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The biggest car insurance company in the nation, State Farm insures more drivers in the United States than any other provider. In this article, we'll dive into State Farm insurance reviews, coverage options, and discounts to see if the company is the right fit for your car and budget. Then, we'll compare State Farm to some of the other leading providers that made it onto our list of the best car insurance companies.

When you're done reading about State Farm, we recommend you collect and compare car insurance quotes from providers that are available in your state.

In this article:


 

State Farm Highlights

Company Name: State Farm Insurance Company

Headquarters: Bloomington, IL

Founded: 1922

Availability: Nationwide, though the company is no longer accepting new auto customers in Massachusetts or Rhode Island

Policies And Accounts: Over 83 million

Market Share: 16 percent in 2019 according to the National Association of Insurance Commissioners (NAIC)

AM Best Financial Strength Rating: A++ (Superior)

Better Business Bureau (BBB) Rating: A+

 


 

State Farm Auto Insurance Coverage

With State Farm car insurance, you can get all the standard types of car insurance offered by most companies. These include:

  • Liability auto insurance (BI/PD)
  • Collision insurance
  • Comprehensive car insurance
  • Medical payments (MedPay)
  • Personal injury protection (PIP)
  • Uninsured/underinsured motorist coverage (UM/UIM)

It should be noted that BI/PD is required by almost all states. Some states also require medical coverage or UM/UIM. All no-fault states require PIP since it covers the driver no matter who is at fault.

Car Insurance Extras

You can get a number of add-ons with State Farm, which is one reason why State Farm insurance reviews so well. These add-ons include:

  • Rental and travel expense coverage: With Car Rental Expense, State Farm will cover a rental car while your car is being repaired after a covered claim (up to the limits you choose). With Travel Expenses, State Farm will pay for meals, lodging, and transportation (up to $500) if you get in an accident more than 50 miles from home and can’t get home. The insurance provider also covers a return trip to pick up your car. Finally, State Farm auto insurance can pay up to $500 toward a deductible after having an accident in a rental car.
  • Rideshare coverage: If you drive for Uber or Lyft, you should add this option to your policy. That’s because a standard auto insurance policy doesn’t cover commercial use of your vehicle. You are usually covered by the rideshare company when you are driving to pick up a person or drop them off, but you aren’t covered when you are waiting to accept a trip from the app.
  • State Farm roadside assistance: State Farm offers emergency road service that includes one hour of labor at the breakdown site, towing to the nearest repair shop, fluid delivery, jump-starts, spare tire installation, and lockout services.

 


 

State Farm Auto Insurance Costs And Discounts

While it’s impossible to predict what you’ll see on a State Farm car insurance quote, you’ll generally find better-than-average car insurance rates from the company. Let's take a closer look.

State Farm Insurance Costs

On average, we found that State Farm is cheaper than many competitors. According to our estimates, good drivers can find full coverage policies for roughly $1,339. The estimates below apply to 35-year-old drivers with good credit and driving records. 

Car Insurance Provider Average Annual Cost Estimate
USAA $1,013
Erie $1,113
Auto-Owners $1,229
State Farm $1,339
Geico $1,352
Progressive $1,397
Nationwide $1,533
Travelers $1,617
Farmers $2,032
The Hartford $2,166
 

State Farm Insurance Costs By State

Of course, car insurance costs depend on a variety of factors. One of the biggest factors is the state where you live. Below, you can see how State Farm car insurance estimates compare to each state's average. According to our estimates, State Farm insurance rates are usually cheaper than the state's average.

State State Farm Annual Cost Estimate State Average Cost Estimate

Alabama

$1,288

$1,448

Alaska

$1,076

$1,287

Arizona

$1,413

$1,625

Arkansas

$1,108

$1,449

California

$2,910

$2,339

Colorado

$1,238

$1,672

Connecticut

$1,316

$1,885

Delaware

$1,038

$1,921

Washington, D.C.

$1,498

$1,787

Florida

$1,753

$2,894

Georgia

$1,523

$1,548

Hawaii

$992

$1,238

Idaho

$761

$1,089

Illinois

$1,129

$1,474

Indiana

$878

$1,087

Iowa

$705

$1,095

Kansas

$1,119

$1,364

Kentucky

$1,030

$1,817

Louisiana

$2,051

$3,828

Maine

$749

$995

Maryland

$1,608

$1,941

Massachusetts

Data not available

$2,568

Michigan

$3,057

$4,390

Minnesota

$1,198

$1,487

Mississippi

$1,144

$1,357

Missouri

$2,049

$1,741

Montana

$1,040

$2,214

Nebraska

$1,343

$1,372

Nevada

$1,533

$2,332

New Hampshire

$755

$1,181

New Jersey

$1,887

$2,108

New Mexico

$1,003

$1,356

New York

$3,374

$3,964

North Carolina

$1,316

$1,277

North Dakota

$1,013

$1,310

Ohio

$786

$923

Oklahoma

$1,062

$1,630

Oregon

$911

$1,284

Pennsylvania

$1,426

$1,405

Rhode Island

$1,025

$1,923

South Carolina

$1,305

$1,592

South Dakota

$1,057

$1,331

Tennessee

$796

$1,217

Texas

$1,265

$2,067

Utah

$1,406

$1,446

Vermont

$625

$1,013

Virginia

$965

$1,079

Washington

$1,035

$1,271

West Virginia

$969

$1,390

Wisconsin

$795

$946

Wyoming

$1,320

$1,499

 

Why Is State Farm So Cheap?

Because State Farm is the largest car insurance company in the market, it has a huge variety of drivers who contribute to the insurance pool. This helps keep rates low for everyone. 

State Farm Discounts

State Farm-insured drivers can get a number of insurance discounts. This is a huge draw for budget-conscious drivers, according to State Farm reviews. State Farm offers three types of discounts – safe driving discounts, safe vehicle discounts, and loyalty discounts. These auto discounts can be broken down even further, per the table below.

State Farm Discount Eligibility Details
Accident-Free Save money by staying accident-free for three continuous years while being insured by State Farm.
Defensive Driving Course Save 10% to 15% by taking an approved defensive driving course.
Good Student Save up to 25% by maintaining a GPA of at least 3.0 or ranking in the top 20% of your class (only available to students).
Good Driving Discount

Save money by going three years or more without moving violations or at-fault accidents (only available to new customers).

Driver Training Discount

Save money by taking a driver training course (only available for drivers under the age of 21).

Student Away At School

Save money when a State Farm-insured student under 25 years old moves away to school and only drives the vehicle while at home for vacations or holidays. 

Vehicle Safety

Save up to 40% on MedPay coverage if your car was made after 1994 (depending on the make and model).

Passive Restraint

Save up to 40% on MedPay coverage if your car was made after 1993 and has factory-installed airbags, seat belts, and other passive restraint systems.

Anti-Theft

Save money if your car is equipped with an alarm or other approved anti-theft device.

Multiple Auto

Save up to 20% if two or more cars in your household are insured by State Farm and owned by related individuals.

Multiple Line

Save up to 17% by bundling your car insurance with one of State Farm's other insurance products, such as life, renters, condo, or homeowners insurance.

 

Accident forgiveness may be available for State Farm auto insurance customers who have been accident-free for nine years. However, you can’t purchase accident forgiveness for your State Farm auto insurance policy.

Using State Farm's usage-based insurance program Drive Safe & Save™ could save you up to 30 percent, and the Steer Clear® program makes State Farm a great option for students. Being a safe driver can help you avoid tickets, which is good because tickets raise your insurance premium.

 
 

 


 

State Farm Auto Insurance Reviews And Ratings

State Farm regularly ranks among the top car insurance companies in the nation. It has high ratings from experts, although customer ratings on websites such as the Better Business Bureau (BBB) and Trustpilot are mixed.

According to J.D. Power’s 2019 U.S. Insurance Shopping Study℠, State Farm’s quotes and shopping experiences are about average. In our research, we found the online quotes process to be easy to navigate. The online quotes system handles coverage for standard vehicles, but if you want insurance for a classic car or ATV, you’ll have to contact a State Farm agent instead.

Is State Farm Good At Paying Claims?

State Farm is generally good at paying claims. State Farm came in sixth place in J.D. Power’s 2020 Auto Claims Satisfaction Study℠. The study found that people wait about 10 days on average for a claim to be resolved, but State Farm insurance reviews say customers may experience a shorter insurance claims process.

Below are a few sample reviews for State Farm.

Positive State Farm Insurance Reviews

"I have been with this agent now for more than 20 years. I have never had an issue with anyone at this office and have stayed with them because of the wonderful customer service all of the staff at this location has provided me. I would refer anyone to them in a heartbeat. They have always been good for peace of mind, and I have never worried about them not being there for me or my family. Kudos to an awesome agent and fantastic group of professionals."

– Mickey via BBB

"I had a flat tire [and] needed to be towed an hour away on a Sunday. I called my agent first thing Monday morning. Check in the mail to reimburse me on same day. Great customer service!"

– Jeri C. via BBB

Negative State Farm Insurance Reviews

"My family has been with State Farm for over 20 years and due to numerous issues, we canceled our insurance and went with another company. However, State Farm made an auto withdraw from our account the next month and when we called to complain, we were told it would take [three] months for a refund, and we are still waiting for the refund, and it has been [three] months ... totally unacceptable!"

– Lisa S. via BBB

"Horrible company. We were with State Farm for [three] years paying $300+ per month for each car, got into an accident, and they told us that my last month automatic payment didn't go through so they wouldn't cover the accident."

– Natalie K. via BBB

 


 

State Farm Apps And Technology

State Farm's main app has a 4.7-star rating on Google Play and 4.8 stars on the App Store. The provider's other apps – Drive Safe & Save and Steer Clear – have similar ratings from thousands of State Farm auto insurance reviews.

Drive Safe & Save App

Drive Safe & Save is State Farm’s usage-based insurance option. You can get a basic discount for having low annual mileage without the mobile app. You can also get the app and save more based on other data. Data collected includes:

  • Acceleration
  • Braking
  • Cornering
  • Speed
  • Phone use
  • Time of day
  • Time traveled

The Drive Safe & Save program only results in a discount on your State Farm auto insurance – it won’t raise your rates. However, if you were already receiving a low-mileage discount and the data shows you no longer qualify, you can lose that discount.

Steer Clear App

State Farm's other app-based discount, Steer Clear, is available for drivers under the age of 25 who have clean 3-year driving records. This is one of the reasons State Farm insurance reviews say the company is a top choice for students. This app is focused on driver education and involves the following:

  • Course training: Drivers complete five training modules in the app, which include quizzes on videos and driving scenarios.
  • Mentoring: Drivers’ friends and family can provide feedback and log progress in the app.
  • Driving practice: Drivers need to complete at least five hours of driving over ten trips.
  • Certification: Upon successful completion of the program, drivers get an in-app certification they can send to State Farm for a discount.

 


 

Our Take On State Farm: 4.5 Stars

We rated State Farm Insurance 4.5 out of 5.0 stars and named it the Best for Students in 2021. The provider's many discount opportunities, ability to quickly handle claims, positive State Farm auto insurance reviews, and A++ rating from AM Best make it a great choice for most drivers.

State Farm Pros State Farm Cons
Largest auto insurer in the country Not taking new customers in Massachusetts or Rhode Island
Many discounts for teens and students Higher rates than some competitors
Superior financial strength rating and an A+ rating from the BBB

 

Available in 48 states

 

 
 
 

 


 

Other Recommended Auto Insurance Providers

If you’re shopping for cheap car insurance, you don’t have to go with the first quote you get. It’s always a good idea to add others into the mix to see which company gives you the best value. In our review of the industry's best car insurance companies, a few others performed as well as State Farm or better in certain areas:

  • USAA: This insurance provider offers the best prices and customer service for military members and their families. USAA is the only auto insurer we give 5.0 out of 5.0 stars. Learn more in our complete USAA auto insurance review.
  • Geico: This insurance provider is one of the best options for car insurance overall (if you can’t get USAA). Our Geico auto insurance review found that many people find comprehensive coverage and cheap rates through the Geico.
  • Progressive: This insurance company also offers competitive prices and a number of discounts – and it’s great for tech-savvy shoppers. Read our full Progressive auto insurance review or check out our Progressive Vs. State Farm comparison to see how these two stand up to one another.

 


 

FAQ: State Farm Auto Insurance Reviews

What auto services does State Farm offer?

Aside from car insurance, you can also find policies for State Farm motorcycle insurance plus homeowners, renters, life, and health insurance.

Which is better: State Farm or Allstate?

Generally, our research team recommends State Farm over Allstate, though you may find the best rates at either of these insurance providers. To learn more about how these companies compare, check out our full review of Allstate Vs. State Farm.

Where does State Farm rank in insurance companies?

We rank State Farm in third place overall compared to other insurance companies. We found that the five best car insurance companies of 2021 are:

  1. USAA
  2. Geico
  3. State Farm
  4. Progressive
  5. AAA

Is State Farm a reputable company?

Yes, State Farm is a reputable car insurance company. State Farm has an A++ financial rating from AM Best, which means it has a superior ability to meet its financial obligations and pay claims. 

 


 

Methodology

In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
  • Availability: We consider availability by state as well as exclusions for specific groups of drivers.
  • Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
  • Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
  • Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
  • Technology: Auto insurers with mobile apps, advanced online services, and telematics are more likely to meet consumer needs.

 

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