- Reviews.com scores State Farm car insurance a 5 out of 5, based on discounts, coverage, customer satisfaction, and more.
- State Farm is consistently rated high by AM Best, J.D. Power, and other third parties.
- State Farm has a broad range of car insurance add-ons not offered by many others, such as rideshare coverage.
Founded in 1922, State Farm is one of the largest car insurers in the United States and provides coverage for most drivers’ needs. Data from 2018 shows State Farm as the top car insurance writer ahead of GEICO, Progressive, and Allstate.
State Farm auto insurance is not the cheapest car insurance, but you get what you pay for with State Farm. The company is highly ranked in all regions in the 2021 J.D. Power U.S. Auto Insurance Satisfaction Study, which measures overall customer satisfaction. With a wide variety of product offerings, valuable discounts, and notable claim handling services, obtaining a State Farm auto insurance quote is a wise step.
State Farm’s Average Premium In Your State
Data Source: Coverage.com
State Farm Car Insurance Overview
State Farm earned almost $41 billion in car insurance premiums in 2019, giving the company the highest U.S. market percentage of 16.10%. State Farm is recognized for its excellent customer and claims service consistent with its 881 out of 1,000 rating in claims satisfaction by J.D. Power.
State Farm has the highest A++ (Superior) rating from A.M. Best, demonstrating the confidence that the company has the financial strength to meet all future insurance obligations. Furthermore, State Farm has over 19,000 independent agents throughout the U.S. cementing its ability to meet most customer needs and requests in every state.
- Telemetric-based discounts: State Farm is one of the first car insurers to offer discounts based on actual driving habits of insured with its “Drive Safe and Save” program.
- Rideshare insurance: This important coverage for rideshare drivers, e.g. Uber and Lyft, can be added to a personal policy.
- Nationwide agent network: Over 19,000 agents make it likely you can find a resource right for you.
- Excellent ratings from reviewers: State Farm is consistently ranked high with A.M. Best and J.D. Power.
- Middle-of-the-road pricing: State Farm car insurance will likely not be the cheapest option, although discounts are available.
- Higher-than-average complaints: Despite positive reviews for overall customer satisfaction, State Farm has an NAIC Customer Complaint Index rating of 1.44 which indicates more than an average number of complaints.
State Farm Home and Auto Insurance Bundles
Like many of the other large insurers in the U.S., State Farm offers multi-policy discounts — or bundling discounts — to customers that buy another policy with their State Farm auto insurance. For example, homeowners can bundle their home and car insurance with State Farm and save up to $965 on their premiums.
Renters can get bundling discounts with State Farm, as well. If renters bundle their renters and auto insurance, State Farm states they can save up to $722 on premiums.
State Farm Car Insurance vs. The Competition
|Provider||Reviews.com Score||J.D. Power Customer Satisfaction*||AM Best||No. of Discounts|
Information accurate as of June 2021
*J.D. Power’s 2021 Auto Insurance Satisfaction Study average rating across all regions. Based on a 1,000-point scale.
State Farm vs. Geico
Both State Farm and Geico rank extremely well in the 2021 J.D. Power Customer Satisfaction Study across all regions. Geico ranked below average, however, in the 2020 J.D. Power Auto Claims Satisfaction Study. State Farm’s streamlined and user-friendly claims process is reflected in its higher rating.
From a price standpoint, Geico has more discounts than State Farm. There is a good chance that with a careful comparison, you can find a more affordable car insurance package with Geico, but be certain that coverage and limits are identical.
State Farm vs. Progressive
The most recent NAIC data rates Progressive with a 1.46 customer complaint rating, which is nearly identical to State Farm’s 1.44 rating. However, Progressive did not fare as well as State Farm in the 2020 J.D. Power Auto Claims Satisfaction Study. Progressive’s 856 rating was well below the national average of 872 and even further below State Farm’s 881 ratings.
However, State Farm and Progressive offer a broad variety of discounts with flexible opportunities to create affordable car insurance packages.
Liberty Mutual is much smaller than State Farm with only 4.6% of the national car insurance market. Furthermore, Liberty Mutual was rated below average at 867 in the 2020 J.D. Power Auto Claims Satisfaction Study.
Both companies offer a wide range of discounts and while Liberty Mutual may provide a more flexible series of options to find affordable coverage, it is well worth obtaining quotes from both companies to compare.
State Farm FAQ
The average annual premium for State Farm car insurance is approximately $1,493. However, there are many variables that impact a final car insurance premium. Your quote will depend on your age, location, type of vehicle, and driving history among other factors.
According to many third-party rating services that have rated State Farm for financial strength, customer service, claims handling, and complaints, State Farm rates well with the top best car insurance companies.
State Farm has a 10-day grace period for late premium payments. During this period, an insured driver can still make the premium payment and avoid a coverage lapse.
We evaluated State Farm based on discounts, coverage, online resources, financial strength, and customer satisfaction to determine Reviews.com scores and create our best car insurance reviews. To compare car insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:
- Discounts: Auto insurance companies that advertised more discounts received higher scores in our methodology.
- Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each car insurance company’s financial stability.
- Customer Satisfaction: J.D. Power ranks car insurance companies by customer satisfaction, so we used its 2021 Auto Insurance Satisfaction Study to compare the average rating of insurers across all regions.
- Coverage: Car insurance companies were awarded higher scores for advertised coverages beyond the body liability, property liability, collision, and personal injury protection.
- Online Resources: We reviewed the digital resources of each car insurance company and awarded higher scores to insurers with mobile claim estimates, digital insurance cards, and more.