Luis Pazos 
State Farm is the biggest auto insurer in the U.S., covering 16.2% of the market with more than 91 million accounts. They bring in over $46 billion in premiums. Despite offering many services, car insurance is their primary focus.
State Farm Car Insurance
State Farm’s car insurance is available everywhere in the U.S., including D.C. They cover a variety of vehicles from regular cars to RVs and boats, and offer customer support around the clock by phone. In terms of claims satisfaction, they top the 2023 JD Power survey with 877 points, above the industry average. They also have an A++ financial strength rating.
Signing Up with State Farm Car Insurance
You can sign up with State Farm online, over the phone, or in person at a local office. You’ll need basic personal information, your driver’s license, or social security number to get a quote. If you prefer speaking directly, there are State Farm agents and offices nationwide to help you.
Unique Features
State Farm stands out because of its many discounts and excellent customer service. Some specific perks include:
- Accident-Free Discount: Save if you have no accidents or claims for three-plus years.
- Accident Forgiveness: Given to long-term customers with no accidents.
- Drive Safe and Save: Track your driving with their app and get discounts based on your performance.
Coverage Options
State Farm offers standard coverage like bodily injury, property liability, collision, and comprehensive coverage. Additional options include:
- Rental Car Reimbursement and Travel Expenses: If your car is undriveable, get reimbursed for a rental and up to $500 in travel expenses.
- Rideshare Coverage: Extends your regular policy to cover ridesharing activities.
- Roadside Assistance: Includes towing, lockout service, fuel delivery, and more.
They do not offer GAP insurance but have Payoff Protector for those with auto loans through State Farm.
Discounts
State Farm provides a wide range of discounts to help lower your premium costs:
- Passive Restraint: Varies (for airbags, seatbelts, etc.)
- Anti-Theft System: Varies
- Drive Safe and Save: Up to 30%
- Drivers Training: Varies (for drivers under 21)
- Good Driver: Varies (accident- and claim-free for three years)
- Defensive Driving: 10-15%
- Good Student: 25%
- Multi-Vehicle: 20%
- Multi-Policy: 17%
- Student Away at School: Varies (for drivers under 21)
- Steer Clear: 15% (for drivers under 25)
Sample Premiums
For a clear picture, here are estimates based on various coverage levels for different driver profiles in Houston, Texas. All drivers use a 2018 Toyota Camry and have clean records:
- State Minimum (Liability Only): $434 (male, 23), $360 (female, 23), $273 (male, 53), $274 (female, 53)
- With Un/Under-insured Motorist and Collision & Comprehensive: $1,083 (male, 23), $922 (female, 23), $685 (male and female, 53)
State Farm vs. Other Insurers
Comparing State Farm to other major providers:
- Average Annual Premium: State Minimum: State Farm: $785, Progressive: $941, Geico: $771, Allstate: $1,206
- 100/300/100 with Collision & Comprehensive: State Farm: $1,380, Progressive: $1,346, Geico: $1,222, Allstate: $2,140
- J.D. Power Claims Satisfaction Rating: State Farm: 880/1,000, Progressive: 851/1,000, Geico: 853/1,000, Allstate: 868/1,000
What to Know About Auto Insurance
Make sure to match your coverage to your net worth. Here are some tips:
- Keep sufficient coverage, especially if you drive a valuable vehicle.
- Maintain a good credit score for lower rates.
- Consider adding important options like uninsured motorist coverage.
- Choose a deductible you can afford to pay upfront.
- Look for available discounts and shop around for the best coverage and premium.
Other Services Offered by State Farm
In addition to auto insurance, State Farm offers:
- Home Insurance
- Pet Insurance (through Trupanion)
- Disability Insurance
- Life Insurance
- Small Business Insurance
- Liability Insurance
- Health Insurance
You might want to discuss other service needs with a State Farm agent when setting up your auto insurance.
The Bottom Line
State Farm is highly rated for customer satisfaction and covers a significant portion of U.S. drivers. With numerous discounts and strong community support, they are worth considering when shopping for insurance.
How We Review Insurance Companies
Good Financial Cents systematically reviews U.S. insurance companies, focusing on policy offerings, customer experiences, and overall reliability. We prioritize customer feedback and research in our evaluations, scoring companies on multiple criteria. For more details, refer to our guidelines and disclaimer.
State Farm Insurance Review
State Farm, established in 1922, offers comprehensive insurance products from auto to life insurance. They are known for their strong customer service and community involvement, supported by a vast network of local agents.
Cost and Fees: Competitive
Customer Service: High satisfaction
User Experience: Convenient
Product Offerings: Wide range
Overall Rating: 5
Pros:
- Diverse Product Portfolio
- Nationwide Presence
- Financial Strength
- Community Engagement
Cons:
- Pricing Discrepancies
- Claims Handling Concerns
- Standardized Products
