State Farm Auto Insurance Review [2024]: Is it Overpriced?

Everyone knows about State Farm and its exceptional insurance products, but like most people, I think it’s somewhat overpriced based on what you can get elsewhere. With its recent financial ratings decreasing, there’s plenty of reason to shop around and ensure you’re getting the best coverage at the best prices.

State Farm does offer a variety of discounts, especially for people with good driving records or looking for multiple policies from one company. Its insurance might be a good fit for student drivers, people with multiple vehicles or policies, and people with a clean driving record and good credit.

State Farm auto insurance pros and cons

State Farm Auto Insurance overview

State Farm has more than 19,000 independent agents and 67,000 employees. In 2023, State Farm handled $53.4 billion in auto insurance claims and took the top spot in the J.D. Power 2023 U.S. Insurance Shopping Study℠.

What types of car insurance does State Farm offer?

You have many options when considering State Farm for your auto insurance to customize a policy to fit your specific needs. I suggest that as you consider the best way to save money on car insurance, balance the total cost with coverage options so you have proper protection.

Liability and protection coverage

State Farm offers several types of auto insurance coverage to protect you and other drivers in an accident, including:

• Liability coverage: Liability insurance helps to pay for medical expenses, property damage liability, or vehicle repairs the other driver in an accident might need if you caused the accident.
• Collision insurance: Helps pay for repairs or replacement of your car if you are hit by another vehicle or object. Many lease companies and auto lenders require collision insurance.
• Comprehensive insurance: Assists in covering damage caused by something other than a collision, including theft, fire, vandalism, storms, or if you hit an animal, among other things. Some auto financing and lease companies also require comprehensive insurance.
• Medical payments coverage: If you or your passengers are injured in an accident, this coverage helps to pay your medical bills along with your existing health insurance.
• Personal injury protection (PIP): This coverage is similar to medical payments coverage, but in addition to bodily injury, it might also cover lost wages or services like house cleaning if you aren’t able to take care of normal tasks due to a car accident.
• Uninsured or underinsured motorist coverage: Uninsured motorist coverage kicks in if you’re involved in an accident with someone who doesn’t have insurance or doesn’t have enough coverage to pay for your medical or repair bills.

Emergency coverage

State Farm also has several additional coverage types that aim to make your life easier on the road. These coverage options include:

• Emergency road service coverage: Helps cover the cost of roadside assistance you may need on the road, such as towing to a repair facility, gas delivery, a new tire, and locksmith services.
• Car rental and travel expenses: This coverage helps you with the cost of renting a car if your car was damaged in a covered incident, while it gets repaired. It may also cover your travel expenses if you’re in an accident more than 50 miles from home.

Rideshare insurance

If you drive for a rideshare company, it’s best to consider insurance outside of what Uber or Lyft offer. State Farm offers rideshare insurance that covers drivers and passengers while you’re active on either app and extends the personal coverage you have on your vehicle.

Additional insurance products

Like many insurance companies, State Farm offers additional discounts to people who bundle multiple policies with the same company. The insurance products that could be bundled with State Farm auto coverage include:

• Homeowners insurance.
• Renter’s insurance.
• Condo insurance.
• Life insurance.
• Multiple auto policies.

State Farm auto insurance discounts

When learning how to get car insurance that covers your needs and has a manageable deductible is essential, the monthly insurance cost is also a significant consideration. While every driver will have different premiums based on qualifying factors, State Farm claims they save the average household $649 a year when they switch car insurance carriers, but their premiums are often higher than competitors due to its robust offerings and stable history.

State Farm discounts

Like most insurance companies, State Farm offers various discounts, including:

• Multi-policy discount: If you also have a home, condo, renters, or life insurance policy with State Farm, you may receive an additional discount for bundling it with your auto policy.
• Multi-car discount: This discount applies if you’re a policyholder with two or more cars insured with State Farm.
• Safe driver discount: New State Farm customers who have had no moving violations or at-fault accidents for three or more years may be eligible for this discount for being a good driver.
• Accident-free discount: If you insure a car with State Farm for three or more continuous years without an accident, you might be eligible for a discount.
• Defensive driving course discount: Depending on where you live, this discount may apply if covered drivers take an approved defensive driving course.

• Vehicle safety discount: Car models produced in or after 1994 might receive this discount since their production followed higher safety standards. Eligibility depends on the make and model of your car.
• Passive restraint discount: This discount may apply to vehicle models from 1993 or older with factory-installed airbags or other passive restraint systems that meet federal safety requirements.
• Anti-theft discount: If your car has an alarm or other approved anti-theft device, you might receive an additional discount.
• Good student discount: Any drivers under age 25 who are full-time students and meet specific educational criteria may receive an additional discount.
• Student away at school: This discount might be available if you have a student who attends school more than 100 miles from home and the car they use stays at your residence for the school year.

Discount programs

State Farm also has two discount programs to help drivers save money by monitoring their driving habits. These programs are:

• Drive Safe & Save: This is a usage-based discount that provides a small initial discount for signing up. If you practice safe driving habits over time, you may receive a discount of up to 30% when you renew your policy. This program uses a phone app or a device that connects to your car to monitor your driving habits.
• Steer Clear: State Farm offers training to encourage safe habits for drivers younger than 25. Participants watch videos and take courses through the Steer Clear app. Then, they would practice with a family member who logs into the app to provide feedback. Upon completion of the program, the young driver receives a certificate to send to their State Farm agent to implement the discount.

How to maximize savings

There are many factors that affect car insurance rates, including the following:

• Driving record
• Age
• Gender
• Car safety rating
• Credit score
• Marital status
• Your location

These factors affect how much you pay for insurance, as does the amount of coverage you select and the deductible amount. While most states require at least a minimum amount of insurance or have financial responsibility laws, beyond that, the amount of coverage you choose is up to you and your budget.

A few ways to lower your premium include:

• Change your coverage amount (ensure you meet state minimum requirements)
• Increase your deductible (if you have enough saved in your emergency fund)
• Improve your credit score
• Maintain good driving habits

How to get an insurance quote from State Farm auto insurance

I found that the quote process with State Farm is simple. I love that you can get a quote online, but also have the option to contact an agent if you need help.

Keep in mind that you may have to contact an agent directly for any specialty quotes, such as motorcycle, RV, or commercial vehicle insurance.

Before starting the quote process, I recommend gathering the following information and applicable documents:

• Driver name and date of birth
• Driver’s license number and state
• Ticket and accident history
• License suspension information
• Year, make, model, body style, and vehicle identification number (VIN)
• Mileage
• Ownership and name of the registered owner
• Date of purchase
• Prior insurance carrier and expiration date
• Garaged address

FAQs

Bottom line

State Farm is an auto and home insurance industry leader and has a century of experience in the insurance industry. While I believe they don’t have the lowest premiums in the industry, if you do your best to qualify for most of their available discounts, you can get competitive premiums.

State Farm began in 1922 and has a proven stable history and according to the National Association of Insurance Commissioners (NAIC), they are one of the biggest auto insurance providers in the U.S. and has several strong financial and customer satisfaction ratings.

While it's always wise to compare premiums and coverage offerings, State Farm may be a good choice for many people based on their average rates, customer service history, and industry standing.

Methodology

FinanceBuzz researches a number of factors in each auto insurance provider to create our reviews. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also gather information from sources such as J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau to ensure we provide the most useful information to our readers.

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