State Farms is a good insurance company that features a wide variety of insurance policy options, though its rates are rather pricey for both home and auto insurance. However, the company makes up for this by offering a variety of discounts—such as its Steer Clear driver program—and having solid customer service. Overall, State Farm is a safe choice for your insurance needs, though it doesn't excel in any particular aspect.
Our Thoughts On State Farm Insurance
The biggest mark against State Farm insurance is its lackluster rates. For both auto and homeowners insurance, State Farm's base rates were more expensive than the those quoted by direct insurers, such as Esurance and GEICO. However, these rates did not take into account the discounts that State Farm offers to qualifying customers. Insurance shoppers that can take advantage of the State Farm's most advantageous discounts—such as the Drive Safe and Save program—can still get excellent value with State Farm.
State Farm has something to offer insurance shoppers looking for either an all-online experience as well as those looking to have a relationship to a local insurance agent. One of the defining features of State Farm is its network of over 18,000 agents. This is in stark contrast to other large insurers—particularly GEICO and Progressive—who have fewer dedicated agents. However, State Farm also offers convenient online options for customers that are comfortable managing their insurance on their own, including the company's Pocket Agent mobile app. This app—which has received positive reviews from its users—can be used to pay your insurance premiums, file a claim and get roadside assistance.
Bottom Line: State Farm is an above-average insurance company that can provide a plethora of auto and home coverages to satisfy its customers’ insurance needs. Those looking for a personalized experience with a local insurance agent are likely to find just that with State Farm. However, if you are looking for the absolutely lowest possible rates, State Farm may not be your best choice.
State Farm Car Insurance Coverages and Benefits
State Farm offers its customers all of the standard car insurance coverages including liability insurance, uninsured/underinsured motorist, personal injury protection, and collision and comprehensive insurance. It also provides a few unique policy add-ons, including:
Rental car and travel expenses coverage: While rental car insurance is a pretty standard optional coverage among insurers, State Farm's goes above and beyond by covering meals, lodging and transportation if your vehicle is disabled while you're on the road. This coverage will pay for travel expenses for up to $500 for all covered individuals. To take advantage of travel expenses coverage, your car has to be undrivable as a result of an incident that falls under your comprehensive or collision insurance.
Rideshare insurance: If you are an Uber or Lyft driver, then you will likely need to buy a special rideshare insurance policy. State Farm offers rideshare insurance that extends the coverages from your personal car insurance policy to cover you while you are working. Typically, adding rideshare coverage to your insurance policy will raise your premiums by 15 percent to 20 percent.
State Farm Auto Insurance Discounts
Drivers looking for ways to reduce their auto insurance premiums will find a wide variety of discounts that they can utilize with State Farm—though two targeted at safe drivers offer particularly significant benefits.
Steer Clear Driver Program: This program by State Farm is designed for those under 25 years of age to brush up on their driver education. Drivers who complete the program are eligible for a discount of up to 15 percent off their premium. The Steer Clear Driver Program can be completed online or on your mobile app, and your State Farm insurance agent is available to assist you. This program is available all states, with the exception of California, Hawaii, Massachusetts, North Carolina and Rhode Island.
Drive Safe and Save: Eligible drivers can enroll in the Drive Safe and Save program to receive an automatic 5 percent discount on their auto insurance rates. This program uses information from your vehicle's OnStar software or the Drive Safe and Save mobile app to track your driving habits. State Farm will then use this information at each policy renewal to determine how much you can save—which could be up to 50 percent.
|Discount||How Do You You Receive It?|
|Safe Driver Discounts|
|Accident-Free Discount||Have your vehicle insured continuously with State Farm for at least three years without having an at-fault accident to qualify.|
|Defensive Driving Discount||Take a defensive driving course.|
|Student Away at School Discount||Have a student driver on your policy who attends school and only uses the vehicle on vacations and when they're visiting home for this discount.|
|Good Driving Discount||Go three years or more without having an at-fault accident or moving violation.|
|Driver Training Discount||All insured drivers under the age of 21 must have completed an approved drivers education course.|
|Student Driver Discounts|
|Good Student Discount||Have a GPA of 3.0 or higher.|
|Safe Vehicle Discounts|
|Vehicle Safety||Your vehicle's model year is 1994 or newer.|
|Passive Restraint||Have a 1993 or older vehicle that has airbags or other passive restraint equipment.|
|Anti-Theft||Your vehicle is equipped with an anti-theft device.|
|Multiple Auto||Have multiple cars insured with State Farm.|
|Multiple Line||Have a homeowners, renters, condo or life insurance policy in addition to insuring your car with State Farm.|
Auto Insurance Quotes Comparison
State Farm's rates are generally more expensive for auto insurance than other insurers, based on the quotes that we gathered. It could not compete with the low premiums quoted by GEICO and Progressive, which are among the cheapest car insurance companies out there. However, drivers that can take advantage of some of State Farm's discounts—particularly the Drive Safe and Save discount—may still be able to get low rates.
Rates can vary drastically by region and driver profile, so the best way to get the cheapest rates is to compare quotes.
State Farm Homeowners Insurance Coverages and Benefits
State Farm offers all the homeowners insurance coverages you'd expect from a national insurer, such as personal liability, medical payments and dwelling coverages.
One of the more unique services that State Farm provides is the Premier Service Program, though it's not yet available in all regions. This is an optional program that puts policyholders in touch with participating contractors that can provide water removal services or flooring repairs and replacement. The repairs are guaranteed for up to five years for a covered loss.
Homeowners interested in additional coverages with State Farm have the option to add on additional protections for losses from earthquakes, backup of a sewer or drain, identity restoration and loss assessment. Certain extended coverages can only be purchased only through a State Farm agent, such as insurance for an electric vehicle charging station and waterbed liability insurance.
Homeowners Insurance Discounts
State Farm provides homeowner policyholders a variety of ways to save on insurance costs. These are pretty much in line with what is typical of insurance companies and include discounts for:
- Sprinkler systems
- Security devices
- Having multiple insurance policies with State Farm
- Damage-resistant roofing material
Homeowners Quote Comparison
State Farm's homeowners insurance rates were some of the most expensive among its competitors. A homeowner insurance policy with State Farm would costs twice as much as what you'd pay with the cheapest insurer, which was Esurance. However, insurance rates can vary drastically by region and property, so the best way to ensure you get the cheapest rates is to gather at least three to four quotes and compare prices.
State Farm Financial Strength Ratings
State Farm customers do not need to worry about whether their insurance company will have enough funds to pay out for insurance claims. State Farm has received an A++ rating from A.M. Best for its financial strength, which is the highest possible rating that an insurer can receive. Note that this does not mean that State Farm is more likely to pay out for a claim, just that it has the funds to do so.
State Farm Reviews and Complaints
Customers can expect better than average customer service with State Farm. In both shopping experience and claims satisfaction, State Farm has had slightly better reviews than its competitors. Another good indication of the quality of State Farm's customer service is that it received very few complaints relative to its size.