State Farm Agent Vs. Farmers Agent

[gdeal]

I've searched the Internet but haven't found too much on the Pro's and Cons of each company.

I know the basics like Farmers will take anyone and State is more selective.
I just got my California P&C and I'm studying for my California Life and Health.
I'm kind of with Farmers right now but I'm wondering if I should try to work for State.
Farmers has renewal residuals but State has a Salary base + commission.

Any input will be greatly appreciated.
Thank you in advance.

 

[dales769]

You have to do your due diligence and decide which master you will serve.

 

[gdeal]

Dale, this is part of my due diligence.

 

[dales769]

Dale, this is part of my due diligence.

Ok, State Farm will try to get you to go so in debt that they really own you.
Farmers computer system is not intuitive at all and can drive you crazy trying to quote and close business.
Also, you are dealing with companies that
don't allow you to place business elsewhere. Rate increases threaten your book of business as you'll have no alternative.

 

[xrac]

My choice would be neither.

 

[Early]

I've been in the P&C business for a long time. And, having been with Farmers and having friends that are with State Farm, the best choice, from both of these poor choices, is State Farm.
But congratulations for choosing P&C insurance as a career! It's one of the few careers that grows like an annuity with every policy you sell. That being said, in my opinion, your best choice is working for an independent broker for at least a while. Gain some experience. Then you can continue with them or start your own independent agency. The money is better and your career is more secure. Working for captive carriers is not a good choice for many reasons including, 1 - When State Farm or Farmers is noncompetitive, you've got nothing to sell (BTW, Farmers hasn't been competitive since 2008, in any line of insurance). 2 - When you are independent you always have alternatives; 3 - Given the same amount of work you put in you'll make more money as an independent; 4 - At State Farm and Farmers underwriters and company representatives are only there to process policies or appease you. They don't have any leeway to help you; 5 - The independent underwriters have more authority so you'll write more policies. And the company reps will ask you what can they do to help you write more policies with their company. That's just the opposite of the apathy or even intimidation you'll get with the captive reps. I've been independent for a few years now and have never been happier!

 

[gdeal]

Ok, State Farm will try to get you to go so in debt that they really own you.
Farmers computer system is not intuitive at all and can drive you crazy trying to quote and close business.
Also, you are dealing with companies that
don't allow you to place business elsewhere. Rate increases threaten your book of business as you'll have no alternative.

Interesting. Thank you.

 

[PhilL]

You may want to consider calling some agents, currently with both of these or carriers and asking them about their start-up experiences. Most will be free with their information. You may be surprised what you will find out. Take good notes!

 

[gdeal]

You may want to consider calling some agents, currently with both of these or carriers and asking them about their start-up experiences. Most will be free with their information. You may be surprised what you will find out. Take good notes!

Sounds good. Thank you PhilL.

 

[djs]

Both of these companies will do things that make it extremely difficult to leave if you don't like the direction of the company in a year or 2. Basically, you'll end up in debt to your eyebrows to the company.

They both offer some good things at the same time, mostly training and support that can be hard to get elsewhere. Which one is better will depend a LOT on where you are and who you work with in each organization. If they truly train you and support you and don't just serve the company kool-aid, you can get a lot out of them. Unfortunately, this isn't usually the case.

As Phill said, call some agents in the area and talk with them. Talk with a variety of agents though, some that are newer (less then 2 years), some that have been around for 5 or so years and then 1 or 2 that have been there for over 10 years. You'll get different perspectives from each.

Try to talk to a couple of independents (go a town over) and ask how they win and lose against these guys. It might cost you a lunch, but it will be a good conversation.

Dan