Published: September 9, 2022Updated: September 20, 2022

State Farm Car Insurance Pricing

Offering 100 years of insurance experience to protect you and your car

Most of us know State Farm for its clever commercials with Jake from State Farm. He repeatedly tells customers that State Farm has “rates to fit your budget.” We dive into this guide to see if State Farm’s pricing really does fit any budget and how it fares against the competition.

Car Insurance Rates

In our research, State Farm ranks among the five best-priced auto insurance companies. Its average annual premium is only $1,419, far below the national average of $2,071. Also, it is just a few hundred dollars more than the lowest-priced insurance company, USAA, which caters to members of the military and their families only.

Your premium will depend on factors such as your location, age, driving record, ZIP code, and car model. Plus, full coverage will cost more than minimum coverage.

Here are a couple of examples of how individual factors affect rates:

  • Age: When it comes to age, a 25-year-old male’s average annual premium is $1,468. This price is nearly $400 a year more than a 60-year-old male, who pays an average of $1,098 annually. Rates decrease once a driver turns 25.
  • Minimum liability vs. full coverage: Minimum coverage, which normally includes bodily injury and property damage liability, might cost only $919 per year, while full coverage might cost $2,617 per year for the same car. The more coverage options you add on, the higher the auto insurance premium will be.

To find your exact rate with State Farm auto insurance, request a quote and compare it to car insurance quotes from other providers. Make sure to provide an identical driving history to each company so you’re comparing apples to apples.

Discounts

  • Bundling discount: You could save up to 22 percent when you combine auto insurance with home insurance.
  • Multicar discount: You get a discount when you have more than one vehicle insured with State Farm.
  • Drive Safe & Save discount: Register to track your driving habits and get up to 30 percent off of your premium when you exhibit good driving habits.
  • Safe vehicle discount: Vehicles equipped with safety features such as automatic braking and forward collision warning qualify for a discount.
  • Steer Clear driver program: New drivers under the age of 25 can qualify for a discount when they participate in a State Farm learning program about safer driving.
  • Good student discount: High school and college students with a GPA of 3.0 or higher are eligible for a discount up to 25 percent.
  • Accident-free discount: Be accident-free for three years or longer to receive a discount on your policy’s premium.
  • Defensive driving discount: Based on your location, you can qualify for a discount if you take an eligible defensive driving course and meet its passing requirements.
  • Passive restraint discount: This discount applies to cars made in 1993 or before. If the vehicle has a factory-installed air bag or another passive restraint system, you could get up to 40 percent off of medical-related coverage.
  • Anti-theft discount: If your vehicle has an alarm or other anti-theft device, it is eligible for this discount.

TIP

Your declarations page will list the discounts that you are getting. If you feel you are eligible for a discount that’s not listed on the page, talk to your State Farm agent to add it.

Favorite Features

Agent-Centric Model

State Farm has more than 19,000 agents located in communities across the country. The company assigns your agent to your household so that they can help you make the best decisions when it comes to your insurance needs. They serve as a local touchpoint for service, getting to know you and your family. Agents personalize how State Farm sells and services insurance.

State Farm Mobile App

The State Farm mobile app makes managing your insurance easy. You’ll always be able to access your ID cards, change your coverages, and get roadside assistance with a few clicks on your phone. The app has a 4.7-star rating on Google Play and a 4.8-star rating on the Apple App Store. People like that the app makes making payments and requesting roadside assistance easier.

All Insurance Under One Roof

Your State Farm agent can handle all your insurance needs. State Farm offers home and life insurance on top of its auto insurance policies. Having an agent who knows your entire risk profile means personalized, expert advice on what coverages will protect you best. Plus, you get a discount for having multiple policies with State Farm.

Six-Month Policies

State Farm writes all auto insurance policies with six-month terms. The shorter term helps State Farm re-underwrite you semiannually so that you may qualify for more discounts sooner.

First-Month’s Down Payment

State Farm doesn’t ask for a large down payment when you sign up, unlike some of its competitors. Rather, if you don’t want to pay for the policy in full, you can pay monthly, with the first month’s payment due upon signing up. You don’t need to come up with large amounts of money to get insurance with State Farm.

Availability

State Farm Insurance offers insurance products in all 50 states; Washington, D.C.; and Canada. Your local agent has obtained a license in the state you reside in, so they know the state auto insurance laws that apply to you.

Cancellation Policy

You can cancel your policy at any time with State Farm with no cancellation fee. Either talk to your personal agent or call 800-782-8332 to cancel. State Farm will prorate your premium at the time of cancellation and refund you the difference.

Company Background

George J. Mecherle founded State Farm in June 1922 in Illinois, where it maintains headquarters. He felt that there wasn’t an insurance company that represented the many Midwest farmers who had good driving habits but couldn’t get reasonable rates from other companies. Mecherle founded the company as a mutual insurance company, which means that policyholders own it. State Farm remains a mutual insurance company today, accountable to its customers, not Wall Street.

Over the years, State Farm has added other financial services to its line of insurance products. In 1999, State Farm opened State Farm Financial Services, a separate entity to State Farm Insurance, to offer its book of clients banking products that include auto loans, credit cards, and checking accounts.

Today, the State Farm model remains the same: offering customers competitive prices through educated agents in their cities. It continues to innovate, offering technology like its mobile app and the Drive Safe & Save discount program. State Farm is the largest auto insurance provider in the country. It has more than 87 million policies across its lines of insurance and handles more claims than any other insurance carrier1.

The insurance behemoth sells insurance through its community agents. Each agent is an independent contractor with State Farm, running a small business and employing sales and service staff across the country. This means that service can vary from agent to agent.

TIP

If you don’t like your current State Farm agent for any reason, you can transfer your policy to another agent in your state. It’s always your right to work with the agent you feel most comfortable with.

State Farm Contact Information

For day-to-day servicing, you will contact your local agent from whom you bought the insurance. Each agent has their own phone number, address, and email address. If you need help and can’t reach your agent, call customer service at 800-782-8332, which will take your requests and forward them to your agent for processing.

You may send payments to:

  • State Farm Insurance Companies
  • Insurance Support Center – East
  • P.O. Box 588002
  • North Metro, GA 30029

Conclusion

Overall, we find that State Farm can fit into most budgets, saving many customers money on auto insurance. When you stack up multiple discounts, State Farm prices are reasonable and attractive for many.

Frequently Asked Questions

When does State Farm send refund checks?

State Farm sends refund checks within 60-day windows to customers who cancel policies.

What time does State Farm open?

State Farm agents own and operate State Farm offices independently, which means that office opening times vary. You can reach the national customer service line 24/7 at 800-782-8332.

Who plays Jake from State Farm?

Actor Kevin Miles plays Jake from State Farm.

What does State Farm full coverage auto insurance cover?

A full coverage auto insurance policy with State Farm provides the state minimum insurance requirements plus comprehensive, collision, and medical payments coverage.

Citations

  1. State Farm® announces 2021 financial results. State Farm. (2022, Feb).
    https://newsroom.statefarm.com/2021-by-the-numbers/