thu Apr 30, 2009 10:02 am Post Subject:
i am going to assume that you will need up front money to start with state farm??? Because if so, i am out.
What do you mean by that? If you want to start as an independent agent you'd certainly need to make some initial investment and its true with all insurance agencies. State Farm is no exception.
An independent agent would be responsible for searching for his own business. And that would require investment.
Posted: Thu Jun 04, 2009 02:13 am Post Subject:
i am going to assume that you will need up front money to start with state farm??? Because if so, i am out.
What do you mean by that? If you want to start as an independent agent you'd certainly need to make some initial investment and its true with all insurance agencies. State Farm is no exception.
Not what the question asked. The poster was wondering if the captive carriers require you to have a certain amount of money in the bank (liquid capital) before the captive will consider giving you an agency contract, and the answer is yes.
The big 3 all have capital requirements of anywhere between $25 - 50k before they'll give you a contract. They realize that you have to have money to live on when you first get started in this business, and this is their way of making sure that you will be able to take care of your finances while building your business.
InsTeacher 8)
Posted: Wed Jun 10, 2009 01:03 am Post Subject:
I'm currently in training with SF, and they pay me what I was earning before in my previous job during the 9 month training "internship". When the training is over they give me a $18k signing bonus immediatley then $12k more after 12 months. They will also extend me a $30k line of credit, and subsidize a seperate low interest loan for furniture & office equipment. I am opening a new market office so I will not be getting a book, so they will pay me $11k a month to help me get started for the first 2 years. Then it tapers down to $8-5k/month years 3-5.
The new contract doesn't give as much commission up front as the previous contracts, but as you can see they give you a lot of resources to get you started. Also if perform exceptionally well you can more than double your commission when you get the yearly bonus. This contract is a performance based contract designed to get the agents to perform at a high level from the start.
Posted: Wed Jun 10, 2009 08:59 am Post Subject:
Anon, it's great to know that you are receiving supports from your recruiters. However, I'm curious to know whether you have to return any of these favors in the near future to State Farm.
Posted: Fri Jun 12, 2009 01:03 am Post Subject:
No, but the initial contract is for 12 months. If you don't perform according to expectations, they could choose not to convert it to a permanent contract. You will not have to pay back any money they gave you, but you are responsible for any loans you took.
Posted: Fri Jun 12, 2009 05:30 am Post Subject:
Hi anon,
If you don't perform according to expectations, they could choose not to convert it to a permanent contract.
Have they explained to you regarding the expected targets?
This contract is a performance based contract designed to get the agents to perform at a high level from the start.
Would you avail this loan for all 5 years? Or is it that you'd consider it upon your success rate? I'm asking this since you'd need to have enough resources to repay your loans if you're unable to meet the targets..am I right!
Steven
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