State Farm Car Insurance Review

State Farm is the largest car insurance company in the United States

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State Farm

State Farm is the largest auto insurance company in the country in terms of direct premiums written. Founded in 1922, the company offers a wide range of insurance products, including motorcycle, motor home, homeowners, renter’s, and life insurance.

With robust coverage options and multiple discounts, State Farm is known for customer service. It has more than 19,000 insurance agents nationwide and commands more than 16% of the private passenger auto insurance market share.

  • Pros & Cons
  • Key Takeaways
  • Company Overview
Pros & Cons
Pros
  • Multiple policy discounts available

  • Strong third-party ratings

  • Useful mobile app

Cons
  • Must submit personal information to get a quote

  • Agent responsiveness variable

  • Rideshare insurance not available in all states

Key Takeaways
  • State Farm was founded in 1922 and is headquartered in Bloomington, Ill.
  • State Farm is licensed in all 50 states, but coverage options and discounts may vary by location.
  • State Farm has more than 19,000 insurance agents nationwide.
  • According to the company, some drivers who use the Drive Safe and Save app get up to 50% off their premiums.
  • Rideshare coverage can be added to some policies.
Company Overview
  • Year Founded 1922
  • Official Website www.statefarm.com
  • Insurance Offered Auto, motorcycle, RV, motorhome, homeowners, renters, and more
  • Customer Service 24/7 phone: 1-800-782-8332

Pros Explained

  • Multiple policy discounts available State Farm has a number of discounts you can take advantage of to reduce your premiums, including such programs as Drive Safe and Save, Steer Clear, and Good Student Rewards, as well as a discount for bundling policies with State Farm.
  • Useful mobile app State Farm operates an award-winning mobile app. You can use it to get roadside assistance, file claims, access your insurance cards, and make payments.
  • Strong third-party ratings State Farm is one of the top insurance companies in the country. In the J.D. Power 2019 Auto Claims Satisfaction Study, State Farm was ranked fifth out of 23 companies in terms of customer satisfaction.

Cons Explained

  • Must submit personal information to get a quote To get a quote from State Farm online, you must submit your personal information, including your date of birth, driver’s license number, driving history, contact information, and your car’s vehicle information number (VIN).
  • Agent responsiveness can vary State Farm does connect customers with local agents. While many customers appreciate the personalized attention that agents offer, agent responsiveness and customer service levels can vary from agent to agent.
  • Rideshare coverage not available in all states While State Farm does offer rideshare insurance in some areas, it’s not available in all states.

State Farm Car Insurance Coverage

State Farm offers the following car insurance coverage options:

  • Collision – If you car is an accident with another vehicle or object, collision insurance pays for its repairs or replacement.
  • Comprehensive – If your vehicle is damaged by circumstances other than an accident or stolen, comprehensive coverage pays for its repairs or replacement.
  • Liability – If you’re in an accident and you were responsible for its occurrence, liability coverage pays for the other party’s medical expenses, vehicle repairs, and property damage.
  • Car Rental and Travel Expenses – If you need to rent a car or pay for a hotel after an accident, car rental and travel expense coverage will help cover those expenses.
  • Uninsured Motor Vehicle – If you’re injured in an accident caused by someone who doesn’t have liability insurance, uninsured motor vehicle coverage will help pay for your medical expenses.
  • Underinsured Motor Vehicle If you’re injured and the other driver is at fault and has insufficient coverage, underinsured motor vehicle insurance will help cover your medical treatments.
  • Medical Payments If an insured person is injured or killed in an accident, medical payments coverage pays for their medical or funeral expenses.
  • Emergency Road Service – If your car breaks down, emergency road service can help you get back on the road.
  • Rideshare If you drive for a rideshare service such as Uber or Lyft, you can add rideshare service to your policy in select states. According to the company, rideshare driver coverage will typically add 15% to 20% to your current car insurance premium.

Factors That Affect Your Premiums

While you can get a quote online, there are several factors that affect your car insurance premiums.

  • Age Older drivers tend to be in fewer accidents than younger drivers, so they usually pay lower premiums.
  • Gender On average, women are in fewer accidents than men. As a result, their premiums are cheaper.
  • Location Where you live plays a big role in your rates. If you live in a city, you’ll likely pay a higher rate than someone living in the country or suburbs. That’s because you’re more likely to be in an accident or have your vehicle stolen.
  • Vehicle The type of car you drive, its engine size, and its safety profile affect your premiums.
  • Driving History Your driving record impacts your premiums. If you have a past history of accidents or driving under the influence, you’ll pay a much higher premium than someone with a clean driving record.

State Farm Car Insurance Discounts

State Farm offers multiple discounts that can lower your insurance rates, including:

  • Accident-Free Discount If your car has been insured for at least three years without a chargeable accident, you can qualify for the accident-free discount.
  • Driver Training Discount If all the operators of your vehicles under the age of 21 complete an approved driver education course, you may qualify for the driver training discount.
  • Drive Safe and Save Program Enroll in the Drive Safe and Save program and State Farm will use information from your smartphone to calculate your discount.
  • Good Driving Discount If you go three years or more without moving violations or at-fault accidents, you can qualify for the good driving discount.
  • Good Student Rewards Maintain good grades, and you can qualify for the Good Student Rewards program until you turn 25.
  • Multiple Vehicle Discount If two or more vehicles in your household are insured by State Farm, you could save up to 20%.
  • Steer Clear Discount New drivers under the age of 25 without any at-fault accidents or moving violations within the past three years can qualify for the Steer Clear program and get up to 15% off.

State Farm Car Insurance Availability

State Farm is licensed in all 50 states and the District of Columbia. However, its rideshare insurance option is not available everywhere. Contact your local State Farm agent to see what coverage options are available in your area.

State Farm Customer Service

State Farm has more than 19,000 insurance agents nationwide. You can contact agents via phone, by email, or in person during normal business hours. If you need assistance outside business hours, State Farm’s customer service team is available via phone 24 hours a day, seven days a week.

State Farm's mobile app has won awards. In 2019 it was the Mobile Web Award winner for best insurance mobile app. Available for both Android and iOS devices, you can use it to request emergency roadside assistance, file a claim, access your insurance ID cards, and contact your insurance agent.

State Farm has a strong reputation in the insurance industry. AM Best, a credit rating agency focused on the insurance industry, gave State Farm an A++ (Superior) Financial Strength rating, its highest. And, as noted above, in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, State Farm was ranked fifth out of 23 national car insurers.

Complaint Index

The National Association of Insurance Commissioners (NAIC) maintains a database of complaints about insurance companies. Each year the NAIC publishes companies’ complaint ratios, a number that reflects the amount of complaints a company received relative to its market share. Scores of 1.0 are considered average. Anything above 1.0 means the company received more complaints than is typical, while scores below 1.0 mean the reverse. In 2019 State Farm had a complaint ratio of 1.34, meaning it had a worse-than-average complaint ratio.

For the past three years State Farm has had a slightly worse-than-average complaint ratio than the industry average.

Other Insurance Provided by State Farm

State Farm offers multiple insurance products, including:

How to Make a Car Insurance Claim With State Farm

You can file a claim via the mobile app, on the company’s website, or by calling your local State Farm agent. If you would like to report a claim over the phone after normal business hours, you can call 800-732-5246.

To report a claim, you will be asked to provide: 

  • Where the incident occurred
  • The date and time it happened
  • A description of what happened
  • If applicable, the police report number and contact information for the other driver or property owner

After you report your claim, State Farm will review the details. It will contact you if it needs additional information and to notify you about next steps. An agent will let you know about your estimate and repair options.

State Farm Car Insurance Cancellation Policy

You can cancel your State Farm policy without paying a cancellation fee. You can cancel your policy over the phone, in person, or through the mail. You can contact your local agent or call 800-782-8332. When you’re ready to cancel, be prepared to provide your policy number, name, and date of birth.

Get a State Farm Insurance Quote

You can get a car insurance quote from State Farm online. To do so, you’ll need to enter the following information about your car and yourself:

  • Year, Make, and Model
  • VIN number
  • Financing Information
  • Mileage and Estimated Use
  • Driver’s License Number
  • Birth Date
  • Gender 
  • Marital Status
  • Education Level
  • Contact Information

State Farm will use this information to generate your quote, which you can customize.

Compare Other Car Insurance Reviews

State Farm is the largest car insurance company in the country, and it offers multiple coverage options and discounts. However, it’s not the best insurance company for everyone. Depending on your location, driving history, and vehicle, State Farm may be more expensive than your other options. Before selecting an insurer, it’s a good idea to compare quotes from multiple companies.

Verdict

For drivers looking for a robust insurance company with multiple coverage options, State Farm is hard to beat. Not only does it offer a wide range of auto insurance coverages and discounts; you can also combine your policy with homeowners or renter’s insurance, life insurance, and even pet insurance. State Farm allows you to connect with local agents for personalized assistance, and it has customer service representatives available 24/7 if you need to file a claim or have questions about your policy. It’s an excellent choice for car insurance for many drivers.

Methodology

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  2. J.D. Power. "Auto Insurance Claims Satisfaction Reaches Record High as Carriers Refine Time-Consuming Processes, J.D. Power Finds." Accessed Sept. 2, 2020.

  3. Insurance Information Institute. "What Determines the Price of an Auto Insurance Policy?" Accessed Sept. 2, 2020.

  4. MobileWebAward. "The Best Insurance Mobile Awards!" Accessed Sept. 2, 2020.

  5. National Association of Insurance Commissioners. "State Farm Mut Auto Ins Co

    National Complaint Index Report." Accessed Sept. 2, 2020.