State Farm Auto Insurance Review: Is it Right for You?

State Farm Auto Insurance: At a Glance

Founded in 1922 by George J. Mecherle, State Farm is the largest auto insurance company in the U.S. In addition to car insurance, the company offers home insurance, life insurance, health insurance, and more. State Farm has earned a strong reputation for customer service and claims handling.

Famous for its earworm of a jingle, “Like a good neighbor, State Farm is there,” the company also has an extremely popular mascot, Jake from State Farm (recently parodied with the help of Michael B. Jordan on SNL). He’s more recognizable than Katie Couric and Hilary Swank, according to Variety.

State Farm offers a variety of standard auto insurance coverage options, though fewer specialized coverage add-ons, such as gap insurance (unless your vehicle is financed through the company). It also offers a range of discounts, such as safe driver discounts, good student discounts, and multi-car discounts. State Farm also has a mobile app that allows policyholders to manage their policies, file claims, and get roadside assistance right from their phones.

Is State Farm a Good Choice for Car Insurance?

State Farm writes more auto insurance policies than any other company in the U.S. So why is the company so popular? It could be the consistently low rates or the wide array of discounts. It could be its excellent mobile app where policyholders can manage nearly every aspect of their policies. Or it could be that the company has one of the highest-rated customer service and claims service teams.

But we’re willing to bet that it’s all of the above.

State Farm Reviews: What Real Customers Are Saying

State Farm has mixed reviews online, but there is one trend that stands out: policyholders generally love their independent agents. Even reviewers on the App Store and Google Play often mention users’ high regard for their independent agents.

Beyond the local agent, many customers also report positive experiences with the customer service team. They also enjoy using the mobile app and website.

Many of the reviews of the telematics programs are also positive, as users point out it’s easy to use once you get used to how it grades your driving (more on this later).

State Farm customer complaints

The biggest complaint amongst customers has to do with claims handling. To be fair, most insurance companies have mixed reviews when it comes to claims, so this is fairly normal. Insurance claims can be tricky wherever you go, and State Farm is no different.

The main theme in negative reviews is that customers are unaware of the terms of their policies and claims processes.

For example, one customer was unaware of their deductible amount, which left them unable to cover their part of the repair costs during a claim. Fortunately, this information is always available in your insurance documents — the declarations page will outline everything clearly.

If you have any questions or concerns about your coverage, you should talk to your agent or another customer service representative. Finally, follow up with an email summarizing your discussion and what you learned. Then ask the agent or representative to verify that you understood the conversation correctly. Getting things in writing is the best way to cover yourself in case there’s a dispute with the company later.

How Much is State Farm Car Insurance?

The cost for a State Farm policy varies due to several factors, including location, age, driving history, and credit score. We review the average rates for State Farm policyholders based on these factors below, so you can get a basic understanding of how rates vary.

State Farm’s average rates

Across the nation, the average cost for State Farm is $99 a month or $1,188 a year for basic liability insurance.

State Farm rates for teens and young Drivers

Teen drivers pay the most on average for car insurance. This is due to their inexperience on the road, which makes them more likely to cause an at-fault claim. Rates are highest when you first earn your driver’s license and steadily decrease yearly — so long as you keep a clean driving record.

Finally, drivers will see a sharper decline in their costs once they turn 25. Rates will continue to work in their favor afterward into their senior years.

State Farm rates for adult drivers

Drivers between the ages of 25 and 55 have an easier time finding affordable car insurance. But, the catch here is that they must maintain a good record. Speeding tickets and other driving infractions typically increases rates for three years or more after the incident.

State Farm rates for seniors

Seniors tend to get the lowest car insurance rates due to their experience on the road. Older drivers typically put fewer miles on the odometer and tend to practice safer driving habits.

State Farm rates after an accident

An at-fault accident quickly leads to higher car insurance rates. And the accident can stay on your driving record (and drive up your rates) for three to five years in most states.

State Farm rates after a speeding ticket

While a single speeding ticket doesn’t typically raise rates to an extravagant level, it contributes to higher rates in two ways. First, it elevates your risk profile as a driver. Second, it makes you ineligible for the safe driver discount.

State Farm rates after a DUI

Driving under the influence is considered very high risk by insurance providers across the market, and State Farm is no different.

State Farm rates for drivers with bad credit

Did you know your credit score can affect your car insurance rate in every state except California, Massachusetts, Michigan, and Hawaii? Insurance companies consider drivers with good credit to be lower risk than those with bad credit. That’s why drivers with bad credit scores tend to pay higher premiums, all else being equal.

State Farm rates by state

Where you live has a big impact on rates. In addition to different weather, claim, and crime patterns, each state has its own rules regarding how car insurance and driver liability work. And each car insurance company incorporates those factors into their pricing structures differently.

State Farm’s rates compared to top competitors

State Farm is known for low rates, and our research bears that out. Given national averages, State Farm is the most affordable insurer of its size.

State Farm Auto Insurance Discounts

State Farm offers 10 or more discount programs depending on your state. In addition to standard discounts for car safety features, low annual mileage, and preferred bill pay (e.g., paperless billing, auto-pay, and paying in full), the company offers valuable discounts for safe driving and loyalty.

Let’s take a closer look at both.

Safe driving discounts with State Farm

Drivers who remain accident-free can earn additional savings with State Farm (again, depending on the rules in your state). And accident-free drivers who also have no moving violations for at least the last three years can earn the Good Driver discount.

Drivers in most states also have access to the defensive driving discount. This awards policyholders who have completed an approved defensive driving course.

Finally, State Farm offers two telematics programs: Drive Safe & Save and the Steer Clear program for young drivers. Participating drivers can save up to 30% off their premiums. More on these programs later.

Loyalty discounts with State Farm

There are two types of loyalty discounts available: multi-policy and bundling. The multi-policy discount is given to drivers with more than one vehicle under their policy. This is true whether the car is owned or driven by the primary insured or not. To be eligible, the car must be owned or driven by someone within the household.

The bundling discount is awarded to customers who purchase more than one insurance product from State Farm. Home insurance, renters insurance, life insurance, and other insurance policies qualify. The more you bundle, the steeper the discount.

And remember that you can combine your discounts to receive the maximum savings overall.

Purchasing a State Farm Car Insurance Policy

Buying a car insurance policy with State Farm is generally straightforward. It can be done online, over the phone, and in person through a local agent. The steps involve providing personal information, selecting coverage options, and agreeing to the policy terms and conditions. The entire process can be completed within a few minutes or hours, depending on how quickly you provide the necessary information and make decisions.

How easy is it to get a State Farm quote?

Getting a quote with State Farm is about as easy as it gets in the current car insurance market. I went to statefarm.com and filled out the form with information about me and my vehicle. This included my address, gender, marital status, and driver’s license number.

The company has access to a lot of information – it found my old vehicle connected to my address. That was honestly a little off-putting, but it would have made things even easier if I was still driving my old car.

I also had to provide information about my driving history. I got a speeding ticket last year, so I uploaded that. The company can also upload your driving record by using your driver’s license number as well.

From here, I could explore more savings opportunities — for example, the company prompted me to download the Drive Safe & Save program. Or I could go straight to purchasing my policy.

All in all, the process was simple and fast. I went from entering my ZIP to getting my quote in about five minutes.

Can you purchase a State Farm policy 100% online?

Yes, you can purchase your State Farm car insurance entirely online. Once you’ve selected your coverage options and received your quote, you can continue to receive your policy documents and sign paperwork. Depending on your state, you may need to submit additional paperwork.

Once your policy is purchased, you can download and print your insurance cards. You can also get the mobile app and upload your insurance cards to your phone (so long as your state allows for digital insurance cards).

What types of coverage does State Farm offer?

State Farm offers eight types of standard car insurance coverage to its customers:

• Collision coverage pays for repairs to your vehicle when you’re at fault in an accident.
• Comprehensive coverage pays for damage to your vehicle during non-collision events, such as a hailstorm.
• Liability coverage pays for damage done to other people when you’re at fault in an accident. This can be for property damage or medical expenses. Rules differ depending on your state.
• Car rental and travel expenses coverage cover some or all of your rental car costs when your car is in the repair shop. If you get in an accident away from home, this will also cover some additional lodging and transportation costs.
• Uninsured and underinsured motor vehicle coverage covers your costs when you’re hit by a driver with no or insufficient liability coverage.
• Medical payments coverage pays your medical bills when you’re in a car accident, no matter who is at fault. It also includes a death benefit to help cover funeral costs if you perish due to a car accident.
• Emergency road service coverage protects you from unexpected towing, lockout, and jump-start costs.
• Rideshare driver coverage is for drivers who work for companies like Uber and Lyft.

What other types of insurance does State Farm offer?

State Farm offers many types of insurance and financial products, including

• Homeowners insurance
• Condo insurance
• Renters insurance (for tenants)
• Rental property insurance (for landlords)
• Personal articles policy
• Manufactured home insurance
• Farm and ranch insurance
• Flood insurance
• Liability umbrella insurance
• Commercial auto insurance
• Off-road vehicle insurance
• Boat insurance
• Motorcycle insurance
• Life insurance
• Disability insurance
• Identity restoration insurance
• Business insurance
• Contractors policy
• Workers compensation
• Pet medical insurance
• Surety and fidelity bonds

Does State Farm offer auto & home insurance bundling?

Yes, with State Farm, you can bundle your home and auto insurance at a discount. You can also bundle your auto policy with any other insurance product the company offers for an additional discount.

Other State Farm products, services, and perks

State Farm offers financial services, including business bank accounts (partnered with U.S. Bank), and investment services. The company also offers a credit card with its banking partner. Card owners receive additional perks through the Visa Signature program, including 3% back on premium payments.

State Farm telematics programs

State Farm offers two telematics programs. One is designed for young drivers (under 25), and the other is available for everyone else. Let’s take a look at each.

Drive Safe & Save

The Drive Safe & Save program is for any driver over 25 who wants to earn a discount of up to 30% based on their driving habits. To participate, you must download an app and bring your phone with you when you drive.

The program rates drivers based on five criteria:

1. Quick acceleration
2. Hard braking
3. Fast cornering
4. Speeding
5. Distracted driving

When you avoid unwanted driving behaviors and practice good driving, the app rewards you. It also provides feedback to help you improve your driving.

While many customers have enjoyed this program, a few have pointed out flaws. One participant explained that the program dings her for driving late, even though it’s part of her regular commute, and she otherwise drives safely.

Steer Clear

The Steer Clear program is designed for teens and young drivers under 25. Participants can save as much as 17% off their premiums. To qualify, you must be accident-free for the last three years.

This program is more involved than the Drive Safe & Save program, as you must complete course training, driver practice, and mentoring. At the end, you receive a program certificate. And as long as you continue to meet the requirements, you’ll receive the discount until you age out.

On the downside, several reviews indicate that this program is less successful than the Drive Safe & Save program. The app isn’t always correctly responsive to driving conditions. For example, it can ding drivers for “sharp corners” even when the driver is obeying the speed limit. Several reviews also mention that the course modules weren’t beneficial.

Even so, the program has received nearly five stars on both the App Store and Google Play.

State Farm Customer Service

State Farm’s customer service stands out because it’s generally highly reviewed compared to the rest of the industry. Even the positive reviews of the mobile app generally center around the excellent service customers receive from independent agents. And, as we’ve said, J.D. Power ranks the company third overall within its category.

But there is a bit of a downside here. Because the company uses independent agents, customer service varies by location and agent. We recommend reading reviews for agents in your area before deciding if State Farm is right for you.

Filing a Claim with State Farm

Filing a claim with State Farm can be done over the phone, online, or with the mobile app. You’ll need to report on what happened, what was damaged, and provide photographs of the damage. Once the claim is submitted, you can receive an estimate based on the photos in as little as 48 hours via the Photo Estimate tool.

The company will independently review the claim and investigate it. Your claims agent may interview the other drivers and passengers involved, and they may send an insurance adjuster to verify the damage in person.

Once you receive your estimate, you can find a repair shop through the State Farm Select Service network. You don’t have to use an approved repair shop, but it does make the process easier and faster.

When the repairs are completed, State Farm will pay the shop directly if they’re in the network. If they’re not in-network, the company will send you a reimbursement check or direct deposit to cover the costs.

State Farm Mobile App

The State Farm mobile app has positive reviews both in the App Store and on Google Play. Overall, reviews say that the app has a lot to offer. The most highly reviewed feature is mobile bill pay, which several reviews say is easy and convenient.

But several reviews point out limitations. For example, one review points out that the app does not let users drill down into their billing details. Another user points out that the telematics program doesn’t always accurately report driving information. And another review claims that the app can be glitchy.

Still, the app earns nearly five stars on both platforms.

Bottom Line: Is State Farm Car Insurance Right for You?

State Farm offers a ton of advantages to its customers with a few notable disadvantages. To know if the company is right for you, you should consider how well it meets your needs and budget. Here’s a quick recap to help you decide.

Where State Farm stands out

The personalized customer service and excellent technology provided by State Farm certainly sets the provider apart from its competitors.

Where State Farm falls short

State Farm does not offer gap coverage and other important policy riders. Specialized coverage isn’t necessary for many drivers, but those who need it won’t find what they need here.

State Farm is best for drivers who…

Want strong customer service and a simplified insurance policy. It’s also a better fit for drivers with a clean record or minimal driving infractions.

Popular State Farm Alternatives

As a large national auto insurer, State Farm’s main competitors are also large, well-known brands. But smaller companies can also compete. Here are some of State Farm’s top contenders.

• AIG
• Allstate
• Auto-Owners
• COUNTRY Financial
• The Hartford
• National General 
• Nationwide
• Progressive
• Travelers

State Farm Auto Insurance FAQs

Interested in learning more about State Farm? Here are the answers to some of the most commonly asked questions about the insurance giant.

Is State Farm a reliable insurance company?

Yes, State Farm is generally considered reliable. They have a long-standing reputation for providing quality coverage and excellent customer service. And they’ve been doing business for over 100 years.

Does State Farm really have the cheapest car insurance?

State Farm isn’t always the cheapest car insurance provider for every driver. No company is. Insurance costs vary based on many factors, such as age, driving record, location, and type of vehicle. But, State Farm does offer a variety of discounts that can help policyholders save money on their car insurance premiums.

Is State Farm actually good?

State Farm is a good insurance company for drivers needing a standard car insurance policy. They have a strong reputation for providing quality coverage and excellent customer service, as well as being financially stable and reliable.

 Is State Farm good at paying claims?

According to J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study, State Farm scored 881 out of 1000 for overall claims satisfaction, which is well above the industry average. The company has made big investments in its claims process, which can be completed online, on the mobile app, or over the phone.

Is State Farm hard to deal with?

No, State Farm is generally known for providing great customer service via personal local insurance agents. The company also has a fleet of well-regarded customer service and claims service agents.

How long has State Farm been in business?

State Farm has been in business since 1922, so 101 years as of June 2023.