Everything About State Farm Car Insurance
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.
State Farm Is the 3rd Best Car Insurance Company
How We Created This State Farm Car Insurance Review
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.
U.S. News also worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. The rates are based on profiles for both male and female drivers aged 17, 25, 35, and 60. Vehicles used include the 2018 Honda Civic, 2018 Toyota RAV4, 2018 Ford F-150, 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage of 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. The rates shown here are for comparative purposes only. Individual rates will differ.
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 average rates for the 10 largest car insurance companies in the country. State Farm’s average rate, $3,260, was among the lowest of the group. Only USAA and Geico were lower, with American Family and Nationwide a bit higher. The rates discussed here are for comparative purposes only. Individual rates will differ.
Liberty Mutual car insurance rates are not currently available.
Adults with decades of driving under their belts all see similar average rates. Married 35-year-olds have an average insurance rate of $2,082, and married 60-year-olds have an average of $1,874. Young, single 25-year-olds pay an average of about $2,300 for males and $2,500 for females. So for most of your life, the average rate stays within a few hundred dollars (not counting for inflation or changes in your status).
Very young drivers see far higher rates, which is not unusual. A 17-year-old female insured by State Farm will pay an average of just under $6,000, while a male the same age will pay about $7,300.
|Single 17-year old female||$5,953.88|
|Single 17-year old male||$7,324.34|
|Single 25-year old female||$2,335.96|
|Single 25-year old male||$2,554.56|
|Married 35-year old female||$2,081.72|
|Married 35-year old male||$2,081.72|
|Married 60-year old female||$1,873.89|
|Married 60-year old male||$1,873.89|
If you’re insured by State Farm, mileage isn't a big issue. Customers who drive 12,000 miles a year will pay about $3,300 on average. If you drive half as much, 6,000 miles a year, the average rate is just under $3,200. It’s a difference of only a couple hundred dollars.
When shopping for auto insurance, you’ll find that there are different types of coverage. You can opt for bare-bones insurance that meets the legal requirement and no more, or you can choose a plan that covers everything, with a low deductible and a rental car to boot. Our report sorted these into low, medium, and high coverage so we could compare rates.
At State Farm, the average rates for these were within a narrow band. Low-coverage insurance was just over $3,000, and high coverage averaged just under $3,500. Given the cost of medical care, property repairs, and liability claims, spending an extra $500 per year for more coverage might be worth it.
|Coverage Type||Average Rate|
Insurance companies are increasingly using a driver’s credit history as one of the factors that determines your rate. For those with good credit, the average State Farm rate is $2,175. Drivers with average credit see a bit of a jump to $2,853. Poor credit is considered a significant risk by insurance companies, and for those drivers, the average State Farm rate leaps all the way to nearly $5,000.
|Credit History||Average Rate|
It will come as no surprise that drivers with a clean record see better rates than those with violations or claims in their histories. The base line at State Farm, on average, is $2,821.
But mistakes are made and accidents do happen – it’s why we have insurance. If you get a speeding ticket, the average State Farm rate rises to nearly $3,200. An accident will raise it to nearly $3,400. And one DUI will bring that average rate to about $3,600, or $800 more than if you have a clean record.
|Driving Record||Average Rate|
|With 1 speeding violation||$3,186.01|
|With 1 accident||$3,396.01|
|With 1 DUI||$3,636.80|
Who Should Get State Farm Car Insurance?
After looking at all these average rates across different demographics, 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 in any of these categories, but those who are middle-aged or older and married will do better with State Farm than with many of its competitors. A clean record will get you the lowest rate no matter which company you choose, but on average, State Farm's rates don’t go up as quickly after a ticket or one accident.
State Farm Auto Insurance vs. Allstate Auto Insurance
The first difference shoppers will notice is that State Farm car insurance is on average less expensive across the board than Allstate. In every demographic in the report, Allstate’s average rates were at least 50 percent higher than State Farm’s rates.
One factor that contributes to this difference in 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.
State Farm Auto Insurance vs. Geico Auto Insurance
Geico has lower average rates than State Farm in most demographic categories, but not all. In many cases, Geico and State Farm’s average rates are within a couple hundred dollars. State Farm’s rates are a little lower for drivers with good or fair credit ratings, though drivers with poor credit ratings can probably save a few hundred dollars a year with Geico. Middle-aged or older drivers will likely see lower rates with State Farm than with Geico.
State Farm Auto Insurance vs. Farmers Auto Insurance
Drivers with poor credit will see similar average rates from both State Farm and Farmers for car insurance. But for all other demographics in our report, average rates were far less expensive from State Farm.
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
Headquarters: State Farm Insurance, One State Farm Plaza, Bloomington, IL 61710
General phone: 800-782-8332
Auto insurance claims: 800-732-5246