Car Insurance

State Farm Insurance Review: Auto Insurance (2022)

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Car driving down the road
State Farm Auto Insurance
In Our Opinion:
With over 16 percent of the market and close to $41 billion direct premiums written in 2019, State Farm is a clear industry leader. We awarded the company with the title of “Best for Student Drivers” for its safe driving program and discounts for drivers under the age of 25 in this State Farm insurance review.
Industry Standing
95
Availability
95
Coverage
95
Affordability
90
Customer Service
95
Online Experience
100
Pros
Excellent financial strength
Insurance for classic and antique cars
Loyalty discounts
Most value for customers with multiple insurance policies through State Farm
Cons
Limited online and app features
Reported issues for individuals filing a claim against another driver
95

Based on the number of direct premiums written, State Farm is the largest personal auto insurer in the country, but is it the best choice for you? In this article, we’ll take a look at State Farm insurance reviews, policy options, discounts, costs, and more to help you decide.

Choosing the right insurer is key to protecting your finances after an accident. Along with State Farm, we’ve reviewed some of the best car insurance companies on the market and rated them based on their policy options, affordability, customer service, and other important factors.

Even if the company looks like the right provider for you after reading this State Farm insurance review, we always recommend getting quotes from multiple providers and comparing them before making a decision.

State Farm Overview

Established in 1922, State Farm is the biggest car insurance company in the U.S. The company wrote $40.3 billion in insurance premiums in 2020, according to the National Association of Insurance Commissioners (NAIC). This figure accounted for 16.2 percent of the total market share. 

State Farm is available in 48 states, excluding Massachusetts and Rhode Island. In our State Farm insurance review, we named State Farm the best insurer for student drivers based on its wide-ranging discounts available to teens and students.

State Farm Insurance Costs 

Our research found that State Farm’s average rate across the U.S. for a full coverage policy is around $1,339. That’s considerably lower than the national average estimate of $1,732. Both estimates are for a 35-year-old driver with a good credit rating and a clean driving record. 

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State Farm Insurance Rates by State

Because states have different regulations, populations, and risk factors, car insurance rates vary from state to state. Here’s a list of State Farm’s average insurance rates for full coverage versus the industry average in each state, based on the same driver profile as above:

State State Average Cost Estimate State Farm Cost Estimate
Alabama $1,448 $1,288
Alaska $1,287 $1,076
Arizona $1,625 $1,413
Arkanksas $1,449 $1,018
California $2,339 $2,910
Colorado $1,672 $1,238
Connecticut $1,885 $1,316
Delaware $1,921 $1,038
Washington, D.C. $1,787 $1,498
Florida $2,894 $1,753
Georgia $1,548 $1,523
Hawaii $1,238 $992
Idaho $1,089 $761
Illinois $1,474 $1,129
Indiana $1,087 $878
Iowa $1,095 $705
Kansas $1,364 $1,119
Kentucky $1,817 $1,030
Louisiana $3,828 $2,051
Maine $995 $749
Maryland $1,941 $1,608
Massachusetts $2,568 Not Available
Michigan $4,390 $3,057
Minnesota $1,487 $1,198
Mississippi $1,357 $1,144
Missouri $1,741 $2,049
Montana $2,214 $1,040
Nebraska $1,372 $1,343
Nevada $2,332 $1,533
New Hampshire $1,181 $755
New Jersey $2,108 $1,887
New Mexico $1,356 $1,003
New York $3,964 $3,374
North Carolina $1,277 $1,316
North Dakota $1,310 $1,013
Ohio $923 $786
Oklahoma $1,630 $1,062
Oregon $1,284 $911
Pennsylvania $1,405 $1,426
Rhode Island $1,923 $1,025
South Carolina $1,592 $1,305
South Dakota $1,331 $1,057
Tennessee $1,217 $796
Texas $2,067 $1,265
Utah $1,446 $1,406
Vermont $1,013 $625
Virginia $1,079 $965
Washington $1,271 $1,035
West Virginia $1,390 $969
Wisconsin $946 $795
Wyoming $1,499 $1,320

State Farm Car Insurance Cost Factors

Your own rates will be different from the figure we reported. That’s because car insurance companies like State Farm calculate their auto policy rates based on a number of factors. These include:

  • Coverage options: Policies that only cover the minimum requirements for your state will have the cheapest rates. But these policies can leave you exposed to serious financial risks. Policies with more comprehensive coverage like collision insurance offer more protection at a higher price.
  • Coverage amounts: Raising your coverage limits will insulate you from financial risk but also raise your premiums.
  • Driving record: If you have any recent at-fault accidents or moving violations, you’ll have to pay higher auto insurance rates.
  • Age: Younger drivers and senior drivers pay higher rates on average for car insurance. Teen drivers get charged the highest rates based on age. 
  • Credit history: Your credit score is also a factor in the cost of your premiums. People with lower credit scores will pay more for coverage than those with good credit. 
  • Location: Different states have different average rates for insurance. But even within the same state, people in different zip codes pay different rates. Typically, drivers in urban areas pay more for coverage than those in rural areas.
  • Vehicle: The make, model, age, and value of your vehicle are all factors in the cost of your premiums.

State Farm Quote Calculator

State Farm provides free insurance quotes through the quote engine on its website. In our experience, the quote engine is fast, but it’s rather bare-bones and could use some extra features, such as price comparison tools and other personal calculators.

State Farm Insurance Discounts

Not all insurance companies reward their loyal customers with discounts and other cost-saving benefits, but State Farm offers insurance discounts for customers who stick with the company and buy beyond a single-driver policy. For this reason, State Farm car insurance is a better value for customers who use State Farm for more than just vehicle coverage. Loyalty discounts include: 

  • Multiple vehicles: Save up to 20 percent on your insurance policy if two or more cars are insured in your household. 
  • Multi-policy: Save up to 17 percent on your insurance policy if you also purchase State Farm homeowners insurance, renters insurance, condo insurance, life insurance, or other insurance products and bundling them together.
  • Anti-theft discount: Qualify for a discount if your vehicle has an anti-theft alarm or other warning system. 
  • Driver training discount: Drivers under the age of 21 can get a discount for completing an authorized drivers ed program.
  • Good driving discount: New State Farm customers can get an additional discount if they go three years without a moving violation or accident. 
  • Student away at school discount: Students under the age of 25 can qualify for a discount if they only use their car during summers and holidays.
  • Defensive driving course discount: State Farm agents can provide a list of qualifying defensive driver courses that count toward a safe driving discount. 
  • Vehicle safety discount: Save up to 40 percent on medical payment coverage for vehicles made after 1994. That’s a large number of vehicles on the road today.
  • Good student discount: Save up to 25 percent on your insurance policy for getting good grades. This discount lasts even after you finish college, up to the age of 25.
  • Accident-free discount: Qualify for a discount if you avoid a chargeable accident for three years. Your discount may increase over time if you continue to use State Farm auto insurance. 
  • Passive restraint discount: Receive a discount up to 40 percent on medical coverage for 1993 models and older vehicles that have a factory-installed air bag or passive restraint system.

Drive Safe & Save

State Farm’s telematics program is called Drive Safe & Save. This program uses a mobile app to track your driving habits. Safe driving can earn you up to a 30 percent discount on your insurance policy.

However, the program can also cause your rates to go up. Unsafe habits like quick acceleration, hard braking, fast cornering, speeding, and distracted driving can increase your premium.

Steer Clear

Steer Clear is a safe driving program made with young drivers in mind. If you have a driver under the age of 25 on your policy, they may be eligible for this program. Through a series of courses, mentoring sessions, and practice driving hours, young drivers can earn a program certification and policy discounts. Like Drive Safe & Save, this program also uses a mobile app to monitor driving behavior.

State Farm Insurance Coverage

The type of car you own can have a major impact on the type of coverage you choose and the price you pay for your policy. We like that State Farm auto insurance can cover a wide range of vehicles, from your standard Toyota to your Porsche 911

Standard Auto Insurance Coverage

Customers looking for standard insurance policies will find the following coverage options and policy add-ons: 

  • Liability insurance: Property damage liability policies cover the cost of damages to someone else’s vehicle, home, or personal property after an accident you cause. Bodily injury liability insurance covers the other party’s injuries, medical expenses, and lost wages. 
  • Collision insurance: This covers your own vehicle, whether it’s new, a temporary substitute, or a car not owned by someone in your household. This insurance pays for damage from any collision, up to the amount of your vehicle. 
  • Comprehensive insurance: With a comprehensive policy, you can get covered up to the amount of your vehicle for damage not related to a collision, such as a fire, civil unrest and riots, theft, vandalism, weather, or hitting an animal
  • Uninsured motorist insurance: You can choose either uninsured or underinsured motorist insurance to cover your vehicle and any potential injuries caused by a driver without insurance or with a policy that can’t adequately cover damages. 
  • Medical payments coverage (MedPay): No matter who is at fault, medical payment insurance will cover injuries to you, your passengers, and anyone you may injure in an accident. Coverage includes pedestrian injuries and funeral costs.
  • Personal Injury Protection (PIP): This coverage is similar to MedPay, but it also covers you and your passengers’ lost wages.

State Farm Additional Coverage Options

In addition to standard coverage, State Farm also offers a number of policy add-ons. These include:

  • Emergency roadside assistance: This service covers the costs of mechanical labor at the breakdown site, locksmith labor if your key is lost, stolen, or locked in your vehicle, emergency fuel delivery, oil delivery, battery delivery, and flat tire changes. 
  • Rideshare insurance: This insurance covers you while driving for rideshare services like Lyft or Uber in three different situations: when your app is on and ready for hire, when you match with a rider, and when you transport the rider. Coverage may include property damage, liability, uninsured motorist, and rental car benefits. 
  • Rental car coverage: This covers the cost of a rental up to a certain amount for those who don’t have rental coverage or who have exceptionally high deductibles. If you’re in a collision in a rental car, State Farm will cover your deductible up to $500. You can also opt for travel expense coverage, which pays for meals, transportation, and lodging up to $500 if you are more than 50 miles from home.

Other State Farm Insurance Products

  • Renters insurance
  • Condo insurance
  • Farm and ranch insurance
  • Manufactured home insurance
  • Off-road vehicle insurance
  • Commercial auto insurance
  • Boat insurance
  • Identity theft insurance
  • Business insurance
  • Umbrella insurance

State Farm Claims Process 

State Farm auto insurance claims can be made online, through the mobile app, by calling the claims department (open 24/7), or by calling your local State Farm agent. After you make a claim, State Farm will review the claim and request additional information if needed. An adjuster will send an estimate and repair options to you. 

State Farm pays for repairs in three ways: directly to the repair facility, directly to your bank account, or directly to your mailbox through a check. Using the mobile app to make and manage a claim, pay a bill, or upload photos is very simple. 

In the J.D. Power 2021 U.S. Auto Claims Satisfaction StudySM, State Farm scored 892 out of 1,000 possible points. That score placed it well above the national provider average and sixth overall in the study. This indicates that State Farm was generally effective at handling claims.

State Farm Insurance Reviews

While State Farm has nearly 100 years of experience in the insurance industry, it is not currently rated by the Better Business Bureau (BBB). The company is not accredited by the BBB either. However, State Farm does hold a “Superior” A++ financial strength rating from AM Best. 

We did find a high number of negative reviews online. But for a provider State Farm’s size, that’s to be expected. The company scored 811 out of 1,000 possible points in the J.D. Power 2021 U.S. Auto Insurance StudySM customer satisfaction ranking index, placing it sixth overall in the nation. 

Positive State Farm Insurance Reviews

When customers reported a fulfilling experience in their State Farm insurance reviews, they tended to mention helpful local agents and efficient service. 

“[I] love State Farm. All of my insurance, banking, and financial planning is through [State Farm]. Quick service, both at the agent’s office and on the phone. Needed a tow, they sent someone ASAP and no [money] paid out of pocket for the tow. [I] had a checking [account] question and they were available on the phone super late and to chat with online as an [instant message]. Love my agent!” 

– Anonymous, Trustpilot

“State Farm has all my insurance business.” 

– James E., Trustpilot

Negative State Farm Insurance Reviews

In several negative State Farm insurance reviews, steep increases in insurance rates following an accident and bungled communications were some of the most common complaints from policyholders.

“State Farm was a great bargain years ago. The prices skyrocket after an accident, even if you’re not at fault. The agents are great, but it is so unaffordable now. I had to cancel the policy [and] switch to Progressive.”

– Emma, Trustpilot

“I asked Thursday afternoon for proof of payment – and they hung up. Yet, I called again. Then they hung up – again. They also are beyond incompetent – two different people could not spell my email address correctly.”

– Rhett W., Trustpliot

State Farm – 95 Percent – Best For Student Drivers

The nation’s largest insurer earned an impressive 95 percent in our State Farm insurance review. While the company has reasonable rates and strong industry ratings, we believe State Farm’s greatest asset is its programs for student drivers. The company’s discounts can help make coverage more affordable for drivers who typically pay the highest rates.

While there are cheaper providers, the sheer number of insurance products State Farm offers means you can get a sizeable bundling discount through the company. We believe State Farm is worth a look when comparison shopping for the best insurance provider for you.

Top Picks For Car Insurance

Even if you think State Farm is a good choice for you, it’s always best to compare quotes from a few providers. That way you can see who truly offers the best rates for your individual needs. These companies are a good place to start your search.

GEICO: Best Overall

GEICO earned 96 percent in our study of the best car insurance companies. That score is tied for the highest among all providers in the study and enough to earn it the title of Best Overall.

The company got that rating due to its strong reputation for customer service, affordable coverage, and high ratings from industry professionals. GEICO has both an A+ rating from the BBB and an A++ financial strength rating from AM Best.

To learn all the reasons why it earned the top spot, read our GEICO auto insurance review.

USAA: Best for Military Families

USAA also earned 96 percent in our study. The company performed well in every category, but what stands out is its combination of affordability and excellent customer service. Industry experts hold the company in high regard, evidenced by its A++ financial strength rating from AM Best and A+ rating from the BBB.

Unfortunately, not everyone has access to the company. USAA coverage is only available to members of the military and their families. But if you are eligible, we certainly recommend getting a quote from the provider.

For a more comprehensive look at the provider, read our in-depth USAA insurance review.

FAQ

Is State Farm expensive?

Our research found that State Farm insurance was about average, on par with many of the other large insurance providers we reviewed. While State Farm insurance isn’t expensive compared to others, it’s also not the cheapest provider.

What is the phone number for State Farm customer service?

You can reach State Farm customer service via the customer care phone number at 888-559-1922. This customer service line is available 24 hours a day, seven days a week.

How much does car insurance drop when you turn 25?

Based on our research, we found that car insurance rates can drop as much as 20% when you turn 25. Of course, your rates also depend on your driving record, vehicle information, and several other factors.

Does State Farm cover towing?

State Farm covers towing to the nearest repair facility as part of its roadside assistance package. While this package does cost extra as a policy add-on, it may save you money if you have a roadside emergency.

What is the State Farm accident claim number?

The State Farm accident claim number is 800-732-5246 (800-SF-CLAIM). You can also file a claim from the State Farm mobile app.

Does State Farm offer insurance in California?

Yes. State Farm offers insurance in California and 47 other states. The only states in which State Farm coverage is not available are Massachusetts and Rhode Island.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.

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