State Farm is one of the largest insurance providers in the industry, offering various products like homeowners insurance, life insurance, and pet insurance. The company also offers financial products like IRAs, brokerage accounts, and even identity theft protection. However, State Farm may be best known for its car insurance, which is offered in 48 states and Washington, D.C.
Business Insider compared State Farm's auto insurance products to the best auto insurance policies on the market and found it to be an outstanding choice if you're looking for a well-known brand with affordable premiums, a reputation for good customer service, and various discount opportunities.
State Farm Auto Insurance Pros and Cons
State Farm Auto Insurance Pros
- Affordable rates, especially for teens
- Steer Clear Safe Driver discount for drivers under 25
- Drive Safe & Save discount
- Bundling opportunities
- Highly-rated mobile app
State Farm Auto Insurance Cons
- Mixed customer reviews
- No loyalty discount
- No gap insurance available
- Not available in Rhode Island or Massachusetts
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817
A++
- Nationwide presence
- High customer satisfaction and claims satisfaction rankings
- Discounts for bundling insurance products
- Quotes are only available through captive agents (who only quote State Farm)
- Pricing may be higher or products unavailable for high-risk drivers
- Rates may rise quickly for households with teen drivers
State Farm auto insurance offers coverage across all 50 states and Washington, DC. It has comprehensive, collision, and liability coverage along with less common options like rideshare coverage.
State FarmCompare State Farm Auto Insurance
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- Available for quoting in all 50 states
- Available for home and auto quotes
- Matched offers are limited to network of over 70 providers AgileRates works with, which may exclude the insurer you are looking for.
- More than 25,000 users a month get quotes through AgileRates.com (Based on data from January 2025)
- Buy auto or homeowners insurance online
- Compare quotes from more than 70 providers to find the policy that meets your specific budget and coverage needs
- Access to agents to answer questions about your unique situation
842
A+
- Coverage available in all 50 states
- Discounts for bundling insurance products with competitive rates
- Highly rated with JD Power and AM Best
- Rates may jump significantly after your first accident or for higher risk drivers
- Mixed reviews on claims and customer service on sites like Consumer Affairs and TrustPilot
A highly ranked and long-standing insurance company, Progressive offers auto, home, motorcycle, and other insurance across the United States.
Progressive Auto Insurance- Ranked #17 out of 18 in auto claims satisfaction
- Bundling, vehicle safety, and student driver discounts
- Low rates
- Name your price tool
862
A+
- Many discounts and options to bundle insurance policies
- high customer satisfaction according to JD Power's auto insurance study
- Long history in the insurance industry
- Not available in Hawaii
- May not provide the most competitive rates for higher risk drivers
- Ranks high in customer satisfaction
- Discount for students and vehicle safety
State Farm Auto Insurance Overview
State Farm Auto Insurance stands out among competitors for its affordable pricing among various age brackets, genders, and driving histories. State Farm offers a wide range of coverages, including motorcycles, antique cars, RVs, off-road vehicles, and trailer insurance. It also offers rideshare coverage, which covers drivers when they're on the clock, but not actively driving a passenger. However, notably, the company does not offer gap insurance.
State Farm offers various discounts to make car insurance more affordable for its customers, including a usage-based program called Drive Safe & Save, which lets you receive discounts for safe driving habits. It also offers a Steer Clear program designed for young and new drivers under 25 to improve their driving and earn discounts.
Both programs are tracked and managed through State Farm's mobile app. Policyholders can also make payments, start and track claims, and request roadside assistance through this app. Reviews mention that the app can be annoying when you're a passenger in a car and that it can drain your battery.
While the company offers many perks that make it a strong contender in the auto insurance space, its mixed reviews on third-party customer review sites, like TrustPilot, can be a dealbreaker if you value excellent customer experience and a smooth claims process.
Despite some areas for improvement, State Farm is a reputable auto insurance company with over a century of experience that offers a solid range of coverage options, riders, and discounts.
State Farm Auto Insurance Plans Available
State Farm is our pick for the best affordable car insurance overall. It also offers competitive rates for teen drivers across the United States, and because of its size and status, the company can provide diverse plans with room for less-than-perfect driving records. Here are the types of auto insurance policies State Farm currently offers:
- Collision insurance: Collision insurance covers the costs of repairs and replacements for your vehicle if you collide with another car or an object, such as a telephone pole or a mailbox.
- Comprehensive insurance: This insurance reimburses you for the cost of repairs or replacement if your car undergoes damage due to a non-collision event, such as theft, fire, vandalism, or hitting an animal. Comprehensive coverage can keep you on the road if you cannot afford to replace your car alone.
- Uninsured and underinsured motorist coverage: If another party is at fault for an accident you were involved in, this insurance covers the difference for medical expenses, loss in wages, and pain and suffering-related expenses. Similarly, if an uninsured driver hits you, it will help with medical and property costs if you don't have collision coverage. However, your coverage matches your liability coverage.
- Liability coverage: If you're at fault in an accident, this coverage pays for the other party's medical expenses, vehicle repairs, and property damage. Liability coverage is required in varying amounts in all states except New Hampshire.
- Medpay coverage: Medical payment coverage will cover medical bills if you or your passengers are injured in an accident, regardless of who was at fault. You can use Medpay to supplement your health insurance policy if your coverage limits are low. It's important to note that Medpay and personal injury protection (PIP) are not the same thing. PIP covers lost wages due to injury in an accident, which Medpay does not.
Additional Coverage Options (Riders)
- Rental car reimbursement: You can tap into this coverage if you need to use a rental car while your primary vehicle is in the shop. This kicks in alongside your collision or comprehensive coverage after a covered event.
- Travel expenses coverage: If you're in an accident more than 50 miles from home, this coverage will pay for meals, lodging, and transportation.
- Rideshare insurance: Normally, your car insurance coverage stops as soon as you turn on your rideshare app. While rideshare apps offer coverage to their drivers, coverage doesn't kick in unless you're actively driving a passenger. Rideshare coverage protects you while you're waiting for assignments.
- Emergency roadside service: AAA and similar companies offer plans to help you in a pinch. Emergency roadside service can assist with various situations, like tire changes and fuel delivery. In most policies, drivers can tap into this coverage to reimburse the cost of emergency roadside assistance for just a few dollars per renewal period.
How Much Does State Farm Auto Insurance Cost?
State Farm rates generally fall below the average cost of car insurance for different age brackets, genders, and driving histories. The company offers many discounts, including good student discounts for high school and college students.
It works with "captive agents," meaning they can only quote for one company. This may be less than ideal if you're trying to compare quotes. However, it's great if you want to maximize your discounts. The average price by age and sex are as follows.
| Age | State Farm Average Monthly Premium | National Averages (Females) | National Average (Males) |
| Teens | $280 | $345 | $386 |
| 20s | $101 | $223 | $240 |
| 30s | $99 | $164 | $167 |
| 40s | $97 | $154 | $154 |
| 50s | $85 | $138 | $140 |
| 60s | $78 | $136 | $142 |
| 70s | $99 | $160 | $173 |
According to Policygenius, a full-coverage auto insurance policy from State Farm costs, on average, $95 a month or $1,141 a year.
State Farm Auto Insurance Discounts
State Farm explicitly offers 11 discounts to help you save on auto insurance. It also offers "hidden auto insurance discounts." You'll need a State Farm agent to help you identify these discounts.
- Drive Safe & Save: You can save up to 30% if you download this usage-based program, which records your safe driving habits.
- Steer clear program: This program is available to drivers 25 and under. It offers driving-focused training that rewards young drivers for practicing safe driving habits.
- Bundle and save: Bundle and save allows you to earn discounts if you bundle your homeowners, renters, or life insurance with your auto insurance.
- Defensive driver course discount: Depending on where you live, State Farm may allow you to earn discounts by taking a driver safety course.
- Good driver discount: You could earn a good driver discount if you've gone three or more years without traffic violations or at-fault accidents.
- Vehicle safety savings: State Farm offers this discount if you install certain safety features on your car, such as driver assist technology.
- Passive restraint discount: You could get up to 40% off on medical-related coverage if your car is equipped with a factory-installed air bag or other passive restraint system.
- Anti-theft discount: You may qualify for this discount if your car has an approved anti-theft device.
- Good student discount: You could save up to 25% if your teen driver receives good grades at school.
- Driver training discount: You may be eligible for this discount if all the operators of your car under 21 complete an approved driver training course.
- Student away at school discount: You may qualify for this discount if one of the operators of your car is a student under 25 who moved out and only uses the vehicle while they're home during school holidays.
State Farm also says that you may qualify for "hidden auto insurance discounts." You'll need a State Farm agent to help you identify these discounts.
How to File a Claim with State Farm Auto Insurance
State Farm's claims process is relatively simple. If you need help, contact your insurance agent. Customers can also file claims using its mobile app or call 1-800-732-5246 to speak to an insurance representative.
If you were not at fault and filing under another party's insurance, you'd need the policyholder's name, policy number, the incident's date and time, and the incident's description. Then you can file claims online or over the phone. Because of the company's exclusivity, its representatives are extensively trained to streamline the customer experience.
State Farm Auto Insurance Customer Service & Support Experience
State Farm has overwhelmingly poor customer reviews online, receiving an average of 1.5 stars on Trustpilot. The most common issues include inaccurate online quotes, poor customer support, and problems with the claims experience.
It's worth noting that reviews pertain to State Farm and all of its services, not just auto insurance. Additionally, customer reviews should be taken with a grain of salt, as they are often left by people with something negative to say.
State Farm's mobile apps fare better, receiving an average of 4.6 stars on the Google Play store and 4.8 on the Apple app store. Some people were unhappy with how intrusive the app is whenever you enter a vehicle, regardless of whether you're driving. Additionally, customers reported the app draining their battery.
For more information on customer satisfaction, we can look at ratings from third-party organizations.
The National Association of Insurance Commissioners' complaint index rates insurance companies based on how many complaints they receive against their share of the market. A 1.00 means that a company has an expected number of complaints based on its size. A lower score indicates fewer complaints than expected, and a higher number indicates more complaints than expected. State Farm Mutual Auto Insurance scored 1.96 on the Company Complaint Index, indicating that it has nearly twice the number of complaints expected for its size.
The high number of complaints, which makes up 4.51% of the market compared to its 2.3% share of U.S. premiums, reinforces the negative customer reviews.
State Farm placed sixth out of 21 car insurance companies surveyed in J.D. Power's claims satisfaction study of 2024 with a score of 710/1,000, indicating that State Farm customers are more satisfied with their claims experience compared to the average driver. For reference, the study average was 697/1,000, and NJM Insurance Co. earned the first spot with a 782/1,000.
State Farm's J.D. Power customer satisfaction ratings from region to region varied but generally remained above average. It placed second in several regions, including Florida, New England, New York, and the Northwest.
Here are all of State Farm's J.D. Power regional customer satisfaction ratings compared against the region's average:
- California: 658 vs. regional average of 637
- Central: 647 vs. 647
- Florida: 650 vs. 625
- Mid-Atlantic: 652 vs. 654
- New England: 664 vs. 637
- New York: 662 vs. 647
- North Central: 665 vs. 652
- Northwest: 656 vs. 643
- Southeast: 673 vs. 663
- Southwest: 646 vs. 635
- Texas: 654 vs. 645
State Farm has an A++ (Superior) financial stability rating from AM Best, the highest rating possible. This rating affirms State Farm's ability to meet its obligations to policyholders, such as claims payouts.
State Farm Auto Insurance Alternatives
Learn more about how State Farm stacks up against other popular auto insurance options.
State Farm vs. Progressive Auto Insurance
Progressive is another leading auto insurance company, offering policies in all 50 states and Washington, D.C. Progressive offers a wider range of policies and discount opportunities than State Farm, with discounts for owning a home, obtaining a quote online, and some accident forgiveness benefits. Progressive also offers gap insurance, which State Farm does not.
Progressive and State Farm both have highly rated mobile apps that allow for convenient policy management and claims filing. Both apps have features that track driving habits and offer discounts for safe driving. Progressive also offers a unique Name Your Price tool that allows customers to set a budget before looking for a policy.
While Progressive offers greater benefits and covers the entire country, it trails behind State Farm in customer satisfaction. It placed second to last in J.D. Power's claims satisfaction study and placed below average in all regional customer satisfaction surveys. However, State Farm and Progressive have similar NAIC complaint index scores and similar reviews on third-party review sites like Trustpilot.
Progressive has an A+ (Superior) financial strength rating from AM Best, which isn't as high as State Farm's A++, but it's still very high.
Ultimately, the choice between Progressive and State Farm comes down to how important customer service is to you. Progressive offers more features and benefits, but State Farm's customer satisfaction is significantly higher.
Read our Progressive auto insurance review.
State Farm vs. Farmers Auto Insurance
Farmers Auto Insurance is available in 42 states and offers a wide range of policies and benefits unavailable with State Farm, such as new car replacement insurance, gap insurance, and accident forgiveness. However, Farmers has above-average insurance premiums.
Farmers struggles with customer satisfaction, consistently receiving below-average JD Power customer satisfaction scores in almost all regions except the Southeast. Farmers also placed last in usage-based insurance customer satisfaction. Farmers has an A (Excellent) financial strength rating from AM Best, which isn't as high as State Farm's rating, but still indicates it's likely to meet its financial obligations.
Once again, the choice between these two providers comes down to a tradeoff between benefits and customer service. If you find that you'll get a lot out of the additional benefits Farmers offers, it may be a good option. However, most people will get more out of State Farm's higher customer satisfaction.
Read our Farmers auto insurance review.
Why You Should Trust Us: How We Reviewed State Farm Auto Insurance
Business Insider's auto insurance rating methodology considers a variety of factors when reviewing State Farm's auto insurance.
- Breadth of coverage: The standard auto insurance company offers comprehensive, collision, and liability coverage. As an insurance customer, you want your insurance company to have various policy options to meet your driving needs. We look at what carriers offer outside the standard options, such as gap insurance, new car replacement, and rideshare insurance. We also look at available riders and state availability.
- Prices: Policy costs vary significantly with each applicant due to various factors like location, age, driving history, and the vehicle itself. As such, we look at a company's average premiums and compare it against the national average. We also look at the variety of discounts that an insurance provider offers.
- Customer service: A reliable and smooth claims process is essential, which can be accomplished by quality agents delivering superior customer service. To evaluate a provider's quality of customer service, we look at J.D. Power's regional customer satisfaction surveys and claims satisfaction surveys to see how each provider ranks among its competitors.
- Financial stability: An insurance company's financial health indicates an insurer's longevity and ability to meet its financial obligation. While exceedingly rare, an insurance company's bankruptcy can jeopardize your policy. So, we use AM Best to determine a company's ability to withstand economic downturns and reliably pay claims.
- Additional features: Many car insurance companies offer similar products. As such, we look for any standout features that an insurance company may offer, like accident forgiveness or unique digital tools that can improve policyholders' experience. These features can mean the difference between a middling insurance company and a standout.
Read more about how Business Insider rates auto insurance here.
FAQs
Is State Farm auto insurance better than Allstate?
State Farm auto insurance has better claims satisfaction than Allstate and offers better premiums. However, Allstate provides more coverage options, including accident forgiveness, new car replacement, and diminishing deductibles.
Is State Farm auto insurance good at paying claims?
Yes, State Farm auto insurance is good at paying claims, indicated by its high JD Power claims experience score.
What discounts are available with State Farm auto insurance?
State Farm auto insurance offers discounts for bundling multiple State Farm policies, safe driving discounts, student discounts, and vehicle safety discounts. It lacks any loyalty discounts.
Is State Farm car insurance affordable?
Yes, State Farm car insurance is known for its affordability, competitive rates, and value for the coverage provided.
How do I apply for State Farm car insurance?
You can apply for State Farm car insurance online through the State Farm website or by contacting a local State Farm agent.