Apparently anyone who requests to sign up for insurance with State Farm insurance is naturally going to have a credit check run on the buyers of said insurance. This check is on those who are paying for the bill as well as those who are not paying but are users.
They will run anyone who is actually going to be on the insurance as a user under what they consider a "soft hit" on the user's credit check.
According to a rep for State Farm, "Part of our rating processes is to run a credit check on all new drivers applying for coverage. It appears that our system identified ****** as a member of this same household and automatically ordered a report for her as well. This error was identified, and she was removed as a rating exposure for the cars your parents were insuring. The credit check used for insurance rating purposes is different from ones run when you are applying for credit. These are considered "soft hits", which have no adverse impact on your credit score."
They also occasionally despite their own security policies will run credit reports on family members who are not even on the insurance policy in question. They will state this was an accident though when it was run the local agent failed to apologize or effectively explain why either report was even necessary to the policyholders.
That is why I would recommend "Caveat Emptor" buyer beware because as they offer great deals on television, radio, internet and print media they also do things behind closed doors with little to no explanation.
Contacting your state's Attorney General regarding this practice would certainly be a good idea as our privacy and credit reports are being used for no real valid reason just because we are named as a user on an auto insurance policy.