Find out why State Farm car insurance covers one out of every six policies in the U.S.

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What does the largest car insurance provider in the U.S. offer? You’re about to find out. State Farm auto insurance came in fourth place on our review of the best car insurance companies, earning 4.5 out of 5 stars and beating out almost 30 other options. From simple claims to decent discounts, State Farm has a lot to offer.

 

In this article:

State Farm Auto Insurance Overview

State Farm is a huge endeavor. The company wrote almost $42 billion in premiums in 2018 alone – $9 billion more than the second-largest provider, Geico. It ranks 36 on the Fortune 500 list and has over 83 million policies and accounts. The company wouldn’t grow to that size if it wasn’t a great option for insurance.

Through State Farm, you can get insurance for cars, motorcycles, boats, ATVs, motorhomes, and more. You can also bundle your policy with life or home insurance to save money. Looking at discounts, State Farm offers a good selection. Overall, State Farm auto insurance customers are happy with their coverage and enjoy affordable rates.

Standard Coverages With State Farm

With State Farm car insurance, you can get all the standard coverages offered by most companies. Some are required by the financial responsibility laws that vary by state, while others can be a good idea to have anyway.

Coverage Details
Bodily Injury and Property Damage (BI/PD) Pays the other party’s medical expenses and vehicle repairs when you cause an accident
Collision Coverage Pays to repair your car if you get in an accident with another car, a solid object, or if your car rolls over
Comprehensive Coverage Covers repairs not related to an accident – from hail, fire, flood, or theft, for example
Medical Payments (MedPay) Covers your medical payments up to a certain amount, whether you were at fault or not, with no deductible
Personal Injury Protection (PIP) Pays your medical bills and covers lost wages, death benefits, and more no matter who is at fault
Uninsured/Underinsured Motorist BI/PD Pays for damage and medical costs for you and your passengers when in an accident with an uninsured or underinsured motorist 
 

Out of the coverages listed above, BI/PD is required by almost all states. Some states also require uninsured/underinsured motorist or medical coverage. All no-fault states require PIP since it covers the driver no matter who is at fault.

BI/PD policies are usually written as three numbers, like this: 25/50/25. This example policy covers $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $25,000 in property damage per accident. These levels are the minimum required by many states, but that coverage can go quickly if you cause a serious accident.

Accident victims are allowed to sue the at-fault driver for damages that aren’t covered by the driver’s insurance. It’s unlikely, but it does happen. A policy with 100/300/100 coverage can protect you from that situation.

State Farm Auto Insurance Extras

You can also get a few more coverages with State Farm car insurance:

  • 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. It 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 need to add this option to your policy. That’s because a standard auto 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.
  • 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 start, spare tire installation, and lockout services.

Discounts On State Farm Car Insurance

State Farm insured drivers can get a number of discounts on their policy. These include:

  • Safe driving discounts: You can get discounts for having no accidents or moving violations for three years, completing a defensive driving course, putting your kids through driver’s ed, and being a good student away at school.
  • Safe vehicle discounts: With State Farm, you can get discounts for having a modern vehicle with safety features and anti-theft mechanisms. However, at a certain point, high-tech safety features may cost more to repair and can increase overall rates.
  • Loyalty discounts: You can also get up to 20 percent off by insuring multiple vehicles, and 17 percent off by bundling auto with another policy like homeowners insurance or life 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.

State Farm Drive Safe & Save

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.

State Farm also offers another app-based discount called Steer Clear. It’s available for drivers under the age of 25 who have clean 3-year driving records. 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 that can be sent to State Farm for a discount.

Getting A Quote For State Farm

According to J.D. Power’s 2019 U.S. Insurance Shopping Study, State Farm’s quotes and shopping experiences are about average. It performed better than Progressive or Allstate on this survey, but not as well as AAA or Esurance.

In our research, we found the online quote process to be easy to navigate. You need your driver’s license and car information to complete it. You can also call in and speak to an agent to get a quote, instead. Getting a State Farm auto insurance quote is free and doesn’t obligate you to make a purchase. If you change your mind and cancel after your coverage has begun, you’ll get a prorated refund for the remaining coverage. State Farm also doesn’t typically charge a cancellation fee, which is nice.

The online quote 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. If you’re already a State Farm customer, you can add a car to your insurance policy online. Just select your current auto insurance from your account and click on “Quote/replace a vehicle.” After you fill in the information, your agent will contact you with the next steps.

Filing A Claim With State Farm

State Farm fared better on J.D. Power’s 2019 Auto Claims Satisfaction Study. The provider came in fifth place and placed above Nationwide, Farmers, Progressive, Allstate, and more. The study found that people wait about 13 days on average for a claim to be resolved, but State Farm customers may experience a shorter claims process.

The first step to filing a claim for State Farm auto insurance is to gather your information. Collect contact and insurance information from other drivers, and try to take some photos. When you are ready to file, you can do so on State Farm’s website, on its mobile app, by calling a claims line, or by contacting your agent.

Next, State Farm reviews your claim and assesses fault and damage. After that, you’ll get estimates on repairs. When you choose to go ahead with a repair, State Farm may pay the repair shop directly, deposit money in your bank account, or reimburse you afterward, depending on your insurance coverage.

At-Fault Claims

So what happens if you have to file an at-fault claim? First, you may have to pay a deductible if you use your collision coverage. After that, your rates will go up. Different factors can affect how much your insurance increases, but unless you have accident forgiveness, it will go up. Even your zip code can affect this, and some states are worse than others for raising rates.

If you were in a very small fender bender or bumped into a fence, you might want to consider covering the damage yourself, since at-fault accidents can raise rates for three years.

State Farm Auto Insurance Reviews

State Farm car insurance has an A+ rating from the Better Business Bureau (BBB). The company’s app has a 4.3-star rating on Google Play and 4.8 on the App Store. Its other apps – Drive Safe & Save and Steer Clear – also have similar ratings from thousands of reviews.

However, no company is perfect, and some State Farm auto insurance reviews are negative. For example, one review from State Farm’s Trustpilot page says that some web pages for specific policies have blank areas where information should be. The same reviewer also reported problems with autopay – some of their State Farm bills were late even though autopay had been set up.

Another State Farm auto insurance review from its BBB page is about a miscommunication from State Farm when a driver added their son on the account. When calling in after regular business hours, a representative said the driver’s insurance rates wouldn’t go up if their son had good grades. They just needed to fax in their son’s transcript. A month later, the driver’s bill increased by about $200. Their State Farm agent apologized for what the other representative said, but also said they would still have to pay the increased rate.

Cost Of State Farm Car Insurance

While it’s impossible to predict what you’ll see on a State Farm car insurance quote, we think you’ll find better-than-average rates from the company. Using Drive Safe & Save could save you up to 30 percent, and the Steer Clear program makes it a great option for students. Being a safe driver can help you avoid tickets, which is good because tickets raise your rates.

Our Verdict On State Farm Car Insurance

Overall, we think State Farm is a great option for car insurance. The company has high financial strength ratings, and it handles claims quickly, which are two things you want in an insurance company. Its apps make it easy to use State Farm in the modern age, while you can also pick up the phone and talk to a local agent.

Most Popular Car Insurer in the U.S.

★★★★★

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Most popular auto insurance company that services over 83 million policies.

 

Don’t Put All Your Eggs In One Basket

If you’re shopping for car insurance, you don’t have to go with the first quote you see. It’s always a good idea to add others into the mix to see which gives you the best value. In our review of top car insurance companies, a few other companies performed better than State Farm in different areas:

  • USAA offers the best prices and customer service for military members and their families. In fact, it performed better than any other company across each category we ranked.
  • Geico is the best car insurance company overall (if you can’t get USAA). Many people find the cheapest rates through Geico.
  • Progressive also offers competitive prices and a number of discounts – and it’s great for tech-savvy shoppers.

 

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