We all know about Jake from State Farm, wearing khakis at three in the morning, and the famous motto, “like a good neighbor, State Farm is there”. Those famous commercials have built a strong following for State Farm, but commercials aren’t the only reason State Farm is the number one company for auto insurance. State Farm offers a large selection of products and services, all sold by the company itself, as well as a wide range of discounts to help you get the best rate.
State Farm is the largest auto insurance provider, based on direct premiums written, with 16.2% of all auto insurance in force in the U.S. The company has more than 83 million accounts, with over $40 billion in direct premiums written.
Although the company offers a large variety of other services, their main product is car insurance. In this review, we’re going to focus on State Farm car insurance, and also spend some time on their home insurance offerings.
Basic features of State Farm car insurance are as follows:
Signing up for State Farm can be done online or by phone, as well as finding your local State Farm office and getting a quote in person.
Much like other insurance quotes, State Farm’s application requires basic information as well as your driver’s license number or social security number to get a quote. The application will also require either an email address or phone number from the applicant.
If you prefer live contact, State Farm has a network of offices and agents across the country to walk you through the application process.
State Farm is number one for a reason, and although they don’t always have the lowest rates, they do offer a long list of discounts as well as great customer service. Here’s what makes State Farm so great:
State Farm offers standard auto insurance coverage provisions.
Optional coverage provisions include the following:
NOTE: State Farm does not offer GAP insurance however, they do offer a Payoff Protector. If you have an auto loan through State Farm, the benefit covers the outstanding principal balance if your car is totaled or stolen. Otherwise you will need to obtain gap coverage from the dealer or lender on your vehicle.
State Farm offers one of the most extensive lists of discounts in the auto insurance industry.
Below is a list of the discounts they offer, and the average premium savings you can expect:
To provide reasonable estimates of State Farm car insurance premiums, the table below presents semi-annual premiums for four drivers under six scenarios each. We’ve obtained these through direct quotes from the State Farm website.
Three quotes are based on liability amounts. Liability limits are expressed in a three-number sequence that looks like XX/XX/XX. The first number in the sequence is the amount of coverage for an injury to one person in an accident that’s determined to be your fault. The second number is the coverage limit for all injured parties in a single accident, while the third is coverage for property damage to other people’s property.
The limits we’ve used in our table are as follows:
1. 30/60/25 (the minimum coverage allowed in Texas)
In addition, the table also presents each liability coverage amount with uninsured and underinsured motorists, as well as collision and comprehensive coverage added to the basic liability policy.
We got quotes for four individual driver profiles, including a 23-year-old male, a 23-year-old female, a 53-year-old male, and a 53-year-old female. All four live in suburban Houston, Texas (Zip Code 77009), and drive a 2018 Toyota Camry 12,000 miles per year. None of the drivers has a moving violation or at-fault accident claim in the previous three years.
For simplicity’s sake, each driver is single, rents their home and has a college degree.
Here are the results:Coverage / Driver Profile Male, 23 Female, 23 Male, 53 Female, 53 Rate for State Minimum –30/60/25 – Liability Only $434 $360 $273 $274 With Un/Under-insured Motorist and Collision Comprehensive $1,083 $922 $685 $685 50/100/50 – Liability Only $472 $391 $297 $297 With Un/Under-insured Motorist and Collision Comprehensive $1,189 $967 $724 $724 100/300/100 – Liability Only $512 $423 $322 $322 With Un/Under-insured Motorist and Collision Comprehensive $1,199 $1,024 $772 $772
NOTES: These are simplified quotes. For example, each driver’s credit history is not considered. Neither are certain optional coverages, like car replacement rental, roadside assistance, or GAP coverage for the payoff of a loan or lease.
Driver profiles and situations will vary, but State Farm may be the right choice for you if any of the following apply:
The table below compares State Farm with three of the most popular auto insurance providers in the country: Progressive, Geico, and Allstate. We’ve used side-by-side comparisons of three popular coverage levels, as well as the claims satisfaction and financial strength rating for each company.Category / Company State Farm Progressive Geico Allstate Average Annual Premium: State Minimum $500 $516 $464 $756 Average Annual Premium: 50/100/50 with Collision Comprehensive $1,190 $1,106 $1,006 $1,754 Average Annual Premium: 100/300/100 with Collision Comprehensive $1,380 $1,346 $1,222 $2,140 J.D. Power Claims Satisfaction Rating 881/1,000 856/1,000 871/1,000 876/1,000 A.M. Best Financial Strength Rating A++ (Superior) A+ (Superior) A++ (Superior) A+ (Superior)
The company that you feel will work best for you will depend on your own driver profile, your state of residence, and the specific needs and preferences you have for your policy.
SOURCE: Average Cost of Car Insurance in 2021 from The Zebra
You’ll want to make sure that the coverage you carry matches your net worth. Cutting corners on price and coverage can leave you in financial ruin. If you find yourself in an accident, a lower premium may not provide you with enough coverage. Below are some things to look for when shopping around for a premium.
State Farm ranks Number 1 in homeowner’s insurance. Although the company has fewer discounts than other home insurers, they still offer the same types of coverages.
State Farm home insurance policies provide the following basic homeowner coverage types:
State Farm’s home insurance discounts are similar to those available for car insurance, and include:
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Much like a State Farm car insurance quote, you’ll complete the application process for home insurance online. If you prefer, you can call a toll-free number or go to a local office.
Listed below are the other products and services that State Farm provides.
If any of the above situations apply to you, you may want to discuss it with a State Farm representative when adding it to your auto insurance policy, or if you already have a policy with them.
State Farm covers more than 16% of all drivers in the country, as well as being number one in life insurance and homeowner’s insurance. With such high ratings in customer satisfaction and customer service, it’s hard not to give them a chance. When searching for any kind of insurance, State Farm should be among the companies you look to for a quote.
State Farm is the biggest auto insurer in the country. Customers are typically drawn to a company by a combination of quality and affordability, so this speaks volumes about State Farm. They offer a wide range of insurance policies, including life, health and business insurance, which makes it easier for consumers to keep all their insurance coverage with the same company.
State Farm is not always the cheapest, though they are the lowest in some states. But car insurance should never be purchased based on premium alone. You need to evaluate the cost of a policy against the quality of coverage being provided. State Farm comes up strong in those comparisons.
State Farm ranks sixth in the nation on customer claims satisfaction, according to the J.D. Power 2020 US Auto Claims Satisfaction Study cited earlier. That’s no small advantage, given the large number of auto insurance companies in the country. You can generally expect a good claims experience with State Farm.