State Farm Auto Insurance Review
With high marks in claims satisfaction and strong financial ratings, State Farm is a solid contender in almost every category. Almost. When it comes to discounts, State Farm boasts a comparatively shorter list than other big-name auto insurance providers, which limits the company’s ability to offer you the lowest possible rate. However, it makes up for this by having a few important supplemental coverage options, including rideshare coverage in 42 states (plus Washington, D.C.).
|Price||Quotes differ from person to person|
|In business since||1922|
|Standout features|| Rideshare coverage|
High claims satisfaction scores
Accessible agents nationwide
Defensive driving course
Student away at school
|Number of states served||50|
|J.D. Power 2018 Insurance Shopping Study score||829/1,000 (below industry average)|
|J.D. Power 2018 Auto Claims Satisfaction Study score||864/1,000 (about average)|
|A.M. Best financial strength rating||A++ (‘Superior’)|
|Moody’s rating||Aa1 (‘Excellent’)|
|S&P Global rating||AA (‘Very strong’)|
|Consumer Reports rating||89/100|
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?
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 42 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.
State Farm Auto Insurance Pros
- Great for owners of newer vehicles.
- Excellent for Uber and Lyft drivers.
- Strong financial ratings from A.M. Best, S&P Global, and Moody’s
- Extensive online resources
State Farm Auto Insurance Cons
- Not ideal for customers looking for the cheapest rates.
- Glitchy app
- Fewer discounts than competitors
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 42 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. Consumer Reports also highlights the strong points of the company’s claims process, awarding “Excellent” scores when it comes to the ease of reaching an agent, courtesy of said agent, and the time taken to settle a claim. 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 high Consumer Reports ratings for claims process and agent experience, you can feel confident knowing that a helpful representative will be available and ready to guide you through every stage of the insurance process.
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.
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.
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.
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State Farm vs. Travelers Insurance
Travelers’ has twice the number of supplemental coverage options and more discounts than State Farm. Quotes and coverage are still highly personal, but we think that Travelers is a better bet for most drivers. It even scored higher than State Farm when it came to Consumer Reports and J.D. Power, with notable superiority in Consumer Reports’ “Promptness of response” and “Freedom to select a repair shop” categories.
That said, rideshare coverage is more widely available with State Farm, making it a better option for Uber and Lyft drivers. If you drive for one of these companies, State Farm may be a better fit.
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 terms of discounts and financial strength, though they each excel in one key area. Allstate scores a little lower than State Farm in claims satisfaction, but it offers a few more supplemental coverage options. If you need rideshare coverage, we’d still recommend going with State Farm, but it’s worth checking out Allstate to see if there are any additional coverages that you might need.
State Farm Auto Insurance 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. State Farm, like many other providers, offer a good student discount, rewarding academic performance and low-risk driving. 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. State Farm is also ideal for those who drive for Uber or Lyft, with rideshare coverage in all but eight states. But if you’re looking for personalized coverage options and exceptional discounts, you’re probably better off looking elsewhere.