With above-average claims satisfaction, a wide range of discounts and great options for teen drivers, it makes sense that State Farm is the largest auto insurer in the U.S.
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Available in all 50 states
Discounts for safe and young drivers
Above-average claims satisfaction
More expensive than competitors
Mixed customer satisfaction
No speciality or premium car insurance coverage options
THE BOTTOM LINE
State Farm offers all the standard car insurance coverage most drivers need, as well as a range of discount options for drivers. Claims satisfaction ratings are also high. However, you won't find more premium types of coverage, and prices may be higher than similar competitors. That said, depending on your quotes, State Farm is a solid choice for the average driver.
STATE FARM COMPANY SPOTLIGHT
4 out of 5
J.D. Power Rating
A trusted customer satisfaction and product quality research agency
A nonprofit organization focusing on marketplace trust and product quality
A.M. Best Rating
100-year-old U.S. credit rating agency focused on the insurance industry
Available in all 50 states. State Farm auto insurance is available in all 50 states, including Alaska and Hawaii, which isn’t true of every carrier. If you want State Farm insurance, you’ll be able to find it.
Discounts for safe and young drivers. Besides discounts for maintaining grades or bundling your auto policy with a home policy, there are specific usage-tracking programs for both safe drivers and younger drivers. Though it sacrifices some of your privacy, this can help drive down prices.
Above-average claims satisfaction ratings. J.D. Power rates State Farm highly for claims satisfaction. According to J.D. Power’s 2020 survey, State Farm ranks above the industry average, and higher than much of the competition, including Allstate, GEICO and Progressive.
More expensive than competitors. State Farm’s rates are pretty high compared to the national average. If pricing is an issue for you, you’re going to have to take advantage of their many discounts or shop around for another, more affordable carrier.
Mixed customer satisfaction. Though claims satisfaction is high according to J.D. Power, other third-party sources such as the National Association of Insurance Commissioners find State Farm’s customer handling to be wanting. Your mileage will vary.
No specialty or premium car insurance coverage options. With State Farm, you’re getting just straightforward coverage. You’re not going to find many unique options, like full glass coverage or lock replacement.
The cost of your car insurance depends on a number of specific factors, like your ZIP code, age, driving history, credit score, and the type of car you drive. That makes it pretty hard to predict what any given driver will pay for car insurance.
That said, let’s take a look at a sample State Farm auto policy to see what an average driver might pay for car insurance.
Our sample driver is a single, 30-year-old man in Minneapolis, Minnesota who drives a 2017 Toyota Camry. State Farm quoted him a total of $135.19 a month, which is $1,622.28 for an annual policy. This is higher than the national average of $1,189.64 a year.
Here are the coverage limits and deductible amounts from our sample:
|Basic Coverages||Policy Limits|
|Bodily injury liability||$50,000 each person, $100,000 each accident|
|Property damage liability||$50,000 each accident|
|Medical payments||$20,000 each person|
|Uninsured motorists bodily injury||$50,000 each person, $100,000 each accident|
Rates current as of June 2021. The above numbers are based on a sample profile. Rates will vary for each applicant based on location, driving history, vehicle, number of people included on the policy, and other factors.
If that price is too steep, then you should look at the other options in our list of best auto insurance carriers. But if you still want to go with State Farm, you’ll want to make use of cost-saving discounts.
State Farm offers a great selection of discounts. You can save by going three or more years without an accident or violation, by maintaining a certain GPA if you’re a student, or by bundling your auto policy with a home, renters, or condo policy. There are many additional ways to save, too.
But the most interesting cost-savers from State Farm are its usage-based safe driving programs. These types of programs can be a great way to save money if you’re a safe and consistent driver who doesn’t mind sacrificing some of your privacy.
State Farm’s Drive Safe & Save program tracks your driving through a smartphone app or through your OnStar, if you have one, and then awards discounts based on safe driving patterns.
There’s also a similar program aimed at teens and young adults under 25 — an age group that is notoriously expensive to insure. The State Farm Steer Clear program not only tracks driving behavior through an app, it also has informational videos and quizzes. Young drivers who complete the Steer Clear program within six months can get a discount on their car insurance — a big deal if you’re paying high rates to insure a teen.
Here are some more discounts from State Farm:
Accident-free discount. Get a discount if you go for at least three continuous years without an accident. This discount may increase over time if you keep a policy with State Farm.
Anti-theft discount. If your car has an alarm or other approved anti-theft device, you could save.
Defensive driving course discount. Take a driver safety course and receive up to 15 percent discount on coverage.
Driver training discount. Receive a discount if everyone under the age of 21 who drives your car completes a driver education course.
Good student discount. Students ages 16 to 25 can save up to 25 percent for keeping a B or 3.0 GPA. This discount can last after college, until the age of 25.
Multiple-auto discount. Save up to 20 percent if two or more vehicles in your household are insured by State Farm and owned by relatives.
Multiple line discount. Save up to 17 percent if you bundle homeowners, renters, condo, or life insurance alongside auto insurance with State Farm.
Student away at school discount. Save if one a student under age 25 moves away to school and only uses the car while at home during vacations and holidays.
As always, all discounts will vary by state, your driving record, and other individual information.
State Farm is currently the largest insurer in the country, according to the National Association of Insurance Commissioners. Founded in 1922, it’s also one of the oldest. But there’s more than just age and size going for it as a carrier. They also score some of the highest ratings from the top financial and credit agencies. That basically means you’re not going to be left high and dry when it’s time to file a claim.
Here’s what financial firms think of State Farm:
Year founded : 1922
A.M. Best : A++
Moody’s : Aa1
Standard & Poor’s : AA
A good score from A.M. Best , which focuses exclusively on the insurance industry, means a company is more likely to fulfill their financial obligation to you. With a score of A++, State Farm has the highest rating a company can receive with A.M. Best.
Moody's analyzes the value of stocks and bonds with certain companies. An Aa1 rating is the one of the highest scores a company can receive from Moody's. It means the insurer is of very high quality, with very low risk involved.
Standard & Poor's measures the creditworthiness and long-term financial stability of insurance companies. A AA rating is one of the highest credit ratings assigned by S&P.
And how do regular drivers like dealing with State Farm? For the most part, State Farm is a customer favorite, with high marks from the Consumers Advocate and Consumer Affairs.
It also has a score of 881 on the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, that’s above the industry average of 861, and higher than competitors like Nationwide, Allstate, GEICO, and Progressive.
But according to the National Association of Insurance Commissioners, State Farm has received three times as many complaints compared to other insurers.
The Better Business Bureau and Consumer Reports currently don’t have ratings for State Farm.
Here’s the ratings breakdown:
Better Business Bureau : N/A
Consumers Advocate : 4.3 / 5
Consumer Affairs : 3.9 / 5
Consumer Reports : N/A
J.D. Power : 4 / 5
NAIC complaint index : 2.89
The Better Business Bureau ranks companies based on their advertising and complaints from customers. State Farm currently has no rating from the BBB.
Consumers Advocate is a third-party review site that rates companies based on company reputation, policy features, and stability. They give State Farm a near-perfect score.
Consumer Affairs , a platform that lets users directly review companies, gives State Farm a 3.9 out of 5. That means most reviews from verified customers are positive.
Consumer Reports currently has no rating for State Farm’s auto insurance.
J.D. Power , which rates insurance companies based on policy offerings, price, and the clarity of billing and policy information, awards State Farm 881 out of a 1000-point scale. That places the carrier in the upper half of insurance companies, above much of the competition.
The National Association of Insurance Commissioners (NAIC) tracks complaints submitted to state insurance departments. According to their complaint index, State Farm has a score of 2.89, which is very high compared to other companies. A score of 1 represents the baseline average, and a zero means there weren’t enough complaints from customers to count.
State Farm has every standard feature you could want in a full coverage policy. That includes liability plus comprehensive coverage, uninsured and underinsured motorist coverage, and collision coverage. However, it lacks options for drivers who need more specialized types of coverage, although State Farm does offer auto insurance coverage for rideshare drivers.
Liability coverage. This protects you from financial burden if you cause an accident, damage property, or injure someone with your vehicle. It’s required in most states.
Personal injury protection. Covers medical expenses if you or your passengers are injured in a car accident. Also covers other related expenses, like lost wages.
Uninsured/underinsured motorist coverage. Covers the costs if you’re in an accident caused by a driver who either doesn’t have insurance or whose insurance doesn’t cover the full extent of the damage.
Collision coverage. Covers damage to your own vehicle after an accident, regardless of who was at fault.
Comprehensive coverage. Covers any damage to your car that isn’t caused by a collision, including damage from extreme weather, falling objects, flood, fire, vandalism and theft.
Emergency road service coverage. Covers towing to the nearest repair location if your car breaks down. Includes locksmith services, tire changes, and fuel or fluid deliveries.
Car rental and travel expenses coverage. Pays for a rental car if yours is in the shop, and covers travel expenses like food and lodging if you’re in an accident more than 50 miles from your home.
Rideshare coverage. Extends your regular car insurance coverage to cover you while you’re driving for services like Lyft and Uber. This covers you when the app is on but you don’t have a passenger.
Besides auto, there are plenty of other insurance products available from State Farm. Like most major insurance carriers, drivers can bundle their auto coverage with another product and save money.
Home insurance. Coverage for your home.
Renters insurance. Insurance to help protect your belongings if you rent.
Life insurance. Term, whole, universal life insurance policies.
Motorcycle insurance. Coverage for your fancy bike.
Condo insurance. Covers everything your condo association’s master policy doesn’t already cover.
Off-road vehicle insurance. Coverage for your ATV, camping trailer, golf cart, snowmobile, minibike, snowbike, or dune buggy.
RV insurance. Coverage for your motorhome.
Marine insurance. Insurance for your boat or yacht.
Farm and ranch insurance. Insurance for your farm and/or ranch.
State Farm’s coverage is available everywhere in the country, and it’s easy to apply online or through local agents. The company website has many resources and digital tools available, including a quote tool, billing portal, and plenty of policy information. There’s also a mobile app available. Their customer satisfaction and claims ratings with J.D. Power is above the industry average, too. Of course, your mileage will vary depending on several factors.
State Farm auto insurance is available in all 50 states.
State Farm’s online quote generator is a bit more involved than some of its competitors. It requires a driver’s license number or Social Security number to get your quote, which isn’t always necessary with other carriers. You also get three different coverage tiers as a final quote — a bare-bones, standard, and premium option. You can customize your coverage and deductibles as you see fit. The whole process takes about 15 to 20 minutes.
State Farm customers can pay their bills online through their website, by mail, or use the State Farm mobile app.
Besides the online quote tool, there’s a State Farm mobile app that lets users access roadside assistance, check policy details, pay bills, and report and track claims. You can also upload photos and contact State Farm service via the app.
State Farm’s Drive Safe and Save Steer Clear apps are also available for discount-hungry drivers who want their road habits tracked.
State Farm customers can file claims online, over the phone, or through the State Farm mobile app. State Farm is rated highly by J.D. Power for their claims handling.
Some drivers have complained that State Farm had dropped them after making a claim, but others praised the company’s fast response time after first filing. As with many insurance companies, claims experiences will vary.
Headquarters: One State Farm Plaza Bloomington, Illinois 61710
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