State Farm is one of the largest insurance companies in the United States. It offers a wide range of insurance products, including auto, home, life, and health insurance. It also offers Banking and Investment Services.
Its banking products include checking and saving accounts, credit cards, CDs, and home loans. Its investment services and products include Retirement and IRAs, mutual funds, estate planning, and annuities.
Given the range of financial services that State Farm offers its potential market is extremely large and diverse. In this article, we’ll study the State Farm target market and understand what they look for in a financial and insurance company like State Farm.
Who is the State Farm Target Market?
To best understand the State Farm target market we need to understand why people need services from a financial and insurance company like State Farm.
By understanding people’s needs for purchasing financial or insurance products and understanding their motivation to choose these from State Farm, we can divide the market into separate segments and study each segment on its own.
This gives us the following segments of the State Farm target market:
- People looking for vehicle insurance
- People looking for home and property insurance
- People looking for life insurance
- People looking for health insurance
- People looking for disability insurance
- People looking for personal and/or business liability insurance
- People looking for pet insurance
Let’s now take a closer look at each of these segments of the State Farm target market.
#1. People looking for vehicle insurance
Anyone in the market for vehicle insurance is a potential customer of State Farm. People in this segment of the State Farm target market could be in the market for insurance for a car, a motorcycle, a boat, a motor home or a commercial vehicle.
State Farm offers a range of different insurance products for vehicles, including liability insurance, collision insurance and comprehensive insurance.
#2. People looking for home and property insurance
Home and property insurance usually includes insurance for the home itself, as well as any contents of the home. State Farm offers both homeowners insurance and renters insurance.
The contents of the home which can also be insured include personal articles like jewelry, fine art, cameras, computers, musical instruments, bicycles, silverware, etc. It can also include health-related equipment including hearing aids, medical devices, wheelchairs, and the like.
Home and property insurance isn’t limited to houses and condos but can also include farms and ranches. This makes any homeowner a potential State Farm target market.
#3. People looking for life insurance
State Farm offers different types of life insurance including whole life insurance, term life insurance, and universal life insurance.
This segment of the State Farm target market includes people who are looking to financially protect their families in the event of their death.
When looking to buy life insurance, these people look for a company that is reliable and has a good reputation. State Farm meets both these criteria, making them a popular choice for life insurance.
#4. People looking for health insurance
State Farm offers a variety of health insurance plans for families, individuals and seniors. These include supplemental health insurance, medicare health insurance and individual medical coverage.
Supplemental health insurance supplements primary health insurance and is helpful to deal with unbudgeted expenses. Medicare Supplement insurance is designed for those on medicare to cover certain expenses that Medicare does not cover. And Individual medical coverage is for those who do not have individual health insurance through their employer or another group.
#5. People looking for disability insurance
Many people in certain jobs are at a higher risk of suffering a disability that could prevent them from working and earning an income. State Farm offers long-term and short-term disability insurance to help protect these people financially if they are ever unable to work due to a disability.
Some examples of professions that may be at a higher risk of suffering a disability and would, therefore, be part of the State Farm target market for disability insurance include doctors, nurses, construction workers, police officers and firefighters.
#6. People looking for personal and/or business liability insurance
Liability insurance is useful for people facing the possibility of being sued for damages. This type of insurance can cover both personal liability and business liability.
For example, if you accidentally injure someone while playing tennis, your personal liability insurance would cover the medical expenses incurred by the person you injured. If you own a business, your business liability insurance would cover any damages caused by your business, such as if a customer trips and falls on your premises.
State Farm offers both personal liability insurance and business liability insurance, making them a potential insurer for anyone with this need.
#7. People looking for pet insurance
Pet insurance is a type of insurance that helps pet owners financially when their pets need medical treatment. State Farm offers pet insurance for both dogs and cats.
This segment of the State Farm target market includes people who want to be able to provide their pets with the best possible medical care, without having to worry about the cost. Having pet insurance gives peace of mind to pet owners that they will be able to afford any necessary treatment for their beloved pets.
The State Farm target market includes people looking for various types of insurance products to protect themselves, their families and/or their businesses. This makes State Farm a potential insurer for many people.
It includes people looking for life insurance, health insurance, disability insurance, liability insurance and pet insurance. State Farm offers all of these types of insurance, making them a well-rounded insurer that can meet the needs of many different people.