State Farm was founded in 1922 by farmers who wanted lower automobile premiums.
George J. Mecherle, a retired farmer and insurance salesman, established the company in Bloomington, Illinois. He believed rural drivers deserved rates that reflected their driving experience and generally lower accident exposure compared with some urban motorists.
State Farm began as a mutual automobile insurer, meaning policyholders collectively owned the company. Its early business focused on auto insurance, and the organization later expanded into homeowners insurance, life insurance, banking, and other financial services.
The company’s name is sometimes confused with Farmers Insurance, which is a separate insurer. State Farm’s famous advertising slogan is also widely recognized, but the question concerns its founding story and 1922 origin rather than its branding.