State Farm Auto Insurance Review

State Farm is backed by strong financial ratings and high claims satisfaction scores that emphasize the insurer’s dedication to its customers. But State Farm isn’t perfect. It’s lacking in supplemental coverage options that would otherwise separate it from the pack, and its comparatively short list of discounts limits the company's ability to offer you the lowest possible rate.

The Claim

State Farm claims that it can provide extensive coverage with personalized service unrivaled by other insurers. That means around-the-clock support and policies that will protect you and your assets in the event of an accident.

Is it true?

Sort of.

State Farm is the largest auto insurer in the country, with nearly 18,000 agents located in all 50 states (plus Washington, D.C. and three provinces in Canada). Thanks to 24/7 support and the ability to file claims online or through State Farm’s mobile app, the “good neighbor” insurer will be available when and where you need it. But that doesn’t necessarily mean that you should choose it as your provider.

Make no mistake: State Farm is a strong insurer, with high financial solvency ratings from three different credit agencies and one of the highest J.D. Power claims satisfaction scores of our contenders. But when it comes to actual coverage, State Farm does little to distinguish itself. It performs well on standard protections — but so does just about everyone else. We do like its rideshare coverage, which is available in 37 states and Washington, D.C.; by comparison, Travelers’ rideshare option is only available in Colorado and Illinois. But aside from this, State Farm has fewer total coverage options than our other top auto insurance companies, landing squarely in the middle of the competition.

Product Overview

Best for

Owners of newer vehicles or Uber and Lyft drivers

Not for

Shoppers looking for the cheapest rates

Features

Price
Quotes differ from person to person
In business since
1922
Standout features
Rideshare coverage
High claims satisfaction scores
Accessible agents nationwide
Extensive resources
Roadside assistance
Rental reimbursement
Discounts
Safe driver discount
Discounts for students based on good grades and being away at school
Vehicle discounts for safety features like anti-lock brakes, airbags, and daytime lights
Discount for enrolling in a driver safety program
Multi-car discount
Multi-policy discount
Number of states served
50
J.D. Power 2018 Insurance Shopping Study score
829/1,000 (below industry average)
J.D. Power 2017 Auto Claims Satisfaction Study score
865/1,000 (above Industry average)
A.M. Best financial strength rating
A++ ("Superior")
Moody’s rating
Aa1 ("Excellent")
S&P Global rating
AA ("Very strong")

Rideshare coverage

As more and more people begin to work for services like Lyft or Uber, insurance companies will likely begin offering more policies catered to the needs of these drivers. But for now, State Farm is one of only a few insurers to provide coverage specifically for these employees (though this option is currently only available in 37 states and Washington, D.C.). Commercial auto insurance is generally more expensive than personal coverage, and State Farm’s rideshare option offers necessary protection for a group of drivers that will only continue to grow.

High claims satisfaction scores

State Farm’s scores in claims satisfaction shouldn’t be overlooked: The J.D. Power Auto Claims Satisfaction Study is a good representation of customer service, and State Farm performs very well. This means customers generally had a positive experience when dealing with the aftermath of an auto accident and were satisfied with the claims State Farm paid out.

Accessible agents nationwide

State Farm has more than 18,000 agents available in all 50 states, plus a 24/7 support line for filing and managing claims (or to just learn more about policies). And with a claims satisfaction rating above the industry average, you can feel confident knowing that a helpful representative will be available and ready to guide you through every stage of the insurance process.

Extensive resources

State Farm’s online resources provide comprehensive information on everything auto-related, not just insurance. This includes articles on topics ranging from responsible financial planning to what you should do in the event that your car is totaled, as well as practical tips for the day-to-day responsibilities of owning a vehicle, like how to jump-start a car, how to properly use driver-assist safety features, and how to protect your vehicle from sun damage.

Possible drawbacks

Buggy mobile app

State Farm’s mobile app has faced some persistent challenges, including issues with connectivity, that could make a bad situation worse when you’re stranded on the side of the road. We don’t think this is sufficient reason to rule State Farm out, but it’s important to consider what your needs will be at the time of an accident.

Fewer discounts

While we were impressed by State Farm’s student and safety discounts, it still has fewer total avenues for saving than insurers like Travelers, Progressive, and Allstate. That doesn’t necessarily guarantee that you’ll get a higher quote from State Farm, but it’s not a great sign, either. We recommend collecting quotes from multiple companies to ensure that you’re getting the best deal.

The Competition

State Farm
Travelers Insurance
Progressive
Allstate
Our review
Our review
Our review
Our review
A.M. Best financial strength rating
A++
A++
A+
A+
J.D. Power 2017 Claims Satisfaction Study score
865/1,000
851/1,000
853/1,000
864/1,000
Supplemental coverage options
8
14
10
12
Number of discounts
10
16
12
11
Online claim filing
24/7 support

State Farm vs. Travelers Insurance

Travelers Insurance has almost twice the number of supplemental coverage options and discounts as State Farm. Quotes and coverage are still highly personal, but we think Travelers is a better bet for most drivers. That said, State Farm received a significantly higher claims satisfaction score from J.D. Power, so if coverage and rates end up equal for you, we’d go with State Farm.

What's more, rideshare coverage is much more widely available with State Farm, making it a better option for Uber and Lyft drivers.

State Farm vs. Progressive

Progressive also bested State Farm in terms of coverage options and discounts, but we think they’re pretty equal overall. If you’re an urban driver who doesn’t use your car for a daily commute, go with Progressive: Its Snapshot feature is a usage-based program that rewards safe and infrequent driving. For most people, though, it’s worth getting quotes from both companies to see how they compare.

State Farm vs. Allstate

State Farm and Allstate are just about even in almost every measure we looked at: Their claims satisfaction scores are nearly identical, they have roughly the same number of discounts, and they offer standout savings for student drivers. You’ll find more supplemental coverage options with Allstate, but State Farm has more widely available rideshare coverage.

State Farm FAQ

What is State Farm’s Drive Safe and Save program?

Drive Safe and Save from State Farm is a program that provides savings based on your driving habits. Your discount is calculated from information gathered by your OnStar communication service or State Farm’s mobile app. State Farm isn’t completely transparent about how your discount is calculated, only saying that it takes into account mileage and “basic driving characteristics.”

How much can you save by bundling with State Farm?

If you or a related individual in your household own multiple vehicles, you can save up to 20% on your policy. If you use State Farm for other forms of insurance in addition to your vehicle coverage — like homeowners, renters, or life insurance — you can save another 17%.

What GPA do you need for State Farm’s student discount?

State Farm’s good student discount can save policyholders up to 25% for maintaining a B average (3.0 GPA) or higher, as well as a deduction for students away at school who will only be driving when home on breaks or holidays. Plus, any drivers under age 25 without at-fault accidents or violations in the past three years can save up to 15% for completing State Farm’s Steer Clear program.

The Bottom Line

State Farm will likely have a policy that fits your needs, and it’s worth getting a quote to see how your premium stacks up against its competitors. If you get in an accident, you can breathe easy knowing you’re backed by strong financial solvency and claims satisfaction. But if you’re looking for personalized coverage options and exceptional discounts, you’re probably better off looking elsewhere.