Your friendly neighborhood auto insurance provider
State Farm is known for its catchy marketing campaigns, such as “Like a good neighbor, State Farm is there” and Jake from State Farm. Brand recognition is just one of the reasons 87 million people carry State Farm insurance. Read our full review of State Farm auto insurance before you sign up for a policy to see if State Farm is the right choice for you.
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.
Numerous discounts: State Farm offers a wide array of discounts, such as discounts for teen drivers, multicar, and bundled savings.
Mobile app: State Farm has a sophisticated mobile app with convenient features so you can track claims and pay your policy on the go.
Local agents: State Farm relies on exclusive agents, which means only State Farm agenda can sell its insurance products and the agents can only sell State Farm products. With a network of 19,000 exclusive agents, there is likely a qualified and experienced State Farm agent in your area.
Limited gap insurance: If you lease or finance a car, gap insurance helps you pay if it is badly damaged or totaled. State Farm does not offer payoff protection unless your auto loan is from State Farm Bank. However, if your auto loan is with another bank, you will not receive assistance in paying the difference between the market value of your vehicle and what you still owe on your loan or lease.
Mixed reviews: It’s no surprise that a company as large as State Farm has its detractors. Customers online express dissatisfaction with customer service and claims assistance.
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.
State Farm’s Steer Clear program offers a discount to young drivers who complete the following requirements:
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:
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:
In addition to State Farm Mobile, State Farm Drive Safe & Save Mobile and Steer Clear track your driving habits for discount programs.
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.
We named State Farm the best auto insurance overall. State Farm lets you manage your customized policy from a user-friendly mobile app. It also has numerous discounts to take advantage of, making it a reliable and affordable provider.
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.
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:
State Farm’s full coverage auto insurance covers liability, comprehensive and collision incidents, uninsured and underinsured motorist coverage, and medical payments coverage/personal injury protection (PIP) for covered vehicles.
Full coverage auto insurance does not include emergency roadside assistance and towing, ridesharing, rental car reimbursement, gap coverage, optional basic economic loss or glass coverage.
It takes State Farm between 30 to 45 days to settle a claim after you submit a complete demand package. You can file and check your claim online. Enable email and text alerts to track your claim once you submit it.
The top five insurance companies are State Farm, Allstate, Direct Auto, GEICO, and The Hartford (AARP). State Farm takes the top spot because of its policy customizations and user-friendly mobile app.
Yes, State Farm is good at paying claims. The company has an A++ rating from AM Best, which ranks companies for financial stability, and is 42nd on the Fortune 500 list, which ranks companies based on revenue. State Farm incurred claims and loss adjustment expenses of $34.4 billion in 2021, so expect fast processing of your auto insurance claim.
State Farm Insurance Company. Better Business Bureau. (2022).
https://www.bbb.org/us/il/bloomington/profile/insurance-companies/state-farm-insurance-company-0724-6000391
State Farm Gen Ins Co National Complaint Index Report. National Association of Insurance Commissioners. (2022).
https://www.naic.org/cis_refined_results.htmTABLEAU=CIS_COMPLAINTS&Cocode=25151&REALM=PROD
Auto Insurance Customer Satisfaction Stalls Despite $18 Billion in Premium Relief, J.D. Power Finds. J.D. Power. (2021, Jun 15).
https://www.jdpower.com/business/press-releases/2021-us-auto-insurance-study
America’s Mailing Industry – State Farm. Smithsonian. (2022).
https://postalmuseum.si.edu/exhibition/america%E2%80%99s-mailing-industry-industry-segments-financial-services-industry/state-farm