By Allison Bertsche, Corporate Responsibility Director

Whether we're driving, walking or biking, roadway safety depends on the choices each of us makes every day.

Our State Farm research on pedestrian safety reveals that whether we're behind the wheel or on foot, staying focused is something we all have a role in¹.

A recent survey found that:

• 66% of pedestrians often see distracted drivers.
   
• 64% often see distracted pedestrians.

These concerns affect neighborhoods across the country, from large cities to mid-sized communities and small towns alike.

When we asked people what would help prevent crashes and near-crashes, they didn't point to one solution. According to the survey, people believe drivers, cyclists and pedestrians all can help reduce crashes by:

• Slowing down
   
• Staying alert
   
• Putting phones away
   
• Respecting crosswalks

Also cited as ways to help reduce crashes:

• Improving roadway design
   
• Embracing technology that helps prevent crashes

The latest pedestrian safety report from the Governors Highway Safety Association (GHSA) offers encouraging news. Pedestrian fatalities declined in 2025 by the largest amount since GHSA began tracking them 15 years ago.

While that progress is worth celebrating, 6,732 pedestrians still lost their lives on U.S. roads in 2025. The data is an important reminder that creating safer roads remains a shared responsibility.

The Biggest Risks Often Look Ordinary

When many people hear "distracted driving," they immediately think about texting. In reality, distraction can come from everyday habits, whether it's adjusting the GPS, changing the music or responding to someone in the back seat.

Each of those moments may feel insignificant, but every time our attention leaves the road, the risk increases for everyone around us, including pedestrians, bicyclists and fellow drivers.

Years ago, one of my daughter’s friends was involved in a crash caused by a distracted driver. Thankfully, she wasn't seriously injured, but the experience reminded me how quickly one distracted moment can change someone's life.

As both a parent and someone who has spent years working alongside safety organizations, that moment stays with me.

Every decision we make behind the wheel has the potential to protect not only ourselves, but also the people who share our roads and our communities.

Safer Roads Take All of Us

I've come to believe that safer roads are built the same way stronger communities are built – one person, one family and one partnership at a time.

That same belief continues to shape how State Farm invests in communities. In 2025 alone, we donated nearly $50 million to support communities across the United States, including organizations and initiatives focused on auto safety. Whether we're supporting research, educating new drivers or helping families keep children safe in their vehicles, those investments reflect our long-standing commitment to helping prevent crashes.

Since the early 1990s, State Farm has also sponsored the Lifesavers Conference, bringing together highway safety professionals from across the country to share research, innovation and proven strategies for reducing crashes and saving lives.

Our partnership with Students Against Destructive Decisions (SADD), which began in 1985, continues to help young drivers develop safer habits through education focused on distraction and other risky driving behaviors.

Each of these efforts reflects the same philosophy: meaningful change happens when organizations, communities and individuals work together to help people make safer choices before a crash ever happens.

Looking Ahead

As a longtime associate member of GHSA, State Farm is proud to support state and territorial highway safety offices and the organizations working every day to reduce dangerous driving behaviors, set new drivers up for a safe driving experience and improve roadway safety for all. Our shared commitment has allowed us to combine research, share insights and help communities better understand the risks on our roads.

We're learning more than ever about what prevents crashes. Communities are redesigning intersections, automakers are adding advanced safety technology, researchers continue identifying risky behaviors, and families are having more conversations about safe driving. The opportunity now is to make sure our everyday habits evolve just as quickly.

Every safe trip begins with the decisions we make on the road – choosing to stay focused, slow down and look out for one another. When enough of us make those choices, they can add up to meaningful change.

For more than a century, State Farm has been proud to work alongside customers, community organizations and safety partners to support that shared effort. As our roads, vehicles and technology continue to evolve, our commitment remains the same: helping more people arrive safely.

Learn more about safe driving tips and find auto safety resources at statefarm.com/safedriving.

From Car Seat to Driver’s Seat™, State Farm® is committed to being a good neighbor by focusing on your family's safety on the road. Our relationships, programs, and research help promote child passenger safety, teen driver safety, seat belt use, and distraction-free driving.

[1] State Farm. (2026). Pedestrians & Distraction – A Consumer Survey. Bloomington, IL.

By Greg Frankowiak, Vice President, Underwriting

Your home is one of the biggest investments you'll ever make. Homeowners insurance helps protect that investment so you're better prepared when the unexpected happens.

Home values and housing markets change over time, and so does what it takes to repair or rebuild one after a covered loss. Building materials, local construction costs, and home updates can impact the cost of repairs or rebuilding. Those are factors to consider when selecting a coverage amount that reflects your home’s estimated replacement cost as it exists today, not just when your policy was first written.

Understanding available coverage options and costs will help as you decide on the right coverage. Make sure your coverage still matches your home, your needs, and the life you've built inside it.
 

Why Coverage Can Change Over Time

Q: What should I do if I’ve remodeled my kitchen, replaced my roof or made other upgrades? 
A: Home improvements can affect what it may cost to rebuild, so it’s a good idea to let your State Farm agent know. They can help you review your coverage and see whether it still aligns with your estimated replacement cost. 

Q: Isn’t my home’s market value the same as what it would cost to rebuild? 
A: Not necessarily. Your home's market value and its estimated rebuilding cost aren't the same thing. The cost to rebuild can depend on things like labor, building materials, local building requirements, and the unique features of your home. Your agent can help you understand how those factors relate to your coverage. 

Q: What if I haven’t made any major changes to my home – but I haven’t reviewed my coverage in years? 
A: It’s still a good idea to check in. Labor and material costs can change over time, even when your home hasn't. It's common to set up coverage when you buy your home and not think about it again for a while. A coverage review with your agent can help you determine whether anything needs to change.
 

It’s a Great Time for a Coverage Check

Accurate, up-to-date information can help you have a more informed conversation with your agent about your coverage needs, including potential endorsements and available discounts.

Home improvement and seasonal maintenance projects provide natural opportunities to take stock of what you've invested in your home and make sure your coverage reflects it.
 

Two simple steps can make a meaningful difference:
 

1. Review Your Home's Coverage

   Connect with your State Farm agent to discuss your dwelling coverage and current rebuilding assumptions. You may want to ask:

   • What information should I consider when deciding how much coverage I need?
   • Would an updated estimated replacement cost review be helpful?
   • Are there discounts available for improvements made?
     
      

2. Take Inventory of What Matters Most

   The structure is only part of the story. Your belongings matter, too. Creating or updating a home inventory can help if you ever experience a loss. Consider documenting:

   • Electronics and appliances
   • Furniture and home décor
   • Clothing and seasonal items
   • Tools, sporting equipment, and outdoor gear
   • Jewelry, artwork, and other valuables
      

   Once you've completed your inventory, review your personal property coverage with your agent to make sure it aligns with your needs. They can help identify endorsement needs based on your inventory.

   Across the country, State Farm agents live and work in the communities they serve. They understand local conditions, local needs, and the importance of helping neighbors prepare for whatever comes next. Whether you've completed a renovation, purchased valuable items, or simply haven't reviewed your policy in a while, a conversation with your agent can help you select coverage that reflects your needs.

   When homeowners take an active role in protecting what matters most—and work with a local agent they trust—they help build stronger, more resilient communities one home at a time.

By Sam McCammon, Area Vice President, Agency

Moving into your first apartment or rental home is an exciting milestone. As a parent, I spent weeks helping my son get ready for his first apartment as he headed back to college. We talked about roommates, budgeting and everything he'd need to make his new place feel like home. We made shopping lists, packed boxes and checked off what seemed like an endless to-do list.

Then, just before move-in day, I realized there was one thing we hadn't talked about.

I asked him:

"What would you do if your laptop was stolen from your apartment?"

He paused.

Like many first-time renters, he'd spent plenty of time thinking about what he'd need in his apartment, but not much time thinking about what could happen if something unexpected occurred.

That simple question opened the door to a conversation about renters insurance – what it is, what it may help cover, and why it's something every renter should understand before signing a lease.

Whether you're renting your first apartment or your fifth, understanding your insurance options before move-in day can help you feel more prepared for whatever comes next.

What is renters insurance?

Renters insurance is designed to help protect your personal belongings if they're damaged or stolen because of a covered loss.

It may also provide liability coverage if someone is injured in your apartment or if you accidentally damage someone else's property.

Think of it as protection for your belongings – and for some of the unexpected situations that can happen while renting. Many landlords also require you to have it.

Should I consider renters insurance?

Every renters situation is different, but it's worth taking a moment to think about everything you own.

It adds up faster than you think.

Think about everything you may have in your home:

• Laptop
• Phone
• Television
• Gaming system
• Bicycle
• Clothing
• Furniture
• Kitchen items
• Books
• Headphones

Replacing everything after a fire, theft or another covered loss could cost thousands of dollars. Renters insurance may help make recovering from those situations a little easier.

Before move-in day, consider taking photos of your belongings or creating a simple home inventory. It can make it easier to remember what you own if you ever experience a covered loss.

Who covers the building?

Your landlord's insurance generally protects the building – not your belongings inside your apartment.

That's one of the biggest misconceptions many renters have.

Is renters insurance required?

It depends on your lease, but it's becoming more common. Many landlords require tenants to carry renter's insurance before moving in and may ask you to provide proof of coverage, such as your declarations page. Others simply recommend it.

Even when it isn't required, many renters choose it for the added financial protection.

What does renters insurance typically cover?

Coverage depends on your policy, but renters insurance may help with losses caused by covered events such as:

• Fire
• Smoke damage
• Theft
• Vandalism

Many policies also include personal liability coverage and may help pay for additional living expenses if you can't stay in your apartment because of a covered loss.

Always review your policy so you understand what’s covered, what isn't, and how your deductible works.

What isn't usually covered?

Like all insurance policies, renters insurance has exclusions.

For example, a standard policy generally doesn't cover:

• Flood damage
• Earthquakes
• Normal wear and tear
• Damage caused by pests or pets
• Intentional damage

Some belongings may need additional coverage depending on their value and your policy limits. That could include the laptop you use every day, as well as jewelry, musical instruments, cameras or collectibles.

Take a look at the value of the items you own and review your policy limits to understand whether you have enough coverage. For eligible items that need additional protection, a State Farm® Personal Articles Policy can provide broader coverage.

Does my apartment's insurance fee mean I have renters insurance?

Not necessarily. It's easy to assume that an insurance-related fee on your lease means your belongings are protected, but that's not always the case. Some of these fees are intended to help protect the property owner or meet landlord requirements. If your lease includes one, ask what it covers and whether you'll still need your own renter's insurance policy to help protect your personal belongings.

How much does renters insurance cost?

The cost depends on several factors, including where you live, the coverage you choose and other personal details.

Many renters are surprised to learn that renters insurance can be more affordable than they expected. The average renters policy costs about $15 per month for up to $35,000 in personal property coverage – often less than you spend on coffee each month.

You may be able to lower your premium by:

• Choosing a higher deductible that fits your budget.
• Asking about available discounts.
• Bundling eligible insurance policies.
• Reviewing your coverage as your needs change.

Getting a quote from a State Farm agent or online at statefarm.com® can help you understand your options before deciding what's right for you.

Questions to ask before signing your lease

Before move-in day, ask yourself:

• Do I know what my landlord's insurance covers?
• How much would it cost to replace everything I own?
• Does my apartment require renters insurance?
• Do I have valuable items that may need additional coverage?
• Do I understand what my policy covers – and what it doesn't?

Taking a few minutes to answer these questions today may help prevent bigger surprises later.

A conversation worth having

When I think back to that conversation with my son, I'm glad we had it before move-in day – not after something unexpected happened.

Whether you're moving into your first apartment or renting a home, renters insurance is one of those things many people don't think about until they need it.

Taking a few minutes to talk to your local State Farm agent and understand your options before signing a lease may help you feel more confident about whatever comes next.

By Kristyn Cook, Executive Vice President and Chief Agency, Sales & Marketing Officer

Every State Farm agency begins with a dream. I know because my family lived it.

When I was a child, my parents invested their life savings so my dad could open a State Farm agent office. Their dream was simple but powerful: build a business, help people and create opportunity for our family and community.

Years later, I made the same bet and opened my own agent office on Chicago’s southwestern side.

The State Farm agency model is one of America’s great entrepreneurial success stories. It pairs the strength of an iconic brand with the heart of local business owners committed to helping people.

Behind every office is an entrepreneur building something that matters - creating jobs, serving neighbors and strengthening a community.

Agents know customers by name because those customers are their neighbors. They support local schools, teams, food drives, first responders and community events. They form one of the nation’s most powerful communities of independent small-business owners, helping millions move forward with confidence.

I have seen the power of human connection - and the entrepreneurial spirit behind it. These things have strengthened State Farm for more than 100 years. To keep that advantage, we must evolve with customers, technology and the marketplace.
 

Human + Digital

In May, we announced changes to our agency model grounded in the customer - changes rooted in the vision for the future we had shared in the months before. Since then, I have spent time with agents, listening to what those changes mean for their businesses, teams and futures. Their feedback has mattered. We have listened, learned and, in some cases, adjusted.

What has not changed is our belief in the agency model, and the unique value it delivers to customers.

That belief is at the heart of our Next Gen Good Neighbors vision: a faster, more tech-enabled State Farm that remains true to our mission and values. We call it Human + Digital.
 

Human connection sets State Farm apart

Digital tools can make it easier for customers to do business with us and help agents and employees serve them more effectively. But human connection is what sets State Farm apart. Every customer has access to a real person who knows them, understands their needs and is there when life does not go as planned.

Customers get the best of both worlds - and the freedom to choose how they engage with us.

Some want to research, get a quote or buy insurance online. Others prefer to work with a local agent from the start. Many want both. Whatever path they choose, they expect competitive prices and an easy, valuable experience.

What makes State Farm different is that every policy comes with access to a dedicated agent. That human connection matters most after an accident, when a storm damages a home or when a family faces a loss. In those moments, customers need speed, but they also need support, empathy and a clear path forward.

Agents take time to understand the whole customer. By bringing together home, auto and life insurance, they can help provide more protection - often at a better price.

That relationship goes beyond protecting what customers have today. It can help build the future they want. State Farm registered agents can help customers consider investment products and services as they save for a major purchase, education or retirement.

Technology helps make this experience possible. Customers can handle simple tasks on their own, while agents gain more time to focus on what matters most. AI can summarize meetings, find answers and reduce routine work. Connected systems can identify coverage gaps and give agents a clearer view of their businesses. Digital tools can help customers compare coverage or connect with an agent.

The goal is simple: let technology do more of the tasks so people can do more of the helping.
 

Strengthening our agency model for the future

The changes we introduced support our Next Gen Good Neighbors vision and strengthen the agency model for the future.

The new agent agreement is designed to help State Farm and agents evolve as customer expectations change. It creates a more consistent compensation structure and better aligns the agent opportunity with what customers expect: an excellent experience, competitive prices and help with more of their insurance and financial needs.

We will continue to appoint new agents and offer a premier entrepreneurial opportunity to build a local business backed by a trusted national brand.

Technology will keep changing how people shop, communicate and make decisions. We welcome that change because it gives us new ways to serve customers better. At the same time, we believe human connection will become more valuable, not less.

Customers should have digital speed and convenience when they want it, and a local agent who understands their lives when they need one.

That combination is a distinctive State Farm strength - and why independent contractor agents remain central to our future. The opportunity my parents believed in, the one I chose and the one thousands of agents still choose today, continues to matter to customers. We are evolving it so the next generation of Good Neighbors can protect what matters most.

When agents succeed - along with our employees and empowered by technology - communities grow stronger. Families pursue their dreams with confidence. Small businesses thrive. Together, that impact reaches far beyond insurance.

That is the power of local, and the power of State Farm.

By Buck Farley, Archivist/Historian

As the nation celebrates 250 years of history, resilience and progress, State Farm marks 104 years of serving communities across America. Our stories are intertwined—built on a shared belief that strong neighborhoods, people helping people and showing up when it matters most are what move America forward.

Our commitment to helping people is rooted in our founding, when George Jacob (G.J.) Mecherle recognized the risks facing rural drivers were different than city drivers. 

State Farm Mutual Automobile Insurance Company began from this idea: that insurance should be tailored to individual needs, at fair prices. G.J.’s vision has never wavered. As a mutual company, State Farm is accountable to our customers, not Wall Street shareholders. 

Our model and mission have been carried into neighborhoods across the country, intersecting with key moments in American history repeatedly over the past century. 

1922: Built for the rural American who’d been overlooked

In 1922, while Henry Ford was making cars more accessible, auto insurance companies continued to offer policies tailored to wealthy city customers. Auto insurance didn’t fit the needs of rural drivers and risked leaving these Americans behind. 

To help bring life to his vision of insurance tailored to the individual, G.J. turned to Minnie Jones, a successful businesswoman with insurance experience. Minnie invested in G.J.’s idea and joined the first Board of Directors in 1922, an early example of women in entrepreneurial leadership.

G.J. reimagined how insurance could work. With its rural roots, the Company ensured premiums matched risk and payment structures aligned with farmers’ needs. 

1933: The Great Depression: Stayed open when others closed

The Great Depression tested more than balance sheets. It tested whether companies would put customers ahead of shareholders. 

By 1933, banks were failing rapidly and nearly half of U.S. industries had collapsed over the past four years. In March, President Roosevelt declared a bank holiday to prevent further collapse. Insurers faced major strain as people fell behind on premiums and claims increased.

But State Farm kept issuing policies and paying claim, even operating at a loss to keep customers first.

During the Depression, State Farm launched the Fire Insurance Company in 1935. Protecting homes and property was about more than adding a new product. It signaled confidence communities would rebuild, even when rebuilding felt uncertain. 

As a mutual, State Farm can take a longer view in a way publicly held insurers under shareholder pressure often can’t.

1942: World War II era: Largest auto insurer in the country

By 1942, in the midst of World War II, resources were redirected and auto manufacturing largely stopped. Yet people still needed cars and, therefore, insurance. While the Company used the strength of its mutual structure to keep serving customers during another challenging time,  employees serving in the military were supported with desks left empty and marked with “reserved” signs. 

The “Million or More by ‘44” campaign helped auto policies rise from 350,000 in 1939 to 1.3 million by 1946, making State Farm the number one auto insurance company in the United States.

To support that growth and to be ready for the postwar return to life, the Company reinvented its operating model and introduced regional offices. Decision-making was shifted to local leaders, positioning State Farm to be there to help customers as housing expanded and families became more mobile as auto manufacturing resumed.  

1966: The first African American State Farm agent

The civil rights era reshaped America. In 1966, three years after the March on Washington, Ray Adkins Jr. became the first African American State Farm agent, marking an important milestone in our Company’s history. His appointment reflected a period of significant change in our nation and serves as a reminder of the progress that has been made, and the responsibility we all share to make the world around us better and to foster a culture of respect and inclusion within the workplace and our communities. 

1972 onward: Catastrophe response as a national capability

America’s history shows harrowing moments of weather events and disasters that can overwhelm communities. When catastrophes strike, being a good neighbor isn’t just about empathy. It requires action that can scale to meet an ever-increasing need.

In 1972, only a few years after Hurricane Camille devastated parts of the Gulf Coast, State Farm built Special Disaster Services. Teams were created who were ready to step out of their daily roles to quickly deploy to major events, putting people from State Farm onsite to assist customers and communities. 

In 1992, Hurricane Andrew impacted the lives of people in states from Florida to Texas. The response capability within State Farm needed to evolve and expand along with level of catastrophes. In 1997, the Company formed a larger, dedicated national catastrophe response team. 

Today, with new technology and partnerships in use, we have Weather and Catastrophe Services, a team that tracks weather events and can anticipate when to begin organizing deployments, set up on-site claims and assistance centers, and is supported with in-office claims handling.

We’ve come a long way since first developing this response capability. Whether coincidental or fate, as State Farm built the first catastrophe services team, Barry Manilow, then a jingle writer, had just written the tune for “Like a Good Neighbor, State Farm is There.” A message that continues to guide our mission to help people recover from the unexpected and realize their dreams.

Today: A mutual that answers to Main Street

Today, State Farm insures more homes and autos in the United States than anyone else. More than 19,000 agents and tens of thousands of employees help customers each day. Being a mutual remains central to how State Farm thinks about responsibility. CEO Jon Farney echoed the vision of G.J. saying, “We answer to Main Street, not Wall Street.”

As a mutual company, there are several ways State Farm returns value to customers. Just this year, in February 2026, the company announced a $5 billion mutual auto policyholder dividend – the largest in company history. Also this year, the American Red Cross recognized State Farm as a 2026 Mission Leader for extending our customer-first commitment to the communities in which we all live and enabling improved disaster preparedness, response and recovery. Finally, as Habitat for Humanity celebrates their 50-year anniversary, State Farm proudly continues our 30-year partnership. Beyond the financial support that has helped more than 450 Habitat affiliates build or repair homes for families, State Farm agents and employees show up each year to build homes in their communities. 
 

Becoming a Next Gen Good Neighbor

State Farm was founded on the simple premise of putting customers first. Over the past 104 years, we’ve been proud to stand by Americans through some of the nation’s hardest chapters. Backed by the commitment to our Company mission, the agents and employees of State Farm have always shown fortitude and given hope at times when both are needed. 

As America marks 250 years throughout 2026, we reflect on our shared heritage and look ahead, rising to serve customers and communities at a time of rapid change. Through economic challenges, growing weather-driven risks, and what can feel like mounting uncertainty, history shows State Farm is there. 

By Erin Rahn Morris, Vice President, Underwriting

Working on the Gulf Coast after Hurricane Katrina, I saw firsthand how devastating natural disasters can be. Many people lost their homes – and some lost their lives. Seeing State Farm® agents and employees quickly move into action to guide our customers through this challenging time was inspiring and motivating.  

The emotional toll a disaster brings with it and the long-term effects it has on families and communities is an experience we know all too well. While State Farm shows up when it matters most, offering local support and on-the-ground claim assistance, our work doesn’t just stop there. Every day, teams across State Farm are developing innovative, future-ready solutions to help build stronger homes, businesses and communities.
 

A Science-Backed Approach

One way we do this is through partnerships with organizations like the Insurance Institute for Business & Home Safety (IBHS). As a founding member of the IBHS Research Center, State Farm plays a key role in advancing innovation in resilient home construction. Countless hours of research and experimentation have led to proven steps homeowners can take to strengthen their homes against severe weather. We’ve also helped refine building standards and promote adoption across multiple states. In my role, I know the importance of applying this science to our products and offerings to enhance the way we protect people.

For stronger protection against wind and water damage, the IBHS FORTIFIED Home™ program gives homeowners the security of knowing their home is being built or retrofitted beyond code to withstand those risks. It’s not just storm hazard we’re addressing. Wildfires wreak havoc on homes and lives, too. Through the IBHS Wildfire Prepared Home Essential™ and Enhanced™ Program, homeowners can confidently reduce the risk of damage from wildfires.

Building resiliency has been one of my passions since the beginning of my career. As vice chair of the IBHS Executive Committee, it’s been rewarding to be even more involved in creating strategies that we can execute in every area of the country, considering the risks of wind, rain, hail and wildfire. Ultimately, I want everyone to understand the choices they have about where and how they live, and how they can be safer.

The Evolution of FORTIFIED Homes: A Decade of Progress

The IBHS FORTIFIED Home program, which began in the late 1990s, gained momentum in 2010 when it shifted focus to the wind peril and introduced “Fortified for Wind” standards. This game-changing approach included home improvements, not just new construction, making resilience accessible to many more homeowners.

Alabama is where the FORTIFIED Home program grew the fastest, bringing together builders, regulators and government leaders in a collaborative effort. A key driver of this success has been the Strengthen Alabama Homes grant program, which provides homeowners with $10,000 to achieve a FORTIFIED designation. 

Today, Alabama boasts over 50,000 designations, leading the nation.* Many other states have followed with legislation, incentives and grant programs encouraging FORTIFIED construction.
 

Hurricane Sally: Proof After the Storm

In September 2020, Hurricane Sally, a category 2 hurricane, hit the coast of Alabama. The data from Sally was a milestone for the insurance industry. For the first time we had real-world evidence that FORTIFIED homes suffer significantly less damage, resulting in fewer insurance claims and faster recovery times for families.

A study by the Center for Risk and Insurance Research at the University of Alabama analyzed over 40,000 properties impacted by Hurricane Sally. Researchers found:
 

• Homes with a FORTIFIED designation were 70% less likely to have an insurance claim than homes built to typical construction standards.
   
• Loss frequency (how often insurance claims occur) was reduced by 55% to 74% in FORTIFIED homes and loss severity (the average cost of claims) dropped by 14% to 40%— meaning these homeowners experienced less damage, avoiding high repair costs.
   

Safety, Savings and Strengthened Communities

At first glance, homeowners might see fortifying a home as being too costly or complicated. However, many FORTIFIED improvements are attainable and can be phased in over time, like reinforcing the roof’s framing, installing impact-resistant windows, or upgrading to a reinforced wind-rated garage door. These upgrades not only protect families but can also help reduce insurance claims, lower premiums through discounts and increase property values. 

State Farm agent Lad Drago in Spanish Fort, Ala., calls Baldwin County “ground zero” for FORTIFIED Homes. For nearly a decade, local builders and roofers have embraced these standards. “Customers see savings of $500 to $750 a year on insurance, depending on the age and location of the home,” Lad says. 

“Homeowners here don’t reroof unless it’s FORTIFIED because they understand the long-term value: Why risk $30,000 in roof damage when you can prevent it upfront?” Lad introduced FORTIFIED standards to his own builder in 2013, who quickly saw it as a marketing advantage, and soon other builders followed suit. Now, FORTIFIED roofs are a key selling point in real estate, often tipping buyer decisions and influencing negotiations.

Lad says “having a FORTIFIED roof changes the whole aspect of a claim. Older roofs often leak from minor damage, leading to costly repairs like replacing sheetrock and insulation. FORTIFIED roofs usually only lose a few shingles because of better protection and sealing. On the coast, it’s not just hurricanes, we get strong winds year-round. A FORTIFIED roof means better protection all year and less disruption when storms hit.”
 

Where We Are Today: Working Together to Make More Areas Resilient

This spring, IBHS announced that more than 100,000 homeowners nationwide have achieved the FORTIFIED program designation. We must continue to build on this momentum, encouraging builders, contractors and policymakers to collaborate on creative solutions that make stronger homes more accessible and achievable for all homeowners. From coastal regions to inland states, families should have access to resources they need to protect what matters most. With severe weather rising across the Central US and other parts of the country, FORTIFIED construction beyond the coast is more important than ever. 

The success of FORTIFIED Homes in Alabama, along with the state’s Strengthen Alabama Homes grants, now serves as a blueprint for other high-risk states. Combined with data from Hurricane Sally, I’m hopeful this will motivate all stakeholders to change how homes are built – making them stronger and safer for years to come.

As Next Gen Good Neighbors, we are committed to meeting our customers’ evolving needs with products and services that will push us all toward a more resilient future. Our vision at State Farm is for every homeowner to be able to build or retrofit their home to withstand severe weather, as well as for homeowners everywhere to take steps like creating defensible space and home hardening to reduce wildfire losses. At the end of the day, we want homes to be protected, but we also want lives to be saved.  

*Alabama Department of Insurance and Center for Risk and Insurance Research – University of Alabama, 2025

By Buck Farley, Archivist/Historian

State Farm was born from a simple conviction: people should be able to get honest insurance coverage at fair prices. This year, we mark 104 years of building on that idea—one that reshaped auto insurance and defined what it means to put customers first, innovate with purpose, and stay ready for the future.

George Jacob Mecherle—G.J.— grew up in rural Merna, Illinois. After nearly two decades of farming, he and his wife May retired in 1917 to Florida for May’s health.

When they later returned to Illinois, G.J. worked as an insurance agent, where he was troubled by auto policies that were one-size-fits-all and didn’t account for differences in driving habits or risk. Policies were limited primarily to liability coverage, required the customer to pay an annual premium, and—most importantly—were not based on how people actually drove.

That meant farmers were charged the same as city drivers even though they drove fewer miles and were less likely to have accidents. And paying annually was a serious burden for farmers.

G.J. believed this mismatch was more than just inconvenient. He saw it as a matter of fairness. The customer deserved pricing that matched risk and flexibility that respected people’s ability to pay. This deep commitment to customers endures at State Farm, where future-ready experiences are built on a legacy of listening to what customers need.
 

Putting the customer first, changing an industry

When G.J. suggested updating the auto policy to better serve farmers, his employer dismissed the idea. So G.J. left his job and started selling tractors. Yet the idea stayed with him.

On June 7, 1922, G.J.’s State Farm Mutual Automobile Insurance Company issued its first policy. From the start, State Farm’s foundation was clear, and it has never wavered: as a mutual company, we answer to customers, not shareholders, and the price you pay should match the actual risk, and the structure should work for customers—not against them.

This 104-year milestone comes as we celebrate 250 years of American independence. Both celebrations are grounded in strong tradition and an ongoing journey of improving lives through innovation.
 

Innovation continues as State Farm offers more products

Success in Auto highlighted the need for customer-first products in other insurance lines. State Farm expanded to help families protect more of what mattered in their lives. The Life Company launched in 1929, with G.J. purchasing the first policy. By 1935, the State Farm Fire Company was born, extending protection to homes and property.

Innovation showed up in day-to-day operations, too. Just as today, speed mattered then. In those days, it was important to get mail to Underwriting as quickly as possible. So, a simple solution was found: roller skates. A time-intensive paper binding process (glueing about 40–50 files an hour) produced 750 bindings an hour by introducing sewing machines to streamline the work.

Today, our employees are embracing technology to enhance the customer experience and match the expectation and pace our customers require.
 

Being a Good Neighbor is more than a slogan

Long before the slogan “Like a Good Neighbor, State Farm is There” entered American culture, it was how State Farm behaved. During the Great Depression and the 1933 bank holiday, State Farm stayed open. The company continued writing policies while other insurers folded. Tightening expenses and reducing coverages in the areas with the highest risk allowed us to protect customers where we could rather than leaving them entirely. The promise then, as it is today, was always about customers first, even when the cost of that promise was real.

State Farm’s customer focus has never stopped at coverage—it’s about helping people recover from the unexpected. Until 1969, when Hurricane Camille hit the Gulf Coast, causing catastrophic damage estimated at about $1.4 billion (approximately $11.2 billion in today’s dollars), independent firms handled catastrophe claims. Those specialized firms became overwhelmed, and customers weren’t getting help quickly enough.

So in 1972, State Farm created an in-house Special Disaster Services unit—claims associates from across the country, ready to deploy when disaster strikes. That readiness was sharpened across events through the ’70s and ’80s. Following Hurricane Andrew in 1992, the worst storm recorded at the time with over 361,000 State Farm claims, State Farm launched an industry-leading, national catastrophe team. And State Farm continues to be a good neighbor—a Next Gen Good Neighbor—using technology to build speed and simplicity behind the people helping customers recover. 
 

Becoming a Next Gen Good Neighbor

As America prepares to celebrate 250 years of innovation, State Farm’s celebrates an innovative mindset that started with G.J.: when something doesn’t serve customers well, improve it. It’s a mindset found across the communities we serve, and it drives our work today.

“That’s why we’re focused on becoming a Next Gen Good Neighbor: a State Farm that is faster and tech-enabled, while staying true to our mission and our values,” CEO Jon Farney wrote recently.

“For customers, it means fewer steps, faster answers, and more competitive prices. And in a moment of need, that means digital tools that reduce paperwork and speed up updates, paired with a person who can explain options, exercise judgment, and help a family take the next step.”

As a mutual company that serves customers, not shareholders, State Farm puts that promise into action. We announced a $5B mutual auto policyholder dividend in February and have committed $3M annually to the American Red Cross since 2024 to prepare before disaster strikes. As we continue building a human + digital approach, we honor what G.J. started and commit to what comes next: keeping the promises, serving the people, and continuing to innovate so the promise of the first policy issued in 1922 remains true.

By Rasheed Merritt, Executive, Corporate Responsibility

I had the privilege recently of joining a massive neighborhood worksite – 24 homes in five days – in southwest Atlanta as part of Habitat for Humanity’s golden anniversary celebrations. Walking onto the site, I was transported back to my first Habitat build over 15 years ago, struck by the same spirit of purpose and hope. Surrounded by the bright red volunteer shirts of State Farm colleagues, it was clear why this partnership endures: neighbors helping neighbors, creating benefits that ripple far beyond the immediate job site. It is a continuing legacy of showing up for people and doing good in the community.

This year marks a remarkable milestone for Habitat for Humanity: 50 years of helping families achieve the dream of homeownership. For many, building a home can feel out of reach, especially as rising costs put homeownership beyond grasp. That’s why Habitat’s work matters, and why partnerships like ours are built to last.
 

A Shared Legacy of Building for Tomorrow

Our partnership with Habitat is a testament to a legacy of community commitment. Together, we focus on building homes that become the foundations helping neighborhoods thrive for generations. State Farm’s support goes beyond financial contributions; it’s also grounded in volunteerism and collaboration. Habitat’s model is a community effort involving affiliate staff, volunteers, future homeowners and partners all working side by side. With more than 19,000 agents in communities across the country, and more than 62,000 employees, State Farm shows up.

Since 1994, State Farm has contributed more than $19 million to Habitat’s affiliates nationwide. This year, we were proud to be honored by Habitat for our partnership during the Jimmy & Rosalynn Carter Work Project in southwest Atlanta. Our participation in the project marks over 30 years of collaboration between Habitat and State Farm, and we were recognized as a Carter Circle Mission Builder – an honor shared by Habitat’s most committed partners.

Building Resilience for the Future

Our partnership extends beyond new construction. Together, State Farm and Habitat for Humanity transform affordable housing from basic shelter into durable, long-term community assets. We are committed to strengthening existing homes through the Habitat Strong program, preparing families and communities for the increasing threats of extreme weather. With over 100 years of helping customers recover from disasters, State Farm understands firsthand the importance of building homes that endure hurricanes, wildfires, tornadoes and other disasters. Disaster prevention is far more cost-effective than disaster recovery. Both organizations share a mission rooted in building stability and strengthening communities. By helping build or improve homes, State Farm supports safer living environments that align with risk reduction, leading to fewer losses and a stronger local housing base over time.

Through State Farm grants, over 450 local Habitat affiliates have been able to build or repair homes to exceed standard building codes, ensuring families have durable, fortified homes. These efforts not only protect lives and livelihoods but also guide homeowners toward insurance discounts available for resilient homes that help our customers lower costs.
 

Looking Ahead

The work we do together is ongoing. Throughout this year, Habitat is marking their 50^th anniversary with several major “50 in 50” efforts. In June, Habitat work will take place outside State Farm’s Bloomington, IL, headquarters as part of the 50 in 50 Whole Home Sponsorship in McLean County, continuing this year’s commemorations. These efforts serve as a reminder that building stronger communities is not a single event but a continuous journey across the country.

At the heart of everything is our shared goal and our commitment as Next Gen Good Neighbors: to help families build homes that are more than just houses – they are places of safety, stability and hope. By working hand in hand, State Farm and Habitat for Humanity are helping ensure that home remains a place where dreams take root and communities grow stronger for the future.

By Launey Jason, Vice President Agency – Sales

Buying a home is one of life’s most exciting milestones – a fresh start where dreams take shape and memories are made. Whether it’s your first home or a retirement retreat, protecting this investment is essential. Understanding your insurance options will help you decide what coverage best matches your needs and fits your budget.

Homeowners insurance can feel complex, but together, we’ll simplify it. Insurance helps protect your home’s structure and the belongings inside – from furniture to clothing to family heirlooms. It can’t stop the unexpected, but it can help you get back on your feet when it happens.

One thing I always remind new homeowners: As your home changes, your coverage should keep up. If you put on a new roof, update a bathroom, finish a basement or add a deck, those improvements can change your coverage needs. That’s why regular check-ins with your agent are one of the best ways to make sure your protection keeps pace.

Your homeowners insurance policy typically runs for one year. A simple habit that goes a long way is to schedule a quick annual review with your agent around renewal time. Don’t wait for a disaster to strike to discover your insurance does not match your home’s current value.

What does a basic homeowner's insurance policy cover?

Knowing what your basic policy covers and what extra coverage you might need helps keep you protected. Your agent can help you understand and find coverage that fits both your needs and budget, too.

• Dwelling coverage: Helps pay to repair or rebuild your home after a covered loss.
   
• Personal property coverage: Helps replace belongings like furniture, appliances, clothing and valuables if they’re stolen or damaged. Creating a home inventory can help you choose the right amount of coverage to meet your needs. This can be as simple as taking photos or quick videos of your belongings. Don’t forget: If you have a college student living on campus, your homeowners policy covers their personal property, too.
   
• Liability coverage: Helps protect you if someone is injured on your property. Injuries resulting from intentional harm or certain high-risk activities typically aren’t covered, so it’s important to understand any exceptions and limits.
   
• Endorsements: Optional add-ons that cover things like earthquake damage or valuable collections such as jewelry, art or sports memorabilia. Work with your agent to tailor your policy to your unique needs.
   
• Deductibles: The dollar amount or percentage you pay out-of-pocket before insurance kicks in to pay its portion of a covered loss. Choosing a higher deductible can lower your premium but means more cost upfront if you file a claim. Your agent can help you compare options and help you choose a deductible you feel good about.
   
• Additional living expenses: Pays for temporary housing and some other needs if your home becomes uninhabitable after a covered loss.
   

Clearing Up Common Homeowners Insurance Misconceptions

I know insurance can be overwhelming. Here are some of the questions I heard during my years as an agent and how I helped make sure my customers – and now you – were not surprised.

Homeowners insurance does not cover all types of damage.

Insurance is designed for sudden, unexpected events like fire, wind or theft – not problems that build up over time from wear and tear or lack of maintenance. Issues like long-term leaks that lead to mold, corrosion, settling and age-related cracks, untreated pest damage, or appliance breakdowns may not be covered by homeowners insurance. What I tell homeowners is this: keeping up with home repairs protects your investment and coverage. If you aren’t sure whether something would be covered, ask your agent – and for items like appliances and heating/cooling, you may also want to look into a home warranty.

Homeowners insurance does not automatically cover all water damage, including flooding.

This one comes up a lot, and the details matter. Many policies cover sudden events like burst pipes, but flood damage is not covered under most homeowners policies. Sewer backups can be covered if you choose to add a backup and sewer endorsement. Flood insurance is available through the National Flood Insurance Program (NFIP). Check with your local State Farm^® agent, many can help you get this coverage with NFIP.

Insurance won’t always rebuild my home or replace my roof after damage.

I hear more questions about this than any other topic when it comes to homeowners insurance. The reality is every loss and every claim is unique, and what the policy pays will depend on the type of damage to the property, the age and condition of what was damaged, and the coverage options you chose for replacement costs. Our Claims team will assess the damage and confirm the coverage the customer purchased, then handle the claim accordingly. The best way to feel prepared is to review your policy regularly and keep up with home maintenance, so you’re in a strong spot if something unexpected happens.

Insurance won’t always pay to replace my belongings with brand-new items.

I can’t stress enough the importance of understanding replacement cost options because your payments will depend on the option you chose. With replacement cost value, you get enough to buy a new item of similar value. With actual cash value, you get the item’s value minus depreciation for wear and tear. For example, if your 5-year-old laptop is damaged, replacement cost value would cover a new laptop of the same value, while actual cash value would pay less because the laptop is older. Replacement cost value usually means higher coverage but has also has higher premiums. Your agent can help you decide what’s best for you.

Homeowners insurance doesn’t typically apply if you rent your home.

If you rent out a room or your whole house, a rental policy may be necessary since standard homeowners policies usually do not cover rental-related risks. Before you rent – even short-term – check in with your agent to be sure you have the right coverage.

 

Talking With Your Agent: A Key to Protection

Your home is an investment, so let’s do everything we can to protect it. I always encourage homeowners to understand your coverage options and make informed choices – when you need it most, that knowledge can save you from costly surprises.

Choosing the right homeowners policy to fit your unique needs and budget doesn’t have to feel overwhelming. That’s where your local State Farm agent comes in. They’re here to help you manage life’s risks, recover from the unexpected, and realize your dreams.

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By Axel Del Cid, Vice President, California Customer Relations for State Farm General

Los Angeles isn’t just where I’m from – it’s home.

It’s where I was born and raised, where I met my wife. It’s where our daughter had her first little league game. My entire family still lives in LA, and we return often to spend time with parents, relatives and lifelong friends. This city shaped who I am.

So when the 2025 wildfires devastated parts of Los Angeles, it was personal.

As evacuations unfolded, my wife and I drove four-and-a-half hours from northern California to help evacuate her mother when the fires put her home in jeopardy. Friends lost homes. Entire neighborhoods were changed overnight. Seeing the damage up close reinforced something I’ve always believed: recovery requires more than insurance coverage – it requires empathy, listening and a long‑term commitment to the people affected.

I know there’s a lot being said right now about insurance and wildfire recovery in California and, unfortunately, we know that there are wildfires now and there will be in the future. If you’re a customer living through this right now, we know – because we hear from you – that nothing changes what matters most: getting you answers, support, and progress you can feel.

That’s why my new role matters so much to me. I’ll be building on State Farm^® recovery efforts already underway – to help LA not only replace what was lost but rebuild stronger.

Why I Care Deeply About Los Angeles

Los Angeles has given me every opportunity I’ve had in life, including a career that brought me to State Farm. I served as a State Farm agent in Los Angeles for nearly five years and experienced the insurance journey from nearly every angle – most importantly through the eyes of customers. I’ve partnered closely with claims professionals and agents. I’ve walked alongside families during some of their hardest moments – the passing of a loved one, a serious car accident, the loss of a home due to fire.

In that time, I learned: This city is resilient. In moments of crisis, Angelenos show up for one another. But rebuilding after a wildfire is exhausting, emotional and often overwhelming. It takes time.

I’m proud of how State Farm teams responded to the wildfires – from claims professionals mobilizing quickly, to agents supporting customers and communities under extreme stress. We’re a company made up of people and we’re always working to make the experience better for customers. And we know recovery doesn’t end after the immediate response.

Our claims professionals – nearly 200 of them – are still here, on the ground, working to help customers and answer questions. Dedicated employees who have been working in California for over a year staying in contact with the customers we’re serving.

I’ll be there too.
 

I’m Here to Listen

As Los Angeles recovers, my first priority is simple: listen.

I’ll be looking at feedback that’s already come in and talking with claim teams on the ground. When I spend time with customers, I want to understand how the recovery process feels – what’s helping, what’s frustrating, and where we can improve. That can mean fewer handoffs, faster callbacks, clearer letters, making sure customers know exactly what happens next.

I’ll also focus on long-term needs and how State Farm can best partner in community rebuilding. To me, this work is about helping families return to stronger homes and supporting long‑term resilience in California.

That’s the State Farm commitment I carry forward in this work.

By Joe Park, Executive Vice President and Chief Digital & Information Officer

The expectations and lifestyles of our customers are evolving faster today than at any point in State Farm’s history—and with that, what it means to truly serve them is evolving as well. To meet them where they are and continue building for the future, we are moving with urgency to become a Next Gen Good Neighbor.

Yesterday, our President & CEO Jon Farney shared more about this shift and what it means for State Farm.
 

My focus is how technology will accelerate our people’s ability to be a Next Gen Good Neighbor.

The customer-first mindset has defined State Farm for more than 100 years, and it will continue to define our future. We are listening closely to how our customers live, connect, and make decisions. Their needs are more complex. Our focus is on protecting what matters to them today, anticipating what they will need next, and building toward it. That's what “future-ready” means to us: ready for what’s coming, while maintaining the high standard of care and service our customers have always counted on.

During one of my first visits to a State Farm agent’s office in Dallas, TX, I watched an agent sit down with a customer and take the time to truly understand what they needed. They asked thoughtful questions, explained options, and made sure the customer felt seen and heard.

That’s what being a good neighbor looks like.

But at the same time, I watched that agent navigate screen after screen to piece together a full picture of the customer—pulling information from different systems, working harder than they should have to.

That moment was a clear signal: our fundamental commitment to serving communities stands strong. Our people are delivering what customers need. Our technology must do more to support them.

We have a systems problem. Too many disconnected tools. Too much time spent finding information instead of helping customers.
 

So, we are changing that.

From the agent who knows your family to the claim handler who picks up the phone after a hard day, we are building technology and creating new tools to strengthen human connections.

This is central to being an Agent or Employee of the Future.

Agents will be equipped to provide more personalized advice, build deeper relationships, and guide customers across auto, home, life, and financial services. Employees will spend less time navigating systems and more time applying judgment, empathy, and expertise in the moments that matter most. The role of technology is to make that possible.

Our customers are clear about what they want. They want things to be easy. Sometimes that means handling things through the app, and other times it means speaking with someone they trust. Both need to work seamlessly.

Picture this: A customer starts a claim in the mobile app, and at the same moment the claims representative has everything needed to move forward—no chasing information. And if the customer calls, the agent sees the same complete, up-to-date view. This is just one example of the many connections we will improve as we transform our approach to technology and build a unified insurance platform.

That's what we’re building: one connected experience, where technology and people each do what they do best.

Our goal is simple, even if the work isn't: Every customer interaction with State Farm should be faster, simpler, and more personal than it is today. We are aiming high and moving with urgency.

This transformation starts with getting the fundamentals right:
 

• Bringing our data together so it’s consistent and usable.
   
• Connecting systems so work flows without friction.
   
• Applying AI where it meaningfully improves the experience.
   

Not Human or Digital. Human + Digital, working together.

AI is one of the most powerful tools we've ever had, but only when applied thoughtfully. It should operate within the flow of work to help make decisions, move tasks forward, and reduce friction.

When we get that right, our people gain more time to do what matters most: engage with customers, ask better questions, and show up in ways that build trust.

We're working with leading tech partners to bring these capabilities forward. Our standard is consistent: thoughtful application with human oversight and clear accountability. 

Across my career, one principle has held true: technology earns its place when it makes the experience better for the people on the receiving end. That is the same principle that always has guided State Farm.
 

We’ve done this before.

Drive Safe & Save introduced telematics to align price to how people drive, so safe drivers benefit from better information. And the State Farm mobile app gave customers a meaningful way to manage policies and file claims well before it became standard in the industry.

That approach has not changed. Use technology when it improves the experience. Don't use it when it doesn't.

Our people remain central.

State Farm has been a good neighbor for more than 100 years. Next Gen Good Neighbor defines what that means for the next 100. We will continue to show up with the same values, customer-first, and ready for what's next.

Empathy when someone calls after the worst day of their life. The knowledge that comes from knowing a family for fifteen years. The accountability to follow through. The teams of people behind the brand who show up when it matters.

That combination of Human + Digital is what sets us apart: technology enables speed and simplicity, and our people bring the judgment and care that earn customer trust.

What we’re building now brings those strengths together in new ways—raising the standard for how we serve, so we can continue earning that trust into the future.

This is how we define what it means to be a Next Gen Good Neighbor. This is how we make it real.
 

Joe Park is Executive Vice President and Chief Digital & Information Officer at State Farm. Before joining State Farm, he was Chief Digital and Technology Officer and President of Byte by Yum! at Yum! Brands.

By Jon Farney, Chief Executive Officer

In 1922, G.J. Mecherle built this company on a simple idea to be a good neighbor. He was a farmer who believed farmers should not pay the same rates as higher-risk city drivers. That belief became State Farm, and more than a century later, our focus is the same: helping customers protect what matters most and prepare for what’s next.

Today, State Farm insures more homes and autos in the United States than anyone else. Across the country, State Farm agents and tens of thousands of employees show up every day to help millions of customers by answering questions, guiding tough decisions, and being there when life takes an unexpected turn.

We’re a mutual. We answer to Main Street, not Wall Street. And we know customers’ expectations are rising along with weather-driven risk and uncertainty. Our aim is to lead with experiences that are faster, simpler, and still human.

In a world that can feel increasingly disconnected, State Farm agents provide local presence, trusted guidance, and community. And as we modernize, we’re doing it with the clear principle that technology should strengthen human connection, not substitute for it.

That’s why we’re focused on becoming a Next Gen Good Neighbor: a State Farm that is faster and tech-enabled, while staying true to our mission and our values.

For customers, it means fewer steps, faster answers, and more competitive prices. And in a moment of need, that means digital tools that reduce paperwork and speed up updates, paired with a person who can explain options, exercise judgment, and help a family take the next step.

For agents and employees, it means less friction and more impact with clearer information in one place, fewer handoffs, and better tools so they can spend more time helping customers and less time tracking down answers.

We’re not starting from scratch. We’re building on the strengths that have earned customers’ trust for generations: our scale across multiple lines of business, the financial strength to absorb volatility, our brand, and, most of all, the talent of State Farm people. That foundation gives us the confidence to transform with purpose and to deliver a customer-first, future-ready experience in every channel.

G.J. Mecherle saw an industry that wasn’t serving people well and he did something about it. We’re honoring that same spirit today. We’re listening closely to what customers need, investing in the future, and raising the bar for what it means to be a Good Neighbor in a changing world. As a Next Gen Good Neighbor, we’ll keep measuring our progress the way customers do – by showing up, following through, and delivering when it matters most.

Jon Farney is President and Chief Executive Officer of State Farm Mutual Automobile Insurance Company. He joined State Farm in 1993 and has served in leadership roles across financial operations, underwriting, and corporate strategy. He became CEO in June 2024.

By Erin Engle, Vice President – Counsel

When I first started driving, distractions looked different. I remember untangling cords on a portable CD player and flipping through CDs at a stoplight just to find the right song. Today, drivers are dealing with something more constant and all-encompassing: phones and in-car touch screens that can pull attention away from the road in an instant.

That’s why interactive, driver-controlled technology is a regular topic of conversation at State Farm. We work at the state and federal levels to educate public policymakers through research to inform real-world driver solutions that reduce injuries and save lives. One example of our work in action is our support for Congressman Kevin Mullin’s H.R. 3360, which calls for more research into how driver-controlled technology – like touchscreens – affects attention behind the wheel.

We know that our discussions and better research help policymakers write smarter laws that reflect how people actually drive today. For example, a new State Farm survey found that distracted driving is the top roadway safety concern among U.S. licensed drivers ages 18 to 75. We also found that roughly 70% of drivers agree that hands-free laws would help reduce driver distraction. 
 

Hands-free laws

Distracted driving is personal for many of us. Tragically, in 2020, State Farm agent Reyna Immerfall of Ankeny, Iowa, lost her nephew Derrius in a crash involving a distracted driver. Reyna and her family turned their grief into action and took their call for change to the Iowa legislature.

State Farm’s advocacy team worked alongside Reyna and her family to support hands-free legislation. In July 2025, Iowa passed a hands-free law that limits drivers from handling their phones while driving. According to data from Cambridge Mobile Telematics, phone distraction fell 3.9% in the first month after the law took effect.

That kind of progress is what we’re working toward across the country. A strong hands-free law includes primary enforcement banning holding or manipulating an electronic device while operating a motor vehicle and bans the use of electronic devices by all novice drivers. State Farm provides lawmakers with strong data so they can make informed choices. We partner with groups like the Insurance Institute for Highway Safety (IIHS), Advocates for Highway & Auto Safety, StopDistraction.org, Safe Kids Worldwide and others to share research, promote safer habits and support practical solutions. Putting customers first, serving communities, and innovating to protect what matters most are at the heart of our mission.
 

The driver’s role

Drivers play a key role, too, because safer roads start with the decisions drivers make every day. Somewhere along the way, many of us started to believe multitasking behind the wheel is possible. But when you’re searching for a restaurant on a screen, reading a text, recording and streaming videos, or responding to an email while driving, it’s distraction – plain and simple.

Even a quick glance away from the road can have serious consequences. According to the National Highway Traffic Safety Administration, sending or reading a text takes your eyes off the road for 5 seconds. At 55 mph, that's like driving the length of an entire football field with your eyes closed. Hands-free laws can help reduce phone-handling behind the wheel, but real safety also comes down to the choices we make every day.

Here are a few simple ways to stay focused:

• Set it before you go. Start your route, music and calls before you leave.
   
• Use Do Not Disturb while driving. Most messages can wait until you arrive.
   
• Keep your phone out of reach. A bag, console or glove box removes the temptation.
   
• Use voice controls when needed – but keep your eyes on the road. Hands-free is safer than handheld but focus still matters.
   
• Secure kids and pets. Buckle everyone in so you’re not turning around while driving.
   
• Be mindful. State Farm is fostering a culture of mindful driving called Drivefulness™ by encouraging individuals to be present and focus on their drive. 
   

The bottom line

Distracted driving is preventable. With better research, smarter laws and everyday choices, we can reduce crashes and protect the people we share the road with — our families, neighbors and communities. Together, we can meet this challenge with urgency, empathy and innovation. At State Farm, we’re proud to stand alongside independent contractor agents, employees, lawmakers and communities to promote safer roads for everyone. 

* The Good Neighbor Auto Safety Award does not represent an endorsement of any political candidate, party, or campaign.
 

Distracted Driver Infographic
 

By Lisa Stewart, Senior Vice President

If you are a New Yorker trying to balance a family budget, cost of living issues are not some far-off policy debate. You feel it every month, at the grocery store, the gas pump, and when the auto insurance bills come due. At State Farm, our independent contractor local agents and their teams hear the same thing across the state: people want coverage they can count on, at a price that makes sense.

We recently announced a $5 billion cash back dividend to auto customers of State Farm Mutual, the largest in our 103-year history. We are a mutual company, which means we do not have shareholders. When we have a stronger than expected year, and can do so responsibly, we can return value to the people we are here to serve: our customers.

This cash back to auto customers is not the same thing as a rate reduction. It is a way to share value when results are better than expected, among other factors. It is not a guarantee of what next year will look like. We think that distinction matters, and New Yorkers deserve that clarity.

In New York, the auto policy customer dividend works out to about 4% of premium. In other states, it was as high as 10%. The amount varies because claims experience varies by state, and premiums reflect the cost of risk in each state. Across the country, we have also reduced auto rates in more than 40 states, collectively saving those customers over $4.6 billion a year. New York was not one of them, and that gets to the heart of the challenge here. This state has unique cost pressures that keep auto insurance premiums higher than the national average, and until those pressures are addressed, relief will remain limited.
 

The real long-term cost driver

Whether auto insurance gets more, or less, affordable in the years ahead is impacted by whether the underlying costs of claims go up or down. Cost pressures on claims include vehicle repairs, litigation, inflation, fraud and abuse. State Farm Mutual (and all insurers) must remain financially strong to keep our promise to our customers, even in years when losses are high. This is what customers deserve and expect, and it is what regulators appropriately demand. Thankfully, in New York, customers and policymakers are rightly focused on the costs that can be reduced: fraud and abuse.
 

We support Governor Hochul’s plan to fight fraud and lower costs

In her 2026 State of the State address, the Governor pointed to auto insurance premiums averaging about $4,000 a year, roughly $1,500 more than the national average, and called out staged accidents and fraud as major drivers. She is right. In 2025 alone, New York insurers reported nearly 44,000 incidents of suspected motor vehicle fraud to state regulators, an 80% increase since 2020.

Rates in New York are set based on expenses from New York and are not impacted by losses in other states. And every New York driver is paying a premium inflated by someone else’s fraud.

That is why we appreciate key parts of the Governor’s package aimed at:

Cracking down on staged accidents and organized fraud, including stronger tools for prosecutors to pursue the people who organize these schemes. The recently introduced FRAUD Act, sponsored by Assembly Insurance Committee Chair David Weprin, would make staging a motor vehicle collision a Class E felony and allow restitution to insurers. That is the kind of specific, enforceable measure that can change the risk calculus for fraud rings that view New York as fertile ground.

Giving insurers more time to investigate suspected fraud, so legitimate claims can be paid faster while suspicious claims get the careful review they deserve. Current law caps the investigation window at just 30 days, which handcuffs the ability to identify and stop fraudulent activity.

Strengthening the state’s focus on fraud enforcement, including added resources and coordination with law enforcement and district attorneys across the state.

Reforming the serious injury threshold under New York’s no-fault system with objective medical standards. The current definition is vague and applied inconsistently, which allows minor and temporary injuries to become the basis for costly litigation. Twenty-eight other states have already addressed this. New York should join them.

Insurance rates follow loss costs. When claim costs go down, insurers are committed to reflecting those improvements in future rate filings. Addressing the underlying drivers of costs—particularly fraud, abuse, system inefficiencies, and excessive litigation—is essential to achieving sustained affordability for New York Drivers.
 

Customers have power here, too

Addressing these challenges isn’t something one company, one law or one government office can deliver alone. It takes a shared effort, and customers have an important role.

Every accident avoided is a claim that does not get filed, which helps keep costs down for everyone. Drive safely, put the phone down, and take advantage of safe-driving options when they’re available.

Report suspected fraud. Staged accidents and fake injuries do not just hurt “the system.” They raise costs for you and your neighbors.

Our independent contractor agents live in the communities they serve. They coach Little League, volunteer, run small businesses, and help customers through the worst days. That local presence matters when it comes to affordability, too. They help customers find discounts, adjust coverage, and understand what they are paying for. That guidance helps keep costs down in ways that do not always show up in a headline.
 

A simple commitment: when costs go down, customers benefit

We support common-sense reforms that reduce fraud, encourage safer behavior, and keep the insurance market stable. The reforms the Governor has proposed are important, by targeting costs that can be reduced at the source. New Yorkers deserve affordable coverage. We think that is a goal worth working on together.

By Joe Park, Executive Vice President & Chief Digital Information Officer

State Farm® is at a pivotal moment in reimagining how technology supports and drives our business. As part of our commitment to building a culture centered on speed, agility, and innovation, we are participating in OpenAI’s Frontier platform. Our goal: strengthen the capabilities of State Farm agents and employees so they can provide best-in-class service to our customers.

As a launch partner, State Farm is among the first organizations exploring the use of OpenAI to power some of our most complex and valuable AI work; enabling us to explore new ways to accelerate our technology strategy.

With over 96 million policies and accounts, our responsibility to provide timely, clear, and compassionate support during life’s unexpected moments is our primary focus—all while preserving the personal human touch that defines our service.
 

Looking Ahead

Using AI tools provides a powerful approach to accelerate our ability to solve business challenges and put customers first while safeguarding customer data.

While we are just beginning to explore this relationship, our intention is to implement capabilities over time with rigorous security and oversight. Our standards for privacy, security, and accountability remain unchanged.

By implementing AI thoughtfully, we are taking practical steps to make insurance more accessible, affordable, and responsive, enabling our customers to navigate life’s uncertainties with confidence.

More details on OpenAI’s enterprise platform are available on OpenAI’s blog.

Note: Agentic AI (often called AI agents or agents) are smart tools that work with human supervision to perform a wide range of business tasks, including workflow automation and data entry. This is the sense in which OpenAI and others use the term AI agents or agents—not to be confused with licensed insurance agents who represent an insurance company.

By Jon Wey, Director of Consumer & Technology Insights

Combating the issue of distracted driving is part of my daily routine: both in the office and on the road. As a father of two teenagers who will soon be driving on their own, I’ve been working hard to role model the right behaviors for them. At State Farm®, I lead a team of researchers and regularly collaborate with industry partners to decrease the number of lives affected by distracted driving each year through injuries and fatalities.

There are many reasons why driving has become more challenging in recent years. You’ve heard of driving while intoxicated, but new research shows driving while stressed is also risky and dangerous.
 

New Research

In Fall 2025, a State Farm survey found more than 65% of drivers ages 22-40 believe it’s safe to look away from the road for two or more seconds, despite research showing a two-second glance can double crash risk.

The research also showed: When drivers have items on their "to-do" list, 27% said they become more distracted. Another 17% reported that being upset or stressed led to participating in more dangerous activities while driving.

The fact: Increased stress can cause a driver to lean into distraction, breaking their focus behind the wheel and increasing the risk of a vehicle crash.

Drivers reported using their “eyes off road” time to use the GPS, search for music, text and manually dial a number to call someone – all while driving along on the road.
 

Setting an Intention

Instead of just seeing safe driving as a rule we have to follow, what if we looked at it as a chance to unplug from distractions and reconnect with ourselves? Driving with full attention isn’t just about following the law, it’s about making roads safer for the pedestrian walking by, the kids heading home from school – everyone.

When we think of mindful driving as a way to reduce stress and boost our well-being, it might just inspire more of us to limit distraction while on the road and save a life, including our own.

Each morning when I get in my truck now – once I know my wife is ready to go teach her students and my kids are ready to go be students – I slam my truck door and just sit there, soaking in the silence for a good couple of moments. I love taking that moment of tranquility and I try to carry that mindful approach forward into my daily drive to work. Playlist set. Phone in silent mode. No distractions.

Planning ahead, before beginning your drive, can be the difference between routing your day and rerouting your future.

 

Distracted Driver Infographic

PDF version available for viewing and/or download: Distracted Driving: What Most Drivers Don’t Realize.
 

By Jeff Legner, Vice President of Property & Casualty Claims

The recent deployment of enhanced mobile accident detection and response technology from State Farm® marks one of the most promising initiatives of its kind in the insurance industry. With rising claims resulting from distracted driving and severe weather collisions, insurers like State Farm are redefining how they support drivers in real time, setting new standards for responsiveness and risk management in an increasingly connected digital world.

Accident Assistance is a feature available at no additional cost to any customers enrolled in Drive Safe & Save®. And in Illinois, Florida, and Ohio, it’s also available to eligible auto policy customers through the State Farm app regardless of Drive Safe & Save enrollment. In 2025, State Farm introduced the technology as a pilot program to millions of customers across these states by integrating it into the revamped State Farm app. 

The program offers real-time accident detection, police response service requests, and a streamlined claims filing experience. These features were designed to greatly reduce response times after a detected collision and provide you the support you need during the most critical moments - when every second matters.
 

An Emerging Need

The timing of this rollout isn’t coincidental. We’re seeing road conditions become increasingly dangerous. For example, a 2025 study from State Farm revealed 80% of drivers admit to engaging in at least one distracting behavior while driving and roughly 65% of drivers believe it’s okay to take their eyes off the road for 2 or more seconds.

As an industry leader in auto safety, State Farm has spent decades helping keep people safe From Car Seat to Driver’s Seat™.
 

How the Technology Works for You

The enhanced Accident Assistance program automatically detects when an accident occurs and can:

• Initiate contact with police response services when the driver is unresponsive to the notifications or the vehicle does not resume driving and a severe accident is detected 
   
• Pinpoint exact accident locations using GPS technology
   
• Begin claims processing once a service tow is requested; drivers can also file a claim in the app
   
• Connect drivers with available roadside services for non-emergency situations

Once an eligible driver opts into the program, users consent to data and location sharing, in addition to the use of their smartphone’s sensors to detect movement forces that indicate an accident. Privacy is a priority for State Farm, so we use encrypted data transmission and let you control the app’s access to your phone’s sensors to properly safeguard your information.
 

Expanding Access and Road Safety Outcomes

This technology exemplifies the expanding collaboration across the telematics and insurance industries to leverage advanced data to reinforce customer safety and deliver exceptional service. While launching initially in Illinois, Florida and Ohio, we plan additional rollouts in 2026 to promote driver safety across more regions and better assist the driving journeys of all road users.

Accident Assistance, previously limited to customers enrolled in Drive Safe & Save via the State Farm app, will soon be available to all eligible State Farm auto policyholders who have downloaded the app, regardless of enrollment in the Drive Safe & Save program.

As vehicle technologies continue to evolve and driving behaviors shift in the years ahead, we are dedicated to supporting your well-being in critical moments of need and prioritizing your safety on our shared roadways. As we progress further, we look forward to sharing more developments with you.

By Allyson Watts, Senior Vice President

When Florida families open their auto insurance bills, many will see something they haven’t experienced in years: lower rates. According to the Florida Office of Insurance Regulation, the state’s major insurers reduced rates by an average of 6.5% in 2025. State Farm® implemented multiple rate decreases last year. Together, they represent more than 20% in reductions in private passenger auto insurance rates for our Florida customers since fall 2024 - tangible proof that thoughtful policy reform and industry collaboration can deliver real results for consumers.

This isn’t happening by accident. It’s the direct result of Florida’s legislators and insurance regulators recognizing the impact of rising insurance costs - caused by over-litigation - and being willing to hear industry concerns and tackle the real problems behind the rising costs.
 

When Reform Works, Consumers Win

In 2023, the Legislature passed HB 837, a monumental litigation reform package addressing lawsuit abuse. Rather than accept the status quo of ever-increasing litigation, lawmakers enacted reforms that changed the litigation landscape, reducing litigation and lowering litigation costs which in turn lowered the cost of auto insurance for many Florida families. 
 

The Path Forward

While we celebrate this progress, Florida still faces unique challenges that demand ongoing attention and collaboration. Severe weather events, from hurricanes to hailstorms to tornadoes, continue to increase in frequency and intensity. Supply chain disruptions and inflation impact the cost of vehicle parts and repairs. These realities mean maintaining affordable insurance requires constant vigilance and adjustments.

State Farm remains committed to working with public policymakers to advance legislative solutions that continue to improve the insurance marketplace. The success of HB 837 shows what’s possible when thoughtful policymaking and balanced regulatory oversight combine with industry expertise to benefit Floridians.
 

A Model for Sustainable Solutions

Florida’s litigation reform effort offers valuable lessons for other states grappling with similar challenges. By focusing on meaningful solutions rather than short-term fixes, policymakers created a framework to benefit and protect consumers while maintaining market stability. This approach recognizes that a healthy insurance market requires balance – a focus on consumers alongside conditions that allow insurers to operate sustainably and competitively.

The progress we’ve achieved together is significant. State Farm is committed to working with Florida’s leaders to put consumers first while working toward long-term market stability. State Farm has been serving Florida customers for seven decades. Together, we can continue building an insurance market that serves all Floridians effectively and affordably.