State Farm Auto Insurance Review
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State Farm offers many indications it truly can be there for you, like a good neighbor should be.
9/10
Cost
9/10
Features
8/10
Ease of use
9/10
Services
8.5/10
Sure, we all know Jake from State Farm, not to mention what he’s always wearing. But how do we really know if State Farm is the best auto insurance for us, especially when there are so many other auto insurance options available?
State Farm is a well-known insurance company, but having a big name in the industry may or may not mean it’s the right choice for your auto coverage needs. Today, I’m looking at the pros and cons of choosing State Farm auto insurance so you can decide if it’s best for you.
In this article
What is State Farm auto insurance?
Founded in Bloomington, Illinois, in 1922, State Farm has become a giant among insurance companies. They offer various insurance products, from auto to home insurance to life and disability.
But State Farm doesn’t stop at massive amounts of market share. The company has impressive financial ratings to back up its own claims of stability and strength. They have an A++ rating from AM Best, which is the highest rating possible. This rating is based on financial strength and sound operational performance — exactly what you need with a car insurance company.
When it comes to customer satisfaction with auto insurance claims, you may be interested to know that State Farm is one of the higher-ranking companies. Based on the customer's experience with settling claims, the company ranked above the industry average in the J.D. Power U.S. Auto Claims Satisfaction Study.
So, what exactly do all these big-name ratings and fancy accolades mean for us? It turns out it could mean quite a bit.
How does State Farm auto insurance work?
State Farm operates with over 19,000 insurance agents, so you will likely find an agent within your neighborhood. Each agent is an independent contractor, some will have additional employees too.
You’ll work with your State Farm agent for everything from getting quotes to reviewing the application process. Your agent can work with you to determine the best coverage for your policy.
The cost of your policy is referred to as a premium. You can set this payment to occur monthly, quarterly, or annually (remember to ask if there’s a discount for paying your premium in an annual lump sum!).
State Farm auto insurance offers extensive coverage options for you and your vehicle. Most of these are found with other insurance companies, such as:
- Collision
- Comprehensive coverage
- Liability
- Uninsured motor vehicle
- Underinsured motor vehicle
- Medical payments
In addition to these, policyholders can find coverage options not always available with the other companies, such as:
- Emergency roadside assistance
- Expansive car rental and travel coverage
- Rideshare driver (Uber, Lyft, etc.)
- Antique and classic car
- Sports cars
- Commercial auto
You must choose what coverage you need for your vehicle and determine the deductible you’re willing to pay.
A deductible is the amount of money you will pay before your insurance kicks in if you have a claim. You can choose a no- or low-deductible policy, such as $250, but your premium will be higher. For instance, if you carry a higher deductible in the $1,000 range, you can expect your policy to cost less.
Simple quote process
Obtaining a quote is straightforward. To start the insurance quote process, complete everything online or call a local agent for the details. You’ll have to enter your basic information and specific vehicle information. You should also know that your credit and prior insurance information will be obtained from third-party sources.
How much does State Farm auto insurance cost?
The best way to determine the cost of a State Farm auto insurance policy is to enter your exact information for a quote. You aren’t obligated to purchase, so getting the exact numbers you’re potentially facing is best.
When it comes to auto insurance, there are multiple factors that affect your premium. Factors include age, vehicle, driving record, location, the amount of your deductible, and even your credit score. Some of these factors you have control over, like a safe driving record, others not so much.
According to Bankrate, the monthly premium for full coverage for State Farm is $187, and for minimum coverage, it is $56.
One aspect you do have control over is the ability to inquire about eligible auto discounts.
To reduce the cost of your premiums while still maintaining adequate coverage, look for discounts offered by the insurance company. This is an important topic of conversation for you and your agent.
The number of discounts available to regular people like you and me sets State Farm apart from other auto insurance providers. I found several discounts on premiums to help lower the overall cost. Discounts such as:
Drive Safe and Save discount
This discount rewards you for downloading the Drive Safe and Save™ app on your mobile. You’ll receive a discount automatically once you sign up. To take your discount to the next level, you need to connect your phone to Bluetooth so the app can provide feedback while driving.
If you accelerate or brake too fast, don’t worry; the app will let you know. You'll be rewarded with a deeper discount if you can take your feedback and improve your driving skills.
This program is similar to other safe driver options with other insurance companies, but at least it’s more convenient with the State Farm car insurance app and not something you physically attach to your dashboard.
If you’re hesitant about having an app look over your shoulder every time you drive, you might be persuaded when you save up to 30% on your premium.
Steer Clear discount
State Farm offers a discount for younger drivers. If you’re under 25 and have remained no-fault, accident-free, and without moving violations, you're likely eligible for the Steer Clear discount.
First, you download the app to begin the eligibility process. Once downloaded, you must complete five training modules and several hours of “practice driving.” Once you meet the requirements, you receive a certificate. Don’t shove the certificate in your drawer, though! You must send it to your State Farm agent to receive your Steer Clear discount.
It may seem like a lot of work for a discount, but if you complete the program, you’ll earn as much as a 15% discount. This can make quite a difference since younger drivers typically pay higher premiums.
Multiple policy discount
If you already have a State Farm policy, bundling your insurance with renters', homeowners', life, or other types of insurance can lower your rates with a multiple-policy discount.
This discount can save as much as 17% on your policy, so it’s worth talking to your agent if you have (or will have) other insurance products.
Other discounts available
Here are other discounts I found are offered to help lower your premiums:
- Good student
- Driver training
- Good driving
- Student away at school
- Defensive driving
- Vehicle safety
- Anti-theft
- Passive restraint
- Multiple cars on a policy
Overall, the amount of discounts offered makes State Farm a strong contender. Why not get rewarded for actions you’re already taking?
State Farm auto insurance features
What other bells and whistles does State Farm offer? After all, there are (what seems like) hundreds of choices when it involves auto insurance. But I want to know what’s in it for me.
Rideshare coverage
One unique feature of State Farm auto insurance is Rideshare coverage. Not every auto insurance company offers this option, so take note if you have a side gig driving for others. However, you can expect to pay 15% to 20% more for rideshare coverage.
If you use your vehicle for a rideshare company, such as Uber or Lyft, State Farm covers your liability if you damage your car or someone else's while on duty. Plus, Emergency Roadside Assistance is available if you need it.
Car rental coverage
Another helpful feature offered is car rental coverage. This is an optional service but could be worth it if you depend heavily on your vehicle for transportation.
The best part? You and anyone living in your house can receive this coverage if you’ve selected it as part of your policy.
If you experience a “qualifying event,” State Farm will make all the arrangements necessary for you to obtain a rental car.
These could make a stressful situation easier if you find your car out of commission.
Accessibility
In addition to the 19,000 State Farm agents, you have access to multiple communication points. If you have questions about your policy or claims, you can always contact customer service, which operates 24/7.
If you don’t like phone calls, don’t worry. If you need to file a claim, you can start the claims process digitally by either entering the information into your app or going online.
Lots of discounts
As mentioned, you can access several discounts — not just one or two. This can make a big difference in your quote and the extent of coverage you receive.
Don’t be afraid to ask your agent to go over every discount available! You work hard for your money, and asking how to get the most out of your policy without overpaying never hurts.
Who is State Farm auto insurance best for?
State Farm is a fantastic option for those who are looking for discounts. At the risk of sounding like a broken record, there are a massive number of discounts available.
Those who like discounts
If you’re willing to do the homework—and in some cases, a little extra work—you can be rewarded for your efforts. A great example is the Drive Safe & Save™ program mentioned previously. It takes intentional effort to receive the certification, but once you do, you’re on your way to substantial savings.
Those who need a variety of coverage options
State Farm is good for those who really need an all-inclusive policy or have specific coverage needs (like owning a classic car). Whether you need to add coverage for rideshare drivers, car rentals, uninsured motorists, or others, State Farm likely has the coverage you’re after.
Who shouldn’t use State Farm auto insurance?
Those who like strong customer service
While accessibility to customer service is one of State Farm's best features, it doesn’t necessarily mean you’ll always receive the best experience.
Sometimes, it’s simply a matter of who you get on the phone, but overall, State Farm doesn’t have the highest customer satisfaction rating compared to other big auto insurance companies.
So, if you place a high value on your interactions with agents on the phone, then State Farm may not be the best choice.
Those who need the cheapest premiums possible
State Farm auto insurance doesn’t claim to be the least expensive option for auto insurance. Instead of focusing on the least expensive rates, you’ll notice the emphasis on the number of discounts and a wide variety of coverage options available to you.
Pros and cons
State Farm has quite a bit to offer regarding complete auto insurance coverage. There are numerous pros, including:
Pros
- Strong financial ratings. Financial ratings may induce a snooze-fest when you read through them, but they actually hold nuggets of important information for you as a consumer. With the strong ratings mentioned previously, State Farm continues to show financial strength, which means they’ll have your back now and in the foreseeable future.
- Digital savvy. The State Farm mobile app allows you to initiate a claim, access customer service, check the status of your claims, and more, all with the touch of a button. The website is easy to navigate and offers the same information at your fingertips.
- Easy to obtain a quote. Along with the helpful digital assets, you’ll find it easy to get a direct quote for coverage. You can either call a local agent or fill out a straightforward form online. If further information is needed, someone will reach out to you.
- Wide range of coverage options. Whether you need basic coverage, or are looking for something more specialized, your State Farm agent can tailor the policy to exactly what you need. You won’t have to worry about being over - or underinsured, since you can get the exact coverage you need.
Cons
- No gap insurance coverage. Gap insurance is optional coverage available through some insurance companies. If you total your car, but you owe more than the car is worth, then this coverage will cover your financial “gap.” This is a popular feature for those who purchase brand new cars, since new cars depreciate in value so quickly. If you think you might need this option, you should know State Farm does not currently offer it.
- No custom equipment coverage. If you’re an aftermarket accessory fanatic, you should be aware State Farm won’t cover your add-ons to your vehicle. If you’re going to make modifications, such as custom wheels or carbon fiber hoods, and you’re considering State Farm, then be aware your additional purchase won’t be covered if you’re in an accident.
State Farm vs. competitors
It doesn’t take long to realize there are many car insurance providers. All insurers seem to have multiple commercials with famous spokespeople or noteworthy melodies. But how does State Farm stack up against other big-name companies (besides the catchy jingles, of course)?
J.D. Power Rating | Multiple Discounts | Gap Coverage | |
State Farm | 891/1,000 | Yes | No |
Progressive | 870/1,000 | Yes | Yes |
Geico | 871/1,000 | Yes | No |
State Farm vs. Progressive
Progressive is a well-known insurance company and, like State Farm, offers an extensive list of coverage options and several available discounts. Progressive offers options like custom equipment coverage, gap insurance, or a pet policy for your furbabies.
Progressive ranks as one of the lowest big-name companies in the J.D. 2023 U.S. Auto Claims Satisfaction Study. If customer service is a big deal to you, add this to your list of considerations.
State Farm vs. Geico
Geico is known for being a lower-cost option with car insurance. Like State Farm, Geico offers plenty of discounts, a wide range of coverage options, and a large agent network.
Where Geico may set itself apart by offering Mechanical Breakdown coverage. This is additional coverage you can purchase once your car warranty runs out. It could help you cover those expensive car repairs that magically occur once your manufacturer’s warranty has expired.
FAQs
How much car insurance do I really need?
This is a common question, and ultimately it’s 100% up to you. Keep in mind your state may have specific coverage requirements, but your local State Farm agent can make sure you meet the requirements. Two things to consider are: how much of a deductible am I willing to pay? And what are my personal liability needs? Answering these two questions can make it easier to chat with the agent. The last thing you want is for an accident to cause your financial ruin because you don’t have adequate coverage.
What state do I have to live in to be eligible for coverage?
State Farm offers auto insurance in all 50 states, as well as Washington D.C.
What kind of coverage does State Farm offer?
State Farm offers a wide range of products under the auto insurance umbrella. You’ll have access to collision, comprehensive, uninsured motorists, medical payments, and liability. You also have options such as car rental coverage, emergency roadside assistance, rideshare driver coverage, and several other special circumstances (classic cars, teen drivers, commercial).
Does Jake really only wear a red shirt and khaki pants?
Perhaps this isn’t information we must know, but it does help us put a face on such a large company.
The bottom line
State Farm auto insurance is a strong option for anyone needing auto insurance coverage, from a basic plan to a more comprehensive one. Even if your policy needs specialty coverage, such as for a commercial vehicle or teen driver. State Farm also offers a long list of discounts for those who want to know we are getting the best deal possible for our needed coverage.
State Farm has held strong financial ratings and continues to stabilize during turbulent financial markets. The customer satisfaction ratings show that State Farm is one of the best with regard to the claims process. In short, State Farm offers many indications it truly can be there for you, like a good neighbor should be.
Save $1,604 (or more) per year on car insurance today.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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