State Farm Auto Insurance Review
Last Updated on August 3, 2023
State Farm is the largest car insurance company in the United States, insuring millions of drivers across the country. The Bloomington, Illinois-headquartered company was launched in 1922 to protect drivers. Today, State Farm offers nearly 100 auto insurance products and services for drivers, small business owners, corporations, homeowners, and more.
- State Farm is the largest car insurance company in the United States, offering nearly 100 auto insurance products and services for different types of drivers and vehicles.
- State Farm has an excellent reputation for customer satisfaction, scoring high on J.D. Power surveys and having an A++ rating from AM Best.
- State Farm offers discounts for safe driving, young drivers, loyalty, and bundling. Its premiums are also competitive, especially for drivers with violations and speeding tickets.
- Insurance Panda rates State Farm 4.2/5
- Types of Auto Insurance Coverage Offered by State Farm
- What Makes State Farm’s Auto Insurance Unique?
- How Much Are State Farm’s Insurance Rates?
- State Farm’s Auto Insurance Discounts
- Pros and Cons of State Farm
- State Farm Reviews: What Do Customers Have to Say?
- Frequently Asked Questions
- Our Rating of State Farm
- Final Word on State Farm
Types of Auto Insurance Coverage Offered by State Farm
State Farm offers similar auto insurance products to other major insurers in the United States. The company offers minimum liability insurance policies for drivers who want to meet state minimum requirements. State Farm also offers full coverage car insurance for drivers who want additional coverage.
Liability Insurance: Like all car insurance companies, State Farm offers bodily injury liability coverage and property damage liability coverage. Most states require both coverages. They cover damage you cause to other people and property while driving. Typically, states require 25/50/10 coverage, or $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $10,000 of property damage liability coverage. Depending on your state, State Farm could offer liability coverage as high as 100/300/100.
Collision Insurance: Collision insurance is optional in every state, but it protects your own vehicle from damage regardless of fault. If your vehicle hits another object or collides with another vehicle in an accident, then collision insurance will cover the cost of repairing or replacing your vehicle.
Comprehensive Insurance: Comprehensive insurance is optional in every state and covers damage to your vehicle outside of accidents. Comprehensive coverage covers vehicle theft, vandalism, storm damage, fire damage, and other incidents. With comprehensive coverage, State Farm will cover the cost of repairing or replacing your vehicle up to the limits of your policy.
Rental Reimbursement Insurance: State Farm offers car rental reimbursement coverage on most policies. If your car cannot be driven or needs repairs, then State Farm will cover the cost of renting a car up to certain limits on your policy. State Farm also offers rental car coverage, extending your policy to cover a rental car when you’re on vacation in certain countries.
Rideshare Insurance: Most major insurers now offer rideshare insurance for Uber, Lyft, and other workers. When you use your personal car to drive for a ridesharing company like Uber or Lyft, you can buy State Farm’s rideshare insurance to ensure complete protection.
Teen Driver Coverage: State Farm allows policyholders to add a teen driver to their policy. If your child recently received a license and is ready to drive, then you can add teen driver coverage to your existing State Farm policy. Teenagers living on their own can also buy car insurance with State Farm.
Uninsured and Underinsured Motorist Coverage: Some states require drivers to carry uninsured and underinsured motorist coverage. State Farm can offer coverage that meets or exceeds your state’s minimum requirements.
Roadside Assistance Coverage: Like most major insurers, State Farm has a roadside assistance program. For a few extra dollars per month, policyholders can get basic coverage for flat tire changes, vehicle breakdowns, towing, dead battery jumpstarts, and vehicle lockouts.
Personal Injury Protection: Some states require drivers to carry personal injury protection (PIP), which covers certain medical expenses after an accident. State Farm offers personal injury protection and medical payments coverage in certain states, including states where it’s required or optional.
Sports Car, Classic Car, and Antique Car Coverage: State Farm can insure sports cars, classic cars, and antique cars. State Farm considers your vehicle a classic car if it’s 10 to 24 years old, and they consider your car to be a treasured antique if it’s older than 24 years. You can also insure modern sports cars and other unique vehicles with State Farm.
Commercial Auto Coverage: State Farm works with small and large businesses to provide commercial auto insurance. Whether you use your own car or a fleet of pickups and trailers, State Farm offers complete protection to ensure your business remains safe. State Farm’s commercial auto insurance coverage includes liability coverage, personal injury protection, comprehensive and collision coverage, and other coverage options.
Non-Owner Auto Insurance: If you frequently rent or borrow vehicles, but do not actually own a vehicle yourself, you might want to consider a non-owners policy. Non-owners auto insurance protects those who don’t own a car but still regularly drive. You also have the option to insure a car that’s not in your name with State Farm.
SR-22 Coverage: State Farm sells SR-22 insurance coverage in most states. SR-22 (or sometimes FR-44) forms are required by some states for high-risk drivers to reinstate their driving privileges.
What Makes State Farm’s Auto Insurance Unique?
State Farm has several unique features that differentiate it from other insurers. All of America’s largest insurance companies have competitive pricing and similar policy offerings. However, State Farm has all of the following unique traits:
America’s Largest Car Insurance Company: State Farm insures more drivers in the United States than any other company in the country. They’re America’s largest auto and home insurance company. If you like the idea of working with a large, well-known, nationwide insurance company, then State Farm is one of your best options.
19,000 Agents Nationwide: State Farm provides personalized service through its 19,000 agents nationwide. You can interact with the company through their 24/7 customer service hotline. Or, you can get insurance directly through their agents located in communities across the country.
Steer Clear Driver Program: Drivers under 25 pay higher rates for car insurance. State Farm’s Steer Clear program is a driver safety program for young drivers. Drivers who complete the program qualify for a 15% discount off car insurance premiums. You can complete the program online or through the State Farm mobile app. Steer Clear is available in all states except California, Hawaii, Massachusetts, North Carolina, and Rhode Island.
Drive Safe and Save: State Farm’s Drive Safe and Save program is a telematics program that allows drivers to receive an automatic 5% discount on their auto insurance rates by agreeing to share driving data. When you sign up for this program, you authorize State Farm to collect data through your OnStar software or a driver tracking app. Based on your driving habits and risk, State Farm could provide additional discounts worth up to 50%.
Rideshare Insurance: As mentioned above, State Farm offers insurance for Uber and Lyft drivers, which is something you can’t get from all other insurers. If you drive for Uber, Lyft, or another rideshare company and are looking for a large insurer, State Farm may be the right option.
Cheaper-than-Average Rates Nationwide: State Farm has some of the cheapest car insurance rates in the United States. In many states, State Farm is the cheapest option for drivers across all age groups. State Farm doesn’t specialize in insuring any specific type of driver – like medium-risk drivers or older drivers. Instead, the company charges competitive prices to drivers across all age groups, risk factors, and demographics.
Available Nationwide: State Farm is available in all 50 states and Washington, D.C. While some insurers provide coverage only in regional areas, State Farm is America’s largest insurer and covers drivers in virtually every state and territory.
Mobile App: State Farm’s mobile app allows you to manage your insurance and other products, request roadside assistance, file and track claims, and more. Originally known as the Pocket Agent app, the app is now known simply as the State Farm mobile app.
Accident Forgiveness: State Farm also offers accident forgiveness to some qualifying drivers in some states. If you have been insured with State Farm for over nine years without a claim, then you could already have accident forgiveness. With accident forgiveness, a single accident will not raise car insurance premiums.
Extensive Discounts Available: State Farm, like most large insurance companies, offers an extensive range of discounts. You can get discounts for insuring multiple vehicles with State Farm, discounts for bundling home and auto insurance together, and discounts for being a safe driver, among many other discounts.
Grace Period: State Farm offers a 14-day grace period for new vehicles. Under this grace period, State Farm policyholders have 14 days to add a new vehicle to their policies after purchasing it.
How Much Are State Farm’s Insurance Rates?
State Farm’s insurance rates are among the most competitive in the country. In many states, State Farm charges lower rates than virtually every other provider.
Nationwide, the average State Farm policy costs around $1,432 per year for full coverage car insurance, which is similar to the nationwide average of $1,450 per year.
Average rates vary widely between states. Each state has its own insurance laws, which is why drivers in Michigan pay triple the car insurance premiums of drivers in Maine.
Similarly, some drivers buy minimum liability insurance with State Farm, while other drivers buy full coverage car insurance. State Farm’s minimum liability insurance plans cost just $200 to $400 per year in some states, while full coverage policies could cost over $3,000 per year in other states.
In all states, however, State Farm tends to be within the top five or top ten cheapest insurers across all age groups, risk factors, and demographics. Whether you’re a new driver with zero experience or a 60-year-old with decades of clean driving history, you could find cheap rates with State Farm anywhere in the United States.
Drivers can also save anywhere from 5% to 50% by taking advantage of State Farm’s extensive range of discounts, which drop the cost of car insurance even further.
State Farm’s Auto Insurance Discounts
State Farm, like most large insurers, offers an extensive range of discounts. State Farm’s auto insurance discounts include all of the following:
Drive Safe and Save Telematics Program: Most major insurers in the United States now offer driver tracking program discounts. State Farm’s telematics program is particularly strong, as drivers could save up to 50% by sharing driving data with State Farm. By signing up for the Drive Safe and Save program, you could immediately save 5% on car insurance premiums, with further discounts available for safe driving habits, low mileage drivers, and other risk factors.
Steer Clear Discounts for Drivers Under 25: State Farm allows drivers under 25 to save a significant amount through the Steer Clear discount program. Available in most states, Steer Clear allows drivers under 25 to complete an online driver training program to lower the cost of car insurance by 15%.
Accident-Free Discount: Drivers with zero accidents on their record pay less for car insurance than drivers with multiple accidents. State Farm offers some type of accident-free discount in every state.
Student Away at School Discount: If your child is away from home attending school full-time, then you could qualify for State Farm’s student away at school discount. This discount allows your child to continue driving a family vehicle when home from school.
Good Student Discount: Full-time students under the age of 25 could also qualify for State Farm’s good student discount. You could qualify for lower insurance premiums if you have an average of B+ or better.
Multi-Vehicle Discount: Insure multiple vehicles with State Farm to reduce the cost of car insurance across all of your vehicles.
Bundling Discount: State Farm isn’t just America’s largest car insurance company: they’re also America’s largest home insurance company. Policyholders who bundle home and auto insurance together can save money across all policies.
Anti-Theft Device Discount: If your vehicle has a passive or active anti-theft device, then State Farm could charge lower rates.
Vehicle Safety Discount: Some vehicles are safer to drive than others. Some vehicles also have additional safety features, including side airbags. State Farm could give you a vehicle safety discount based on these features.
Pros and Cons of State Farm
State Farm is the right choice for millions of drivers across the United States. Generally, customers have a good experience with State Farm. However, there are pros and cons of buying car insurance from State Farm, including all of the following:
- Easy-to-use website and mobile app
- Often the cheapest provider in many states
- Transparent pricing and billing
- All of the amenities, 24/7 service, and coverage you would expect from America’s largest car insurance company
- Wide range of discounts
- Extensive coverage options for all vehicles and drivers
- Lack of loyalty discounts
- More complaints than average
- May not be the best option in all states for all drivers
- Does not offer mechanical breakdown insurance
- Does not sell gap insurance
State Farm Reviews: What Do Customers Have to Say?
State Farm is well-reviewed by policyholders, ratings organizations, insurance regulators, and others. The company has a strong rating from the NAIC, J.D. Power, A.M. Best, and online review aggregator websites.
State Farm has an NAIC complaint index of 0.57 to 0.80, depending on how you check the database. The National Association of Insurance Commissioners (NAIC) tracks complaints from policyholders in each state. Controlled for its size, State Farm has fewer NAIC complaints than average.
J.D. Power analyzes car insurance companies across the United States, talking to policyholders to gauge claims satisfaction and customer service. State Farm frequently ranks high on J.D. Power’s annual reports. In the latest rankings, J.D. Power chose State Farm as the best insurance company in two sub-regions, including Mid-Atlantic and New York. In most other subregions, J.D. Power was within the top five or ten insurance companies for claims satisfaction, transparency, pricing, and other factors.
In terms of financial strength, State Farm is one of America’s strongest insurance companies. A.M. Best has awarded the company its highest rating, an A++ (Superior) rating. That means A.M. Best is confident State Farm has the financial strength to meet all future financial obligations.
State Farm has an NR rating from the Better Business Bureau, which means the company is not rated by the BBB.
Review aggregator websites tend to have positive reviews for State Farm. Most policyholders seem to agree that State Farm provides car insurance as advertised, covering policyholders when needed. On Clearsurance, for example, State Farm has an average rating of 4.10 stars out of 5, while WalletHub gives the company an average score of 3.7 out of 5 based on 2,300+ customer reviews.
Frequently Asked Questions
Final Word on State Farm
State Farm is the largest car insurance company in the United States. Backed by nearly a century of experience, State Farm remains one of the country’s best-known and best-value insurers. The company covers millions of drivers across the country, offering everything from basic liability coverage to full coverage insurance for multiple vehicles and homes.
To learn more about State Farm or to request a quote today, visit StateFarm.com.
|State Farm Contact Information|
|Customer Service Phone Number||1-800-782-8332|
|Claims Phone Number||1-800-732-5246|
|States Served||All 50 States|