State Farm insurance review 2023
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Cost & ratings
Cost & ratings
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Policyholders who value a personalized experience through a local agent, bundling insurance policies with the same company and highly-rated customer service might consider State Farm as their company of choice.
J.D. Power scores show a high level of customer satisfaction
AM Best financial strength rating of A++ (Superior)
2023 Bankrate Award for best term life insurance company
Company as a whole has higher than average policyholder complaints with the National Association of Insurance Commissioners (NAIC)
Customer service is not available 24/7
In collaboration with Hagerty Insurance, State Farm announced that its new product line State Farm Classic+ should be available nationwide by 2023. This policy type aims to provide specialized coverage for classic and collector cars.
State Farm car insurance
State Farm car insurance received a high Bankrate Score of 4.2 out of 5.0. To assign this Score, our insurance team analyzed State Farm’s premiums, discount availability, customer satisfaction scores and financial strength ratings. The company ranked above the industry average in the J.D. Power 2022 U.S. Auto Insurance Study in all regions and boasts a financial strength rating of A++ (Superior), the highest rating possible from AM Best.
Founded in 1922, State Farm is a full-lines insurer that writes new auto and home policies in all states except Massachusetts and Rhode Island. The company could be a good choice for drivers looking for the personal touch of a local agent, lower-than-average premiums and top-notch customer service. It may also be a good choice for those seeking to improve their driving habits with its Drive Safe and Save telematics program.
State Farm offers all the coverage types required in various states, including bodily injury liability, property damage liability, uninsured motorist, underinsured motorist, medical payments and personal injury protection. You can also find optional coverage for comprehensive, collision, emergency road service, ridesharing, and car rental and travel expenses.
State Farm also provides many perks that you might not find with another carrier, including highly-rated digital tools, pet insurance, personal banking options, investments, estate planning and more.
Bankrate Award winner for best for high-risk drivers
Following our in-depth insurance study, State Farm earned Bankrate’s 2023 award for best company for high-risk drivers. High-risk drivers may find State Farm’s rates lower than its competitors. The company also has high claims satisfaction per third-party scores and offers discounts that could help encourage safer driving practices.
Why State Farm won
State Farm’s car insurance might be a good choice for high-risk drivers due to its tendency for lower-than-average premiums for those with one at-fault accident or speeding ticket on their driving record. Additionally, the company has high claims satisfaction per J.D. Power. State Farm also offers a few discounts geared towards promoting safer driving habits, such as its Steer Clear program for youthful drivers and its telematics program Drive Safe and Save.
Pros and cons of State Farm car insurance
When shopping for the best car insurance, many companies may seem similar, but a list of pros and cons could help you differentiate one carrier from another. Here are some of the perks and drawbacks we identified with State Farm car insurance:
Numerous discounts available, including a telematics program and savings aimed toward young drivers
Highly-rated mobile app for hands-on policy management
Plenty of agencies located across the country
Gap insurance is not available
Cannot purchase accident forgiveness
No live chat
State Farm car insurance cost
State Farm’s average annual full coverage premium is $1,480 per year, and its average minimum coverage premium is $464 per year. The company’s average rates are lower than the national average cost of car insurance, which sits at $2,014 per year for full coverage and $622 per year for minimum coverage, based on Bankrate’s study of quoted annual premiums from Quadrant Information Services.
State Farm car insurance rates by driving history
Bankrate sources proprietary rate data from Quadrant Information Services to track premium trends over time. We also use this data to see how different types of drivers (and driving records) stack up against each other regarding car insurance rates.
Auto insurers may use several rating factors to determine your premium. The violations and accidents on your driving record may significantly impact how much you pay for car insurance, as demonstrated by the tables below. Please note that not all carriers will offer a policy to drivers with a serious conviction on their record like a DUI. For more information regarding DUI rates, you may contact a State Farm agent directly.
State Farm average monthly full coverage premium State Farm average annual full coverage premium National average annual full coverage premium Clean driving history $123 $1,480 $2,014 Speeding ticket conviction $142 $1,704 $2,427 At-fault accident $156 $1,876 $2,854 State Farm average monthly minimum coverage premium State Farm average annual minimum coverage premium National average annual minimum coverage premium Clean driving history $39 $464 $622 Speeding ticket conviction $45 $541 $748 At-fault accident $51 $608 $892
State Farm car insurance quotes by age
In a 2020 study conducted by the Insurance Information Institutes (Triple-I), nearly 40 percent of all fatal car accidents involved someone aged 16 to 20 behind the wheel. Statistics show that younger drivers are at higher risk of accidents, and car insurance companies typically charge these drivers more expensive premiums to offset this risk. How much younger drivers will pay may also depend on if they are listed on their parent's policy or have a policy of their own.
Average cost of car insurance for drivers on their parent’s policy
Average cost of car insurance for drivers on their own policy
State Farm car insurance discounts
If you're looking for cheap car insurance, State Farm offers robust auto insurance discounts to supplement its already low average premiums. The following discounts and programs may save you money:Drivers under the age of 25 in eligible states could qualify for a discount for maintaining a clean driving record, recording their trips on a mobile app and completing a safe driver program that involves quizzes and video tutorials.You may save if you are a high school or college student with a grade point average equivalent to a “B” or higher.You may save on your premium if you insure more than one vehicle with State Farm.This usage-based insurance telematics program may offer drivers a premium discount up to 30 percent by tracking your safe driving habits.Policyholders in certain states may earn a discount for completing a defensive driving course.New policyholders may get a discount for remaining at-fault accident and violation-free for at least three consecutive years.
The company offers other additional discounts that may help you save, but availability may vary by location. The best way to determine which discounts apply to you may be to check with a local State Farm insurance agent.
State Farm car tools and benefits
State Farm offers much more than just standard auto insurance. The company’s vehicle product line also provides coverage for motorcycles, minibikes, trail bikes, RVs, boats and more. Shoppers may be especially interested in State Farm’s rideshare coverage, as this option is not always available, even with other major carriers.
State Farm home insurance
With a Bankrate Score of 3.2, State Farm stands out in the homeowners insurance market for high customer satisfaction scores, superior financial strength and nearly nationwide availability. State Farm is the largest home insurance company in the country by market share and consistently ranks above average in customer and claims satisfaction, per J.D. Power.
With thousands of brick-and-mortar offices nationwide, State Farm home insurance may be a good choice for customers who prefer personalized customer service. State Farm writes homeowners policies in every state except Massachusetts and Rhode Island.
In addition to standard coverages such as dwelling, personal property, liability and additional living expenses, the company offers a unique fire safety program through its partnership with Ting. Policyholders may be eligible for a free device that monitors their home’s electrical systems and alerts homeowners of potential fire hazards. Another standout feature is State Farm’s Premier Service Program, which may help eligible policyholders find reputable contractors after a loss. These contractors also guarantee their repairs for five years.
Pros and cons of State Farm homeowners insurance
Looking for the best homeowners insurance coverage may seem daunting, but Bankrate can help. Looking at the pros and cons of State Farm homeowners insurance may help you evaluate the company holistically.
Scored above the industry average for claims and overall satisfaction per J.D. Power
Policyholders may qualify for a free fire hazard monitoring device
Roofing discounts available in certain states
Fewer homeowners insurance discounts compared to some companies
Premiums higher than the national average
May need to speak with an agent to get a full view of the company’s homeowners endorsement options, as they are not listed on its website
State Farm home insurance cost
The national average cost of homeowners insurance in 2023 is $1,428 per year for $250K in dwelling coverage. The average cost of State Farm home insurance is $1,462 per year. Although State Farm may not be the best choice for those seeking the cheapest homeowners insurance, State Farm’s high third-party ratings, wide range of coverage options, exceptional claims handling and excellent customer service may be worth the additional premium.
Dwelling coverage limit State Farm average annual premium National average annual premium $150,000 $1,046 $975 $250,000 $1,462 $1,428 $350,000 $1,794 $1,879 $450,000 $2,224 $2,343 $750,000 $3,488 $3,761
State Farm home insurance discounts
State Farm’s average annual premiums are a bit higher than the national average, but the company offers a few discounts that may help you save on your home insurance costs:You may save on your auto and homeowners insurance premiums if you bundle these insurance policies with State Farm.Homeowners in eligible states could get a discount for having an upgraded, weather-resistant roof.For having an upgraded, weather-resistant roof that will help mitigate your risks against windstorms and other severe weather events.
State Farm home tools and benefits
You might want to consider some of State Farm’s home tools and benefits when comparing home insurance quotes. For instance, State Farm partners with Rocket Mortgage to help you with your home loan needs. This service gives you access to loan experts seven days a week to guide you through the home loan pre-approval and home purchasing processes, as well as preferred pricing and personalized options for your mortgage.
State Farm life insurance
State Farm was awarded a Bankrate Award for best term life insurance policies due to its many term options, excellent third-party customer satisfaction scores and its offering of no-medical exam coverage. State Farm life insurance may be best for those looking for a wide array of policy types. The company also ranked first for overall customer satisfaction in the 2022 U.S. Individual Life Insurance Study from J.D. Power.
No matter what type of life insurance policy you’re looking for, you’ll likely find it at State Farm. The company offers four different types of life insurance products: term, whole, universal and variable. If you’re unsure which policy type is right for you, your local State Farm agent may be able to help you assess your needs and choose coverage.
Bankrate Award winner for best term life insurance company
After analyzing life insurance offerings from dozens of insurance companies, Bankrate's 2023 award for best term insurance company goes to State Farm. State Farm is one of the largest insurers in the U.S., and its term insurance stands out for its affordability and coverage options.
Why State Farm won
State Farm's term life insurance is available in 10-, 20- and 30-year terms. These policies are renewable until age 95, and premiums may be returned in the event that the policyholder outlives the term. State Farm's Instant Answer Term Insurance does not require a medical exam and may be a good option for customers looking for a baseline level of life insurance at an affordable price.
Pros and cons of State Farm life insurance
This list of pros and cons may help streamline your comparison of life insurance quotes:
High customer satisfaction
Life insurance claims can be filed over the phone and online
Instant Answer term life does not require a medical exam
Quotes for whole life policies are not available online
Not available in Massachusetts or Rhode Island
State Farm life insurance endorsements
Both term life insurance and permanent life insurance policies at State Farm can be tailored to your needs with a variety of endorsements. For an additional cost, each endorsement is designed to add something unique to your policy.This endorsement ensures that if you become disabled for six continuous months or more, you won’t be required to pay your premium for the duration of your disability.This option adds temporary coverage to eligible life insurance policies and may pay out a small death benefit if your child were to pass away up to the age of 25.Pairing the guaranteed insurability option with State Farm’s waiver of premium for disability rider may allow you to prepare in advance for when you need additional coverage without the need for a medical exam.
State Farm life tools and benefits
Searching for cheap life insurance may be challenging as life insurance is often complex. If you would like help determining which type of policy is right for you or understanding the ins and outs of life insurance, State Farm offers several helpful resources. State Farm’s website can connect you with a local agent if you input your ZIP code or street address. The company’s website also provides useful summaries that explain the different types of life insurance it offers.
State Farm customer satisfaction
To evaluate customer satisfaction, Bankrate’s insurance editorial team uses a few third-party metrics, including scores issued by J.D. Power in its several different U.S. insurance studies. J.D. Power ranks insurance companies for overall customer satisfaction, claims satisfaction and digital experience for sales and service. The best score possible is 1,000; the higher a company’s score, the more satisfied its customers may be.
In addition to J.D. Power scores, we also review where an insurance company falls on the NAIC complaint index. A complaint index score of 1.00 means that the company receives the average amount of complaints for a company of its size. If an insurance company has a complaint index higher than 1.00, it gets more complaints than average. The reverse also applies — an index score less than 1.00 indicates fewer complaints on average.
State Farm auto satisfaction
State Farm scored above average for overall customer satisfaction in the J.D. Power 2022 U.S. Auto Insurance Study in all regions except California. It even secured the top spot in the Southwest region. It also scored above the industry average in the 2022 Auto Claims Study. According to the NAIC, State Farm sits at 0.95 on the complaint index, which means it has just below the average customer complaints compared to the baseline for a company its size. This data could indicate that customers are generally satisfied with State Farm auto insurance.
State Farm homeowners satisfaction
State Farm home insurance ranked above average for customer satisfaction in the J.D. Power 2022 U.S. Home Insurance Study and the J.D. Power 2022 U.S. Property Claims Satisfaction Study. Additionally, State Farm's home insurance business falls far below the baseline on the NAIC company complaint index, with a score of 0.32.
How to file a claim with State Farm
Filing an insurance claim is generally a straightforward process, but the information you will need to provide depends on the claim you are filing. For instance, State Farm will probably ask for the driver and vehicle information of everyone involved in an auto accident. For a life insurance claim, you may need to provide the policy number, policyholder’s name and a death certificate.
When you have this information ready, you can file a claim with State Farm by:
- Reporting it online
- Calling 1-800-732-5246
- Filing it in the mobile app
State Farm availability
State Farm Insurance is available in every state except for Massachusetts and Rhode Island.
Other State Farm perks worth considering
State Farm offers several benefits that may make the carrier worth looking into. These include:
- Local agents: The company offers an exclusive network of more than 19,000 local agents across the U.S. This may make the company accessible and easy to work with.
- Digital tools: State Farm offers a user-friendly mobile app and several online tools that allow policyholders to digitally view documents, make payments, claims-filing and access customer support.
- Landlord insurance: If you own a property that you rent out to tenants, you might be interested in State Farm's rental insurance. This landlord insurance offering includes standard coverage as well as coverage for loss of rent due to a covered peril.
- Umbrella insurance: Umbrella insurance may help protect your finances by paying additional liability coverage for home and auto policies in the event of a major liability claim or lawsuit.
State Farm corporate sustainability
State Farm appears to have a firm dedication to corporate responsibility through its Good Neighbor Citizenship company grants. Through this program, State Farm donates funds to nonprofits aimed toward promoting affordable housing, financial literacy and more. These donations seek to enhance safety and disaster preparedness along with community development. The program also issues grants earmarked for higher education and career readiness.
When it comes to environmental sustainability, more than 80 percent of State Farm locations have an Energy Star score of at least 75. Its paperless billing practices in 2020 saved more than 7,000 trees, and the company formed an executive-level steering committee to guide its environmental, social and governance (ESG) progress.
Not sure if State Farm is right for you?
After reading this State Farm Insurance review, you might not be sure if State Farm is the right company for your insurance needs. In this case, you could consider comparing quotes from these similar insurance companies:
State Farm vs. Allstate
Like State Farm, Allstate has an extensive network of local agencies that may help you manage your policies in person. If you prefer digital tools, the company offers an online policy portal and a mobile app. You may also be interested in Allstate’s DriveWise telematics program, which may help you save on your car insurance premium. However, Allstate does have a higher NAIC complaint index for both auto and home insurance.
Learn more: Allstate Insurance review
State Farm vs. Travelers
Travelers may be a good option for environmentally-conscious shoppers due to its unique discount opportunities for those who drive an electric or hybrid vehicle or own a home that is LEED certified. However, it may be important to note that Travelers does not offer life insurance and scored below average in J.D. Power's claims satisfaction study.
Learn more: Travelers Insurance review
State Farm vs. Erie
Erie offers cheap average rates and tends to score highly in J.D. Power studies. In fact, it earned the top spot in the North Central and Mid-Atlantic regions in overall customer satisfaction for auto insurance in 2022. Erie is only available in 12 states, though, so it may not be an option depending on where you live.
Learn more: Erie Insurance review
State Farm a good insurance company?
Bankrate’s insurance editorial team has real-life experience handling the insurance needs for thousands of people across the country. To help give our readers vital information that can help them choose the best company for their circumstances, we use our four decades of combined experience to conduct thorough and honest insurance company reviews.
With that in mind, State Farm could be a good company, but it depends on your needs. It’s the largest insurer in the country by market share, and it offers a wide range of insurance products and financial services. Whether you like to do business in an office or online, State Farm could accommodate you. However, it may not offer as many discounts or endorsements for homeowners insurance as other companies. If these are a priority for you, it may be a good idea to contact a local State Farm agent to discuss your options before making the switch.46years of industry expertise122carriers reviewed20.7KZIP codes examined1.2Mquotes analyzed
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident and single speeding ticket.
Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.On This Page