- Above average rankings for customer satisfaction in 2021 auto and life insurance studies by J.D. Power
- Highest possible rating for financial stability from AM Best
- Award-winning website and apps may allow you to manage your policies online with a positive user experience
State Farm is one of the largest insurance companies in America, and writes more policies for auto and homeowner insurance than any other company, according to the Insurance Information Institute. Founded in 1922, it currently operates out of headquarters in Bloomington, IL, with more than 19,000 agents, who handle nearly an estimated 36,000 claims each day.
State Farm offers more than two dozen insurance products, but chief among them are home, life, and auto insurance. It also provides other financial services, as it serves as a personal and corporate banker and investment manager, with products ranging from annuities and college savings accounts, to loans and lines of credit.
State Farm insurance reviews tend to be largely positive, with third-party groups such as J.D. Power and AM Best giving it high scores in most cases. It registers slightly more than average complaints with the National Association of Insurance Commissioners, although life insurance policyholder numbers are lower than average.
State Farm Insurance Overview
|J.D. Power Customer Satisfaction Score J.D. Power scores are based on surveys for customer satisfaction and product quality.||AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.|
|Pin Auto insurance||890/1,000||A++ (Superior)|
|Pin Home insurance||880/1,000||A++ (Superior)|
|Pin Life insurance||822/1,000||A++ (Superior)|
State Farm Auto Insurance
State Farm offers a good range of auto insurance coverage options and discounts, which can help make your financial protection more affordable. Its Drive Safe & Save program, for example, can save you up to 30% in the states in which it’s offered.
State Farm’s website has received acclaim, along with the company’s mobile apps, which allow you to pay your bill online, get roadside assistance, and manage claims. The website features an excellent blog, called “Simple Insights, which can be a good source of information if you are new to the insurance world.
State Farm offers a few perks that smaller companies can’t match. Some policyholders, for example, are eligible for 24/7 roadside assistance. For customers who prefer local insurance support, a State Farm benefit may be its network of 19,000+ agents who handle claims and policy needs nationwide.
Strengths: State Farm has multiple forms of automotive insurance, including coverage for motorcycles, boats, off-road vehicles and motorhomes, as well as classic and antique cars, commercial autos and rideshare drivers. It also offers SR-22 forms, as necessary, for high-risk drivers who qualify for coverage.
Restrictions: Coverage options and discounts may vary by state. New policies are not offered in Massachusetts or Rhode Island.
Discounts: Two telematics discounts: Drive Safe & Save and Steer Clear for young drivers. Others include accident-free, defensive driving course, passive restraint, anti-theft device, loyal customer, multi-policy, good student discounts.
State Farm Home Insurance
As a major household name for home insurance, State Farm offers standard policies throughout the U.S., except to new policyholders in Massachusetts and Rhode Island. State Farm’s most common type of homeowner insurance policies are HO-3 policies, which include coverage for your dwelling, other structures, liability, loss of use (alternative living expenses), and personal belongings.
It’s worth noting that one peril not covered by standard homeowner policies is flooding, but State Farm can facilitate the purchase of a supplemental flood policy if you are in need of this form of financial protection for your home.
State Farm doesn’t have a ton of home insurance discounts, nor does it particularly excel in the 2021 J.D. Power Property Claim Satisfaction study. There are also not a lot of options for customizing your policy, other than deciding whether to opt for actual cash value or replacement cost value when determining your coverage. However, State Farm does offer an inflation guard rider, or add-on, that provides automatic periodic increases in your policy limits to adjust to inflation.
Another optional add-on is for personal articles, which can provide broader coverage if you have expensive belongings such as jewelry, artwork, sports equipment or health-related items such as prosthetic devices.
Strengths: Local agents available to handle your policy and claim needs, highly-rated website and mobile app; also offers renters, condo, flood, farm and ranch, and manufactured home policies.
Restrictions: Limited discounts, with further limitations by state; below-average J.D. Power customer satisfaction ratings for 2021. New policies are not offered in Massachusetts or Rhode Island.
Discounts: Multi-policy, home security device, and roofing discount for impact-resistant roofing products.
State Farm Life Insurance
State Farm tops J.D. Power’s 2021 Individual Life Insurance Study for overall satisfaction. It has a fairly broad range of offerings, including term life insurance that starts at $15.02 a month for $250,000 of coverage for ten years. You can also purchase policies lasting for 20 or 30 years for amounts over $100,000. Riders offer children’s life insurance, a select term rider that provides life insurance to age 95, and a waiver of premium for disability.
If you prefer a form of permanent life insurance that will stay with you through the years, you may consider State Farm’s whole life policy, which features level premiums and the possibility of dividends and policy loans. State Farm life insurance also includes universal life, another type of permanent insurance that features tax-deferred growth and the ability to adjust premiums and death benefit.
Similar to State Farm’s regular Universal life is survivorship universal life insurance, which covers two people and pays the death benefit when the second person dies; and joint universal life insurance, which covers two people and pays the death benefit after the first person dies. These types of policy are often chosen by married or partnered couples wishing to ensure financial security for their heirs. Premiums are flexible for these two policies, and generally lower than the premiums for individual whole life or universal life policies.
Strengths: Can make beneficiary changes or other changes to your policies; life insurance products highly ranked in the 2021 Life Insurance Study by J.D. Power.
Restrictions: Some policies not available in all states.
Frequently Asked Questions
State Farm Insurance has several mobile apps, which serve different purposes. The company’s Drive Safe & Save and Steer Clear programs both have supporting apps that help you to manage your driving and tie into your auto insurance rate if you opt for these programs. State farm’s Pocket Estimate app lets you recreate the damage to your vehicle after an accident in 3D and obtain repair estimates. The main State Farm app allows you to pay your bill, view insurance documents, file and manage a claim, and perform other functions necessary for insurance policy management.
State Farm scores high, on average, with consumer watchdog agencies AM Best and J.D. Power. AM Best, which monitors fiscal soundness, gives State Farm an A++ (Superior) — its highest possible financial strength rating. J.D. Power, which polls thousands of policyholders for its annual rankings reflecting consumer satisfaction, places State Farm just below average for home claim satisfaction, above average for auto, and topping the list for life insurance satisfaction.