State Farm: What's Happening To The Good Neighbor?

Judges and juries have found the insurer guilty of serious misconduct

One of Peggy Frey's most cherished possessions is her black 1988 Mustang 5.0 convertible. When the front of the car was demolished by a wayward pickup truck last year, the Tampa housewife expected State Farm Mutual Automobile Insurance Co. to restore it with genuine Ford parts. Instead, the massive insurer used cheap Taiwanese replacements which, to Frey's shock, barely fit together. When she slams the hood now, the headlights sometimes pop out.

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