State Farm Auto Insurance

by Nikola Djurkovic

Carsurance Verdict: State Farm is the biggest insurer in the US, and it brings all the bells and whistles of an established company. However, its customer service is average, and its premiums are high. It could be an outstanding choice for some, but there are better options available.

State Farm is the largest insurance company in the country. It has great coverage policies and solid customer service. While its rates are considerably higher than its competitors, you can take advantage of their discounts to lower your premium. Either way, this company is definitely worth considering if you’re looking for a good insurer to buy your auto insurance policy from.

You may have already read dozens of State Farm insurance reviews before you stumbled upon ours. So what makes our review different? In this review, we take an in-depth look at the largest insurer in the country and list both its good and bad points based on our own experience in dealing with the company to help you decide if it’s the right one for you.

Product Overview

State Farm Insurance is known for their multiple TV ads featuring personalities from different industries like show business and sports. If you look at their YouTube channel, you’ll see that this company really invests in their marketing. This has benefited them well over the years as they are now the largest and most popular insurance company in the United States.

State Farm Bank offers multiple lines of insurance products and financial resources, like checking and savings accounts, vehicle and home loans, and credit cards. Although we’re focusing on State Farm auto insurance in our reviews, it’s an excellent company to consider if you are looking for an institution that can cater to all of your insurance and financial management needs.

Features

1. Multiple Mobile Apps

State Farm has multiple mobile apps, which will allow you to manage your checking and savings accounts, pay your bills, and manage your insurance policies right from your smartphone. The best part is you only have to use one set of State Farm insurance login details for all the apps. You won’t ever have to worry about forgetting your credentials.

2. Simple Insights ®

State Farm offers an excellent learning resource center for consumers right on their website called Simple Insights®. You’ll find hundreds of personal finance articles, from guides on how to shop for car insurance to safety tips during natural disasters.

Anyone is free to access this hub, even those who aren’t clients yet. Those who are still thinking about requesting a State Farm insurance quote can make use of Simple Insights® to learn how to request one or to find information on the different types of coverage available to gain a better understanding of what type of coverage they need.

3. Car Shopping Service

State Farm has a tie-up with Edmunds. This allows them to help their customers find the perfect vehicle for their needs and budget.

4. Select Service Program

The Select Service program is an add-on feature to State Farm car insurance coverage policies. If your car breaks down, you have the option to choose which Select Service facility to have it repaired at. If you break down in the middle of the road and it’s within a reasonable distance to an affiliated facility, you can request to have it picked up and delivered to you.

Financial Strength

A. M. Best has awarded State Farm with an A++ or “Superior” rating. This is the best possible rating, which indicates that the company is in excellent financial health. On top of this, S&P Global also gave them an AA rating. Needless to say, this company is fully capable of paying State Farm claims.

Types of Insurances Offered

State Farm offers almost all of the major insurance products you could ever need. Here’s a list of the insurance products they offer:

1. Vehicle Insurance

  • Car Insurance
  • Motorcycle Insurance
  • Boat Insurance
  • Off-Road Vehicle Insurance
  • Motorhome Insurance

2. Optional Car Coverages

  • Emergency Road Service
  • Rideshare Driver Coverage
  • Car Rental And Travel Expenses Coverage

Car insurance is what State Farm is most popular for. However, they offer other types of vehicle insurance, which you can take advantage of if you have other vehicles you need to insure. Reviews on State Farm insurance for cars all have nothing but good things to say about the company and its products.

3. Home & Property

  • Homeowners Insurance
  • Condo Insurance
  • Renters Insurance
  • Manufactured Home Insurance
  • Farm or Ranch Insurance

Your home is one of the biggest investments you will ever make in your lifetime. It’s only right that you protect it in whatever way you can, and that means purchasing the best home insurance policy possible.

We gathered and compared the data from multiple State Farm home insurance reviews and found that this company offers one of the most competitive home coverage policies around. Bundling your car insurance with State Farm’s homeowners insurance can allow you to qualify for their discounts for bundled policies.

4. Life Insurance

State Farm offers three types of life insurance coverage. They’ve created life-planning videos and a calculator to help you understand how much coverage you need.

5. Small Business Insurance

Having small business insurance will protect you and your personal assets in the event that your business falls onto bad luck. According to several State Farm insurance company reviews, their Small Business Insurance coverage is comprehensive, and their rates are competitive.

6. Health & Disability

A debilitating illness or a physical injury can severely affect your way of life and your income. By having health and disability coverage, you won’t have to worry about how you’re going to pay for your medical bills and support your day-to-day living because your insurance has you covered.

Customer Service

State Farm customer service is rated above the average when all results are combined. The company has a rating of 3.5 stars out of 5 in J.D. Power’s 2018 study for claims satisfaction, and 3 stars out of 5 in its insurance shopping rating. In J.D. Power’s regional rankings for 2018, the company scores all over the board, sometimes near the top, and occasionally close to the bottom.

The region where State Farm has its lowest scores is Florida, where the company is second from the bottom. If you are based in this area, and if you are looking for cream of the crop customer service, you may want to check out other companies. In all other regions, you won’t be worse off for choosing State Farm over the competition. It should certainly be near the top of your shortlist in New England and the Southwest, where State Farm is in the top three in the customer service department.

The rating of State Farm auto insurance in customer service


State Farm’s NAIC ratio is 0.44, which is a fantastic result. This ratio indicates how many complaints the company receives relative to its size. The lower the ratio, the smaller the number of complaints. Geico, another big insurance company, has an NAIC ratio of 0.62. This only shows that the company puts value on the customer experience, not only for customer service but also during the claims process.

Just like any other customer service hotline, you can expect to wait in line for a few minutes when you call the State Farm customer service number. However, based on our research, calling their hotline almost always turns out to be a better experience compared to other companies.

Discounts Offered by State Farm

Although their quotes are generally higher than their competitors, drivers have the opportunity to lower their premiums. Aside from the industry’s standard discounts, they also offer money-saving opportunities that are exclusive to State Farm customers.

They have safe driver discounts, student driver discounts, safe vehicle discounts, and customer loyalty discounts. However, their most notable discounts are the following:

1. Steer Clear Driver Program

The State Farm car insurance Steer Clear Driver Program is for drivers who are below 25 years old. It is designed so these drivers can brush up on their driver education. It is completely voluntary and can be done online or through the mobile app. If you need help, you can ask for assistance from your State Farm agent. Once you complete the program, you will be eligible for a discount of up to 15% off your premium.

The Steer Clear Driver Program by State Farm auto insurance is available in all states except California, Hawaii, Massachusetts, North Carolina, and Rhode Island.

2. Drive Safe and Save

If you qualify, you can sign up for the Drive Safe and Save program. Upon signing up, you will automatically receive 5% off your auto insurance premium. The discount you receive by signing up for this offer depends on your driving habits.

You will have to download the Drive Safe and Save mobile app or choose to use the OnStar software so your driving behavior can be tracked. State Farm uses the data gathered from the app or software to determine what discount you receive. According to a couple State Farm car insurance reviews, some policyholders received as much as 50% off their premiums when they renewed their policies.

3. Discount Double Check

While this isn’t exactly a discount program, State Farm put it in place to ensure that their policyholders are getting all the discounts they qualify for. This is further proof of how much this company values their customers.

About State Farm Insurance Rates

If you’re only looking for an affordable auto insurance policy, State Farm isn’t the right insurer for you. State Farm car insurance quotes are generally much higher than their competitors. However, when choosing a car insurance company to purchase a policy from, it is important to remember that you aren’t just paying for the coverage. You’re also paying for the quality of service you will be receiving if you choose their company.

That said, the higher premium might be worth paying for if the high quality customer service and a stress-free claims process are priorities for you. The good news is, State Farm offers different types of discount programs to help you save as much as 50% each time you renew your policy.

State Farm Auto Insurance Rate Comparison

We compared State Farm with other car insurers in the country to see how it holds up.

State Farm Auto Insurance Prices Compared to Top Competitors


We tested 26 companies total and found that State Farm’s monthly premium is $71 higher than the average for a 21-year-old driver, $72 higher than the average for a 40-year-old driver, and $7 higher for a 70-year-old driver. This confirms the narrative that the company is among the most expensive options on the market. If low prices are your priority, Geico and Progressive are the top choices; however, State Farm is definitely worth considering for the majority because of its fine customer service, high number of agents, and many discounts. The company is not the biggest car insurer in the US for no reason.

State Farm Auto Insurance Compared with Top Competitors

State Farm vs. Allstate

Allstate is a company that’s well known for its car insurance coverage. It has an A+ rating from A. M. Best and an “about average” J.D. Power ranking for claims and overall satisfaction. State Farm beats Allstate in rankings, but how do the rates of these companies compare?

Based on the data we gathered, as well as other State Farm auto insurance reviews, State Farm offers lower quotes compared to Allstate. However, we found that the latter has more discount opportunities for drivers to take advantage of, which means the bottom line could still end up being the same.

That being said, choosing between these two companies will boil down to the quality of their customer service and their claims process. In our opinion, the winner here is State Farm.

Progressive vs. State Farm

Progressive offers excellent auto insurance coverage packages at affordable rates and is included in almost all of the best auto insurance reviews we came across. If you’re on a budget, this is definitely one of the best insurers to buy a policy from, since State Farm isn’t really known for affordability.

A downside to Progressive, however, is its customer service and claims process. There have been complaints about their customer service and insurance agents being unresponsive to queries and concerns.

As for their claims process, our research found that you will have to go through a lot of back and forth before you complete the filing process. On top of that, you have to wait a while before your claim is paid off. This is a far cry from any State Farm insurance reviews found on the BBB—there have been almost no complaints about State Farm on the Better Business Bureau’s platform.

While State Farm’s rates are generally higher, they offer discount packages that are pretty easy to qualify for. It’s best that you request a quote from both companies and compare them thoroughly before you make a decision. Progressive is definitely worth considering if you don’t mind sacrificing a stress-free experience for a lower premium. After all, you’ll see quite a few other car insurance reviews highlight the company’s focus on customer service.

State Farm vs. Travelers Insurance

Travelers Insurance is one of the oldest insurers in the US. It offers competitive auto insurance coverage policies, and its rates are very budget friendly. They offer a decent list of discount opportunities, which can help lower your premiums even further.

But we see there’s a trade-off for the affordable premiums found at Travelers, and that’s the customer experience. When we compare State Farm insurance reviews with Travelers and other insurers, the Travelers customer service and claims process are even worse than Progressive’s. In our opinion, it would be better to pay a slightly higher premium if it means we’ll be well taken care of in the event that we need it. That said, State Farm is still number one in our book.

However, if you don’t really mind a below-average customer experience and really need an affordable car insurance policy, Travelers should be on your list of companies to look at.

Best Alternatives

If you are looking for an insurer that is on par with the State Farm Insurance company rating, your closest bet is Geico.

Geico offers comprehensive car insurance coverage at competitive prices. There’s a catch, though. Geico is able to maintain their low price because they sell their insurance products directly to their customers through their website or over the phone. This cuts out local insurance agents who would otherwise be on the company’s payroll. This can be a good thing, especially if we’re talking about rates.

While the State Farm insurance payment tiers are on the higher end of the scale, they have communicative live agents, and this is where State Farm beats Geico. With Geico, there isn’t anyone you can talk to face-to-face if you have questions or need help with your account. The good news is, Geico’s website offers a very useful help center and their customer service agents are friendly and are always willing to help.

Expert Thoughts

State Farm is one of the largest insurance companies in the US, and yet despite their size, they are still able to provide a personalized service to their customers. This, combined with how well they are regarded in so many State Farm auto insurance reviews, only shows that customer satisfaction is very important to them—and proof of this is their J.D. Power Score of 829 and 864 for customer satisfaction and claims, respectively.

This company is the most popular insurer in the US. This is mostly due to their aggressive marketing campaign, which includes TV ads and billboards. Add to this their penchant for tapping celebrities to endorse their products and, of course, the State Farm Stadium, it’s no wonder that State Farm is a household name.

As proven by the thousands of positive State Farm Insurance claims reviews you’ll find online, you won’t ever have to worry about your claim going unpaid, because the company is fully capable of paying what they owe. In addition, State Farm’s company rating by A. M. Best is A++ (Superior).

They offer decent coverage policies and some awesome discounts that are easy to take advantage of. For example, when you sign up for State Farm bill pay, you automatically get a 5% discount off your policy.  

However, State Farm’s rates are only average even after the discounts are applied. What you get in return, though, is a fantastic customer service experience. They also have a program in place wherein a dedicated department double-checks your account and makes sure you’re receiving all of the discounts you qualify for. And finally, even when you call in for State Farm roadside assistance or when you simply want to request a quote, you can expect full assistance.

Conclusion

Overall, State Farm is an excellent choice if you’re looking to purchase an auto insurance policy and don’t mind paying a premium in exchange for fine customer service. It’s very easy to get in touch with an agent. Go straight to the State Farm website and request a quote online. You can also call their hotline so a customer service agent can connect you to a local agent. Or you can just do a quick search on “State Farm near me,” and you’ll get the contact details of an agent in your area.

The convenience and comfort you get from a company that puts a lot of value in the quality of their customers’ experience will always be worth the extra cost. Remember, peace of mind can’t be bought, but this is what you’ll get if you choose to purchase a State Farm auto insurance policy. So what are you waiting for? This and nearly all other State Farm insurance reviews should prove that it’s time to connect with an agent!

Frequently Asked Questions

1. What is the A. M. Best rating for State Farm Insurance?

State Farm was awarded an A++ (Superior) rating by A. M. Best—essentially, the highest one they give out. This rating means that the company is in excellent financial health and can pay off all State Farm insurance claims.

2. Is State Farm a good insurance for cars?

One thing you need to remember when buying car insurance is that policies are not one size fits all. While State Farm is a pretty solid insurer, you still need to take a close look at the coverage, discounts, other inclusions, and the bottom line of your premium. You see, there might be inclusions you don’t really need or features you won’t really be able to take advantage of.

This is why we still recommend getting quotes from 3–4 other insurers before making your final decision so you’re sure you’re getting the best price for your auto insurance policy. On top of this, it would be to your great advantage to read other State Farm reviews so you have an idea of what other consumers are saying about the company.

3. How do you receive State Farm discounts?

The company has a Discount Double Check feature wherein a specific department reviews your policy to ensure you are getting all of the discounts you are qualified for. Some State Farm discounts are automatically applied to your quote. While others, like the Steer Clear Driver and Drive Safe and Save programs are applied once you qualify. You’ll also get a discount if you’ve never been late in any State Farm payment.

4. State Farm or Geico, which is better?

State Farm and Geico both offer excellent auto insurance coverage. However, Geico’s rates are undeniably much more affordable. There’s a catch, though! Geico follows a direct-to-consumer business model. What does this mean for you? Basically, you won’t get access to any Geico insurance agent in your area. You have to request a quote through their website, and if you have a question, you either need to file a ticket through their website or call their hotline. Geico is pretty much a do-it-yourself kind of company.

On the other hand, based on a State Farm direct auto insurance review we read while we were doing research, the writer was guided by an agent every step of the way, from the moment they requested a quote up until they needed to call for roadside assistance a month after they purchased their policy. On top of their very useful website and customer support agents, you can get in touch with State Farm’s local agents any time and meet them face-to-face for any concern you might have—a positive feature in nearly all State Farm insurance reviews.

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