State Farm Auto Insurance Review [Rates, Coverage, & More]

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State Farm Insurance OverviewStats
Year Founded1922
Current ExecutivesCEO - Michael L. Tipsord
CFO - Jon Charney
Number of Employees58,000+; about 19,000 independent agents
Current Assets$160 million (USD) per year
Headquarters Address1 State Farm Plaza, Bloomington, IL, 61710
Phone Number1 (800) 782-8332
Websitestatefarm.com
Premiums Written$64,897,210
Loss Ratio (2017)72%
Best ForInsurance, Investing, Banking

Like the refrain of its classic commercial jingle, State Farm Insurance was founded on the principle of being there for its good neighbors. Retired Bloomington, Illinois farmer turned insurance salesman George Mecherle started the business during the roaring twenties to provide lower cost insurance to farmers and rural car owners.

Originally a “single-line” car insurance company, the leading insurance provider in the U.S. now offers nearly 100 products and services in five different lines of business and handles about 39,000 claims daily.

While you searched for information about State Farm, the road might have been bumpy along the way. With so many resources at your fingertips, it’s easy to get lost. But, this guide will steer you along the right path — it features lots of information you need and can use.

A long-term insurer with a solid track record, it’s worth researching State Farm’s car insurance options. Read on to find out more about how it’s rated, insurance discounts and coverages the company offers, and the pros and cons of choosing State Farm.

Compare car insurance quotes to see how much you could save!

Financial Ratings

AgencyRating
AM BestA++
Better Business Business Bureau (Bloomington, IL)A+
Moody'sAa1 (Excellent)
S&PAA
NAIC Complaint Index Complaint Ratio (2018)0.49
JD Power Auto Claims Satisfaction Study864/1,000 (about average)
Consumerreports.org‎89/100

These independent agencies’ rankings can help you evaluate if State Farm is the right insurer for you. The company ranks highly, at or near the top, in most of the survey results listed.

Among the highlights, Moody’s rates debt and its score of “Aa3” means it considers State Farm “high quality and very low credit risk.”  In the J.D. Power 2018 U.S. Insurance Shopping Study of customer satisfaction, State Farm received three “power circle” ratings and a score of 829, ranking average among auto insurers.

AM Best’s highly respected rating system assesses an insurance carrier’s financial strength and the likelihood it will continue to fulfill policies and contracts.  Their highest ranking of A++ means that State Farm has superior financial strength and can meet its obligations. S&P Global’s similar AA rating also shows that State Farm can keep its financial commitments to its customers.

The Better Business Bureau’s A+ rating in State Farm’s home state is the highest ranking the BBB offers.

The National Association of Insurance Commissioners (NAIC), the main regulatory body for U.S. insurers, ranks State Farm at 0.49, which indicates that they receive about an average number of consumer complaints.

Finally, Consumer Reports‘ customer surveys show that the company receives the top ranking.

Company History

When George Mecherle founded State Farm in 1922, it was a mutual company that would refund part of its profits to policyholders when claims were lower and company income was higher. Back then, the insurance industry set its own rates and didn’t factor risk criteria, such as of groups of drivers based on location and driving record into the equation.

Many of the rural and small-town drivers they served had fewer accidents, which resulted in fewer claims, and helped State Farm keep premiums low and beat its competitors’ rates.  It also let them pass savings on to their customers.

The company linked to a network of farmer’s mutual insurance companies, farm bureaus, and other local institutions to form their agent workforce.

The first agents were well-established in their communities, often from the local farm bureau, and worked part-time for a lower commission than their peers. But, their insurance packages were in demand at affordable rates, and high volume sales kept them in business. The headquarters pushed most of the paperwork, letting their agents focus more on sales.

By 1942, it had become the nation’s #1 car insurance company, and in 1947, opened regional offices across the U.S. and Canada.

Their practice of tying insurance rates to risk level was ahead of its time. As the Wall Street Journal noted, “Until the late 1950s, the company’s competitors were clinging to their traditional insurance rates while State Farm was boasting in ads of savings of ‘up to 40 percent’ on its auto insurance.”

The company continues to use these and other early innovations, including its vast network of sales agents, to dominate the insurance industry.  As the numbers below show, its future looks bright.

– Market Share

From 2015 to 2017, State Farm Group topped the National Association of Insurance Commissioners‘ annual Market Share report.

The number of premiums the company writes yearly rose from just over $59 million in 2015 to over $65 million in 2017. The loss ratio increased 10 percent over those three years, from 62 to 72 percent, and the overall market share remained steady at 10 percent.

– Web Presence

State Farm offers the ability to pay bills, get quotes, and file a claim through their website or mobile app; users can contact the company or local agents through their websites in their directory.

– Commercials

Like some of their competitors’ ads, recent State Farm commercials try to tickle viewers’ funny bones, and feature celebrities, including comedians and sports figures. The ads display their new slogan, Here to Help Life Go Right®, which they adopted in 2016, and end with the familiar melody of its signature tagline, “like a good neighbor, State Farm is there.”

– Community Service

In keeping with the theme of being a good neighbor, State Farm’s community involvement focuses on giving in three areas: safety, community development, and education.

The State Farm Companies Foundation supports initiatives and scholarships and associate-directed programs, including grants promoting volunteerism and matching gifts to charitable organizations and colleges and universities.

The company promotes auto safety through its support of such organizations as the Insurance Institute for Highway Safety, Mothers Against Drunk Driving®, and Safe Kids Worldwide™ and partnerships with the National Fire Protection Association, the Home Fire Sprinkler Coalition, and the United States Fire Administration.

State Farm also reinvests in the community to help develop stronger neighborhoods, and many of their associates volunteer in their communities.

In the video below, a State Farm volunteer describes her experience:

– Future Outlook

As the company stated in its 2018 Annual Report, “State Farm remains a strong choice for customers. In 2018, State Farm Mutual achieved an operating profit and continued to build our financial strength, which allows us to deliver on the promises we make and help our customers recover from the unexpected.”

With its long-term success, it also continues to expand.

In September 2018, the company announced the launch of State Farm Ventures LLC, a $100 million venture capital initiative.  It invests in “startups developing products technologies and products in order to fulfill customer needs in ways they wouldn’t think possible with their insurance company.” Their goal is to offer customers new and innovative products and solutions.

“Throughout our history, continuous innovation and adaptation has positioned State Farm as the leader in a highly competitive industry,” Innovation Executive Michael Remmes said. “In today’s rapidly changing marketplace, we recognize that even more innovation and adaptation are required to be relevant to customers in the future.”

Looking at this and its recent trajectory, it’s poised for more growth ahead.

– Employee Experience

The company employs more than 58,000 workers and about 19,000 independent contractor agents.  It ranked 38th on Glassdoor’s Best Places to Work list in 2011, and overall Glassdoor employee reviews average three out of five stars.

More recently, in 2015, the company ranked in the top 10 on the National Association for Female Executives’ list of the best places to work for female executives.

Cheap Car Insurance Rates

We know one of your biggest goals is to get the best car insurance rates. We’ve partnered with Quadrant Data to bring you everything from state rates to mileage rate comparisons to help you understand your options before you make a decision.

So, let’s start researching!

– Car Insurance Rates by Company by State

This table shows how the company’s average annual premiums compare to state average rates.

StateAverage Annual Insurance Premium by StateAverage Annual State Farm PremiumAverage SF Premium Compared to State AveragePercentage Compared to State Average
Alaska$3,421.51$2,228.12-$1,193.39-53.56%
Alabama$3,566.96$4,798.15$1,231.1925.66%
Arkansas$4,124.98$2,789.03-$1,335.95-47.90%
Arizona$3,770.97$4,756.25$985.2820.72%
California$3,688.93$4,202.28$513.3512.22%
Colorado$3,876.39$3,270.77-$605.63-18.52%
Connecticut$4,618.92$2,976.24-$1,642.68-55.19%
District of Columbia$4,439.24$4,074.05-$365.20-8.96%
Delaware$5,986.32$4,466.85-$1,519.48-34.02%
Florida$4,680.46$3,397.67-$1,282.79-37.75%
Georgia$4,966.83$3,384.88-$1,581.95-46.74%
Hawaii$2,555.64$1,040.28-$1,515.36-145.67%
Iowa$2,981.28$2,224.51-$756.77-34.02%
Idaho$2,979.09$1,867.96-$1,111.13-59.48%
Illinois$3,305.48$2,344.88-$960.60-40.97%
Indiana$3,414.97$2,408.94-$1,006.03-41.76%
Kansas$3,279.62$2,720.00-$559.62-20.57%
Kentucky$5,195.40$3,354.32-$1,841.09-54.89%
Louisiana$5,711.34$4,579.12-$1,132.22-24.73%
Maine$2,953.28$2,198.68-$754.60-34.32%
Maryland$4,582.70$3,960.87-$621.83-15.70%
Massachusetts$2,678.85$1,361.86-$1,316.99-96.71%
Michigan$10,498.64$12,565.52$2,066.8816.45%
Minnesota$4,403.25$2,066.99-$2,336.27-113.03%
Missouri$3,328.93$2,692.91-$636.03-23.62%
Mississippi$3,664.57$2,980.48-$684.09-22.95%
Montana$3,220.84$2,417.74-$803.11-33.22%
North Carolina$3,393.11$3,078.65-$314.46-10.21%
North Dakota$4,165.84$2,560.53-$1,605.32-62.69%
Nebraska$3,283.68$2,438.71-$844.97-34.65%
New Hampshire$3,151.77$2,185.46-$966.32-44.22%
New Jersey$5,515.21$7,527.16$2,011.9426.73%
New Mexico$3,463.64$2,340.66-$1,122.98-47.98%
Nevada$4,861.70$5,796.34$934.6416.12%
New York$4,289.88$4,484.58$194.704.34%
Ohio$2,709.71$2,507.88-$201.84-8.05%
Oklahoma$4,142.33$2,816.80-$1,325.53-47.06%
Oregon$3,467.77$2,731.48-$736.29-26.96%
Pennsylvania$4,034.50$2,744.23-$1,290.27-47.02%
Rhode Island$5,003.36$2,406.51-$2,596.85-107.91%
South Carolina$3,781.14$3,071.34-$709.80-23.11%
South Dakota$3,982.27$2,306.23-$1,676.05-72.67%
Tennessee$3,660.89$2,639.30-$1,021.59-38.71%
Texas$4,043.28$2,879.94-$1,163.34-40.39%
Utah$3,611.89$4,645.83$1,033.9422.26%
Virginia$2,357.87$2,268.95-$88.92-3.92%
Vermont$3,234.13$4,382.84$1,148.7126.21%
Washington$3,059.32$2,499.78-$559.55-22.38%
West Virginia$2,595.36$2,126.32-$469.04-22.06%
Wisconsin$3,606.06$2,387.53-$1,218.53-51.04%
Wyoming$3,200.08$2,303.55-$896.53-38.92%
Median$3,660.89$2,731.48-$929.41-34.03%

– State Car Insurance Rates by Company

Next, we’ll look at how the company’s average annual premiums compare in each state to those of other companies.

StateAverage Annual PremiumAllstateAmerican FamilyFarmersGEICOLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Alaska$3,421.51$3,145.31$4,153.07NA in State$2,879.96$5,295.55NA in State$3,062.85$2,228.12NA in State$2,454.21
Alabama$3,566.96$3,311.52NA in State$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Arkansas$4,124.98$5,150.03NA in State$4,257.87$3,484.63NA in State$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
Arizona$3,770.97$4,904.10NA in State$5,000.08$2,264.71NA in State$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
California$3,688.93$4,532.96NA in State$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$3,876.39$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77NA in State$3,338.87
Connecticut$4,618.92$5,831.60NA in StateNA in State$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
District of Columbia$4,439.24$6,468.92NA in StateNA in State$3,692.81NA in State$4,848.98$4,970.26$4,074.05NA in State$2,580.44
Delaware$5,986.32$6,316.06NA in StateNA in State$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
Florida$4,680.46$7,440.46NA in StateNA in State$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67NA in State$2,850.41
Georgia$4,966.83$4,210.70NA in StateNA in State$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88NA in State$3,157.46
Hawaii$2,555.64$2,173.49NA in State$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28NA in State$1,189.35
Iowa$2,981.28$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Idaho$2,979.09$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19NA in State$1,867.96$3,226.29$1,877.61
Illinois$3,305.48$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,414.97$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35NA in State$3,898.00$2,408.94$3,393.75$1,630.86
Kansas$3,279.62$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Kentucky$5,195.40$7,143.92NA in StateNA in State$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,711.34$5,998.79NA in StateNA in State$6,154.60NA in StateNA in State$7,471.10$4,579.12NA in State$4,353.12
Maine$2,953.28$3,675.59NA in State$2,770.15$2,823.05$4,331.39NA in State$3,643.59$2,198.68$2,252.97$1,930.79
Maryland$4,582.70$5,233.17NA in StateNA in State$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87NA in State$2,744.14
Massachusetts$2,678.85$2,708.53NA in StateNA in State$1,510.17$4,339.35NA in State$3,835.11$1,361.86$3,537.94$1,458.99
Michigan$10,498.64$22,902.59NA in State$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,403.25$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49NA in State$2,066.99NA in State$2,861.60
Missouri$3,328.93$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91NA in State$2,525.78
Mississippi$3,664.57$4,942.11NA in StateNA in State$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
Montana$3,220.84$4,672.10NA in State$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74NA in State$2,031.89
North Carolina$3,393.11$7,190.43NA in StateNA in State$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66NA in State
North Dakota$4,165.84$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53NA in State$2,006.80
Nebraska$3,283.68$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71NA in State$2,330.78
New Hampshire$3,151.77$2,725.01NA in StateNA in State$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46NA in State$1,906.96
New Jersey$5,515.21$5,713.58NA in State$7,617.00$2,754.94$6,766.62NA in State$3,972.72$7,527.16$4,254.49NA in State
New Mexico$3,463.64$4,200.65NA in State$4,315.53$4,458.30NA in State$3,514.38$3,119.18$2,340.66NA in State$2,296.77
Nevada$4,861.70$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
New York$4,289.88$4,740.97NA in StateNA in State$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
Ohio$2,709.71$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oklahoma$4,142.33$3,718.62NA in State$4,142.40$3,437.34$6,874.62NA in State$4,832.35$2,816.80NA in State$3,174.15
Oregon$3,467.77$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Pennsylvania$4,034.50$3,984.12NA in StateNA in State$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$5,003.36$4,959.45NA in StateNA in State$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
South Carolina$3,781.14$3,903.43NA in State$4,691.85$3,178.01NA in State$3,625.49$4,573.08$3,071.34NA in State$3,424.77
South Dakota$3,982.27$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23NA in StateNA in State
Tennessee$3,660.89$4,828.85NA in State$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Texas$4,043.28$5,485.44$4,848.72NA in State$3,263.28NA in State$3,867.55$4,664.69$2,879.94NA in State$2,487.89
Utah$3,611.89$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83NA in State$2,491.10
Virginia$2,357.87$3,386.80NA in StateNA in State$2,061.53NA in State$2,073.00$2,498.58$2,268.95NA in State$1,858.38
Vermont$3,234.13$3,190.38NA in StateNA in State$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84NA in State$1,903.55
Washington$3,059.32$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78NA in State$2,262.16
West Virginia$2,595.36$3,820.68NA in StateNA in State$2,120.80$2,924.39NA in StateNA in State$2,126.32NA in State$1,984.62
Wisconsin$3,606.06$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53NA in State$2,975.74
Wyoming$3,200.08$4,373.93NA in State$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55NA in State$2,779.53
Median$3,660.89$4,532.96$3,698.77$3,907.99$3,073.66$5,295.55$3,187.20$3,935.36$2,731.48$3,729.32$2,489.49

– Commute Rates

State Farm averages in about the middle of the pack of insurers.

Company10-mile commute/6,000 annual mileage25-mile commute/12,000 annual mileage
Allstate$4,841.71$4,934.20
American Family$3,401.30$3,484.88
Farmers$4,179.32$4,209.22
GEICO$3,162.64$3,267.37
Liberty Mutual$5,995.27$6,151.63
Nationwide$3,437.33$3,462.67
Progressive$4,030.02$4,041.01
State Farm$3,175.98$3,344.01
Travelers$4,399.85$4,469.96
USAA$2,482.69$2,591.91

– Coverage Level Rates

Though it’s not the cheapest insurer, State Farm also isn’t the most expensive compared to other national insurers.

GroupHighLowMedium
Allstate$5,139.02$4,628.03$4,896.81
American Family$3,416.40$3,368.49$3,544.37
Farmers$4,494.13$3,922.47$4,166.22
GEICO$3,429.14$3,001.91$3,213.97
Liberty Mutual$6,356.04$5,805.75$6,058.57
Nationwide$3,505.37$3,394.83$3,449.80
Progressive$4,350.96$3,737.13$4,018.46
State Farm$3,454.80$3,055.40$3,269.80
Travelers$4,619.07$4,223.63$4,462.02
USAA$2,667.92$2,404.11$2,539.87

– Credit History Rates

GroupFairGoodPoor
Allstate$4,581.16$3,859.66$6,490.65
American Family$3,169.53$2,691.74$4,467.98
Farmers$3,899.41$3,677.12$4,864.14
GEICO$2,986.79$2,434.82$4,259.50
Liberty Mutual$5,604.24$4,388.18$8,802.22
Nationwide$3,254.83$2,925.94$4,083.29
Progressive$3,956.31$3,628.85$4,737.64
State Farm$2,853.00$2,174.26$4,951.20
Travelers$4,344.10$4,058.97$5,160.22
USAA$2,219.83$1,821.20$3,690.73

Experian considers a credit score over 700 to be good or excellent, between 650 and 699 to be fair, and 649 or lower to be poor. The average credit score nationally is 675.

Like other insurers, as shown above, your credit score affects your State Farm premiums; a driver with a poor credit history can pay as much as $2,000 more than one who has good credit.

– Driving Record Rates

State Farm and other carriers’ premiums tend to rise for drivers who have just one offense on their records.

GroupClean RecordWith One AccidentWith One DUIWith One Speeding Violation
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
GEICO$2,145.96$3,192.77$4,875.87$2,645.43
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
USAA$1,933.68$2,516.24$3,506.03$2,193.25

Coverages Offered

The company also offers to bundle of home and property and car insurance policies for deep discounts.

They provide the following coverage:

  • Liability — This coverage pays another party’s medical expenses, vehicle repairs, and property damage if you cause an accident.
  • Collision — If your vehicle hits another car or an object, collision coverage will pay to repair or replace your vehicle.
  • Comprehensive — This insurance will pay to repair or replace your vehicle for damage beyond a collision, such as vandalism, accidents with animals, theft, and fire.
  • Uninsured Motor Vehicle — Sometimes the other party doesn’t have liability insurance. That’s when uninsured motorist coverage can help. If you’re injured in an accident with an uninsured driver, this coverage will pay for your medical expenses.
  • Underinsured Motor Vehicle — If the other party doesn’t have enough liability insurance to pay for your medical care if they injure you, underinsured motorist insurance comes to the rescue.
  • Car Rental and Travel Expenses — Rental car reimbursement pays the cost of renting a replacement vehicle while your car is in the shop. If you’re in an accident more than 50 miles from home, travel expense coverage pays for meals, lodging, and transportation.
  • Emergency Road Service — If your car breaks down, you can call for towing, a jump-start, or other services you might need to return to the road.
  • Medical Payments — This coverage pays medical and funeral expenses if an insured person is injured or killed in an accident.
  • Rideshare Driver Coverage — State Farm offers this coverage to drivers for rideshare companies like Uber and Lyft.

– Where is State Farm Available?

State Farm insures more cars than any other carrier in the U.S. The company is licensed in all 50 states and the District of Columbia.

– Discounts Offered

DiscountPercentage or Amount Saved
Accident-Freevaries; contact an agent
Anti-lock Brakes5%
Anti-Theft15%
Claim Free15%
Defensive Driver5%
Distant Studentvaries; contact an agent
Driver's Ed15%
Driving Device/App30% to 50%
Good Drivervaries; contact an agent
Good Student25%
Homeowner3%
Low Mileage30%
Marrieddepends on the policy
Multiple Policies17%
Multiple Vehicles20%
Newer Vehicle40%
Paperless/Auto Billing$2
Passive Restraint40%
Safe Driver15%
Vehicle Safety40%

Some discounts are available only in certain states. The state tool at the company website can tell you which ones are available in your area or you can talk to an agent.

Also, drivers must meet specific requirements to qualify for some State Farm discounts.

For instance, the Accident-Free discount will apply if the company has insured you for at least three consecutive years without an accident that resulted in a claim.

The discount can increase over time. The Good Driving discount applies to new State Farm customers who have gone three years or more without moving violations or at-fault accidents.

The Good Student discount allows scholars and graduates younger than age 25 to save up to 25 percent just for getting good grades. There’s also the Student Away At School discount which covers drivers who are students under age 25 and are away at school most of the year and use their car only when they’re home on vacation.

Other options include their Vehicle Safety and Passive Restraint discounts, which allow drivers to save up to 40 percent on medical-related coverage.

The Safety discount applies to vehicles made in 1994 or later – depending on the make and model. The company bases its discounts on each make and model’s repair records and adjusts them accordingly every year.

The Passive Restraint discount covers drivers of 1993 and older vehicles equipped with a factory-installed air bag or another passive restraint system.

Among State Farm’s savings programs, Drive Safe & Save™ and Steer Clear® offer incentives tied to driving safety and habits.

The Drive Safe & Save™ program includes an initial discount of about five percent just for signing up, and an ongoing discount of up to 30 to 50 percent, depending on drivers’ availability, eligibility, locations, and coverage – terms and conditions apply.

As part of the process, State Farm monitors your driving habits through the program’s smartphone app or your OnStar® membership to let you get discounts based on your annual mileage and such characteristics as your speed, the time of day you drive, and your acceleration rates.

Similarly, the Steer Clear® program lets teens and young adult drivers receive discounts through driving-focused training that encourages them to think more about safety and practice safe driving habits. Parents can also monitor and guide their progress. Discount rates, availability, and eligibility can vary by state.

– What Stands Out

State Farm is a true leader in earnings, company rankings, and customer satisfaction scores. The company offers customers a lot of discounts. It also provides rideshare coverage in most of the 50 states, over a wider area than most other big-name insurers.

Also, it has a strong track record of reliable coverage options and responds well to claims. Its rates are average compared to competitors.

– What’s Missing

The company has fewer total coverage options than its competitors and could be more innovative in its offerings, however, this lack of risk-taking has paid off in higher profitability.

How to Make a Claim

As we explained earlier, State Farm boasts an excellent track record of increases in the amounts of premiums it has written and in its loss ratios. A loss ratio compares how much a company spends on claims to how much money they take in on premiums.

The company’s recent loss ratio of 72 percent indicates it paid $72 on claims out of every $100 earned in premiums; these numbers reveal the company’s financial stability and ability to pay claims.

Like a good neighbor, State Farm IS there. Customers can file a claim online, through the State Farm® mobile app, contacting their agent, or calling 800-SF-CLAIM (800-732-5246) 24 hours a day, seven days a week.

How to Get a Quote Online

It’s simple to get at a quote at statefarm.com. Let’s walk through the process.

Before you get your quote, make sure you gather the following information:

  • Your driver’s license number or Social Security number
  • Vehicle Identification Number (VIN)
  • Purchase date
  • Current insurance information
  • Names and addresses of any other drivers of your vehicle(s)

– Step One

At the home page, choose your product — car insurance — and enter your zip code:

State Farm Get a Quote Box

– Step Two

On the next page, enter your name, address, and birth date:

State Farm Insurance Quote

– Step Three

Then, you can add up to four vehicles.  Besides the year, make, model, and Vehicle Identification Number (VIN) (optional), you can enter the following:

  • how long you’ve owned the car
  • how you financed it
  • your primary use of the vehicle(s)
  • number of miles you expect to use in the next year
  • whether you want to enroll in the Drive Safe & Save™ program
  • the same address where the vehicle is located (if different)

State Farm Insurance Quote

– Step Four

Next, you can enter information for yourself and up to four other drivers, including driver’s license or Social Security numbers, any other drivers’ addresses, and how you’re related to them.

State Farm Insurance Quote

– Step Five

The next screen requests information about your driving history:

State Farm Car Insurance Quote

– Step Six

Now, you’ll enter some additional information about the registered owner(s) of your vehicle, the most recent auto insurance company and coverage, your email address, and whether any drivers in the last 12 months weren’t insured. Your phone number is optional.

State Farm Insurance Quote

– Step Seven

Finally, you’ll get a variety of different quotes with discounts and add-ons that you can qualify for; you can view the quote and print it out. If you choose to sign up, you’ll enter your driver details and policy and vehicle information in the last few screens.  See? It’s quick and easy.

State Car Insurance Information

State Farm Insurance Mobile Apps

State Farm offers three different mobile apps:

  • Insurance
  • Banking
  • Drive Safe & Save (see video below)
  • Steer Clear driving discount programs

They’re all available through the Apple Store or Google Play.

The State Farm Mobile Apps lets customers manage their insurance and bank accounts, file a claim, get roadside help, and more. It’s as easy to use as their mobile-friendly website. It gets three out of five stars in Apple’s Store and four out of five stars in Google Play; some of the complaints involving the software include difficulties logging in.

Like their website, State Farm’s app should make finding answers to questions easier; a lot of necessary information is simple to access (insurance, getting a quote, making payments, etc.), but it’s harder to find their Frequently Asked Questions (FAQs) or articles on insurance, banking, and other topics.

As we described above, the Drive Safe & Save and Steer Clear programs let users access information about their accounts and they gather data for customer discounts. At Apple’s Store, the Drive Safe & Save app averages three stars and in Google Play, two and a half stars.  Apple’s Store gives Steer Clear five stars.

Common complaints about the Drive Safe & Save app involve changes to the driving safety grading system, and with the Steer Clear app, users’ concerns have revolved around the accuracy of the data gathered, such as acceleration rates and braking.

State Farm Pros and Cons

Nobody’s perfect, and insurance companies are no different. Though State Farm is one of the most popular and highest earning insurers, its golden armor shows some chinks. These are some of the best and worst parts of State Farm’s insurance services and policies.

ProsCons
It's the largest car insurer in the U.S., with coverage available in all 50 states.Beyond the basics, it offers fewer "add-ons" than other top carriers, such as no umbrella or accident-forgiveness coverage.
Long-term positive financial ratings and figures make it more likely to be able to pay claims.The State Farm website and the mobile app could offer better access to more information about their insurance and banking options.
It's easy to make claims with agents available 24/7, which lets the company live up to its famous slogan, "like a good neighbor, State Farm is there."Their insurance quotes are sometimes higher than competitors'.

Frequently Asked Questions (FAQs)

1. What is the difference between sending my quote and purchasing with an agent?

You can send your quote to an agent anytime during the quote process. If you haven’t completed the online form, an agent will contact you to finish the process.

If you received a quote online, you can still buy insurance with an agent. The agent will contact you to get any more information.

2. I changed my mind about purchasing insurance. What should I do?

You can save your quote to continue at a later time. When you do so, you will get an email with a link to the application process.

If you’ve received a State Farm reference number, your application has already been submitted. Your agent will contact you to discuss your policy. You can wait for your agent to call or contact them to discuss your options. If you didn’t get a reference number, your application was not submitted, and your payment should not be processed.

3. Do I have to register at statefarm.com to use the app?

You can use the State Farm app without registering on statefarm.com. Features available without registering include:

  • Get a Quote
  • Find an Agent
  • Roadside Assistance
  • ATM Locator

4. Is Drive Safe & Save™ only for drivers with spotless driving records?

The Drive Safe & Save™ discount doesn’t take into account tickets or accidents. Drive Safe & Save collects actual miles driven and, with Drive Safe & Save Mobile™, driving characteristics essential to calculate the discount.

5. Can I pay by phone or mail instead of online?

Yes. State Farm says that it takes steps to ensure payments made online are secure. But, if you don’t want to make a payment online, they let customers send their applications to a State Farm agent who will contact you about payment. The date your coverage will start will depend on the payment arrangements you make with the agent.

For more questions, you can contact an agent or see the State Farm Privacy Policy.

6. I am a current auto insurance customer. Why can’t I get a quote for another auto policy online?

Current State Farm auto policyholders may do the following to get a quote:
  1. Log into your account.
  2. Choose your current auto policy.
  3. Click Quote/Replace a Vehicle.

The request will be forwarded to your agent for processing.

7. Is my payment information secure on the State Farm website?

State Farm says that it takes customers’ concerns about online security very seriously, so you can pay without worry.  They use industry-standard controls for protecting customer data and keeping their server environment stable.

8. Which driving characteristics are used to calculate my Drive Safe & Save™ discount?

Your discount is based on your annual mileage and driving characteristics:

Annual Mileage – The more you’re on the road, the more likely you’ll be in an accident. Though you might not be able to control how many miles you drive, how you drive may net you more of a discount.  Driving less can also help you save more.

Acceleration – Driving safely can add up — the app takes this into account for your discount.  A slower rate of acceleration puts you at less risk and more control when you drive.

Braking – Again, cautious driving makes sense (cents).  Braking slowly and opening more space between yourself and other cars at a lower speed isn’t just safer driving, it also results in less wear and tear.

Cornering – Taking time to turn and making more space to do so will give you more of an edge and a buffer between yourself and other drivers.

Speed – Driving at high speeds, such as over 80 miles per hour, decreases your stopping distance and opens the possibility of serious accidents.

Time of Day – Driving during rush hour traffic and late at night, when drivers are more likely to be impaired, increases your risk for accidents.

9. Can I still enroll in Drive Safe & Save™ if my car is equipped with OnStar, but I don’t have an active OnStar plan?

You may be able to participate in Drive Safe & Save Mobile. Text SAVE to 78836 to check your phone’s compatibility.

To join Drive Safe & Save with OnStar, an OnStar plan and enrollment in OnStar Vehicle Diagnostics (OVD) is required. Drivers who aren’t already OnStar members must activate their OnStar plan and OnStar Vehicle Diagnostics within 30 days of enrolling in Drive Safe & Save.

About 30 days after sign-up, State Farm will request odometer information from OnStar. If you don’t activate your OnStar plan and enroll in OnStar Vehicle Diagnostics, State Farm will remove the initial participation discount, and you may have to pay for the service.

For more information, State Farm suggests you contact an agent.

The Bottom Line

Overall, as the nation’s top insurer, State Farm offers a variety of basic plans and coverage to suit most car insurance needs and has maintained a long-term record of growth while its reviews and ratings have often been consistently high. It looks poised for continued success as it heads into 100 years of service.

Depending on whether you qualify for their discounts and other potential factors, you could get some competitive rates within your budget, so it can pay to shop around with State Farm.

Find out how much you could save on car insurance with our free comparison tool — just enter your zip code to get started today.

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