State Farm Auto Insurance Review: Should you buy in 2023?

What You Should Know About State Farm Insurance

How is State Farm rated by experts and customers?

State Farm has received above-average ratings from all of the experts in the industry. J.D. Power gave the company above-average ratings in customer satisfaction and claims handling.

A.M. Best rated State Farm with an A+ (Superior) financial rating. This score reflects a company’s ability to pay out claims. So policyholders can feel secure with State Farm’s financial standing.

In addition, the National Association of Insurance Commissioners (NAIC) indicated that State Farm received fewer complaints than the national average.

Overall, State Farm has excellent ratings from customers and experts.

What is State Farm’s charitable history?

Over the years, State Farm has created its own charitable organizations to help those in need.

State Farm’s charitable efforts include:

• The Neighborhood of Good. This organization was created to allow people to volunteer for causes in their neighborhoods close to their homes and hearts.
• The Good Neighbor Citizenship Company Grants. This is another community-based volunteer effort to help neighborhoods build safer, stronger, and smarter communities.
• State Farm Companies Foundation. This organization provides grants, scholarships, and other programs to support various volunteer groups.

State Farm has also partnered with various organizations to promote auto and home safety. Some of these organizations include the Insurance Institute for Highway Safety and National Fire Protection Association.

In late 2018, State Farm also launched State Farm Ventures. This unique program focuses on investing in tech startups with the goal of helping these companies improve customer satisfaction.

State Farm Insurance Coverage Options

What types of car insurance does State Farm offer?

Drivers with State Farm have almost all of the common types of car insurance coverage available to them.

Here is a list of all of the different auto insurance options State Farm offers:

• Property damage liability. Pays for damages to someone else’s property from an accident for which you’re at fault.
• Bodily injury liability. Pays for the other party’s bodily injury, damages or death from an accident when you’re at fault.
• Collision car insurance coverage. Pays for damages to your vehicle due to an accident, no matter who’s at fault.
• Comprehensive car insurance coverage. Covers your vehicle damage caused by theft, vandalism, flood, fire, or other incidents not involving a collision.
• Medical payments. Covers your medical expenses resulting from an accident.
• Personal injury protection (PIP) car insurance. Pays for medical treatment, missed wages, and other accident-related expenses.
• Uninsured/underinsured motorist coverage. Helps to cover your injuries or property damage caused by another driver with no insurance or insufficient insurance.

State Farm also offers emergency road service, rideshare auto insurance, and classic car insurance.

However, State Farm does not offer GAP coverage. So if you have financed a brand new vehicle and need extra protection on your loan, you might want to consider a different company that offers GAP insurance.

What other services are offered through State Farm?

State Farm offers policies not only for your sedan and truck, but also for motorcycles, ATVs, RVs, and boats.

Below is a list of additional auto insurance benefits offered by State Farm:

• Roadside assistance
• Online quotes, customer portal, bill pay, and paperless management
• Online claims submission and tracking with 24/7 availability

• Steer Clear app
• State Farm mobile app

State Farm’s mobile app lets customers manage insurance policies, access ID cards, pay bills, request roadside assistance, and even file a claim.

In addition to auto, State Farm offers these policies:

• Homeowners and renters insurance
• Commercial auto insurance
• Condo and co-op insurance
• Mobile home insurance
• Pet insurance
• Life insurance
• Farm and ranch insurance
• Umbrella insurance
• Disability insurance

Bundling your policies will save you additional money, and any State Farm agent will be happy to help you bundle and save.

State Farm Insurance Rates Breakdown

How much is State Farm car insurance?

State Farm is one of the cheapest car insurance companies in the industry, with an average annual rate of $1,267 — $275 lower than the national average.

To see how insurance rates vary across the country, take a look at the map below.

However, keep in mind that several factors come into play when deciding your car insurance rates. Everything from the types of car insurance you chooses to your age to your driving history will play a role in how insurance companies set your rates.

We go into more detail in the sections below about how much you can expect to pay for insurance, depending on your unique situation.

How much is minimum coverage with State Farm?

The minimum auto insurance required by state varies, but almost all states require drivers to carry a minimum liability coverage, and some require personal injury protection, medical payments, and/or uninsured motorist insurance.

Liability auto insurance does not cover your vehicle, but it pays for other drivers’ damages in an accident you cause.

Currently, State Farm has the third-lowest minimum coverage rates, falling behind only GEICO auto insurance and USAA auto insurance. Take a look at the table below to compare State Farm and other liability rates with those of other top insurance competitors.

State Farm’s minimum liability insurance is $1,191 per year on average, with the national average being $1,463. That’s an annual savings of over $260.

How much is full coverage with State Farm?

Full coverage insurance will typically cost you more, but it also covers more. Full coverage auto insurance includes not only liability coverage but also collision and comprehensive.

State Farm has the fourth-lowest average rates for drivers with full coverage at $1,348 annually. The table below shows how State Farm stacks up against other top insurance companies.

State Farm’s rates are nearly 17% lower than the national average of $1,621.

How much is State Farm insurance for teen drivers?

One of the most significant factors that influence rates is age, and adding a teenager to your policy can cause your premium to skyrocket. However, State Farm is a great choice for auto insurance for teenage drivers and has some of the best rates for parents adding a teen to their policy.

State Farm has the lowest rate increase among its top competitors for teen drivers, but the rates will always be highest for these young, inexperienced drivers.

This table shows how State Farm beats out the competition when it comes to teenage drivers.

The average rate for guardians adding a teen driver to their State Farm policy is $1,003 per year. This is substantially lower than even GEICO’s $1,958 — a nearly $1,000 difference.

How much is State Farm insurance for young adults?

State Farm has relatively low rates on auto insurance for young adults between the ages of 18 to 25.

On average, drivers will see their rates gradually decrease until reaching 25 years old, and then rates start to level off. This is because younger drivers tend to have more accidents even after exiting their teenage years.

State Farm’s rates for young adults are still below the national average at $2,407 per year. Below are the rates for young adult drivers with State Farm compared to rates from other insurers.

On average, GEICO is another affordable option at $1,783 per year for young adult drivers.

How much is State Farm insurance for senior drivers?

Most drivers will see their rates stay relatively consistent through their 30s, 40s, and 50s. When drivers reach age 65, they may notice their rates going back up.

State Farm offers relatively good rates for auto insurance for older adults at an annual average of $1,423. Below we compare this with top competitors in the industry.

Again, GEICO also provides some of the lowest rates for senior drivers at $1,197 per year.

Both State Farm and GEICO offer some of the most affordable car insurance rates to drivers of all ages.

How does your driving history affect your State Farm rates?

Your driving history is an essential factor in determining your auto insurance rates. Drivers should always expect their rates to increase after an accident or traffic ticket.

Good news: these drivers with a not-so-perfect driving record might find some of the cheapest insurance quotes with State Farm. State Farm offers the second-cheapest insurance rates for drivers who have a speeding ticket on their record at $1,607 annually.

This table shows how State Farm ranks with its competitors in regards to single traffic ticket rates.

In addition, State Farm should be on the top of your list if you’re shopping for decent car insurance rates after an accident. State Farm ranks number one when it comes to the most affordable rates after an accident at just $1,713 annually.

Drivers with a DUI on their record will see the largest increase in auto insurance rates.

Again, State Farm has the cheapest rates for these high-risk drivers. State Farm drivers who need auto insurance after a DUI pay an average of $1,942 per year. This easily beats out the second-lowest insurer for DUIs, Progressive, by nearly $500.

Even though State Farm ranks top in many national averages for risky drivers, remember to always compare quotes from multiple insurers. Just because an insurer ranks first on a national level does not mean it’s the best choice in your state or for your unique needs.

How does your credit history affect your State Farm rates?

In contrast to State Farm’s cheap rates for drivers with less-than-stellar driving history, its rates for drivers with poor credit are the highest among the top insurance companies.

Insurers take credit scores into consideration when determining rates because there is a statistical link between good credit and good drivers. Drivers with good credit are less likely to file claims, according to most insurers.

State Farm has the highest rates on our list for auto insurance for drivers with bad credit histories.

Also, not all states allow insurance companies to use credit history when determining rates. California, Hawaii, Massachusetts, and Michigan have passed laws banning this practice.

With so many factors affecting how each insurance company creates its own rates, getting at least three insurance quotes from different companies is always recommended to find the best fit for your needs. That way you can compare State Farm auto quotes against others to ensure you’re getting the best price.

State Farm Insurance Discounts Available

What discounts are offered by State Farm?

State Farm offers an abundance of car insurance discounts to its policyholders. These discounts can help drivers lower their car insurance rates significantly since you are able to bundle several discounts on top of one another.

Some of the most common discounts available are the good driver discount, vehicle safety discount, and multi-policy discount.

Let’s take a look at the discounts offered by State Farm:

• Accident-free or safe driver insurance discounts. If you drive without an accident for three years, you can qualify for an accident-free discount from State Farm.
• Good student discount. If a student is age 16 to 25, is going full-time to high school or college, and has a 3.0 grade point average, they can save up to 25% with State Farm.
• Loyal customer discount. Insure more than one vehicle with State Farm; you could save as much as 20%.
• Multi-policy discount. Insure a home or condo or sign up for life insurance or renters insurance alongside your auto insurance policy, and you can save up to 17% for bundling insurance policies.
• Defensive driving course discount. Take a defensive driving class, and you may be eligible for a 10% to 15% discount with State Farm.
• Driver training discount. If drivers under age 21 complete driver training, they can get a discount.
• Student away at school discount. If one of the drivers of your vehicle is a student under age 25 who moves away to go to school, you may be eligible for a discount.
• Anti-theft discount. You may qualify for a discount if your car has an alarm or another anti-theft device.
• State Farm Drive Safe and Save. State Farm’s usage-based program offers drivers who participate a 30% discount on their policy. This program can operate through an app on your phone or through OnStar.

Remember that not all these discounts are available in every state. Make sure to contact a State Farm agent to clarify which discounts are available in your area and which may apply to you.

What is State Farm’s Steer Clear Program?

Another opportunity for young drivers to save with State Farm is by taking advantage of the company’s Steer Clear app.

Drivers under 25 years of age with no at-fault accidents for the past three years are eligible to participate in the State Farm Steer Clear program. This app provides five training modules that consist of driving scenarios, lessons, and quizzes for the driver to complete within six months.

After completing this program, young drivers may be eligible for additional discounts — which is crucial since rates are highest for young, inexperienced drivers.