State Farm was founded in June 1922 by retired farmer George J. Mecherle as a mutual automobile insurance company owned by its policyholders.

[13] The firm specialized in auto insurance for farmers and offered better rates than rival companies, which must also cover expensive premiums of the urban motorists.

[22] On May 28, 2023, the company announced it would stop issuing new home insurance policies in California due to wildfire risks and surging construction costs.

For nearly 60 years, this design depicting three interlocking ovals representing the company's core auto, life, and fire insurance business was critical to its brand image.

On December 15, 2011, State Farm transformed its interlocked tri-oval logo into a contemporary one to showcase the company's core service offerings of auto, fire, and life insurance.

According to Pam El, marketing vice president at State Farm, a change in image was needed to employ a bolder presence that could compete in today's digital world.

The undaunted wife says, "She sounds hideous", and the husband replies, "Well she's a guy, so..."[34] In May 2015, a variation of "State of Unrest" premiered, starring The Coneheads from Saturday Night Live, with Dan Aykroyd and Jane Curtin reprising their respective roles as Beldar and Prymaat.

In late 2014, State Farm released a critically acclaimed commercial showing a man (played by Justin Bartha) who says that he will "never" do something (such as getting married, having kids, moving to the suburbs, and buying a minivan), only to do all of those.

The spot features Arnold Schwarzenegger struggling with the word "neighbor" in the company's tagline until he gets assistance from his Twins co-star Danny DeVito as well as Jake from State Farm.

[43] In Ohio, State Farm–branded safety patrol vans service major highways in the Cincinnati, Toledo, Cleveland, Columbus, Dayton, Akron, and Canton areas on weekdays.

[45] The State Farm settlement, a racketeering class action concluded with a $250 million agreement, involved allegations of potential corporate influence on the Illinois Supreme Court.

[46] According to the lawsuit's amended complaint, State Farm was accused of leveraging its influence and financial contributions to nonprofits such as the U.S. Chamber and the Illinois Civil Justice League.

[51][52] Plaintiff's attorney Richard F "Dickie" Scruggs later pleaded guilty in March 2008[53] for his role in trying to pay Judge Henry Lackey of Mississippi a US$50,000 bribe for a favorable ruling in a related case involving a US$26.5 million settlement after Hurricane Katrina.

[64] In response, State Farm took legal action against Radcliff, labeling him as the defendant in a case where they accused him of fourteen felony counts, including corrupt business influence and attempted theft.

State Farm expressed empathy for Doherty's health but disagreed with the jury's decision,[68] indicating that they would explore legal options, including a possible appeal.

State Farm's refusal to pay led to a lawsuit filed by the Cooks against the company, alleging negligence in various aspects of the claims process.

[70] Additionally, it was claimed that during arbitration, State Farm's lawyer introduced personal information that had been excluded as evidence, which was considered "willful and wanton conduct.

The lead plaintiff, Joan St. Julian, claims that State Farm violated the law by failing to pay sales tax to drivers when reimbursing them for the "actual cash value" of their cars that were deemed total losses.

[78] Several survivors of the East Troublesome Fire in October 2020 have filed lawsuits against State Farm, alleging that the company underestimated the costs of rebuilding and delayed claim payments.

[80][81] Another plaintiff alleged that State Farm undervalued his home by less than half the actual rebuilding cost and delayed payment for the coverage of personal property.

[85] In 2008, John McGee sued State Farm for wrongful denial of medical claims, denying him revenue he was entitled to for rendered treatments.

Any claims made by clients of these attorneys were automatically forwarded to State Farm's fraud unit, potentially on the basis of the religion and national origin of the lawyers.

In a civil RICO suit filed in 2005, State Farm was awarded over $15.4 million by a federal jury in a case involving alleged medical fraud.

Additionally, Lincow was accused of orchestrating a kickback scheme with Hirsh's pharmacy, filling unnecessary prescriptions in exchange for inflated rent payments.

[95] The core of their claim revolves around the alleged sharing of their personal health information with Insurance Services Office Inc. (ISO), a company specializing in comprehensive risk management analysis, supported by an extensive database.

[103] In 2019, Darryl Williams, an African American property owner, filed a discrimination lawsuit against State Farm, seeking class action certification.

He felt that he was treated unfairly based on his race, as a State Farm claims adjuster reportedly expressed skepticism about his version of events, citing a high level of fraud in his area.

[104] Carla Campbell-Jackson, a former State Farm employee, filed a federal lawsuit in December, alleging discrimination, a hostile work environment, and retaliation.

[106] An administrative law judge at the California Department of Insurance ordered State Farm to issue refunds and reduce rates after being found guilty of overcharging customers by $85 million.

[116] On May 24, 2022, State Farm ended its partnership with GenderCool, an organization that seeks to raise awareness of "transgender and non-binary youth", after receiving backlash from right-wing and conservative political figures and media outlets.