Are you thinking about insuring your next automobile with State Farm?
If so that’s not a bad idea and this State Farm auto insurance review article will let you know why. State Farm is a huge auto insurer, in fact, it is America’s largest.
It offers many other products from insurance to finances. For those who love to stick with a brand name they trust, State Farm can become a resource for a wide range of useful and necessary tools and insurance coverage.
State Farm car insurance rates
State Farm is not one of the least expensive auto insurance available, but it is not one of the most expensive either.
State Farm has an average 6-month premium of $748, which is significantly less than the much more expensive Allstate at $786 or the most low priced Nationwide at $644, or Progressive which is $729 per month.
Best suited for
State Farm has some of the highest ratings of any insurance provider. They provide wonderful personal service through a huge network of agents. Furthermore, you can purchase coverage and file your claims from your home using the innovative online platform. While State Farm isn’t one of the least expensive car insurance plans that you can get, they provide lots of discounts and features so that their prices are competitive for most people. If you qualify for one of the discounts or the features matter to you and if good customer service is important to you, State Farm might be your best match.
Locations served
State Farm offers insurance throughout most of the US, with agents available in most cities and towns. Whether you are a driver in the city of Fort Lauderdale, Florida or Asheville, North Carolina you will have no problem being insured. State Farm rideshare insurance is not available in North Carolina, New York, Massachusetts, or Rhode Island.
Financial strength rating
According to A.M. Best Rating Services, State Farm had an A++ rating. This is the highest possible rating. This high score results from State Farm’s long history of excellent financial planning, stable financial conditions, and smooth operation.
According to Standard & Poor’s, State Farm had an AA rating. This rating, while not as high as possible, is quite high, indicating the ability of State Farm to pay its claims.
Moody’s Aa1 insurance financial strength assessment of State Farm Found that the company was stable due to its exceptional capitalization, good asset quality, and a large business presence.
Customer complaint score using Better Business Bureau
State Farm is not accredited through the Better Business Bureau. The available rating is an A-, with a little over one star out of five from an average of 220 customer reviews. An A- rating is not terrible, but it is not as good as it could be either. The Better Business Bureau explains that its ratings for State Farm are due to government action against the business. Reviewers complained about inconsistent customer service, or service being highly dependent upon the individual agent. Other users described customer service as being prompt and efficient.
Car insurance claims
JD Power auto insurance study gave State Farm good ratings for customer service, shopping satisfaction, and claim satisfaction. In the California region, State Farm received an 813 out of 1,000, placing it low to midway between competition. In the central region, State Farm did slightly better, receiving a score of 824. State Farm did not do nearly as well in the Florida region, where it received a 798, nearly the lowest score. In the Mid-Atlantic region, they did better again, receiving a score of 826. In New England’s, again State Farm did well with a score of 838. State Farm received an average score throughout the rest of the country, with the exception of the north central region where they received the highest score of 840.
Shopping Insurance Study
In the Shopping Insurance study by JD Power, State Farm made an 829 out of 1,000, and 3 out of 5 stars. This is one of the lower ratings and is below the industry average of 839. In this category, Erie Insurance was the best with a score of 877 and 5 stars and Mercury Insurance was the worst with a score of 813 and two stars.
State Farm insurance rates by car
Whether you are purchasing a car, SUV, or truck you will State Farm’s vehicle rating tool which helps to give you better insurance estimates. You can easily get a better idea of how much you will be paying for insurance for your Toyota, Honda, Ford, BMW, Chevrolet, KIA, Acura, etc.
State Farm insurance discounts
State Farm has some awesome features. State Farm has one of the best rental car and travel expenses program available in the car insurance industry. State Farm will pay for a rental car when your car is in the shop due to a collision that is covered by your policy. Furthermore, State Farm will pay for transportation, lodging, and meals if you happen to be stranded more than 50 miles from your home. This coverage varies slightly by state.
The drive safe & save program calculates discounts depending on your mileage and measurements of safe driving like smooth acceleration and braking. Your speed and time of day, as well as other risk factors, are also calculated. If State Farm decides that your driving behavior is safe you will receive a discount. You can get up to 50% off of your plan’s cost depending on your driving, which is significant savings.
Drivers under 25 can reduce the otherwise rather high cost of car insurance by taking driver training refresher courses and not having at-fault accidents or moving violations within three years.
Drivers for Rideshare programs like Lyft or Uber can use one policy to cover your ride-sharing and personal use. This option isn’t available in all states, but it is available in most states. State Farm rideshare insurance is not available in North Carolina, New York, Massachusetts, or Rhode Island.
Discounts are offered to drivers who haven’t had an accident for three continuous years. If you continue to go without having an accident and remain insured under State Farm this discount will increase.
Drivers who take a defensive driving course may be able to get discounts, depending on which state you live in.
While students are at school often the car is only used during school vacation and holidays. State Farm offers special discounts to families in these situations. If you do well at school, you can save up to 25% more on your insurance just for good grades.
Discounts are also available for vehicle safety. Vehicles after 1994 can save up to 40% on coverage related to Medical. Discounts are also available depending on make and model repair records and change every year.
Vehicles that have airbags installed at the factory and passive restraint systems can also receive discounts. There is a discount available for vehicles with anti-theft devices like alarms.
State Farm goes further to reward customers for loyalty. Households that have two or more vehicles insured by State Farm will receive significant discount, up to 20%. If you use State Farm for one of your other insurance needs like life insurance or homeowner’s insurance, you can also save on your vehicle insurance.
Support/website ease of use
State Farm is known for having a convenient website which allows you to enroll and make payments right on the website. Furthermore, they have a large network of agents to personally assist you with any needs. This makes them an unusual combination of great in person and online.
That said, many users complain that there are lapses in policy when an agent leaves or passes away and problems when communication is primarily through email. It seems that online options are very useful when everything is going well, but when you have a problem it may be better to seek out an agent in person.
Coverages
State Farm offers a wide range of coverages to take care of whatever might go wrong with your car. Collision coverage will pay to repair or replace a vehicle that collides with an object or another vehicle. Comprehensive insurance pays to replace or repair vehicles that have been damaged by anything besides a collision, including vandalism, theft, fire or hitting an animal on the road.
Liability coverage takes care of another party’s medical expenses and vehicle repairs if you are responsible for an accident.
Travel in car rental expenses pays the cost of a replacement vehicle while your car is in the shop, as well as paying for lodging, meals, and transportation if you are in an accident that is more than 15 miles from your home.
Uninsured motor vehicle coverage will pay for the medical expenses if you are injured by someone who doesn’t have liability insurance. Underinsured motor vehicle coverage takes care of your medical expenses if someone else doesn’t have enough liability insurance.
Medical payments coverage will pay for funeral or medical expenses if an insured person is injured or killed in an accident.
Finally, Rideshare driver coverage is available if you drive for a company like Lyft or Uber so that you can be covered in your personal use and professional use of a vehicle by one convenient policy.
Mobile app
State Farm’s mobile app does not appear to be quite as good as their website. There are frequent reports of glitching and in the newest release mutual fund account information is not accessible via the app. There is useful roadside assistance information available on the app as well as community offers that tell you if businesses near you offer discounts to State Farm customers.
Roadside assistance
State Farm offers emergency road service coverage to pay for the usual expenses when something happens with your vehicle so that you can get back on the road. State Farm will pay for mechanical labor at the breakdown site for up to an hour, towing to a nearby repair location, towing if a car is stuck, and delivery of gas or other essentials like an oil change, battery, or change of tire that is necessary to get driving again. State Farm will not pay for the essentials themselves but will pay for their delivery. Finally, with roadside assistance, State Farm will provide a locksmith to unlock a covered car that is lost, stolen, or has a key locked in the car.
If it takes longer than an hour to tow your vehicle to a nearby repair facility or if the cost of labor provided on the road goes beyond an hour, State Farm will not cover it.
Comparison to the top companies
State Farm is one of the largest insurance companies in America, along with Allstate, Progressive, and GEICO. Each of these companies offers competitive value but differs somewhat depending on what matters most to you. GEICO is generally considered to be more affordable than the other three, with prices significantly lower than the most expensive two. That said, State Farm is second in price to GEICO of the four top companies.
State Farm gets the fewest complaints considering its size. This may be surprising considering its less-than-stellar reviews on the Better Business Bureau, but keep in mind that a car insurance company is a common target for negative reviews. State Farm performs much better than Progressive when customer complaints are counted.
State Farm does not offer as many coverage options as Allstate or Progressive, so if you are looking for accident forgiveness or gap insurance, they may not be the one to turn to.
All of the big companies offer roadside assistance at cost for a plan, a rental reimbursement plan, and Rideshare insurance for these emerging companies.
State Farm pros and cons
Pros
- Competitive rates and great rates when discounts are applied
- Excellent discounts for young drivers with good records who are willing to do well in school and take driver education
- Great bundle discounts
- Good customer service reports for the most part
- Large and well-established company with a good reputation for financial stability and ability to pay out on claims
- Offers coverage nationwide
- Allows for you to sign up and pay online
- Human agents in most cities
Cons
- Not the most affordable car insurance starting rate
- Some reports of refusal to follow up on customer inquiries for lapsed coverage when agents leave
- Does not offer some coverage options like accident forgiveness or gap insurance
- May not be as good for those who don’t want to bundle insurance but would rather only buy car insurance
Bottom Line
State Farm is a large and comprehensive insurance company that can provide insurance for not only your vehicle but lots of other things as well. If in-person customer service is essential to you, the availability of agents in most cities will appeal to you. If you would rather do your insurance paperwork online, you will appreciate the ability to sign on and make payments on the website. State Farm offers a wide range of discounts which can reduce the price significantly for qualified applicants, so consider whether you may be able to get a lesser cost before you decide that the bottom line of State Farm Insurance is too high for you.