Disclaimer: We are not State Farm Insurance Company. This article is designed to provide you an in-depth State Farm Car Insurance Review.
This review of State Farm is approximately a 5-min read.
It will cover topics such as car insurance coverages offered by State Farm, pricing for coverage and even available discounts.
Use any of the links directly below to head straight to that specific section of this review:
- Our State Farm Car Insurance Review
- State Farm Insurance Company History
- State Farm Insurance Financial Strength
- State Farm BBB Ratings and Complaints
- State Farm Car Insurance Coverages Offered
- Rideshare Coverage with State Farm Insurance Company
- Cost of State Farm Auto Insurance
- State Farm Car Insurance Discounts Offred
- Who Should Consider State Farm Insurance?
- Pros of State Farm Insurance
- Cons of State Farm Insurance
- State Farm Insurance Vs. The Competition
- Final Thoughts on State Farm Insurance
We also wanted to provide you the “in-a-hurry” 1-minute overview of State Farm Insurance Company.
State Farm is the #1 property and casualty provider in the country, and a top-ranked car insurance provider that you can choose for your car insurance coverage.
State Farm Insurance is backed by strong financial strength numbers in addition to a reputable brand and name.
Additionally, State Farm is one of the cheapest priced car insurance coverages you can choose.
On the other hand, State Farm does not have the best online processes for purchasing coverage and runs off the “captive insurance agent” model, which limits you to only one company and limits product selections.
State Farm is one of the best companies in the industry when it comes to claims satisfaction and offers a good number of discounts to help save you money on your car insurance.
Overall, State Farm is a great car insurance company to work with, but we always recommend comparing rates with several car insurance companies to ensure you are getting the best price and coverage.
That was the quick look behind the scenes at State Farm Insurance Company.
If you can spare a few minutes and need a more in-depth review, we recommend you stick around for another 4-5 minutes to get a better gauge if State Farm is the car insurance company you should work with.
Here are the details.
Our State Farm Car Insurance Review
Changing car insurance can be a pain in some circumstances, but it doesn’t need to be.
It should be your way of shaving monthly expenses and finding the best car insurance possible with one of the best car insurance companies in the industry.
Most individuals run into issues looking for car insurance when they don’t know where to look for unbiased and honest reviews of car insurance companies.
Luckily, that’s when we step in and why this State Farm Auto Insurance Review exists.
It should be able to provide you the details of the specifics needed to make an informed decision and help you understand if State Farm is the correct car insurance provider for you.
State Farm Insurance is not only an industry leader for car insurance but also offers several other lines of insurance coverage including homeowner’s insurance, commercial insurance as well as renter’s insurance.
State Farm is the largest property and casualty provider in the United States.
Additionally, State Farm is the largest auto insurance provider in the United States.
State Farm Insurance Company is currently ranked #33 on the Fortune 500 List, which is based on total revenue.
Let’s see precisely how State Farm was started and where it all began.
State Farm Insurance Company History
State Farm Insurance Company is an American based Insurance provider headquartered in Bloomington Illinois.
As of 2019, State Farm currently employs more than 65,000 individuals and has more than 343 claim centers Nationwide in addition to over 30 operation centers.
State Farm currently has over 19,000 insurance agents Nationwide that are known as “captive insurance agents.”
This means that a State Farm car insurance agent is not capable of providing you with other company options or products.
This can be a dangerous game to play in some situations, especially if you are considered a “high risk” driver or need special circumstances for your car insurance.
State Farm began its operation in 1922 under the leadership of George Mecherle.
Initially, State Farm only specialized in automobile insurance coverage it didn’t take long for State Farm to expand into Mutual funds, banking, homeowner’s insurance, among other financial and insurance products.
Currently, State Farm Insurance Company is under the control of CEO Michael Tipsord and is known for its branded commercials with catchphrases such as “Like A Good Neighbor, State Farm Is There.”
State Farm Insurance Company Financial Strength
State Farm Insurance Company is perhaps as strong as it gets when it comes to financial strength.
As of 2019, State Farm Insurance Company is currently being rated with the following financial strength grades.
- A.M. Best- A++ (Superior)
- Moody’s-Aa1 (Excellent)
- Standard and Poor’s- AA (Very Strong)
- J.D. Power and Associates- 864/1000
- J.D. Power Auto Insurance Purchasing Process- 821/1000
- Consumer Reports Rating- 89/100
State Farm Insurance Company currently had more than 240 billion dollars in total assets and an 88-billion-dollar yearly revenue in 2018.
I think that stating that financial strength with State Farm is nothing to worry about would be considered a massive understatement.
Clearly, they are the most dominant auto insurance company and property and casualty insurance company in the country.
State Farm BBB Ratings and Complaints
State Farm is not currently accredited with the BBB.
Due to this, we are not able to see how many complaints have been filed against State Farm through the BBB in the last year or three years.
However, according to J.D. Power and Associates, State Farm is performing above average in this department and has fewer complaints total lodged against them compared to other companies of equal size.
With most of the car insurance providers that we review, we typically see that claims processing and billing are the most common complaints that consumers have against a car insurance provider.
We would venture to say that if State Farm did have a BBB file open, the results would be very similar and that this isn’t a good measurement of a company’s total value for the consumer or if they can effectively be the best car insurance company for you.
We always recommend looking at more specific aspects of a car insurance provider such as total price, coverages offered and total discounts you can use to lower your monthly premiums.
These are much better indicators to go by.
State Farm Car Insurance Coverages Offered
State Farm Auto Insurance is going to offer car insurance coverage that is much like all the other car insurance companies you will find on the market in today’s age.
Here’s an overview of what State Farm can bring to the table.
- Collision Coverage
- Comprehensive Coverage
- Liability Coverage
- Uninsured Motorist
- Emergency Roadside Assistance
Outside of these basic coverages that nearly all car insurance companies offer, State Farm does offer some other unique coverages that can be beneficial to the consumer moving forward
Rental Reimbursement Coverage- This coverage will protect you if you need to cover rental car expenses out of pocket while your primary vehicle is being repaired.
Towing and Labor Cost Coverage- This coverage picks up all fees incurred due to an accident or mechanical breakdown that requires towing and labor.
In addition to these coverages, State Farm does a great job with a rising need to provide auto coverage to an individual who works for Uber and Lyft as rideshare drivers.
Here are the details.
Rideshare Coverage with State Farm Insurance Company
State Farm has one of the largest coverage areas offering car insurance for uber and lyft drivers.
This extends across 43 states in addition to Washington D.C.
Here’s how rideshare coverage with State Farm works.
If you elect to purchase State Farm rideshare coverage, you are essential for extending your personal auto insurance policy into all three stages of the rideshare trips which includes the following.
- When the Mobile App is Off
- In Route to Your Passenger
- While A Passenger Is in The Vehicle
However, something you need to understand about rideshare coverage with State farm is that its liability coverages do not carry over to your rideshare trips while you are on your way to pick up a passenger.
To protect yourself against any potential issues with too low of coverage while operating as an Uber or Lyft, make sure you have the gaps filled in on your personal auto policy.
Additionally, make sure you read over your coverage stipulations with Uber and Lyft.
With State Farm, your car insurance coverage if you do need rideshare coverage is going to likely run you about 15-20 percent additional on top of your normal yearly premiums.
Compared to other options that offer rideshare coverage such as Allstate or Geico, we don’t see any dramatic differences with State Farm.
For the most part, you are getting the same perks with the coverage and your best bet is to make the judgment call based on price.
Cost of State Farm Car Insurance
When it comes to your yearly premiums with State Farm for auto insurance, you are in good shape.
This is likely why they are one of the top car insurance companies in the United States.
Compared to other competitors, State Farm is likely to be one of the five cheapest options you can choose.
However, don’t be mistaken or take this to heart for all situations.
Car insurance premiums are based on your unique profile, including driving history, credit score, and even the vehicle you need to insure.
With this being the case, it’s imperative that you don’t jump the gun.
Be sure to read unbiased reviews such as this one and compare rates to effectively find the best car insurance providers in your area.
State Farm Car Insurance Discounts Offered
With State Farm, you have a handful of discounts available to you.
Here’s a look at them:
Multi-Policy Discount- This discount can apply if you have either various lines of insurance with State Farm such as auto and homeowner’s insurance and can also apply if you insure multiple vehicles.
Safe Driver Discounts- This discount can be applied for individuals who have not had an at-fault accident in the past year.
Anti-Theft Discount- This discount applies to vehicles that currently have an anti-theft device equipped on the vehicle.
Vehicle Safety Discount- The discount can be applied for advanced safety features such as lane departure monitoring, ABS break, and blind-spot monitoring.
Student Discount- This discount only applied to individuals who are currently in school, maintaining a B average or better.
Drive Safe and Save Discount- This discount requires you to drive with a telematic beacon in your vehicle that can track driving behaviors, as well as total miles, are driven.
Defensive Driving Course Discount- This discount can be applied to individuals who take an approved defensive driving course through State Farm.
Student Away at School Discount- This discount applied for students who are currently living more than 100 miles away from home while away at school.
Passive Restraint Discount- This discount can be applied to vehicles that are manufactured after 1993 that are equipped with factory-installed airbags.
A big misconception is that if you buy life insurance from State Farm, you’ll get a discount on it. That is not the case – there are no discounts with life insurance bundling with state farm
Who Should Consider State Farm Insurance?
State Farm Car Insurance may be an excellent choice for car insurance for a variety of consumers.
First and foremost, State Farm is one of the cheapest options you can choose for coverage.
They don’t necessarily have the sleek online comparison tools that other big companies such as Progressive or Geico Insurance Company have, but they do have a lot to offer.
Not to mention the fact that they are ranked #1 in the country for auto insurance and offer a good number of discounts in addition to excellent rideshare coverage.
Overall, after comparing prices with multiple car insurance providers, State Farm car insurance may be the clear choice to make.
However, always be sure to consider all your options before jumping the gun.
Pros of Choosing State Farm Car Insurance
All car insurance companies are always going to have areas that they stand out at.
With State Farm Insurance Company, here is a look at some of the pros you can bank on when choosing them for coverage.
- Top-Rated Company in The Country
- Top 5 Cheapest Auto Insurance Provider
- Drive Safe and Save Discount for Reduced Premiums
- Rideshare is Available in 43 U.S. States
On the flip side, it’s common to have some weaknesses when reviewing car insurance companies.
Cons of Choosing State Farm Car Insurance
Here’s a quick overview of the top flaws and downsides of choosing State Farm for car insurance.
- Not the Best Purchasing Process or Online Platform
- Captive Agents with No Capability of Offering Other Companies
- Other Car Insurance Providers May Be Cheaper
- More Limited Discounts Compared to Competition
State Farm Vs. Other Top Car Insurance Companies
When comparing State Farm Auto Insurance to different car insurance providers, a few things stand out.
First and foremost, you can’t neglect to mention that State Farm is perhaps the most reliable company when it comes to financial strength and longevity.
Additionally, State Farm has remained the top car insurance company in the country for a long time standing.
On the flip side, however, we did point out previously that other options such as Progressive and Geico are known to offer cheaper car insurance rates for the “average consumer.”
State Farm does offer great rideshare coverage but lacks heavily in the online purchasing process compared to other competitors.
Overall, we don’t think anything makes State Farm not the company to choose.
They remain one of the top considerations for consumers and surely get the job done for auto insurance coverage.
There is no doubt about that, but like we always say, comparing rates based on your specific needs and circumstances is the only way to truly know if you are making the best decision and saving the most money.
Final Thoughts on State Farm Car Insurance
I don’t think anyone had any doubts that State Farm is a car insurance provider you can trust and that has been in the industry for longer than a good majority of other car insurance providers in the country.
We certainly are not claiming they are anything less than one of the best you can choose.
While all of this is great, it doesn’t mean you should skip the step of comparing rates with several car insurance companies before ultimately making that decision.
Getting lazy in the research and comparison phase is likely costing you hard-earned money and potentially even providing you with sub-par car insurance coverage.
Ensure you get the coverage and rates you deserve.