State Farm: Good Auto Insurance?

State Farm is the largest private passenger auto insurer in the U.S. It offers a wide variety of insurance and financial products, sold exclusively by State Farm agents. State Farm has some of the most affordable rates in the industry for good drivers, with a full-coverage car insurance policy costing about $1,657 per year or $138 per month. The company has an A++ (Superior) financial strength rating from AM Best and is ranked highly by J.D. Power for customer satisfaction. However, it has a C- rating from the Better Business Bureau (BBB) due to its failure to respond to several customer complaints. State Farm also doesn't offer gap insurance, accident forgiveness, or new car replacement coverage.

State Farm's customer service

State Farm has a large network of local agents, two safe driving programs, and above-average customer satisfaction scores for auto and home insurance. The company's customer service is highly rated, with WalletHub editors giving it a rating of 4.1/5. State Farm's customer service is also praised by consumers, who commend the company's competitive pricing and quick claims inspection and payout process.

State Farm's pricing

State Farm offers some of the most affordable rates in the industry for good drivers, with a full-coverage car insurance policy costing about $1,657 per year or $138 per month. State Farm is the cheapest national car insurance company, at $50 per month for liability-only coverage.

State Farm's average rate for full coverage is $1,976 per year, which is less than $10 a year below the average national rate of $1,982 per year. The rate for liability-only coverage is $523 per year or $44 per month.

State Farm's insurance costs are generally quite low, but policies can be higher or lower based on market conditions and a variety of other factors. These factors include your credit, driving history, location and more.

State Farm has the best liability-only rates in 18 states, if you can't get USAA. It also has the cheapest full coverage quotes in 24 states.

State Farm offers numerous discounts and extras, including travel expense coverage, making it a good choice for most drivers.

State Farm is the largest auto insurer in the U.S. It has over 19,000 agents in every state except Massachusetts and Rhode Island.

State Farm's coverage

State Farm offers a wide range of auto insurance coverage options, including:

• Liability auto insurance: This covers bodily injury and property damage caused by the policyholder to others.
• Comprehensive insurance: This covers damage to the policyholder's car resulting from incidents like theft, fire, or weather events.
• Medical payments coverage (MedPay): This covers medical expenses for the policyholder and their passengers, regardless of who is at fault in an accident.
• Personal injury protection (PIP): This covers medical expenses, lost wages, and other costs for the policyholder and their passengers, regardless of who is at fault in an accident.
• Uninsured/underinsured motorist coverage: This protects the policyholder in the event of an accident with a driver who does not have insurance or does not have enough insurance to cover the costs of the accident.

State Farm also offers several add-on coverage options, including:

• Roadside assistance: This includes services such as towing, fuel delivery, and lockout assistance.
• Rental car reimbursement: This covers the cost of a rental car if the policyholder's vehicle is being repaired due to a covered claim.
• Travel expense coverage: This reimburses the policyholder for food, lodging, and transportation costs if they are stranded more than 50 miles from home due to a covered claim.
• Rideshare insurance: This extends the policyholder's personal auto insurance coverage to when they are driving for a ridesharing company, such as Uber or Lyft.

State Farm's discounts

State Farm offers a wide range of discounts for its auto insurance customers. These discounts can be categorized into three main groups: safe driver discounts, vehicle safety discounts, and customer loyalty discounts.

Safe Driver Discounts

• Accident-Free Discount: Customers with an accident-free driving record for at least three consecutive years can qualify for a discount of up to 25%.
• Defensive Driving Course Discount: Taking a driver safety course can lead to a discount, depending on the state and the course.
• Student Away at School Discount: If a student under 25 years of age goes away for school and only uses the insured vehicle while visiting home, a discount is offered.
• Good Driving Discount: New customers without an at-fault accident or traffic ticket in the past three years are eligible for this discount.
• Driver Training Discount: Available if all drivers under 21 years of age on the policy complete an approved driver education course.
• Good Student Discount: Students under 25 years of age who are full-time high school or college students and maintain good grades (3.0+ GPA, top 20% of the class, or Dean's List/Honor Roll) can save up to 25%.
• Drive Safe & Save Discount: Participating in the Drive Safe & Save program, which tracks driving behaviour, can lead to a discount of up to 30%.
• Steer Clear Discount: Drivers under 25 years of age with no at-fault accidents or traffic violations in the past three years can save up to 15%.

Vehicle Safety Discounts

• Vehicle Safety Discount: Discounts are offered for vehicles with modern safety features, including those equipped with driver-assist technology.
• Passive Restraint Discount: Vehicles with factory-installed airbags or other passive restraint systems (older than 1993 models) can receive a discount of up to 40% on medical-related coverage.
• Anti-Theft Discount: Vehicles with approved anti-theft devices, such as alarms, are eligible for a discount.

Customer Loyalty Discounts

• Multiple Auto Discount: Insuring two or more vehicles in the same household can lead to a discount of up to 20%.
• Multiple Line Discount: Combining auto insurance with other State Farm insurance policies (homeowners, renters, condo, or life insurance) can result in a discount of up to 17%.

State Farm's claims process

Step 1: Report the Incident

The first step is to report what happened and provide details about the incident. You can do this by filling out an online form, using the State Farm app, or calling their customer care representatives. The information you provide will help State Farm understand the nature of the claim and initiate the claims process.

Step 2: Inspection and Estimate

After receiving your claim, State Farm will review it and may send an adjuster to inspect the damages. They will then provide you with an estimate of the repair costs. If you are filing a claim for auto glass repair or replacement, you can use their Select Service program or choose your own repair shop.

Step 3: Repairs and Payment

Once the estimate is approved, you can proceed with the repairs. State Farm has a network of approved repair facilities, or you can choose your own trusted shop. After the repairs are completed, State Farm will arrange the payment, minus any applicable deductibles, directly to the repair facility or to you if you prefer.

Additional Benefits:

State Farm also offers rental car reimbursement and travel expense coverage if your vehicle is in the shop due to a covered incident. They also provide roadside assistance and virtual claim services through their mobile app, making the claims process more convenient.

Frequently asked questions