State Farm Review [2025]: Great Service, Good for Students

Everyone knows about State Farm. The company's been around for more than 100 years. But for all their talk of neighborly goodness, can you really get that great of a deal with State Farm? Like most people, I think State Farm is somewhat overpriced based on what you can get elsewhere, but State Farm does offer a variety of discounts, especially for people with good driving records or those 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.

How we evaluate products

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 Insurify, 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.

State Farm auto insurance pros and cons

How much does State Farm cost?

Across the board, State Farm charges higher premiums for all driver types compared to the national average — often significantly higher, in fact. State Farm is particularly expensive for teen drivers and those with a DUI. The insurer does offer a couple ways to lower your rates over time through demonstrating a safe driving record, but more on that below.

Here's a look at average monthly quotes from State Farm for liability-only car insurance by driver type.

Check these against the national averages below to get an idea of just how much more expensive State Farm policies are relative to its competitors.

Is State Farm car insurance good?

Company ratings:

• AM Best: A++
• J.D. Power claims satisfaction: 710/1,000 (study average 697)
• Better Business Bureau: F
• NAIC complaints: 0.84 (Private Passenger)

State Farm rates pretty well by most recognized customer service metrics, save for its Better Business Bureau (BBB) rating. It just missed the top five in J.D. Power's 2024 U.S. Auto Claims Satisfaction Study, scoring 710 against the study's 697 average out of 1,000. For comparison, consider that the top ranking company, NJM, only scored 782 out of 1,000 — not too terribly far ahead of State Farm.

With a score of 0.84, State Farm's NAIC complaint index shows that the insurer receives less complaints than expected based on marketwide data (expressed as an index score of 1.00).

The BBB "F" rating is a bit of an outlier, and probably shouldn't be a deciding factor in whether to choose State Farm or not. The BBB explains this low rating by citing State Farm's nonresponsiveness to complaints filed with the BBB. Due to fees and other requirements for accreditation, many companies simply choose not to engage with the BBB, resulting in a record of non-resolved complaints that don't necessarily reflect a willful disregard for customer service.

State Farm discounts

Alongside a docket of relatively common discounts like safe driver, bundling, and payment-in-full discounts, State Farm likes to reward its return customers with a loyalty discount, which you won't necessarily find with its competitors.

Here's a closer look at how you can save money on car insurance with State Farm:

Discount	Does State Farm have it?	Liberty Mutual	GEICO
Loyalty	Yes	No	No
Multi-policy/bundling	Yes	Yes	Yes
Multiple vehicle	Yes	Yes	Yes
Airbag	Yes	No	Yes
Anti-lock brakes	Yes	No	Yes
Anti-theft	Yes	No	Yes
Safe driver	Yes	Yes	Yes
Good student	Yes	Yes	Yes
Away-from-home student	Yes	Yes	Yes
New car	No	No	Yes
Pay in full	Yes	Yes	Yes
Automatic payments	No	Yes	Yes
GAP insurance	No	No	No
Senior	No	No	No
Military	Yes (select states)	Yes	Yes
Defensive driving course	Yes	Yes (select states)	Yes

Drive Safe & Save and Steer Clear

Drive Safe & Save is State Farm's usage-based discount telematics program. You'll get a small initial discount for signing up, and 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 is a training program offered by State Farm 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.

Coverage

State Farm offers a range of coverages, allowing you 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.

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

• Liability coverage
• Collision insurance
• Comprehensive insurance
• Medical payments coverage
• Personal injury protection (PIP)
• Uninsured or underinsured motorist coverage
• Emergency road service coverage
• Car rental and travel expenses
• Rideshare insurance

State Farm vs. competitors

State Farm can be a little pricey, depending on your age, driving record, and other factors. However, if you compare average numbers across a range of competitors and data points, you'll find that State Farm is pretty middle-of-the road overall.

It's more expensive than some insurers, as expensive as others, and more affordable than yet others. Your own quote will depend on your personal circumstances and the specifics of your coverage needs, but there are plenty of ways to lower your rate regardless.

State Farm vs. Liberty Mutual

State Farm isn't cheap, but it's cheaper than Liberty Mutual. While State Farm's average liability-only quote runs $55 monthly, Liberty Mutual comes in at a comparatively startling $171 per month, according to data from Insurify.

The difference becomes even starker when you consider that Insurify reports the national average monthly cost of liability-only car insurance is $105 per month, almost double State Farm's monthly average, but roughly 63% less than Liberty Mutual's.

State Farm vs. GEICO

GEICO and State Farm are relatively well-matched when it comes to premiums, both averaging $55 per month for liability-only coverage, according to Insurify. The most distinct difference between these two insurers may lie in the customer service experience, but that seems up for debate.

State Farm pretty significantly outperformed GEICO on the 2024 J.D. PowerU.S. Auto Claims Satisfaction Study, with GEICO scoring below the study average of 697 at 692, and State Farm scoring 710. However, GEICO did register a slightly lower NAIC complaint index, scoring 0.75 against State Farm's 0.84, indicating that GEICO receives fewer complaints.

Additional State Farm 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.

FAQs

Bottom line

State Farm is an auto and home insurance industry leader and has a century of experience in the insurance industry. While 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.

While it's always wise to compare premiums and coverage offerings, State Farm did make our list of the best car insurance companies, so it may be a good choice for many people based on their average rates, customer service history, and industry standing.