State Farm Auto Insurance Review

State Farm offers solid coverage and excellent claims handling, but it may not be your most affordable option.

J.D. Power Rating
3/5
AM Best Rating
A++
Standard & Poor’s
AA
SimpleScore
4.4 / 5.0
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SimpleScore State Farm 4.4
Affordability 4
Coverage Options 5
Customer Satisfaction 3
Support 5
Accessibility 5

State Farm is the nation’s largest auto insurer, and it’s held that position for nearly 75 years. It has built a loyal following by placing an emphasis on reasonable rates, discounts and comprehensive coverage. State Farm scored well in the 2020 J.D. Power satisfaction survey, beating out many of its main competitors, including Allstate, Liberty Mutual and Progressive.

If you’re looking for optional coverages like new car replacement or gap coverage, you’ll have to choose another insurer, however. State Farm offers no-frills policies that, while comprehensive, leave customers with little room for customization.

As far as affordability is concerned, State Farm consistently has higher rates than its main competitors, Geico and Progressive. Everyone’s premium prices will be different, of course, since all insurance providers assess each driver’s risk level differently. The best way to find the lowest price on the level of coverage you want is to get quotes from multiple providers and compare them to find the best rate for you.

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    In this article

      The specs

      PriceVaries by location, vehicle and other factors
      Not ForPeople who place a high value on customer service
      Best ForPeople looking for discounts
      CoveragesCollision coverage
      Comprehensive coverage
      Liability coverage
      Car rental and travel expenses coverage
      Uninsured motor vehicle coverage
      Underinsured motor vehicle coverage
      Medical payments coverage
      Emergency road service coverage
      Rideshare driver coverage
      Private vehicle
      Motorcycle
      Rental car
      Rideshare
      Off-road vehicles
      Motor home
      Non-owner
      DiscountsAccident-free
      Anti-theft device
      Defensive driving course
      Drive Safe & Save
      Driver training
      Good driving
      Good student
      Multi-policy
      Multi-vehicle
      Passive restraint
      Steer Clear course
      Student away at school
      Vehicle safety
      States Served50
      In Business Since1922
      Standout FeaturesExcellent customer service
      Coverage for antique and classic cars
      Good selection of discounts

      The claim

      State Farm markets itself as “a good neighbor,” who is there to assist you when things go wrong. It offers quality auto insurance coverage and top-notch claims service at a rate that easily fits into most people’s budgets.

      Is it true?

      Sort of. State Farm is the nation’s largest auto insurer and for good reason. In an industry known for unhappy customers, State Farm stands out for its efficient claims handling. In the latest J.D. Power survey, State Farm was ranked fifth for best claims satisfaction out of nearly 30 insurance providers. The company was also rated the third best large insurance provider by J.D. Power.

      However, consumers were somewhat less satisfied with its rates. In my quote comparison, I found State Farm to be more expensive than its competitors, Progressive and Geico, but how much more depended on the level of coverage. Its rates were within $50 of my cheapest quote for state minimum coverage, but when I chose higher limits, the cost rose significantly. You may get a different result, but you’ll have to get a quote to find out.

       Annual Premium Cost
      $25K/$50K/$10K
      (State minimum coverage)
      Annual Premium Cost
      $250K/$500K/$100K
      Progressive$230$284
      Geico$240$302
      State Farm$274$444
      Allstate$386$474

      While State Farm offers the basic auto insurance coverages, it gives you few options to customize your policy. It doesn’t offer gap coverage or new car replacement, one or both of which are found with several of its competitors. You also can’t purchase extra coverage for any custom equipment you’ve added. State Farm does offer special coverage for antique and classic cars, though, so it’s a good choice if you’re looking to insure that type of vehicle.

      Our deep dive

      • Simple quote process: You can get a quote from State Farm in about five minutes. Just answer a few basic questions about yourself, your vehicle, and your driving record, then you’ll be presented with a quote. Customize it to fit your desired level of coverage and then purchase it directly online. If you’re not ready to buy yet, State Farm will save your quote so you can come back to it later.
      • Missing some optional coverages: State Farm doesn’t offer gap coverage or new car replacement, which can be very helpful if you total a newer vehicle that’s depreciating quickly. The company also doesn’t offer coverage for any custom equipment you’ve added since purchasing the vehicle. If you’re interested in these, you’ll want to explore other options.
      • Several ways to save: State Farm offers a good selection of discounts, including multi-policy, accident-free, and defensive driving course discounts. Your vehicle may also earn you discounts if it’s equipped with passive restraints or an anti-theft device.
      • Get rewarded for good driving: State Farm’s Drive Safe & Save program monitors your driving habits and rewards you for safe behavior. After enrolling, drivers are mailed a small device to install in their vehicle. Everytime they drive, the device tracks driving behaviors, like acceleration and braking. After a few months of driving with the device, a State Farm agent will review the results and calculate your new rate before your policy renews. You get a five percent discount for enrolling, and you could earn additional savings at every policy renewal.
      • Savings for younger drivers: State Farm offers several discounts directed at drivers under 25 to help them combat their higher premiums. These include good student and student away at school discounts, plus State Farm’s Steer Clear program, a driver refresher course that can be completed online or through the company’s mobile app. Once you’ve completed the course, you’re eligible for additional savings.
      • Coverage for antique and classic cars: State Farm is one of few major auto insurers to offer special coverage for classic and antique vehicles. In order to qualify, your vehicle must have been properly restored or maintained, and it must be driven on a limited basis. You can’t get a quote for this type of coverage online, so you’ll need to speak to your local State Farm agent to learn more.
      • Get help if your car breaks down: State Farm offers towing coverage and roadside assistance as optional add-ons to help you in the event of an unexpected breakdown. If your vehicle has to be taken in for repairs, State Farm will also cover the cost of a rental car until your vehicle is fixed and if you’re more than 50 miles away from home when the accident occurs, your travel expenses will also be covered.
      • Mobile policy access: Using State Farm’s iOS and Android apps, you can get an auto insurance quote, view policy documents, pay your bill, submit and track claims, and contact roadside assistance. If you’re a State Farm Bank customer, you can also access your accounts from the app.
      • Good financial strength: State Farm has excellent financial strength ratings, which means they have enough money to reimburse you after a covered loss. The company has an A++ rating from AM Best and an AA rating from S&P, two of the top financial rating organizations.

      Cost rundown

      The only way to find out how much a specific auto insurance policy is going to cost you is to get a quote. Insurance companies consider a variety of factors when calculating premiums, including your age, driving history, address, and vehicle make and model. Every company weighs these factors slightly differently, which is why rates vary from one company to the next.

      When comparing your options, though, you should look at more than just price. Go with the company that gives you the best value for the money. Make sure the one you choose is financially strong so it’ll be there when you need it, and see what other customers have had to say about its service. It may not seem that important right now, but good customer service can go a long way toward reducing the headache of filing a claim, so it may be worth paying a few extra dollars for a policy through State Farm because of this.

      Discount and add-ons

      All 50 states require drivers to carry auto insurance, so there’s no way around it. Getting caught without it will cost you more than an insurance premium, and getting in an accident without insurance can cost you even more. If you’re looking to save money on car insurance, try some of these strategies instead:

      • Tell your insurer about life changes. Graduating college or getting married can earn you additional savings on your auto insurance policy, so let your insurer know of these changes right away.
      • Improve your credit. Insurers use your credit history as a measure of responsibility, so a higher credit score will earn you a lower rate.
      • Choose your vehicle carefully. Go with a model that has high safety ratings and isn’t a common target for theft.
      • Limit your driving. The less time you spend on the road, the less chance you have of getting into an accident. Some insurers even give discounts to people who drive below a certain number of miles each year.
      • Take a defensive driving course. Several insurers, including State Farm, give discounts to drivers who have completed an approved defensive driving course in the last three years.
      • Choose a higher deductible. If you’re purchasing collision and comprehensive coverage, choose the highest deductible you can. You’ll have to pay more out of pocket in the event of an accident, but your monthly premiums will be a lot lower.

      Compare Affordable Auto Insurance Rates

      Save money on auto coverage with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        The competition

        Geico: Known for its affordable rates and plentiful discounts, Geico’s customer service received mixed reviews in the latest J.D. Power survey. Still, overall, it scored well, even beating State Farm in a few regions. Geico is the only company on this list to offer mechanical breakdown coverage, which can be useful if your vehicle unexpectedly breaks down.

        Allstate: Though it offers the most discounts of any company on this list, Allstate’s rates are generally some of the  highest. It was rated average or below in most regions in the J.D. Power survey. The company does offer some unique rewards to safe drivers, though, like its Safe Driving Bonus Check.

        Progressive: Another top auto insurer, Progressive is known for its affordable rates and many discounts. In my quote comparison, it turned out to be my most affordable option, though that may not be true for you. In terms of coverage, Progressive offers all the basics, plus several optional coverages, like pet injury, custom equipment, and gap coverage that you can’t get from State Farm.

        What others are saying

        State Farm has decent ratings overall. The company has an A+ rating from the Better Business Bureau (BBB), and it was ranked as the third best large insurance provider in J.D. Power’s 2020 U.S. Auto Insurance Shopping Study.

        But when it comes to real customer reviews, State Farm policyholders have mixed feelings. The company has an average rating of 3.1 stars from Consumer Affairs and an average of 1.1 stars from the BBB. The written reviews also show a clear divide.

        Some customers praise State Farm’s claims handling process, while others say that they didn’t get the payout they were promised. Similarly, some customers have had a great experience with State Farm’s customer service, whereas others complained about unhelpful agents.

        Ultimately, State Farm isn’t the best provider for the driver who values great customer service. If price is your main focus, then State Farm will be a good option for you. However, keep in mind that if you ever need to file a claim, you may have to deal with poor customer service.

        Should I get State Farm if I’m on a budget?

        State Farm doesn’t offer the cheapest premiums on the market, so if you’re looking for the lowest rates, another company might be able to offer you a better deal.

        However, State Farm does offer some of the best discounts in the industry which can help you save a significant amount of money on your premium. State Farm policyholders can take advantage of the Steer Clear program and Drive Safe & Save program to lower their rate.

        State Farm also offers discounts for drivers who are accident-free, take a defensive driving course, have an anti-theft device in their car, bundle their insurance policies, wear their seat belt and more.

        Methodology

        SimpleScore

        The SimpleScore makes it easy to compare products and services featured here on The Simple Dollar in a transparent, open and honest way. We rate these products and services using five factors and average them to calculate a single SimpleScore. For auto insurance, we compare:

        • Discounts
        • Coverage options
        • Support
        • Customer satisfaction
        • Accessibility

        You can read more about each factor and the details of each score in our auto insurance methodology. Use our ratings and editorial recommendations as you shop for the best auto insurance that fits your coverage needs.

        Car insurance rates: We used insurance rates from Quadrant Information Services. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record. Full Coverage premiums assumed a $500 collision and comprehensive deductible, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We looked at the number of discounts each company offers — more discounts mean a higher score.

        Coverage Options

        We awarded higher scores to the companies that have the most coverage options.

        Support

        We awarded higher scores to lenders with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power 2019 Auto Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We looked at the level of accessibility of each company –– the more resources they have the higher their score.

        Reviewed by

        • Aylea Wilkins
          Aylea Wilkins
          Insurance Editor

          Aylea Wilkins is an editor specializing in insurance for The Simple Dollar. After getting a degree in European studies and editing from Brigham Young University, she worked as a writer and editor for a variety of small websites before transitioning to the insurance field.