State Farm combines affordable coverage with strong customer service and financial strength. With multiple ways to save, it’s an especially strong choice for young drivers of used cars.
Discounts for Young Drivers
Because the cost of insuring teen drivers is higher than for adults, a used vehicle often makes the most sense. In addition to the savings of driving a used car rather than a new one, State Farm offers several ways for young drivers and their families to spend less on auto insurance:
- Steer Clear program: Drivers under age 25 with no at-fault accidents or moving violations in the past three years can save up to 15 percent. To qualify, drivers must complete a training course in the State Farm mobile app, which includes lessons, videos, and real-life driving practice.
- Good student: Full-time students under age 25 can save up to 25 percent for maintaining a B average, or 3.0 GPA. Homeschooled students must rank in the top 20 percent of a national standardized test they took in the past 12 months to qualify.
- Driver training: Drivers under age 21 get a discount for taking an approved driver education course. If multiple young drivers share a car, all of them must take the course in order to get the discount.
- Student away at school: Students under age 25 who attend school away from home get a discount. To qualify, the student must go to school at least 100 miles away, keep the car at home, and use it only on breaks and holidays.
In addition, if a teen is driving a low-value car or a vehicle older than 10 years old, you may consider removing collision and comprehensive coverage from your policy in order to lower insurance costs. According to Kelley Blue Book, the average cost of a used car is $28,205, a record high as of January 2022, though the market is finally starting to cool down.
Good Rental Reimbursement
If you rely on your car as your primary mode of transportation, it’s a good idea to purchase rental reimbursement coverage. That way, if something happens to your vehicle, you don’t have to worry about paying out of pocket for a rental while your car is in the shop.
If you add rental reimbursement to your State Farm policy, you can choose your daily and per-claim coverage limits. The higher your limits, the higher your premium. For example, if you have limits of $15 per day and up to $375 per incident, you’ll pay less than if you have limits of $25 per day and $625 per incident.
State Farm’s rental coverage comes with a couple nice benefits:
- Travel expenses: If the damage to your car occurs more than 50 miles from home, State Farm will pay you up to $500 for lodging, meals, and transportation home. It will also include a return trip to pick up your car.
- Deductible repayment: If you’re involved in a covered incident in the rental car, State Farm will pay up to $500 toward the deductible.
Keep in mind, you must carry collision and comprehensive coverage in order to purchase rental reimbursement. In general, collision and comprehensive coverage make the most sense for used vehicles less than 10 years old. That’s because the older a vehicle gets, the less it’s worth and the lower the payout will be in the event of a total loss. For vehicles more than 10 years old, the annual cost of collision and comprehensive coverage may add up to more than what the vehicle is worth.
Extensive Rideshare Coverage
If you bought your used car in order to earn money driving for rideshare, State Farm is a great choice. Its rideshare coverage is one of the most widely available nationally. You can purchase the coverage everywhere except the following places:
- North Carolina
- Rhode Island
- South Dakota
State Farm’s rideshare coverage extends the protections of your personal policy to the times when you’re driving for rideshare. While rideshare companies must offer some insurance coverage, it’s often insufficient, especially in the period when you’ve turned on the app and are waiting to match with a rider.
||App is on
||Matched with rider
|Bodily injury and property damage liability
|Collision, comprehensive, rental reimbursement, and emergency roadside assistance
Keep in mind, Lyft and Uber have requirements for vehicle age, and older cars are often disqualified.6 Uber requires vehicle models to be 15 years old or newer. Lyft requirements vary by location, but fall within the 10- to 15-year range.7