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State Farm doesn’t have a mascot or a spokesperson, but there’s a good chance you can sing along with the jingle: “Like a good neighbor, State Farm is there.”

In fact, State Farm has been there for nearly a century now. State Farm was founded in 1922 by a retired farmer who had turned to selling insurance when the farm wasn’t bringing in enough money. George Jacob “G. J.” Mecherle took his insurance knowledge and started a company devoted to offering automobile insurance to farmers. That’s right – State Farm got its start as a car insurance company. By 1944, State Farm had written one million auto insurance policies. In the decades since its founding, the company has expanded its business to include most kinds of insurance.

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State Farm Is the 3rd Best Car Insurance Company

Rank Company
1 USAA
2 Travelers
3 State Farm
4 Geico
5 Farmers
6 Nationwide
7 Progressive
8 Allstate
9 American Family

How We Created This State Farm Car Insurance Review

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our ranking in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We asked people actual customers to rate their insurance company. We surveyed 2,799 people who had filed a car insurance claim in the last five years on their experience with their car insurance company.

Our Study Rates

To get comparative insurance rates for this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the 10 largest national car insurance companies, though not every company operates in every state Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. To get the state-wide study rates shown here, we computed the mean rate for male and female drivers ages 24, 35 and 60 who drive 15,000 miles per year, have medium coverage, good credit and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

State Farm Rating and Review

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State Farm scored very well in our survey of its customers and had some of the lowest average insurance rates for most demographics. It was not the cheapest option, and younger drivers might not get the best rates, but overall satisfaction was high among those polled.

Eighty-one percent of respondents reported that they were satisfied or completely satisfied with the ease of filing a claim with State Farm. Once the claim was in the system, more than three-quarters of people surveyed were also happy with the way the claim was resolved: 59 percent were completely satisfied, with another 19 percent reporting that they were satisfied.

That’s not a perfect score, though, and several respondents noted that it seems longer-term customers may receive better service as well as better rates. Said one respondent, “We get what I perceive as better service because my wife has been with State Farm for over 30 years. With longevity discounts, most other companies can't beat the rates. Not true for someone just starting out. There are companies with much better initial rates and very competitive service.”

People are also pleased with the customer service they receive from State Farm. Four in five respondents said they were satisfied or completely satisfied when asked if they’d experienced good customer service. Respondents seemed to think this service comes with rates that are a little higher than some car insurance competitors. In one respondent’s opinion, “State Farm is the best. You get what you pay for.”

The customer’s local agent seemed to make a big difference in how people felt about this question. “I had to do all the work (except they gave me the phone numbers to call) to file this claim. The owner is never around to talk to,” said one. Another had the opposite experience: “Local agent is very good; company policy stinks!”

While State Farm’s service might be admirable overall, respondents were less enthusiastic about status updates from the company. Only 44 percent said they were completely satisfied with the claim status updates they received, with another 22 percent saying they were satisfied. One comment was typical of those who were not so satisfied: “They did not fight for me on a claim that wasn’t my fault, and my insurance went up too.”

When asked how they felt about the value they got from State Farm, customers’ ratings were again lower. Only about 40 percent said they were completely satisfied with the value they get from State Farm. One person put it plainly: “They’re too low on the value-per-dollar scale.”

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But would those surveyed recommend State Farm to others looking for car insurance? Most said yes, with 62 percent saying they’re either likely or very likely to recommend it. And they’ll be staying on with State Farm themselves: Three in four respondents were likely or very likely to renew. As one person put it, “State Farm is still the cheapest. Mainly because we've been with them for almost 50 years, and we have had very few claims.” But people do wonder if the value is worth it. “I’m not sure I’m getting the best price,” said one respondent.

People who are looking for good customer service and are willing to pay more than the bargain rate for auto insurance will probably be happy with State Farm. Choosing the right local agent seems to be key, so asking for recommendations from others in your area might help you find the best fit. Filing claims is pretty easy, but resolving those claims can be more difficult, and communication on your claim’s status can be spotty.

State Farm Car Insurance Costs

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It can be hard to pin down an average rate when shopping for auto insurance. There are so many factors that go into an individual's rate, including the driver’s age, credit history, and driving history, as well as the car being insured.

We worked with Quadrant Information Services to find typical representative rates for the largest car insurance companies in the country. Our study used representative driver profiles with good credit, medium insurance coverage, a clean driving record, and 12,000 miles of annual driving. Our profiles included male and females with the ages of 25, 35, and 60. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

State Farm’s average study rate of about $1,260 was among the lowest of the group. Only USAA, Geico, and Travelers offered lower representative premiums. The rates discussed here are for comparative purposes only. Individual rates will differ.

Company

Average Rate

USAA

$894.95

Geico

$1,063.10

Travelers

$1,211.84

State Farm

$1,260.12

Progressive

$1,308.37

American Family

$1,325.99

Nationwide

$1,529.58

Farmers

$1,538.21

Allstate

$1,777.66

State Farm Car Insurance Rates by Demographic

To determine State Farm's average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Married 35-year-old driver profiles have an average insurance study rate of $1,237.06, and married 60-year-old profiles have an average of $1,124.88. The single 25-year-old driver profiles have study rates of $1,501.23 for males and $1,273.10 for females. 

Group

National Average Rate

Single 25-year-old male

$1,501.23

Single 25-year-old female

$1,373.10

Married 35-year-old male

$1,237.06

Married 35-year-old female

$1,237.06

Married 60-year-old male

$1,124.88

Married 60-year-old female

$1,124.88

State Farm Car Insurance Rates by Annual Mileage

We created two driver profiles to compare how annual mileage can change State Farm car insurance rates: one with low mileage (6,000 miles per year) and one with high mileage (12,000 miles per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Mileage isn't a big issue when it comes to State Farm's study rates. The profiles with 12,000 miles a year pay $1,137.50, on average. The average study rate increases by only a little more than $100 annually for the profiles with high mileage, to $1,260.12. 

Annual Mileage

National Average Rate

6,000 miles annually

$1,137.50

12,000 miles annually

$1,260.12

State Farm Car Insurance Rates by Coverage Type

State Farm offers car insurance coverage in three general tiers: low, medium, and high (even if they don’t necessarily advertise it as such). We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females with the ages of 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

At State Farm, the average study rates for all three levels of coverage were within a narrow band. The profile with low-coverage insurance had a representative premium of $1,166.65, while the one with high coverage had a study rate of $1,352.67. Given the cost of medical care, property repairs, and liability claims, spending an extra $200 per year for more coverage might be worth it.

Coverage Type

National Average Rate

Low

$1,166.65

Medium

$1,260.12

High

$1,352.67

State Farm Car Insurance Rates by Credit History

Our study verified that credit score affects car insurance rates using male and female driver profiles with ages of 25 years, 35 years, and 60 years. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

For the driver profile with good credit, the average State Farm study rate is $1,259.74. The profile with fair credit sees a bit of a jump to $1,640. Poor credit is considered a significant risk by insurance companies, and for those driver profiles, the average State Farm representative rate leaps all the way to $2,815.36.

Credit History

National Average Rate

Good

$1,259.74

Fair

$1,640.00

Poor

$2,815.36

State Farm Car Insurance Rates by Driving Record

As you might expect, a person's driving record has a large impact on insurance rates, according to our study. To find out just how much of an effect, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of mileage per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis are the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

It will come as no surprise that driver profiles with a clean record see better representative rates than those with violations or claims in their histories. The baseline study rate at State Farm is $1,260.12 for the profile with a good driving record, on average.

But mistakes are made and accidents do happen – it’s why we have insurance. For the driver profile with a single speeding ticket, the average State Farm study rate rises to nearly $1,408.71. An accident raised the representative premium to nearly $1,501.96, and one DUI pushed the average study rate to about $1,692.09, or about $500 more than for the profile with a clean record.

Driving Record

National Average Rate

Clean record

$1,260.12

With 1 speeding violation

$1,408.71

With 1 accident

$1,501.96

With 1 DUI

$1,692.09

Who Should Get State Farm Car Insurance?

After looking at all these average study rates across different driver profiles, we compared State Farm to the rest of the top auto insurers in the nation in each of these categories. It’s not the least expensive insurer for any of these profiles, but those that are middle-aged or older and married will do better with State Farm than with many of its competitors. A profile with a clean record gets the lowest rate no matter which company it's insured with, but on average, State Farm's study rates don’t go up as high after a ticket or one accident as some rival insurers.

State Farm Auto Insurance vs. Allstate Auto Insurance

The first difference shoppers will notice is that State Farm car insurance study rates are on average less expensive across the board than Allstate's in our analysis. For every profile in the report, Allstate’s average study rates were hundreds of dollars higher than State Farm’s representative rates.

(Kittisak Jirasittichai / EyeEm / Getty Images)

One factor that contributes to this difference in study rates is State Farm’s status as a privately owned mutual insurance company. That means the policyholders are the owners of the company; any business decisions that benefit the customers also benefit the owners because they’re the same people. Allstate is publicly traded, which means it has shareholders who are looking for profits and growth.

Read more in our State Farm vs. Allstate Head to Head Comparison »

State Farm Auto Insurance vs. Geico Auto Insurance

Geico has lower average representative rates than State Farm for most, but not all, of our driver profiles. In many cases, Geico and State Farm’s average study rates are within a couple hundred dollars. State Farm’s representative rates are a little lower for driver profiles with a single accident or a DUI. Geico is significantly cheaper for the profile with a poor credit rating, however.

Read more in our State Farm vs. Geico Head to Head »

State Farm Auto Insurance vs. Farmers Auto Insurance

According to our analysis, State Farm offers lower study rates than Farmers to every driver profile. In some cases, Farmers' representative premiums are only a couple hundred dollars more, but for other profiles, like those with an accident or a DUI, Farmers' study rates are closer to $1,000 more expensive.

Read more in our State Farm vs. Farmers Head to Head »

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Types of Coverage From State Farm Car Insurance

State Farm offers a full slate of auto insurance. It offers the typical collision, comprehensive, liability, uninsured, and underinsured motorist coverages. Emergency road service is available, which includes an hour of mechanical labor, an hour of a locksmith’s time, towing, or delivery of gas or a battery, depending on why you’re stuck on the side of the road.

State Farm also offers insurance specific to ride-share drivers for companies like Uber and Lyft. Most of these companies provide some insurance coverage while you’re driving for them, but this add-on carries your personal insurance coverage over, even while you’re using the app and picking up passengers. If your personal deductible with State Farm is lower than the ride-share company’s deductible, you pay the lower amount.

State Farm Car Insurance Complaints

Our survey showed that for the most part, State Farm customers are quite happy with the service they receive and the resolution of their claims. But those who rated the company highly didn’t often detail what exactly State Farm did to earn their high marks.

A few respondents mentioned that State Farm does not provide gap insurance, which covers the difference between the car’s value and what you owe on the loan if it’s totaled in an accident. The company does offer Payoff Protector, which operates much the same way as gap insurance, but it’s available only if you finance your car through State Farm Bank. You don’t actually have to have State Farm auto insurance to have Payoff Protector with your State Farm auto loan.

The number one complaint people had, and the reason they were cross-shopping other insurance companies, was that their rates were rising with State Farm. It wasn’t clear from the responses if the rates were raising after a claim or incident, or if the policyholders had insured new vehicles that might be more expensive to cover.

State Farm Car Insurance Discounts

There are several discounts available from State Farm that can lower your rates. If you have a vehicle with OnStar, you can enroll in Drive Safe & Save, a program that uses that system’s driving data to determine your individual rate. Younger drivers with a clean record can enroll in Steer Clear, an app-based safe driving course for policyholders under the age of 25. Other discounts are typical across the industry, such as rate reductions for at least three accident-free years in a row and up to 25 percent savings for students who get good grades.

Other Types of Policies From State Farm

If you can use it to get from point A to point B, State Farm is probably able to insure it. The company offers motorcycle insurance for everything from scooters to trail bikes to classic motorcycles. Boat coverage includes yachts, jet skis, and kayaks, and off-road insurance covers ATVs, campers, snowmobiles, and more. There’s also coverage for motorhomes, truck, and van campers.

State Farm also insures higher value (and higher risk) vehicles like sports cars, antiques, and collectibles. And it has policies available for vehicles used for business purposes.

State Farm Financial Fitness

The State Farm Group has the largest share of the insurance market, with 18 percent. It has a healthy lead over the second-largest insurer, Geico, which is owned by Berkshire Hathaway and has 13 percent of the market. Allstate and Progressive each hold about 10 percent of the market. These four companies together account for half of the insurance market.

Other Insurance Brands Related to State Farm

State Farm Mutual Automobile Insurance Company, as it is formally known, owns several other insurance subsidiaries, but they are all clearly branded as State Farm companies.

Contact State Farm

Website: www.statefarm.com

Headquarters: State Farm Insurance, One State Farm Plaza, Bloomington, IL 61710

General phone: 800-782-8332

Auto insurance claims: 800-732-5246

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