State Farm's Basic Auto Insurance: What You Need To Know

State Farm is the largest insurer of automobiles in the US, offering a range of insurance coverage options, competitive prices, easy claims, and excellent service. State Farm's basic auto insurance includes liability insurance, which is required by law in most states. This covers bodily injury liability and property damage liability, protecting you financially if you are responsible for someone else's injuries or property damage in an accident. State Farm also offers additional coverage options, such as collision coverage, comprehensive coverage, and medical payments coverage, as well as discounts for safe driving and bundling multiple insurance policies.

Discounts and savings

State Farm offers a range of discounts and savings on its auto insurance policies, allowing customers to keep more money in their pockets. Here are some of the key ways to save:

Bundling:

State Farm offers significant savings for customers who bundle their auto insurance with other types of insurance policies. For example, by combining auto insurance with homeowners, renters, condo, or life insurance, customers can save up to $1,273 on average per year. This option is ideal for those seeking convenience and cost-effectiveness by having multiple insurance policies under one provider.

Drive Safe & Save®:

The Drive Safe & Save program rewards safe driving habits. By joining this program, customers can save up to 30% on their auto insurance premiums. This program is especially beneficial for those who maintain a good driving record, as it incentivizes and recognizes safe driving behaviour.

Steer Clear®:

State Farm's Steer Clear program is designed for young adults who are safe drivers. If you are under 25 years old and have a clean driving record (no at-fault accidents or moving violations within the past 3 years), you can save up to 20% on your auto insurance. This program encourages young drivers to maintain safe driving practices and can result in substantial savings.

Additional Auto Discounts:

State Farm offers various other auto discounts that may vary by state and eligibility requirements. These can include discounts for specific vehicle safety features, good student discounts, or loyalty discounts for long-term customers. It's important to contact a State Farm agent to understand the specific discounts available to you.

Coverage Options and Deductibles:

While not strictly a discount, choosing the right coverage options and deductibles can impact your policy cost. State Farm offers a range of coverage options, including liability, collision, comprehensive, and medical payments coverage, each with different limits and deductibles. By selecting the coverage that best suits your needs and opting for higher deductibles, you can manage your policy cost effectively.

State Farm is committed to helping customers find ways to save money without compromising on the protection they need. By taking advantage of these discounts and savings opportunities, customers can benefit from more affordable auto insurance while still enjoying the peace of mind that comes with being insured by a trusted provider.

Liability coverage

Bodily Injury liability coverage comes into effect when you are legally liable for causing injuries to another person. It helps cover the costs of defence and court if you are sued, as well as the injured person's medical bills, pain and suffering, and lost wages up to your coverage limits.

Property Damage liability coverage, on the other hand, helps pay for repairs or replacements to another person's or company's property that was damaged during a covered event. This includes not only vehicles but also buildings, trees, and other types of property. Like BI coverage, PD coverage also assists with defence and court costs if a legal case arises.

It's worth noting that liability coverage does not pay for repairs to your own vehicle or for any injuries you sustain in an accident. To ensure coverage for your own expenses, you would need to purchase separate coverages such as collision coverage, comprehensive coverage, or medical payments coverage.

While the minimum liability coverage required by law may be sufficient for minor accidents, it's important to consider choosing higher liability coverage to better protect your family and assets in the event of a more severe incident. The premium increase for additional liability coverage is generally small, and it can provide significant financial peace of mind.

Comprehensive coverage

State Farm offers a range of auto insurance options, including comprehensive coverage. Comprehensive coverage helps pay for the repair or replacement of your vehicle if it is damaged by something other than a collision. This includes theft, fire, vandalism, or hitting an animal. It also covers glass claims and windshield repair.

When deciding on comprehensive coverage, consider the value of your car and whether you can afford to repair or replace it if it is damaged or stolen. Comprehensive coverage can help offset the financial burden of unexpected events, but it is not mandatory in most states.

It's important to note that comprehensive coverage does not include collisions with objects or other vehicles. If you want protection against those incidents, you will need to purchase collision coverage separately.

State Farm allows you to choose whether you want a deductible with your comprehensive coverage and decide on the amount. A deductible is the portion you agree to pay upfront when filing an insurance claim. Opting for a higher deductible can lower your premium but will increase your out-of-pocket expenses in the event of a claim.

Collision coverage

However, it's important to note that collision insurance does not cover damage from sources like injuries to other people or their property, weather conditions, theft, vandalism, hitting animals, fires, or explosions. For coverage against these risks, you would need to opt for comprehensive coverage.

When considering collision coverage, it's essential to weigh the potential costs against the benefits. Collision coverage can provide valuable protection for newer cars, but as cars get older and decrease in value, you might consider omitting or dropping this coverage to save money on your auto insurance.

Medical payments coverage

• You're hurt when you accidentally hit another car in a parking lot.
• Your spouse is injured when hit by a car while crossing the street.
• Your child is hurt in an accident while riding as a passenger in a friend's car.

It's important to note that medical payments coverage has its limitations. It will not cover injury expenses that exceed your policy's coverage amount or damage to vehicles or other property. Additionally, it does not cover injuries to the driver and passengers in another vehicle if you are at fault for the accident; separate bodily injury liability coverage is available for this scenario.

Unlike health insurance, medical payments coverage does not have deductibles or co-payments. It starts paying from the first dollar of incurred expenses, regardless of fault. This type of coverage can also pay for expenses that your health insurance may not cover, such as chiropractic visits or ambulance rides.

The cost of medical payments coverage is relatively low. Many policyholders can add this coverage to their auto insurance policy for as little as $5 to $8 per month, depending on the desired coverage limits.

The availability and specifics of medical payments coverage can vary by state. Be sure to consult with a State Farm agent to understand the options available in your state and how this coverage can complement your existing health insurance and disability insurance policies.

Frequently asked questions