What is the difference between state farm mutual auto and state farm fire and casualty co?

State Farm Mutual and State Farm Fire (AKA Standard) are one of two State Farm Insurance Company programs that you can qualify into at the time of the application - Advantages of being in State Farm Mutual are:

* Good Driving Discounts

* Accident free discounts every 3, 6 and 10 years

* Possibility of earning a Guaranteed Renewable Policy (After 15+ years without claims)

* Significantly lower premiums

State Farm Fire is the non-preferred risk pool for State Farm - The least desirable risks are included in this program, you most likely got qualified into standard if this happened to you:

* Claims within the past 3 years regardless of fault

* Undesirable credit history

* Non US-licensed drivers

* Long lapse in insurance or no driving experience

State Farm Fire works on 1-to-3 star level; the lower the stars, the higher the premium. For example, if you lapsed for more than 30 days on your insurance, regardless of a stellar driving record and credit history, you will be qualified into Fire and will remain there for the next 3 years. There is NO Guaranteed Renewable Policy, Good Driving Discounts or Accident Free Discounts on this program.

The exact recipe for qualifying into Standard or Mutual is a very closely-guarded secret of computer algorithms; however, most people with a good credit history and good driving record qualify into State Farm Mutual without a hitch - about 5% of bound customers are Standard business.

If you have qualified Standard, you will remain there for 3 years.