Difference between St Farm Mutual and St Farm Fire and Casualty?

We received a notice today that due to our good driving history our vehicle insurance is being transitioned from State Farm Fire and Casualty to State Farm Mutual Automobile Insurance, and that they are not renewing our old policy. We have to accept this change, or leave their company. What is this?

5 Answers

  • MSAD
    Lv 7
    1 decade ago
    Favorite Answer

    It should mean a decrease in your rates.

    Insurance companies have a lot of different companies under one name.

    Usually a casualty company is for more high risk.

    The mutual company is for the better drivers.

    Check with your agent, but odds are, getting put into the mutual company means a lower rate.

    Source(s): Insurance Adjuster 12 years
  • 1 decade ago

    Most companies own several different lines of insurance. Some are offered to people with great credit or driving history and others are offered to folks who have horrible driving records, etc. The latter have higher rates and the former have better rates. State Farm is one of the companies that have many sub companies in it. It's still a State Farm company so you will be dealing with the same company, same agent but hopefully be getting better rates. Ask you agent but it sounds like good news for you.

    Source(s): I am a lawyer for a national insurance company
  • car253
    Lv 7
    1 decade ago

    They are the same company. They are just subsidaries.

    State Farm Mutual will give you a lower rate. I am not sure how you got in with Fire and Casualty to being with. Ask your agent. It may be something to do with what state your in.

    You will not lose any discounts you have earned. Again, they are the same company. You are not loosing anything. This is a great benefit to you.

  • 1 decade ago

    Each insurance company has DOZENS of subsidiary companies. Each company has their own filed rates.

    So, State Farm wants to keep you, and lower your rates. So they want to move you to a new subsidary company.

    This isn't unusual at all.

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  • KitKat
    Lv 7
    1 decade ago

    call your agent & ask.

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