State Farm Vs Amica: Which Auto Insurance Is Best?

State Farm and Amica are two of the top insurance companies in the US, both offering high-quality policies across large swathes of the country. State Farm is the largest provider of personal auto insurance in the nation, with 16% of all private-passenger car insurance premiums written in 2021. Amica, meanwhile, is the oldest mutual insurer offering car insurance in the US, having been founded in 1907.

Both companies offer auto insurance nationwide and provide high levels of quality customer service. However, there are some key differences between the two. State Farm has a vast network of agents across the country, while Amica sells its policies online and has a limited number of physical offices. State Farm also tends to be the cheaper option, with average annual rates for teen drivers $454 less than Amica's. Amica, on the other hand, offers more discounts and is generally a better option for drivers with poor credit scores or at-fault accidents on their record.

Customer satisfaction

Amica has consistently ranked highly in J.D. Power customer satisfaction studies and has received high ratings for its claims handling. In the 2023 J.D. Power U.S. Auto Insurance Study, Amica ranked first, while State Farm ranked fifth. Amica also scored higher than State Farm in the J.D. Power Auto Claims Satisfaction Study. Additionally, Amica has received fewer customer complaints relative to its size, according to the National Association of Insurance Commissioners (NAIC). This suggests that Amica provides a higher level of customer service and handles complaints effectively.

On the other hand, State Farm has a better customer complaint rating with the NAIC and is the largest provider of personal auto insurance in the nation, attracting more customers. State Farm also offers a vast network of local agents across the country, providing personalized and face-to-face service.

Both companies have their strengths when it comes to customer satisfaction, and it's worth considering other factors such as age, driving history, and the importance of local agent support when making a decision.

Discounts

State Farm Discounts

State Farm offers a handful of discounts for car insurance policyholders. These include:

• Multiple auto discounts: Discounts for insuring more than one vehicle with State Farm.
• Responsible driver discounts: A variety of good driver discounts, including remaining accident-free, avoiding traffic violations, or taking a defensive driving course.
• Vehicle safety discounts: Discounts for vehicles equipped with anti-theft systems and passive restraint devices, such as an airbag system.
• Loyalty discounts: Discounts for remaining an Amica policyholder for at least two years.
• Payment discounts: Discounts for paying your premium in one payment, opting for electronic documents and bills, or signing up for automatic payments.

Amica Discounts

Amica provides a more well-rounded selection of savings opportunities. In addition to the discounts also offered by State Farm, Amica offers:

• Home and auto bundle: Discounts for bundling home insurance and auto insurance policies.
• Anti-theft discount: Installing anti-theft devices in your vehicle could qualify you for a discount.
• Accident-free discount: Discounts for maintaining a record free of accidents.
• Loyalty discounts: Discounts for drivers under 30 whose parents have carried an Amica car insurance policy for five or more years.
• Youthful driver discounts: Discounts for college and high school students who maintain a "B" or higher grade point average, and for motorists under 21 who take a driver training course.
• Student away at school: Discounts for students who go away to school but leave their car at home.
• Tenure discount: Discounts for the length of time you were with your prior company.
• Legacy discount: Discounts for drivers under 30 who were covered by Amica on a family member's policy.

Cost

When it comes to cost, State Farm and Amica are comparable but differ in certain areas. State Farm is generally cheaper for younger drivers, with Amica offering better rates for drivers with at-fault accidents. Amica also has more discounts available, which can help to reduce premiums.

State Farm is the cheaper option for drivers with a clean driving record, a speeding ticket, and for teen drivers. Amica, on the other hand, is the more affordable choice for drivers with poor credit.

The average national monthly rate for a State Farm liability car insurance policy is $55, while Amica's is $152. However, your car insurance premium will vary based on factors such as age, gender, location, and claims history.

Amica's rates are higher than the national average of $158, but they offer more car insurance add-ons to customise your policy. State Farm, on the other hand, has fewer coverage and discount options but provides affordable rates for many drivers.

State Farm also offers lower rates for drivers with bad credit. If you have very poor credit, Amica is a better option, offering more affordable rates than State Farm for drivers with credit scores of 579 or less.

Types of insurance

When it comes to auto insurance, there are several types of coverage that you can choose from. Here are some of the most common types of auto insurance:

• Liability Coverage: This type of insurance covers the other party's medical expenses, vehicle repairs, and property damage if you are responsible for an accident. It is important to have enough liability insurance to cover your net worth, as you can be sued for that amount.
• Collision Coverage: This insurance covers the repair or replacement of your vehicle if it overturns or collides with another vehicle or object. It usually comes with a deductible that you have to pay before the insurance company covers the rest.
• Comprehensive Coverage: Comprehensive coverage is for damages to your vehicle that are not caused by a collision. This includes theft, fire, vandalism, and hitting an animal, among other things. Like collision insurance, it usually has a deductible.
• Uninsured and Underinsured Motorist Coverage: This coverage helps pay for your medical expenses, pain and suffering, and lost wages if you are injured in an accident caused by someone who doesn't have insurance or doesn't have enough insurance. It may also cover your property damage in such situations.
• Medical Payments Coverage: This type of insurance covers medical and funeral expenses if you or an insured person is injured or killed in an accident.
• Rental Reimbursement and Travel Expenses Coverage: This coverage helps pay for a rental car and travel expenses like meals, lodging, and transportation if your car is in the shop due to an accident that occurred more than 50 miles from home.
• Roadside Assistance Coverage: Roadside assistance can help with towing, flat tires, fuel delivery, jump-starting a dead battery, and locksmith services. Some companies, like State Farm, offer this as an add-on to their auto insurance policies.

In addition to these common types of auto insurance, there are also some optional coverages that you may want to consider, such as gap insurance, new car replacement coverage, accident forgiveness, and usage-based insurance programs that offer discounts for safe driving. When deciding on the types of auto insurance that are right for you, it's important to consider your specific needs, the value of your vehicle, and your financial situation.

Claims

When it comes to claims, Amica is rated highly for customer satisfaction and claims handling. In the 2023 J.D. Power U.S. Auto Insurance Claims Satisfaction survey, Amica ranked No. 1. Amica also ranked No. 1 in U.S. News' 2024 ranking of the best homeowners insurance companies for claims handling, with a score of 4.8 out of 5. Over 62% of survey respondents said they were completely satisfied with the ease of filing a claim with Amica, and 75% said they were either satisfied or completely satisfied with how their claim was resolved.

In comparison, State Farm ranked fifth in the 2023 J.D. Power U.S. Auto Insurance Claims Satisfaction Study. State Farm's NAIC complaint index scores indicate a lower-than-average number of customer complaints compared to other insurers of a similar size.

In terms of financial strength, both State Farm and Amica hold strong AM Best ratings, indicating a superior capacity to meet ongoing insurance obligations. State Farm has an AM Best rating of A++ (Superior), while Amica has an AM Best rating of A+ (Superior).

On Reddit, a former insurance writer commented that they had a total loss claim with Amica and that the company "paid with no questions asked".

Therefore, while both companies are rated highly for claims, Amica appears to have a slight edge over State Farm in terms of customer satisfaction and claims handling.

Frequently asked questions