Overview of State Farm Car Insurance

State Farm started out as a single-line auto insurer in 1922, founded by George Jacob Mecherle, who had worked in both farming and insurance. It has since grown to become the largest property and casualty insurance company in the nation, and is currently ranked No. 35 on the Fortune 500 list of largest U.S. companies. Large and stable, the company is a well-established provider of automobile insurance. And with more than 18,000 agents nationwide, it really does seem that no matter where you are, “State Farm is there,” as their tagline claims.

How Does State Farm Car Insurance Rate?

Consumer Satisfaction Rating

These ratings are from the J.D. Power 2015 U.S. Auto Insurance Claims Satisfaction Study. The highest score for each category is five stars. The State Farm Insurance Company subsidiary rated here may not be the subsidiary that underwrites your insurance policy. Check with your insurance agent for more information.

Overall Satisfaction
First Notice of Loss (FNOL)
Service Interaction
Appraisal
Repair Process
Rental Car Experience
Settlement
(how well company settles claims)
Customer Complaint Ratio

The National Association of Insurance Commissioners (NAIC) collects complaint information from state insurance regulators. The national median complaint ratio is 1. A score of less than 1 means a company has a lower than average number of complaints, while a score higher than 1 means it has more than average. The State Farm Insurance Company subsidiary rated here may not be the subsidiary that underwrites your insurance policy. Check with your insurance agent for more information.

Last Updated: September 2016

Financial Strength Rating

A Best’s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company’s financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best’s Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.

Financial Strength is rated on a scale of D (poor) to A+ (superior). A rating notch of either a second “+” or a “-“ indicates the gradation of financial strength within the category. We can’t guarantee that the subsidiary of State Farm Insurance rated here is the subsidiary that will underwrite your insurance policy. Check with your insurance agent and review A.M. Best’s Financial Strength Rating Guide for more information.

Best’s Credit Ratings™ are under continuous review and subject to change and/or affirmation. For the latest Best’s Credit Ratings™ and Best’s Credit Reports which include Best’s Credit Ratings™), visit the A.M. Best website at http://www.ambest.com. See Guide to Best’s Credit Ratings™ for explanation of use and charges.

Best’s Credit Ratings™ reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of MoneyGeek.com or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best’s Credit Ratings™. Best’s Credit Ratings™ are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company.

Source A.M. Best
Rating A++

Effective Date: June 2016

Website Features
  • Rate calculator
  • Mobile app
  • Pay bill online
  • Make claim online

Pros and Cons of State Farm Car Insurance

Pros

  • State Farm’s Medical Payments coverage will also provide funeral expenses, unlike similar coverage from other carries, which doesn’t go beyond medical expenses.
  • Specialized antique and classic car auto coverage is available for those with specialty cars.
  • State Farm offers significant discounts when you bundle an auto policy with a home insurance policy.
  • Safe drivers can earn several different car insurance discounts through State Farm.
  • State Farm has auto insurance policies for motorcycles, off-road vehicles and snowmobiles.

Cons

  • State Farm has just an average overall satisfaction rating from consumers when it comes to the claims process according to a 2015 J.D. Power survey.
  • The National Association of Insurance Commissioners shows State Farm has a customer complaint ratio of 2.61, which means state insurance commissioners receive a higher-than-average number of customer complaints about State Farm.
  • State Farm offers six-month policies rather than 12-month policies, which doubles the opportunities for the company to raise rates.
  • State Farm policies are generally among the higher-priced insurance options.
  • Auto claim repairs use non-original equipment manufacturers and recycled parts, which some car owners may not like.

State Farm Car Insurance Coverage

State Farm offers a range of standard and optional insurance coverage, including liability coverage (bodily injury and property damage), medical payments, comprehensive and collision and uninsured/underinsured motorist coverages.

Liability: Bodily injury and property damage

State Farm’s liability coverages are designed to protect you in case you cause an accident in which someone incurs medical expenses or their property sustains damage. The company correctly notes that the legally-mandated state minimums might not be enough for complete protection.

Collision

This coverage will pay for damages (up to the coverage amount and less your deductible) if the vehicle runs into another vehicle or a stationary object, or if your vehicle is involved in a rollover.

Comprehensive

If your car is damaged by something other than what’s covered in the collision coverage—such as hail, vandalism or flood—State Farm’s comprehensive coverage comes into play.

Uninsured and underinsured motorist

If someone else causes an accident and injures you, but their insurance is insufficient to cover your costs (including medical expenses, pain and suffering or lost wages), your State Farm policy will make up the difference up to the covered amount.

Medical expense coverage

State Farm has a medical pay coverage that’s more comprehensive than some other carriers, in that it will cover reasonable medical and funeral expenses up to specified limits.

Personal injury protection

State Farm will write an umbrella policy to provide additional liability protection. But you’ll need to go through an agent to add this additional coverage, and you can’t get a quote for it online.

Glass coverage

Auto glass breakage is covered in the comprehensive or “other than collision” coverage of State Farm’s auto policy.

State Farm doesn’t offer many optional coverages for its auto insurance policies. But what coverages it does have are useful and provide good value for the money. For repairs on a covered claim, State Farm has a network of approved repair facilities in its Select Service program.

Roadside assistance

If you pay for this optional coverage and need to use it, you just have to call the provided number and State Farm will be billed directly for basic service. If you don’t have this coverage, you can still call the number and get roadside assistance or towing and labor service at a discounted rate.

Rental car reimbursement

State Farm’s rental car reimbursement will pay for a rental car when your vehicle is out of service for a covered loss. This coverage also includes a travel expense reimbursement that will pay for meals, lodging and transportation if the claim takes place more than 50 miles from home.

Available Discounts on State Farm Car Insurance
Coverage

State Farm has a surprisingly large number of discounts available. Many are tied to safe driving habits, but others are rewarded based on lifestyle or vital statistics.

Type of Discount Description
Accident-free discount Three years of insurance with State Farm without an accident will earn a discount.
Anti-theft discount If you have one or more anti-theft devices in your vehicle, such as an alarm or passive disabling, you may qualify for a State Farm discount.
Defensive driving discount Based on geography, a driver safety course may earn you a discount with State Farm auto insurance.
Drive Safe & Save This is a monitored program that awards discounts for safe driving habits.
Driver training Drivers under 21 can get additional savings if they complete a driver education class.
Good driving discount If you’re new to State Farm and have a clean record for the past three years, you can get a lower premium.
Multiple automobile discount Having two or more vehicles on your State Farm policy will earn you a discount.
Multiple line discount Bundling your auto policy with a State Farm homeowner, renter, condo or even life insurance policy will qualify you for additional savings.
Passive restraint discount If your vehicle is older than a 1994 model, an airbag can score you a very significant discount of up to 40 percent.
Steer Clear Safe Driver Operators younger than 25 can get a discount by completing State Farm’s Steer Clear course and keeping a clean driving record for three years.
Student away at school If you have a full-time student at a college more than 100 miles from home on your policy, you may qualify for this discount.
Vehicle safety discount If your car is a certain make and model and is newer than 1993, it may qualify for an additional State Farm car insurance discount.

How to Make a Car Insurance Claim with State Farm

State Farm does a good job of making it easy to initiate an auto insurance claim. Policyholders can call the company’s toll-free number, report the claim online, use the Pocket Agent mobile app or call their agent directly.

How to Contact State Farm Car Insurance

States Served