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State Farm Insurance review 2022

Updated May. 10, 2022
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At a glance

4.7

Bankrate Score

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Auto

4.7

Home

4.7

Bottom Line

Policyholders who value a personalized experience through a local agent, building insurance policies with the same company and highly rated customer service might consider State Farm as their company of choice.

Pros

  • Won Bankrate Awards for auto, home and life insurance due to the company’s excellent customer service, competitive average premiums, accessible agents and easy-to-use policy management tools
  • J.D. Power scores show a high level of customer satisfaction
  • Plentiful discounts including a competitive usage-based telematics program and one for young drivers

Cons

  • Higher than average policyholder complaints with the National Association of Insurance Commissioners (NAIC)
  • Gap insurance is not offered as an option on its auto insurance policies
State Farm, the largest U.S. property/casualty insurer by market share according to the Insurance Information Institute (Triple-I), is also one of the most well-respected insurance companies in the nation. The company earned a Bankrate Award for its three primary product lines: auto, home and life insurance. In the 2022 Bankrate Awards, State Farm tied with a few other insurers for best overall auto insurance and best overall home insurance. In terms of life insurance, State Farm claimed the title of the best term life insurer.
Founded in 1922, Bloomington, Ill.-based State Farm is a full-lines insurer that writes new auto and home policies in all states except Massachusetts and Rhode Island. The company is well-known for its highly-rated customer service, wide range of discounts and classic car insurance partnership with Hagerty. Read on to see whether or not State Farm is a good fit for your needs and wallet.
 
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Bankrate Awards
  • Best auto insurance company overall 
  • Best home insurance company overall
  • Best term life insurance company
 

State Farm car insurance

Bankrate found State Farm to be one of the best car insurance carriers overall in the 2022 Bankrate Awards, primarily for its low premiums, high claims satisfaction score, superior financial strength and availability of agents. The company recently announced a partnership with Hagerty to insure classic cars in almost every state by 2023. If you own a classic car, you’ll be able to bundle your classic car insurance with your home, standard auto insurance and life insurance policies. Even if you’re classified as a high-risk driver, State Farm may have a policy that works for you.

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State Farm received a high Bankrate Score of 4.7 out of 5. To achieve this excellent score, our insurance team analyzed State Farm’s premiums, availability of discounts, customer satisfaction scores and financial strength ratings. The company scored well across measures. In J.D. Power’s 2021 U.S. Auto Insurance Study, State Farm earned the highest customer satisfaction score in three regions: Florida, New York and the Northwest. The company also boasts a financial strength rating of A++ (Superior), the highest rating possible from AM Best.

State Farm car insurance cost

State Farm’s average annual full coverage premium is $1,457 per year, and its average minimum coverage premium is $539 per year. The company’s average rates are lower than the national average cost of car insurance, which sits at $1,674 per year for full coverage and $565 per year for minimum coverage, based on Bankrate’s study of quoted annual premiums from Quadrant Information Services. State Farm’s wide range of car insurance discounts may help lower your rate even more.

State Farm average annual full coverage premium National average full coverage premium
Clean driving history $1,457 $1,674
Speeding ticket $1,590 $2,062
Adding a teen driver $2,077 $2,531
DUI conviction $2,201 $3,139

State Farm car insurance discounts

State Farm offers robust auto insurance discounts to supplement its already low average premiums. The following discounts and programs may save you money:

The company offers several additional discounts that may vary by location. The best way to determine which discounts apply to you is to check with a local State Farm insurance agent.

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State Farm’s vehicle products

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.

State Farm home insurance

State Farm was recognized as one of the best home insurance companies in the 2022 Bankrate Awards for its 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 with that comes a large network of local agents to help policyholders with their needs. State Farm ranked in the top four for customer satisfaction in J.D. Power’s 2021 U.S. Home Insurance Study.

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This advertising widget is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate. HomeInsurance.com LLC services are only available in states where it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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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 your home’s electrical systems and alerts homeowners of issues before a house fire occurs.

State Farm home insurance cost

State Farm’s home insurance coverage tends to cost a little more than the national average cost of home insurance. However, 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, depending on your preferences.

Dwelling coverage limit State Farm average annual premium National average annual premium
$150,000 $1,069 $898
$250,000 $1,503 $1,312
$350,000 $1,851 $1,723
$450,000 $2,298 $2,148

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:

State Farm home services

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 won best term life insurance provider in our 2022 Bankrate Awards for its accessible online tools and top-notch customer service. The company offers an easy-to-use mobile app and online portal, along with over 19,000 local agents across the country. The company also ranked first for overall customer satisfaction in the 2021 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 determine which type of policy fits best.

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. Each endorsement is designed to add something unique to your policy.

  • Waiver of premium benefit rider: 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.
  • Children’s life insurance benefit rider: This option adds temporary coverage to eligible life insurance policies and may pay out a small death benefit if the unthinkable were to happen and your child were to pass away up to the age of 25.
  • Guaranteed insurance: Pairing this endorsement with State Farm’s waiver of premium for disability rider allows you to prepare in advance for when you need additional coverage without the need for a medical exam.

State Farm life services

Life insurance is often complex and can be difficult to navigate. 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 will connect you with a local agent as long as 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.

Other State Farm perks worth considering

State Farm offers several benefits including:

  • Local agents: The company offers an exclusive network of more than 19,000 local agents across the U.S., making the company accessible and easy to work with.
  • Digital tools: With a user-friendly mobile app and several online tools that offer easy document viewing, premium payments, claims-filing and customer support, State Farm makes it convenient for the busy customer to manage their policy on the go.
  • Landlord insurance: If you own a property that you rent out to tenants, you likely want insurance that financially protects you from damage due to fires, windstorms and other covered perils or potential liability lawsuits.
  • Umbrella insurance: This type of policy can 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 has contributed nearly $650,000 in grant funding to eligible nonprofits. In 2020, State Farm employees volunteered a total of 98,000 hours. Additionally, the company has committed $100 million in support of minority communities and racial equity over the next five years.

When it comes to the environment, more than 80% 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 the carrier for your needs? Consider these alternatives

  • AllstateThe fourth-largest property/casualty insurer by market share in the U.S. according to the Triple-I, Allstate provides a broad network of local agents nationwide.
  • Liberty Mutual: The fifth-largest insurer offers a wide variety of property and vehicle insurance products, as well as life, business and pet insurance.
  • Travelers: The sixth-largest insurer offers robust coverage options, including green discounts for hybrid and electric vehicles and LEED-certified homes.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

  • $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 sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the age 16 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Hawaii rates indicate age is not a contributing factor.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and a single DUI conviction.

Homeowners

  • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000
  • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000
  • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000
  • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000
  • Coverage E, Liability: $300,000
  • 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.

Bankrate Scores

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers and homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car and home insurance companies satisfy these priorities, third-party agency ratings from J.D. PowerAM BestS&PNAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers and homeowners, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry, as well as 40-year-old male and female homeowners with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers and homeowners may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

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