State Farm auto insurance review 2020
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Established in 1922, State Farm is the #1 auto insurance provider in the nation by market share. The company carries more than 16% of the auto insurance market share, reflecting more than 40 million policies written. State Farm is best for good drivers, as they can take advantage of the multiple good driver discounts available.
State Farm Quickpoints
- Average full coverage premium: $1,681
- Region offered: 50 states and the District of Columbia
- Market share: 16.14%
- AM Best rating/financial strength profile: A++ (Superior)
- J.D. Power claims satisfaction rating: 3/5
- Specialty coverages: rideshare, commercial auto, classic & antique cars, sports cars
State Farm customer satisfaction and complaints
State Farm has a good reputation among policyholders and non-policyholders alike. The company has fewer than average complaints with the National Association of Insurance Commissioners (NAIC). It is one of the top-rated companies in terms of claims satisfaction in a 2019 J.D Power study. In terms of overall customer satisfaction, State Farm ranks third overall, behind only Geico and Nationwide.
Factors that impact a company’s customer satisfaction rating include its billing process, claims, customer interaction, policy offerings and price.
How factors affect State Farm’s auto insurance rates
State Farm’s rates start as low as just $542 for customers who choose to purchase only the minimum coverage. Minimum coverage generally includes only those coverages required by law, such as liability coverage. The average rate for full coverage is $1,669, which is a bit above the national average of $1,555. As you can see from the table below, factors such as car accidents, speeding tickets and poor credit can increase the cost of auto insurance premiums significantly.
|Average rates||Accident||Speeding ticket||Poor credit|
How driving record affects State Farm car insurance rates
If you’re at-fault for a car accident, you can expect your auto insurance rates to increase in most cases. Not only because of the cost to your car insurance company by filing a claim, but also because accidents represent a higher level of risk to insurers.
Causing an accident not only increases your premiums, but it can also cause ineligibility for some of the discounts that State Farm has to offer. State Farm’s Steer Clear discount is available to drivers under 25 without at-fault accidents on their record. The Accident-Free Discount is available to anyone who has been insured by State Farm for at least three years without an accident.
When it comes to not-at-fault accidents, your premiums probably won’t go up with State Farm. In fact, a 2017 study by the Consumer Federation of America found that State Farm was the only major auto insurance company that didn’t increase premiums for drivers who were in an accident where they weren’t at fault.
Getting a speeding ticket indicates to your auto insurer that you’re a high-risk driver. As a result of having a ticket on your record, your insurance premiums will typically increase. For the average driver, having a ticket will increase your full coverage premiums by about $300.
Like an at-fault accident, a speeding ticket can also make you ineligible for certain discounts with State Farm.
How poor credit affects rates
State Farm and other insurance companies take your credit score into account (in most states) when determining your auto insurance premium. Studies have shown certain credit information to be an accurate predictor of driver safety. You can generally expect that a good credit score will keep your auto insurance premiums lower.
State Farm auto insurance discounts
State Farm offers its customers a variety of discounts to help save money on auto insurance premiums. Here are some of the discounts you can receive on a State Farm policy that particularly apply to safe drivers and vehicle safety:
- Drive Safe & Save: Drivers who enroll in Drive Safe & Save via their smartphone or OnStar get a discount for driving safe.
- Accident-Free: Savings for customers who have been insured by State Farm for at least three years without an accident.
- Defensive Driving Course: A discount for customers in some areas for customers who take a driver safety course.
- Good Driving: Savings for new State Farm customers who have gone three or more years without a moving violation or at-fault accident.
- Driver Training: A discount for drivers under 21 who completed a driver education course.
- Vehicle Safety: A discount of up to 40% on medical care coverage for customers with a vehicle made in 1994 or later.
- Anti-Theft: Savings for those with an alarm or anti-theft device on their vehicle.
Unique discounts offered by State Farm
In addition to State Farm’s standard discounts, many of which resemble discounts you’d receive from other insurers, there are a couple that stand out.
Steer Clear discount
State Farm’s Steer Clear discount is a way for the company to incentive new and young drivers to stay safe on the road. To qualify, drivers must be under the age of 25 with a valid driver’s license, complete the program certification and have no at-fault accidents or moving violations during the past three years. Drivers can save up to 15% on their premiums, which amounts to more than $80 on the average policy.
Passive restraint discount
A passive restraint system is anything in your car that automatically deploys to prevent an injury during an accident (for example, an airbag). State Farm’s passive restraint discount offers up to 40% savings on medical-related coverage for anyone with passive restraint systems in their vehicle. This is a fairly unique vehicle safety discount among providers.
State Farm auto insurance premium length
State Farm offers auto insurance policies for periods of 6 months at a time. You can choose to pay your bill monthly. However, if you pay for the entire policy upfront, you’ll save money on fees and service charges. When your policy renews every six months, your premium may increase or decrease depending on your driving record and other factors.
State Farm vs. other insurance companies
|Company||J.D. Power Score|
|J.D. Power Score (claims satisfaction)||AM Best||Average rate full coverage|
|State Farm||860||3/5||A++ (Superior)||$1,669|
|American Family||878||3/5||A (Excellent)||$1,218|
|The Hartford||895||4/5||A- (Excellent)||$1,572|
State Farm mobile app and digital experience
State Farm has a robust app that includes features to make the digital experience of policyholders more streamlined. The app includes features such as:
- Paying your bill
- Pulling up your ID card
- Filing a claim
- Requesting roadside assistance
- Talking to an agent
Alternative insurance products offered by State Farm
The following insurance products are also offered to round out State Farm’s coverage options.
State Farm profile
|Product||Discounts||J.D. Power rating|
|Homeowners Insurance||Multiple line|
Home alert protection
|Renters Insurance||Multiple line|
Home alert protection
|Term Life Insurance||N/A||5/5|
|Small Business Insurance||N/A||4/5|
In the spotlight
- State Farm is the #1 provider of auto insurance in the nation by market share.
- State Farm ranks highly for overall customer satisfaction and financial health.
- State Farm as the only insurance company that is reported to not increase premiums after a not-at-fault accident.
- State Farm Companies Foundation provides grants to improve the safety, strength and education in its communities.
Coverage Utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using State Farm’s premiums written. Quoted rates are based around the profiles of a 30 year male and female with a clean driving record, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.
An accident was defined as an at-fault accident with $3k in property damage. A speeding incident was defined as speeding 16-20 MPH over the limit.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only – your own quotes may be different.