State Farm Car Insurance [Definitive Guide]

State Farm OverviewStats
Year Founded1922
Current ExecutivesMichael L. Tipsord
Chairman, President, and CEO
Numbers of Employees Nearly 58,000 employees & 19,000 independent
contractor agents
Total Revenue and
Total Assets
Total Revenue $81.7 billion
Total Assets $159.9 billion
Headquarters AddressState Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Phone Number800-STATE-FARM
(800-782-8332)
Company Websitewww.statefarm.com
Premiums Written65,868,839
Loss Ratio0.62
Best ForProperty and Casualty Insurance
Life and Health
Annuities
Mutual Funds
Banking Products

State Farm might not be the cheapest option for a car insurance policy, but it is well-known for offering a lot of coverage options and stellar customer service.

State Farm also offers insurance coverage for other lines as well — such as homeowners and condo — so you can benefit from bundling discounts if you have other coverage needs.

Whether you decide to buy from State Farm or not, you should at least gather as much information about an insurance company as possible to make a well-informed decision.

Table of Contents

State Farm’s Ratings

Before buying car insurance coverage, you should ensure that you’re dealing with a reputable, secure company, which means checking the financial ratings and consumer reviews of an insurer thoroughly.

Conducting research before buying a policy will help you to discover information about an insurer that might not be advertised or well-known.

We’ll cover ratings and reviews from multiple agencies so you can get a complete picture of State Farm as a company.

AgencyRating
AM BestA++
Better Business Bureau A+ (Milwaukee, WI)
Moody’s Aa1 (State Farm Life)
S&P AA
NAIC Complaint
Index Ratio
0.49 (2018)
J.D. Power 4/5 (Overall Satisfaction)
Consumer Reports 89

AM Best Ratings

AM Best is the only global credit rating agency that’s solely focused on the insurance sector, which is why you should always checking their ratings for your potential insurance provider.

AM Best ratings are recognized everywhere as an indicator of an insurer’s financial standing. This agency assigns ratings in the alphabetical range of A++ (best) to D (worst) after careful analysis and research.

When AM Best assigns a company the top-notch rating, i.e. A++, that means the insurer has a superior ability to meet its long-term financial obligations. In other words, you don’t have to worry about State Farm going out of business because of financial distress.

Better Business Bureau (BBB)

BBB is a non-profit organization that aims to enhance trust in the marketplace by enabling consumers to leave genuine reviews and holding companies responsible for their actions.

BBB collects information about a company from public data sources and consumer complaints to assign a rating. Their ratings range from A+ to F, with A+ indicating the highest level of reliability.

Some of the elements they use in their calculations are:

  • Complaint history of the business with BBB
  • Type of business
  • How transparent business practices are
  • Licensing and government actions
  • Failure to comply with BBB commitments
  • Advertising issues

BBB has assigned a rating of A+ to State Farm, which means that the insurer is trustworthy and in good standing among consumers as well as lawmakers.

In total, there are about 1,394 consumer complaints against State Farm that were closed in the past three years, according to the BBB. From the 252 customer reviews on BBB, State Farm has a rather poor average rating.

You can also look at any major litigations against the company on BBB just to assess how fair an insurer is when it comes to their business practices. In 2017, State Farm issued refunds totaling $13.3 million to the residents of California who were overcharged for auto insurance.

Moody’s Ratings

Moody’s Corporation assigns ratings to bonds, fixed-income debt securities, preferred stock, and companies through its subsidiary, Moody’s Investor Services. Across the world, industry watchers and analysts closely follow the ratings assigned by Moody’s.

The ratings assigned by Moody’s also follow an order from Aaa for the highest grade companies to C for companies that are high-risk.

Moody’s assigned an Aa1 rating to State Farm, which indicates a stable outlook for the insurer.

S&P Global Ratings

S&P has a 150-year history of assessing companies and assigning ratings based on those assessments.

S&P’s ratings range from AAA to D. If an insurer gets a rating of AAA, it means that its capacity to meet its future obligations is strong. 

S&P has assigned the rating of AA to State Farm, which indicates the insurer’s strong ability to pay its claims.

NAIC Complaint Index

Along with financial strength ratings, you should also research the complaints data of an insurance company — this will give you an idea about how satisfied consumers are with their services.

Private Passenger
Policies
201620172018
Total Complaints9,2061,4811,402
Complaint Index
(better or worse
than National Index)
2.16
(worse)
0.52
(better)
0.57
(better)
National Complaint Index0.781.21.16
US Market Share16.64%16.66%15.84%
Total Premiums$35,685,484,012$38,588,069,994$39,059,618,736

When it comes to the number of complaints, State Farm made considerable improvements from the year 2016 to 2018. Their complaint index was much worse than the national index in 2016, but it dropped for the better in 2018.

J.D. Power Ratings

J.D. Power is a trusted source of consumer ratings that offer insights into the preferences of consumers with respect to products or services in different industries.

The company conducts annual reviews to assess consumer satisfaction with auto insurance companies. In the J.D. Power 2019 U.S. Auto Insurance Study, do-it-yourself tools and direct distribution models have improved the overall level of customer satisfaction.

RegionCustomer Satisfaction
(out of 1,000)
J.D. Power Circle Ranking
California824Better than most
Central828About average
Florida834About average
Mid-Atlantic834About average
New England844Better than most
New York845Better than most
North Central841Better than most
Northwest820About average
Southeast853Better than most
Southwest831Among the best
Texas835About average

How satisfied are consumers with State Farm in different regions of America?

Apart from the Southwest region, State Farm is about on par with or better than most insurers, according to the J.D. Power circle rankings.

J.D.Power examines five factors for consumer satisfaction:

  • Interaction
  • Policy offerings
  • Price
  • Billing process and policy information
  • Claims

Consumer Reports

Consumer Reports is an independent, non-profit organization that is working to bring more transparency to the marketplace through investigative journalism and consumer advocacy.

If you want to know how good the claims handling process of an insurer is, you should check the ratings of Consumer Reports.

Claims HandlingScore/Rating
Reader Score89 out of 100
Ease of reaching an agentExcellent
Agent courtesyExcellent
Being kept informed of claim statusExcellent
Simplicity of the processVery good
Promptness of responseVery good
Damage amountVery good
Timely paymentVery good
Freedom to select repair shopVery good

Out of a possible 100, State Farm has a score of 89, which means the respondents are highly satisfied with their services. You can also see the level of consumer satisfaction on different elements of the claims process.

Consumer Affairs

Consumer Affairs is another company working towards bringing transparency to how businesses conduct their operations. They rely on customer complaints and reviews to rate companies.

The overall satisfaction rating for State Farm is 3.5 out of 5 stars as per Consumer Affairs, based on 2,640 consumer ratings.

Some of the pros listed by consumers are:

  • State Farm offers discounts for safe drivers, even when you buy a policy for a teen.
  • State Farm offers bundling discounts with homeowner’s insurance.
  • State Farm has a wide network of agents spread across the U.S.

One of the main cons of buying coverage from State Farm is that they don’t offer any accident forgiveness options. However, consumers like the fact that their rates aren’t automatically raised at the time of renewal.

State Farm’s History

Today, State Farm is the leading auto insurance company in America. Who founded this insurance company known fondly as the “good neighbor”?

State Farm was founded in 1922 by retired farmer and insurance agent George Jacob (G.J.) Mecherle, who wasn’t happy with the high rates being charged by other companies for car insurance.

Mecherle wanted to operate fairly and do the right thing by consumers, which is the company’s mission even today.

Though State Farm started as an auto insurer, today it offers more than 100 products in five lines of business. Let’s look at a timeline of the company’s history.

1922: State Farm was founded in Illinois to offer auto insurance to farmers at competitive rates.

1928: State Farm started offering auto insurance across cities and towns.

1935: State Farm began offering homeowners insurance through The Fire Company.

1942: State Farm became the leading auto insurance company in America and started expanding into Canada. 

State Farm Market Share

An insurer’s market share tells you how much of the total market it serves. Being the leading auto insurer, State Farm has held a market share of around 18 percent on average.

Their market share dropped to 17 percent in 2018; however, the insurers still hold the largest share of the private passenger auto insurance market.

YearTotal Market ShareMarket Share of
Liability
Market Share of
Physical Damage
201817.01%16.97%17.08%
201718.07 %18.17 %17.91 %
201618.26 %18.35 %18.12 %
201518.29 %18.47 %18.02 %

Other leading writers of private passenger auto insurance include Berkshire Hathaway, Progressive, Allstate, and USAA.

State Farm’s Position for the Future

With strong financial strength ratings and satisfactory consumer reviews, State Farm is poised for growth in the future. 

In addition, State Farm keeps innovating and offering self-help tools to empower consumers. State Farm also offers a telematics program — Drive Safe and Save — to encourage safe driving habits that help car owners save money on insurance.

Last year, State Farm also started working on a blockchain solution to speed up the subrogation process in auto claims, which is completely manual as of now.

State Farm’s Online Presence

State Farm has an intuitive website that consumers can easily navigate to get quotes on the product(s) of their choice. It also has a section on the home page that provides detailed information about products for consumers to evaluate before they buy or seek a quote.

state farm auto insurance

State Farm also actively participates online through Facebook, Twitter, LinkedIn, Instagram, and YouTube. In fact, their social media efforts have garnered a lot of interest in the industry as they consistently add a personal touch to their responses.

State Farm’s Commercials

In 2016, State Farm retired its iconic tagline “Like a good neighbor, State Farm is there,” which was coined about 40 years ago.

The new tagline — “Here to help life go right” — indicates the company’s new vision. Throughout its ad campaigns, State Farm has focused on strengthening communities by making personal connections.

State Farm also tries to add a comic touch to its commercials. Along with ads for its products, State Farm regularly shares videos of agent stories and giving back to society on its YouTube channel.

State Farm in the Community

This insurance company has a long history of actually being a good neighbor when it comes to community involvement. State Farm’s charitable programs are geared toward creating safer and better-educated communities around the country. 

Here are some of the current programs:

  • Good Neighbor Citizenship Company Grants: State Farm provides safety, community development, and education grants through this program.

  • Matching Gift Program: Through their Matching Gifts Programs, State Farm encourages employees and associates to make educational and charitable contributions to the community, which they then match dollar for dollar.

State Farm Employees

State Farm boasts over 58,000 employees and 19,000 independent agents that help the company service around 83 million policies in the U.S.

But do these people enjoy working at State Farm? We all know that happy employees make happy insurance agents who want to work in the best interests of their clients.

As per Glassdoor reviews, around 45 percent of the people working at State Farm would recommend the company to their friends and around 36 percent approve of the CEO.

State Farm has received a rating of 3.1 out of 5 for employee experience, based on 8,900 reviews.

Some of the things that stood out in the positive reviews:

  • People like the benefits offered at State Farm and the environment is conducive for working.
  • Employees also have a good work-life balance at State Farm.

What people mentioned as one of the biggest cons of working at State Farm is that the pay is too low.

State Farm is also consistently recognized for being a great place to work. Let’s look at some of the awards the company received in 2019.

  • 2019 Top 100 Most Military Friendly® Employer: State Farm has won this award consistently since 2005 for its consistent support for the members of the U.S. military.
  • 2019 Most Admired Company: Since 2009, State Farm has been recognized as one of the most admired companies in the Property and Casualty Insurance industry.
  • 2019 National Recognition for Equality: State Farm received a perfect score on the Human Rights Campaign Corporate Equality Index.
  • 2019 Top Companies for Executive Women: State Farm has consistently ranked among the top companies for Executive Women for 12 years.
  • 2018 AnitaB.org Top Company for Women Technologists: State Farm was recognized as one of the top five in the technical workforce category.

Cheap Car Insurance Rates

As car owners, the cost of insurance is a major concern for all of us, and we understand you’re probably looking for the cheapest quotes for coverage.

To help you get an idea of how much you might have to pay for auto insurance with State Farm, we have collated their rates under different scenarios.

What you pay for car insurance is always different from what your neighbor pays, so always keep in mind that your personal factors have a major influence on rates.

Let’s take a look at State Farm’s car insurance rates.

State Farm Availability and Rates by State

State Farm is available in all states and the District of Columbia.

You can see the table below for rates by state. In many states, such as Rhode Island, South Dakota, North Dakota, and Minnesota, the rate charged by State Farm is considerably lower than the state averages.

However, if you’re a motorist in Michigan or New Jersey, State Farm’s premiums are higher than the average company’s.

State Annual PremiumHigher/Lower
than State Average
Percent Change
Alabama$4,798.15$1,231.1934.52%
Alaska$2,228.12-$1,193.39-34.88%
Arizona$4,756.25$985.2826.13%
Arkansas$2,789.03-$1,335.95-32.39%
California$4,202.28$513.3513.92%
Colorado$3,270.77-$605.63-15.62%
Connecticut$2,976.24-$1,642.68-35.56%
Delaware$4,466.85-$1,519.48-25.38%
District of Columbia$4,074.05-$365.20-8.23%
Florida$3,397.67-$1,282.79-27.41%
Georgia$3,384.88-$1,581.95-31.85%
Hawaii$1,040.28-$1,515.36-59.29%
Idaho$1,867.96-$1,111.13-37.30%
Illinois$2,344.88-$960.60-29.06%
Indiana$2,408.94-$1,006.03-29.46%
Iowa$2,224.51-$756.77-25.38%
Kansas$2,720.00-$559.62-17.06%
Kentucky$3,354.32-$1,841.09-35.44%
Louisiana$4,579.12-$1,132.22-19.82%
Maine$2,198.68-$754.60-25.55%
Maryland$3,960.87-$621.83-13.57%
Massachusetts$1,361.86-$1,316.99-49.16%
Median$2,731.48-$929.41-25.39%
Michigan$12,565.52$2,066.8819.69%
Minnesota$2,066.99-$2,336.27-53.06%
Mississippi$2,980.48-$684.09-18.67%
Missouri$2,692.91-$636.03-19.11%
Montana$2,417.74-$803.11-24.93%
Nebraska$2,438.71-$844.97-25.73%
Nevada$5,796.34$934.6419.22%
New Hampshire$2,185.46-$966.32-30.66%
New Jersey$7,527.16$2,011.9436.48%
New Mexico$2,340.66-$1,122.98-32.42%
New York$4,484.58$194.704.54%
North Carolina$3,078.65-$314.46-9.27%
North Dakota$2,560.53-$1,605.32-38.54%
Ohio$2,507.88-$201.84-7.45%
Oklahoma$2,816.80-$1,325.53-32.00%
Oregon$2,731.48-$736.29-21.23%
Pennsylvania$2,744.23-$1,290.27-31.98%
Rhode Island$2,406.51-$2,596.85-51.90%
South Carolina$3,071.34-$709.80-18.77%
South Dakota$2,306.23-$1,676.05-42.09%
Tennessee$2,639.30-$1,021.59-27.91%
Texas$2,879.94-$1,163.34-28.77%
Utah$4,645.83$1,033.9428.63%
Vermont$4,382.84$1,148.7135.52%
Virginia$2,268.95-$88.92-3.77%
Washington$2,499.78-$559.55-18.29%
West Virginia$2,126.32-$469.04-18.07%
Wisconsin$2,387.53-$1,218.53-33.79%
Wyoming$2,303.55-$896.53-28.02%

State Farm Rates vs. Other Leading Providers

If you want to compare State Farm’s rates with other leading providers, you can look at the table below. 

StateAverage by StateAllstateAmerican FamilyFarmersGEICOLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Alabama$3,566.96$3,311.52Data Not Available$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Alaska$3,421.51$3,145.31$4,153.07Data Not Available$2,879.96$5,295.55Data Not Available$3,062.85$2,228.12Data Not Available$2,454.21
Arizona$3,770.97$4,904.10Data Not Available$5,000.08$2,264.71Data Not Available$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
Arkansas$4,124.98$5,150.03Data Not Available$4,257.87$3,484.63Data Not Available$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
California$3,688.93$4,532.96Data Not Available$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$3,876.39$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77Data Not Available$3,338.87
Connecticut$4,618.92$5,831.60Data Not AvailableData Not Available$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
Delaware$5,986.32$6,316.06Data Not AvailableData Not Available$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
District of Columbia$4,439.24$6,468.92Data Not AvailableData Not Available$3,692.81Data Not Available$4,848.98$4,970.26$4,074.05Data Not Available$2,580.44
Florida$4,680.46$7,440.46Data Not AvailableData Not Available$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67Data Not Available$2,850.41
Georgia$4,966.83$4,210.70Data Not AvailableData Not Available$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88Data Not Available$3,157.46
Hawaii$2,555.64$2,173.49Data Not Available$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28Data Not Available$1,189.35
Idaho$2,979.09$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19Data Not Available$1,867.96$3,226.29$1,877.61
Illinois$3,305.48$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,414.97$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35Data Not Available$3,898.00$2,408.94$3,393.75$1,630.86
Iowa$2,981.28$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Kansas$3,279.62$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Kentucky$5,195.40$7,143.92Data Not AvailableData Not Available$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,711.34$5,998.79Data Not AvailableData Not Available$6,154.60Data Not AvailableData Not Available$7,471.10$4,579.12Data Not Available$4,353.12
Maine$2,953.28$3,675.59Data Not Available$2,770.15$2,823.05$4,331.39Data Not Available$3,643.59$2,198.68$2,252.97$1,930.79
Maryland$4,582.70$5,233.17Data Not AvailableData Not Available$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87Data Not Available$2,744.14
Massachusetts$2,678.85$2,708.53Data Not AvailableData Not Available$1,510.17$4,339.35Data Not Available$3,835.11$1,361.86$3,537.94$1,458.99
Michigan$10,498.64$22,902.59Data Not Available$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,403.25$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49Data Not Available$2,066.99Data Not Available$2,861.60
Mississippi$3,664.57$4,942.11Data Not AvailableData Not Available$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
Missouri$3,328.93$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91Data Not Available$2,525.78
Montana$3,220.84$4,672.10Data Not Available$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74Data Not Available$2,031.89
Nebraska$3,283.68$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71Data Not Available$2,330.78
Nevada$4,861.70$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
New Hampshire$3,151.77$2,725.01Data Not AvailableData Not Available$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46Data Not Available$1,906.96
New Jersey$5,515.21$5,713.58Data Not Available$7,617.00$2,754.94$6,766.62Data Not Available$3,972.72$7,527.16$4,254.49Data Not Available
New Mexico$3,463.64$4,200.65Data Not Available$4,315.53$4,458.30Data Not Available$3,514.38$3,119.18$2,340.66Data Not Available$2,296.77
New York$4,289.88$4,740.97Data Not AvailableData Not Available$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
North Carolina$3,393.11$7,190.43Data Not AvailableData Not Available$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66Data Not Available
North Dakota$4,165.84$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53Data Not Available$2,006.80
Ohio$2,709.71$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oklahoma$4,142.33$3,718.62Data Not Available$4,142.40$3,437.34$6,874.62Data Not Available$4,832.35$2,816.80Data Not Available$3,174.15
Oregon$3,467.77$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Pennsylvania$4,034.50$3,984.12Data Not AvailableData Not Available$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$5,003.36$4,959.45Data Not AvailableData Not Available$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
South Carolina$3,781.14$3,903.43Data Not Available$4,691.85$3,178.01Data Not Available$3,625.49$4,573.08$3,071.34Data Not Available$3,424.77
South Dakota$3,982.27$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23Data Not AvailableData Not Available
Tennessee$3,660.89$4,828.85Data Not Available$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Texas$4,043.28$5,485.44$4,848.72Data Not Available$3,263.28Data Not Available$3,867.55$4,664.69$2,879.94Data Not Available$2,487.89
Utah$3,611.89$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83Data Not Available$2,491.10
Vermont$3,234.13$3,190.38Data Not AvailableData Not Available$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84Data Not Available$1,903.55
Virginia$2,357.87$3,386.80Data Not AvailableData Not Available$2,061.53Data Not Available$2,073.00$2,498.58$2,268.95Data Not Available$1,858.38
Washington$3,059.32$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78Data Not Available$2,262.16
West Virginia$2,595.36$3,820.68Data Not AvailableData Not Available$2,120.80$2,924.39Data Not AvailableData Not Available$2,126.32Data Not Available$1,984.62
Wisconsin$3,606.06$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53Data Not Available$2,975.74
Wyoming$3,200.08$4,373.93Data Not Available$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55Data Not Available$2,779.53

State Farm Male vs. Female Auto Insurance Premiums

Age and gender are two factors that are taken into consideration by every insurance company when they calculate rates.

Though in some states, such as California, Hawaii, Massachusetts, Montana, North Carolina, and Pennsylvania, insurance companies are not allowed to use gender for determining rates.

DemographicsAverage Annual Premiums
Single 17-year old female$5,953.88
Single 17-year old male$7,324.34
Single 25-year old female$2,335.96
Single 25-year old male$2,554.56
Married 35-year old female$2,081.72
Married 35-year old male$2,081.72
Married 60-year old female$1,873.89
Married 60-year old male$1,873.89

Usually, younger male drivers pay the highest car insurance rates because they are more likely to engage in reckless driving. In general, younger drivers pay a lot more in premiums than drivers over the age of 25.

In the table above, you can see that 17-year-old drivers are paying the highest premiums, with males being charged substantially more than their female counterparts.

State Farm also charges a different rate based on gender for 25-year-olds. Rates are comparatively stable by the age of 25.

 State Farm Auto Insurance Premiums by Make and Model

The type of car you own also impacts your car insurance rates, so you must factor that in if you’re purchasing an expensive model. Newer models also cost more to insure because the repair/replacement expenses are higher.

Make and ModelAverage Annual Premiums
2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6$3,204.23
2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6$3,497.17
2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT$3,024.24
2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT$3,189.99
2015 Toyota RAV4: XLE$3,226.02
2018 Toyota RAV4: XLE$3,418.33

In the table above, you can see that newer models are more expensive to insure than the same makes from an older model.

State Farm Car Insurance Premiums by Commute Rate

Your insurance agent or any online calculator will ask you to enter details about your estimated mileage. This helps insurance companies determine the risk of accidents for you.

CommuteAverage Annual Premium
10 miles/
6,000 annual mileage
$3,175.98
25 miles/
12,000 annual mileage
$3,344.01

If you drive less than 10 miles per day, your insurance rates will be lower than someone who drives around 25 miles per day.

State Farm Car Insurance Premiums by Coverage Level

If you’re on a tight budget, you can choose the basic minimum insurance for your car because you must get coverage to drive legally in most states.

However, do remember that buying low coverage can save you some money on insurance premiums, but can get really expensive if you’re involved in a severe accident.

Let’s look at how much State Farm charges for different levels of coverage.

Coverage TypeAverage Annual Premium
High$3,454.80
Medium$3,269.80
Low$3,055.40

State Farm Auto Insurance Premiums by Credit History

A poor credit score can hinder many aspects of a person’s life, and insurance companies make it all the more difficult by charging higher premiums.

Credit HistoryAverage Annual Premium
Poor$4,951.20
Fair$2,853.00
Good$2,174.26

Almost all insurance companies penalize motorists with poor credit history by charging exorbitant premiums.

In the table, you can see that State Farm policy rates for someone with poor credit are significantly higher than they are for someone with a good record.

You’re in luck if you live in one of the states (California, Massachusetts, and Hawaii) that ban insurers from discriminating on the basis of credit history.

State Farm Auto Insurance Premiums by Driving Record

By keeping your driving record clean, you can save a lot on premiums.

Drivers who have been involved in accidents and or who have violations on their record pay higher premiums because a risky driving pattern is a red flag for insurers.

Driving RecordAverage Annual Premium
Clean Record$2,821.18
With One Accident$3,396.01
With One DUI$3,636.80
With One Speeding Violation$3,186.01

At State Farm, motorists who have been caught driving under the influence of alcohol or other substances pay the highest premiums. Accidents and violations like speeding tickets also raise your rates, but not as much as a DUI.

Coverage Offered by State Farm

Whenever you plan to buy car insurance, you should look for a company that offers you a wide array of coverage options — that helps you protect yourself and your family in every possible crash situation.

In this section, we’ll look at all the coverage options offered by State Farm, what policies you can bundle to get better rates, and available discounts.

Car Insurance Coverage Types

Learning about the types of coverage an insurer offers can be a little confusing. Let’s talk about what State Farm offers and how it can be useful to you.

Liability Coverage: The liability portion of your insurance coverage will pay for third-party medical expenses and property damage as a result of an accident that is your fault. If you buy only liability coverage, your injuries and damages in an accident wouldn’t be covered.

Collision Coverage: This kind of coverage will pay for any damage to your car that occurs as the result of a collision, regardless of who is at fault.

Comprehensive Coverage: If your car is damaged from causes out of your control, such as fire, vandalism, theft, etc., you can claim damages under this option.

Uninsured/Underinsured Motor Vehicle Coverage (UM/UIM):  Though there are laws that require motorists to have the minimum required coverage, some car owners let their policies lapse. If you’re involved in an accident with an uninsured or underinsured motorist, UM/UIM coverage will cover your expenses.

Car Rental and Travel Expenses Coverage: You can even get coverage for a rental car if your car is getting repaired in a shop. Through travel expenses coverage, insurance companies pay for your food, lodging, and transportation if you’re involved in an accident while you’re away from home.

Medical Payments Coverage: This coverage helps to pay for your medical expenses in an accident, regardless of who was at fault.

Emergency Road Service Coverage: Your car can break down anytime; after all, it’s a machine. With emergency road service coverage, you will get roadside assistance if this happens to you.

Rideshare Driver Coverage: If you drive for Uber or Lyft, you will need extra coverage to meet the legal requirements for ridesharing services. With State Farm, you can get competitive rideshare coverage rates.

Bundling Options

State Farm offers many options to help you save some money on car insurance, and one of them is bundling. When you buy two or more policies from State Farm, you can get a discounted rate.

Auto and Home/Renters Insurance: If you buy this combination, State Farm claims that you can save up to $854 in premiums.

Though State Farm doesn’t list other bundling combinations that can save you money, you can always discuss this with an agent before buying a policy.

State Farm Car Insurance Discounts

Car insurance companies offer a wide range of discounts to entice consumers into buying their policies. Though discount options are mentioned on the company’s website, not many people are aware of how to actually get them.

That’s why we are listing all of the ways you can save at State Farm.

State Farm has three categories for car insurance discounts — loyal customers, safe vehicle, and safe driver.

Multiple Auto or Multi-Line Discount: If you take out two or more car insurance policies from State Farm, you can save up to 20 percent. You can also save up to 17 percent when you buy any other line of coverage with your auto insurance policy. 

Safe Vehicle Discount: If you own a vehicle that was made after 1994, you can save up to 40 percent on medical-related coverage. Keeping your car in good condition and maintaining repair records can also help you get discounts.

Passive Restraint Discount: For vehicles made before 1993, you can save up to 40 percent on medical-related coverage if your car has a manufacturer-installed airbag or any other passive restraint system.

Anti-Theft Discount: Installing an anti-theft device in your car can also save you some money.

Accident-Free Discount: Staying with State Farm has its benefits — if you maintain a policy for three years without having an accident, you’ll be entitled to discounts.

Defensive Driving Discount: Depending on your location, you may get discounts for completing an approved defensive driving course.

Student Away At School Discount: If one of the drivers on your policy who’s below the age of 25 moves away for school and drives your car occasionally, then you’re eligible for discounts.

Good Driving Discount: Similar to accident-free, if you have been insured for three years with State Farm without any moving violations or at-fault accidents, you will get discounts.

Driver Training Discount: If drivers under the age of 21 on your policy complete an approved driver education course, you might become eligible for this discount.

Good Student Discount: Good grades can not only get you into a good university, but they can also save you money on car insurance. Drivers up to the age of 25 can get discounts of up to 25 percent for earning good grades.

Now that you know about these discounts, you should assess which ones you’re eligible for and ask for these while buying a policy.

Here’s a list of the percentages you could save on your policy with these different discounts. Insurers do change the discounts they offer from time to time, so talk to an agent about how you can save the most.

DiscountAmount
Anti-lock Brakes5%
Anti-Theft15%
Claim Free15%
Defensive Driver5%
Distant StudentSpeak with your agent to learn more
Driver's Ed15%
Driving Device/App50%
Good CreditSpeak with your agent to learn more
Good Student25%
Homeowner3%
Low Mileage30%
MarriedSpeak with your agent to learn more
MilitarySpeak with your agent to learn more
Multiple Policies17%
Multiple Vehicles20%
Newer Vehicle40%
Paperless/Auto Billing$2
Passive Restraint40%
Safe Driver15%
Vehicle Recovery5%

State Farm Programs

Insurance companies have launched some interesting programs for car owners to help them become better drivers and reduce their insurance costs.

Let’s look at some of these programs at State Farm.

Usage-Based Program

After the launch of telematics, many car insurance companies came out with usage-based insurance programs that monitor a person’s driving behavior, and these programs can help you get discounts.

Drive Safe & Save is State Farm’s attempt to make drivers safer on the roads. If you choose to enroll in their usage-based program, State Farm will send you a beacon device that will track your driving behavior.

Just for signing up for this program, you will receive a discount of five percent. After that, the company will calculate your discounts based on your driving behavior and you can earn up to 30 percent off.

The better you drive, the better your discount will be. But what does State Farm track while you’re driving?

If you keep a few things in mind and avoid potentially reckless actions, you can earn great discounts. Here’s what State Farm will track:

  • Acceleration
  • Hard braking
  • Fast cornering
  • Speeding
  • Distracted driving

State Farm learning center

If you’re curious to learn more about car insurance or general topics related to your car, you can check out the State Farm Simple Insights website.

The company has a massive collection of resources that cover everything about cars, from how to buy or sell a vehicle to best maintenance practices. Not only does the company want to keep you informed about car insurance, they want you to understand the ins and outs of your car as well.

Accident forgiveness

We all know being involved in an at-fault accident can raise your premiums considerably. Some insurers even increase your rates if you weren’t at fault for an accident.

However, insurance companies sometimes offer a one-time accident forgiveness option if you have been insured with them continuously for a couple of years.

Before buying a policy with State Farm, this should be an important talking point with your agent, since you wouldn’t want to be surprised by a massive rise in rates after just one accident.

Steer clear

Drivers over the age of 25 can find many options for discounted rates on their car insurance premiums; however, not many insurers offer discounts for teens.

Through the Steer Clear safe driving program, State Farm offers an opportunity for young drivers to save money on premiums as well.

To qualify for a discount under this program, a driver must:

  • Be under the age of 25
  • Carry a valid driver’s license
  • Have a clean record, meaning no at-fault accidents or moving violations in the last three years
  • Successfully complete the program requirements

How does it work?

  1. Talk to your agent to find out if you’re eligible under this program.
  2. Get the Steer Clear mobile app to view safe driving videos and record your driving trips.
  3. Once you have completed the safe driving training program, met the criteria for driving trips, and earned the program certification, you will get discounts from State Farm.

What Stands Out

Though State Farm charges higher rates than its competitors for auto insurance, it does focus a lot on customer satisfaction. To this effect, the number of complaints against the insurer has come down drastically from 2016 to 2018.

When it comes to financial strength, all the global credit rating agencies have assigned State Farm excellent ratings, which assures consumers of its ability to meet long-term obligations.

A common complaint among consumers regarding insurance companies is the practice of increasing rates at every renewal. State Farm doesn’t increase rates automatically at renewal unless they have a reason to charge you more.

Another salient feature of State Farm is its network of 18,000 agents working across the country.

When a company has a large number of dedicated agents, it’s easier for you to get information about all of the coverage options and potential benefits.

What’s Missing

In one of the sections above, we highlighted all the discount options that State Farms offers to car owners. However, not all of these options are available in all states, which limits how much people can save on premiums.

Another thing that State Farm doesn’t mention or focus on is accident forgiveness. Almost all the leading insurance companies forgive one accident for loyal customers, but State Farm doesn’t guarantee this.

Nonetheless, you can always ask your agent about how much rates might rise after an accident and whether or not the company might offer any forgiveness.

Canceling your Policy

Sometimes, you might need to switch your car insurance provider around until you find the right one for you. Then there are times you might have to switch because you’re moving and an insurer doesn’t operate in your new state.

Whatever your reason for switching, you should be aware of the process for canceling your policy with State Farm.

Cancellation Fee

With State Farm, you don’t have to worry about any cancellation fees, as they don’t penalize their customers for this. However, it’s always recommended to confirm this with your agent before canceling a policy.

Refund Policy

The good thing about switching your policy is that you can cancel your current policy anytime you want. State Farm will refund the unused portion of your premiums if you choose to cancel your policy before the term ends.

How to Cancel?

Canceling your State Farm policy is simple — you have the option to cancel your policy by phone, mail, or in person.

  • Using a phone, you can call your State Farm agent to cancel your policy. Be prepared with your name, date of birth, policy number, and social security number before you make the call.
  • You can also write to State Farm’s corporate office (One State Farm Plaza, Bloomington, IL 61710) to cancel your policy. Make sure your letter two weeks before your cancellation date, citing all of your policy details.
  • You can also walk into one of their offices to cancel your policy.

It’s also a good idea to keep the details of your new policy handy, as your agent may or may not ask about this before canceling your policy.

When can you cancel?

You can cancel your policy anytime you’d like. But before you cancel, make sure you’ve bought a new policy. In most states, it’s illegal to drive without car insurance, and even if you’re without coverage for one day, it can raise your rates.

How to Make a Claim

The sole reason for buying a policy is to use the coverage for making a claim if you’re involved in an accident.

While it’s mandatory to buy coverage, most people rarely think about the possibility of an accident, so they don’t know anything about the claims filing process.

Let’s go over how you can file a claim at State Farm.

Ease of Making a Claim

The easiest way to file a claim after an accident is to call State Farm at (800) 732-5246; operators are available 24/7 to help you. You can also call your agent to file a claim or log in to your profile.

Whichever option you choose, just make sure that you file a claim as soon as possible after an accident so you can explain what happened while it’s fresh in your memory.

Once your claim is registered, the request goes through the review, estimates, and payment cycle.

Premiums Written and Loss Ratio

State Farm is the leading auto insurance in terms of premiums written in the property and casualty insurance sector and you can see its annual numbers in the table below.

YearDirect Premiums
Written (000)
Loss Ratio
201865,868,83962.18%
201764,897,13071.72%
201662,192,18069.06%
201559,361,68561.61%

While we’re looking at the written premiums for State Farm, let’s also discuss what loss ratio can tell you about an insurer.

Loss ratio in the insurance industry means the financial losses sustained by an insurer, i.e. the premiums paid in claims. If an insurance company has a loss ratio of 70 percent, it means it paid $70 out of $100 earned in premiums.

When an insurer’s loss ratio is very high or above 100 percent, it’s not a good situation, since this means the company is not earning any revenue and might exhaust its reserves in the near future.

State Farm’s loss ratio has stayed in the 60 to 70 percent range over the past couple of years.

How to Get a Quote Online

Like every other leading car insurance company, State Farm offers online quotes to car owners so it’s easy for them to buy a policy from the comfort of their homes.

Below you’ll find step-by-step instructions for generating an online quote from State Farm.

We’ve also made a table listing all of the information you might be asked for during the quote process.

Information RequiredDocument Types
Vehicle InformationYear, Make, Model, Body style or VIN
Mileage
Ownership
Garaged address
Name of registered owner
Prior insurance carrier and expiration date
Date of purchase
Driver InformationDriver name(s) and date of birth
Driver's license number(s) and state of issue
Driving HistoryTicket and accident history
License suspension information

Get an Auto Insurance Quote

When you visit the State Farm website, you’ll see the online quotes generator on the right side of the landing page.

State Farm Auto Insurance Quotes Generator

Start your Quote

After you enter your ZIP code and select “Get a Quote” you will move to the next page where you’ll enter your home address.

State Farm-Address Details

At the bottom right corner of the page, you can see what details you’ll be asked for on the next page. This helps you to know which documents to keep handy while you fill out the form.

Add Vehicle Details

On the next page, you can add the details of as many vehicles as you want. Based on your location, State Farm also shows you the list of agents close to you with their contact information.

If you’ve previously gotten an online quote or bought a policy from State Farm, your vehicle details will show up on this page.

State Farm add vehicle details

Once you add details about your car’s make and model, you’ll be asked more questions about how you financed the vehicle, its primary use, expected annual mileage, and safety features.

Add Driver Information

Along with essential details like your gender, age when first licensed, and marital status, you will also have to enter information about any other drivers of your vehicle, what type of residence you live in, and how many cars are used in your household.

Driving History

Your driving history is paramount for car insurance companies. They use this to determine the likelihood of you getting into an accident.

Therefore, you have to enter details of any accidents, tickets, or violations during the quote process.

State Farm Driving History

Additional Information

In the next step, State Farm wants to gather other details about you or your driving history that can help you save money on premiums.

You can also see the discounts you’re eligible for on this page based on your answers in the previous sections.

You’ll also have to enter your contact details, such as email address and phone number, to proceed to the quote page.

Final Quote

State Farm generates three quotes for car owners that are packaged as Basic, Similar, and Premium. Though it’s probably obvious, if you choose a higher level of coverage, you have to pay higher premiums.

State Farm Quote

You can also see the discounts that were applied to your quote. From here on, you can either buy the coverage that’s suitable for you or connect with an agent to negotiate on the quote.

Design of State Farm Website/Mobile App

State Farm’s website is intuitive and straightforward, which makes it easy for users to find relevant information.

State Farm Product Suite

You can also read about the different products offered by State Farm on their landing page, in addition to getting quotes.

 State Farm Mobile App

In this digital age, consumers often prefer to use a mobile app to manage their policies, and State Farm’s app has many helpful features, allowing users to:

  • Manage and file claims
  • Access insurance ID cards
  • Get roadside assistance
  • Upload documents
  • Connect with agents

The State Farm mobile app is available for both Android and Apple devices.

In the Android store, the app has a favorable rating of 4.3 out of 5, based on around 21,000 reviews. 

In the Apple store, the app has a rating of 4.8 out of 5 based on around 105,000 reviews. Even better!

Pros and Cons

State Farm may be the right choice for car insurance for you, but it depends on where you live because their discount options and rates vary by city/state. You should conduct thorough research before buying a policy.

ProsCons
Has the third-lowest average premium among the top 10 providersRates can be pricey depending on where you live
Consistently strong financial standing and solid rankingsCould stand to offer more discounts, like federal employees, green vehicles, and occupational
Policies are available in all 50 statesReceived an "about average" Power Circle Ranking in 5 out of 11 regions
Customers have a variety of online options and an easy-to-use appLimited add-ons are available

The Bottom Line

State Farm’s solid financial strength ratings and leading position in the auto insurance market makes it a lucrative option for car owners. In addition, they offer drivers a wide array of discounts and coverage options.

If you’re on a budget, then you might give some real thought to buying a policy from them, as they are known for being inexpensive.

But you’ll also want to keep in mind their average customer reviews and lack of accident forgiveness, as these are dealbreakers for some car owners.

FAQ

How does the State Farm Drive Safe and Save program work?

In the Drive Safe and Save program, the Bluetooth beacon device and your phone’s app record your driving, and the information is assessed by the insurer to calculate your discounts. Some of the things you should be careful about are: fast acceleration, hard braking, speeding, and distracted driving.

Does State Farm offer any discounts for seniors?

As of now, State Farm doesn’t mention anything about discounts for seniors on its website. If you would like to know more about specific discounts, you can connect with an agent to find out.

What does full coverage from State Farm mean?

A lot of people confuse full coverage with comprehensive coverage; however, these are completely different. Full coverage usually means that your policy has liability, collision, comprehensive, and uninsured motorist coverage.

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