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State Farm Cancels Super Bowl Ad to Focus on California Wildfire Relief Efforts

by thinktank
January 18, 2025
Reading Time: 1 min read
0
State Farm Seeks Emergency 22% Rate Hike After $1 Billion in Wildfire Payouts

Concordville, United States - April 10, 2011: The State Farm Insurance sign outside the Northeast Zone operations center, locate in Concordville, Pennsylvania. State Farm Insurance is a group of insurance and financial services companies in the United States and Canada. The group's main business is State Farm Mutual Automobile Insurance Company.

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State Farm has pulled its planned Super Bowl ad, citing the urgent need to support Californians amid the devastating wildfires.

“Our focus is firmly on providing support to the people of Los Angeles. We will not be advertising during the game as originally planned,” a spokesperson stated in an emailed statement to The Hill.

The company, which serves over 8 million California customers, emphasized that its agents and employees are dedicated to assisting those impacted by the Southern California wildfires. With over 8,300 home and auto claims filed and more than $50 million already paid out, State Farm noted, “These numbers will rise as residents return and assess damage.”

Super Bowl ad costs are steep, with 2024 30-second slots nearing $7 million, up from $6.5 million in 2022, according to Kantar. However, State Farm redirected its resources, prioritizing recovery efforts over marketing.

“Our claims force is the largest in the industry, and we are bringing the full scale and force of our catastrophe response teams to help customers recover — whether they are on the ground in LA or across the country,” the spokesperson added.

This decision follows State Farm’s May 2023 announcement to cease offering new property and home insurance policies in California, citing soaring construction costs, increasing catastrophe exposure, and a strained reinsurance market. Other insurers have also scaled back coverage in the state, which has been called out in the days following the devastating wildfires in the Los Angeles area.

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