State Farm Auto Insurance Review

State Farm is one of the largest companies and insurance providers. It provides a wide range of insurance products, online support, and mobile capabilities. Your local State Farm agent can assist you with your specific insurance needs.

Who It’s Best For

• People who prefer to work with a local agent
• Families and individuals with multiple insurable properties, including homes, cars, and businesses
• Rideshare drivers who need coverage above and beyond their employers’ policies

Who It’s Not Best For

• Drivers with multiple at-fault incidents on their driving records
• Military and federal employees

• Collision coverage: Collision insurance pays to fix or replace a car when it is damaged in a collision or if it rolls over. State Farm collision coverage extends to temporary substitute cars, newly acquired cars, and non-owner insurance.
• Comprehensive coverage: This type of coverage pays for repairs or replacements on a covered vehicle when stolen or damaged by something other than a collision. State Farm coverage includes glass claims and windshield repairs from fire, wind, hail, flood, theft, vandalism, and falling objects.
• Liability coverage: Liability coverage is required in nearly every state. It assists with the cost of damage to the other driver’s property and injuries if you are at fault in an accident.
• Car rental coverage: If your car is in the repair shop because of a covered claim, State Farm will help pay rental costs. If you rent from a company in State Farm’s network, it will pay the company directly. If not, State Farm will reimburse you up to the amount your policy specifies. There is a daily and per-claim limit of up to $16 per day and up to $400 total.
• Travel expenses: State Farm will help pay for meals, lodging, and transportation between your destination and vehicle — both ways — if your car is damaged more than 50 miles from home. Coverage is capped at $400 per loss.
• Repayment of deductible expense: State Farm will pay up to $500 toward the deductible if you have a covered-loss accident in a rental car.
• Uninsured/underinsured motor vehicle coverage: Some states require uninsured/underinsured coverage, which covers you when the driver at fault does not have enough or any insurance. Uninsured/underinsured insurance covers expenses related to lost wages, medical payments, pain, and suffering if you are injured in an accident. It also applies to car damage if the at-fault driver’s insurance can’t pay.
• Medical payments coverage (Med Pay): Most states do not require medical payments coverage, but policyholders can add it for $5 to $8 per month. Med Pay assists with medical and funeral expenses when an accident injures the policyholder, passenger, or member of the policyholder’s family no matter who caused the accident. In no-fault states like Florida, Med Pay is called personal injury protection (PIP).
• Emergency road service coverage: This coverage pays for: one hour of mechanical labor at the breakdown site; towing; delivery of gas, oil, battery, or tire; and locksmith labor.
• Rideshare insurance: State Farm offers an endorsement for rideshare drivers that extends your personal State Farm auto policy when you use your vehicle for rideshare driving through a service like Uber or Lyft.
• Gap coverage: State Farm offers payoff protector coverage if your loan originates from State Farm Bank. This gap insurance will cover the difference between the amount your auto insurance pays on a total loss claim and the outstanding principal balance due on your loan. Learn more about gap coverage.
• Liability umbrella policy: State Farm provides additional liability with its umbrella policies. Liability includes protection against personal claims like libel or slander with minimum coverage of $1 million, increasing in $1 million increments.

Your auto insurance premium depends on your location, age, driving record, car model, safety rating, credit score (average rates will be higher for people with poor credit, typically), deductible, and choice of coverage. Full coverage will cost more than minimum auto insurance coverage. The average annual cost of auto insurance from State Farm is $1,419, far below the national average of $2,071.

• Bundling discount: Save when you bundle life, home, condo, or renters insurance with your car insurance policy from State Farm.
• Multiple auto savings: You receive a discount when you insure two or more household vehicles with State Farm.
• Drive Safe & Save discount: Your smartphone app can track your driving habits to save you up to 30 percent on your premium at each policy renewal (every six months).
• Good driver discount: New State Farm customers will receive a discount after three years without moving violations or at-fault accidents.
• Steer Clear driver program: Drivers under the age of 25 who have valid driver’s licenses and no at-fault accidents or moving violations during the past three years, and a program certification from Steer Clear, receive a discount of up to 15 percent.
• Good student discount: Students under 25, including homeschoolers, may qualify for a discount of up to 25 percent if they submit report cards or standardized tests that confirm they rank in the upper 20 percent of their class.
• Student away at school discount: Your policy may be eligible for this discount if one of the operators of a covered vehicle is a college student under 25 who uses a car only while at home during school vacations and holidays.
• Accident-free discount: You may receive additional savings if you maintain an accident-free driving record.
• Defensive driving course discount: State Farm offers driver safety courses in many locations. Completing a course will get you a discount on your premium.
• Vehicle safety discounts: Vehicles equipped with modern safety features such as automatic braking and forward collision warning qualify for additional savings.
• Passive restraint discount: Covered cars that were made before 1993 and equipped with factory-installed airbags or other passive restraint systems may be eligible for a medical coverage discount of up to 40 percent.
• Anti-theft discount: This discount is available if your vehicle has an alarm or other anti-theft devices like a GPS or starter disabler.

State Farm offers insurance products in all 50 states and Washington, D.C. through a network of 19,000 agents. Your local agent will understand the state auto insurance laws that apply to your situation.

Contact your local State Farm local for everyday customer service issues. If you have trouble reaching your agent, call State Farm Customer Care at 800-782-8332. Or, mail payments to the address below:

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

We tested State Farm Mobile to ensure it has all the important features. The app has a 4.7-star rating on Google Play and a 4.8-star rating on the Apple App Store. Reviewers noted the ease with which they can pay auto insurance bills and access their insurance cards. State Farm Mobile features allow you to carry out the following tasks:

• Pay insurance bills with Google Pay or Apple Pay.
• View your auto insurance I.D. card and add it to Apple Wallet or Google Pay.
• View your insurance policies and coverage details.
• File a vehicle, property, or vehicle glass claim.
• Track the status of your claim.
• Get assistance with tire changes, dead batteries, stuck vehicles, and more.
• Search for repair facilities.
• View details of investment products.
• Receive personalized reminders and notifications.
• Search for answers to frequently asked questions.

In addition to State Farm Mobile, State Farm Drive Safe & Save Mobile and Steer Clear track your driving habits for discount programs.

• AM Best rating: AM Best rated State Farm’s claims-paying ability and credit quality. State Farm holds an AM Best rating of A++, meaning it is considered financially solvent and strong.
• Better Business Bureau (BBB) customer rating: The BBB does not accredit State Farm, but the company has a customer rating of 1.15 out of five stars.¹ Many of the reviews of State Farm mention a lack of personalized customer service and disappointing claims assistance.
• National Association of Insurance Commissioners (NAIC) Complaint Index: State Farm’s NAIC Company Complaint Index is 2.72, which means its complaint index is over twice as high as expected in the market.²
• J.D. Power satisfaction rating: J.D. Power ranks customer satisfaction across 11 geographic regions. State Farm is the highest-ranking auto insurer across three regions:
  • Florida: In Florida, State Farm’s satisfaction rating is 848.
  • New York: In New York, where State Farm ranks first for the second year in a row, its satisfaction rating is 859.
  • Northwest region: In the Northwest region, State Farm’s satisfaction rating is 844.³

People tend to send complaints in extreme circumstances, so take State Farm’s NAIC score and BBB customer rating with a grain of salt. State Farm’s high J.D. Power satisfaction ratings and A++ rating from AM Best indicate that consumers and industry insiders view the company favorably.

Founded in 1922, State Farm began as a mutual automobile insurance company to assist farmers in Bloomington, Illinois. It launched its interlocking red tri-oval logo in the 1940s. State Farm became the largest auto insurance company in the United States in 1942 and launched in Canada in 1947.⁴

In the 1950s, State Farm held a contest among its agents to come up with ideas to expand the business. Robert H. Kent, an agent in Chicago, came up with the idea of providing auto loans to existing policyholders. State Farm rolled out the program to all its agents, creating the first marketing partnership between insurance companies and banks.

State Farm refreshed its brand during its 2012 90th anniversary celebration. In 2014, it sold its operations in Canada to Desjardins Group. State Farm was officially rebranded to Desjardins Insurance in Canada in 2018.

State Farm acquired the Dallas-based, non-standard auto insurer GAINSCO in 2020. It marked the first acquisition of an insurance company by State Farm in its history. State Farm celebrated 100 years of business in 2022. At the same time, State Farm acquired a 15 percent stake in security services company ADT to expand its homeowners’ insurance capabilities.

• Boat insurance
• Collector & classic car insurance
• Commercial insurance
• Disability insurance
• Health insurance
• Home insurance
• Identity theft insurance
• Life insurance
• Motorcycle insurance
• Motorhome and RV insurance
• Off-road vehicle insurance
• Renters insurance

State Farm does not require a cancellation fee. Instead, it will prorate your premium at the time of cancellation and refund you the difference.

You can cancel your insurance policy by phone, mail, or in person. Contact your local State Farm agent or call 800-782-8332. Cancellations by phone are usually effective immediately, but you can schedule them for a date in the future as well.

To cancel your policy by mail, send a letter at least two weeks before your intended cancellation date to the address below:

• Corporate Headquarters
• State Farm Insurance
• One State Farm Plaza
• Bloomington, IL 61710