State Farm Insurance Review 2023

State Farm is one of the largest insurance companies, as it offers a wide variety of other insurance and financial products, sold exclusively by State Farm agents. If you are looking for a well-known brand name with a generous selection of products and consumer-friendly pricing, this carrier might be right for you.

State Farm has consistently ranked within the top three insurers for customer satisfaction over the last three years. It even has a higher NAIC complaint index than Chubb, and was awarded 856 out of 1,000 points for customer satisfaction in J.D. Power’s Small Commercial Insurance Study.

It offers business insurance designed for independent contractors, restaurants, professional services, and retailers, with paperless billing and autopay options. Commercial insurance products include BOP bundles, surety and fidelity bonds, and farm and ranch insurance.

Overview of State Farm Insurance

State Farm Insurance is a group of mutual insurance companies throughout the United States with corporate headquarters in Bloomington, Illinois. Founded in 1922, it is the largest property, casualty, and auto insurance provider in the United States.

State Farm was founded in June 1922 by retired farmer George J. Mecherle as a mutual automobile insurance company owned by its policyholders. The firm specialized in auto insurance for farmers and offered better rates than rival companies, which must also cover the expensive premiums of urban motorists. It later expanded services into other types of insurance, such as homeowners and life insurance, and then to banking and financial services.

As of December 2017, it had 70,000 employees and 19,000 agents. February 2014 figures show the group servicing 80 million policies in the United States and Canada, of which over 44,000,000 are for automobiles, 27,000,000 are for fire, 7,000,000 for life, and more than 2 million bank accounts.

State Farm relies on exclusive agents (also known as captive agents) to sell insurance. Only State Farm agents can sell State Farm insurance, and their agents can sell only State Farm products.

State Farm’s business insurance products

State Farm offers business insurance designed for independent contractors, restaurants, professional services, and retailers, with paperless billing and autopay options. Commercial insurance products include BOP bundles, surety and fidelity bonds, and farm and ranch insurance.

Coverage options include:

Commercial auto insurance

State Farm ranks above the industry average in the J.D. Power 2023 U.S. Auto Insurance Study in all regions and boasts a financial strength rating of A++ (Superior), the highest rating possible from AM Best. 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’s rental car and travel expenses coverage is superior to what’s offered by its competitors. Not only does State Farm auto insurance pay for a rental car if yours is in the shop due to a covered collision, but it also pays for meals, lodging and transportation if you’re stranded more than 50 miles from home. Coverage limits apply and vary by state, and you need to have comprehensive or collision coverage to opt in.

The Steer Clear Driver Program is a driver training refresher course available online, through an agent or via mobile app. State Farm offers savings for drivers under age 25 who complete the course and have had no at-fault accidents or moving violations within the past three years.

Rideshare insurance: If you drive for a company such as Uber or Lyft, this option allows you to have one policy that covers both personal and ridesharing use. This option is not available in all states.

Auto insurance discounts

Depending on your state, you may be able to save on auto insurance by:

Remaining accident-free for a specified period of time.
Taking a driver safety course.
Being a student (or having one on your policy) who stores their vehicle at home while away at school.
Meeting State Farm’s standards for a good driver.
Meeting State Farm’s standards for a good student.
Ensuring all operators of your vehicle under age 21 complete an approved driver education course.
Having certain safety features in your car.
Installing an anti-theft device.
Having a factory-installed air bag or other passive restraint device in your older-model vehicle.
Insuring multiple vehicles with State Farm.
Buying multiple policies from State Farm (bundling).
Renewing your auto policy with State Farm for three years or more.

Home insurance

State Farm stands out in the homeowners’ insurance market for high customer satisfaction scores, superior financial strength and nearly nationwide availability. It 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.

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.

Workers’ compensation insurance

State Farm offers workers’ compensation insurance to protect business owners if an employee is injured on the job or becomes ill as a result of their work. Most states mandate workers’ compensation coverage for businesses with at least one employee, though some states have a higher threshold.

Workers’ compensation covers the employee’s medical expenses and also shields businesses from lawsuits related to the incident. It typically covers the following expenses:

Immediate medical care.
Rehabilitation.
Disability and lost wages.
Survivor benefits.

Workers’ compensation won’t pay out if the employee’s injury occurred while performing a personal task, under the influence of drugs or alcohol or participating in a voluntary recreational activity.

Life insurance

State Farm life insurance may be best for those looking for a wide array of policy types. 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.

The company also ranked first for overall customer satisfaction in the 2022 U.S. Individual Life Insurance Study from J.D. Power.

Inland marine

These policies are a specialized form of property coverage. State Farm’s inland marine policies can help cover gaps in standard property policies if, for example, your business has assets that are under construction or regularly move locations. It can also include inventory that is moving between locations.

State Farm car insurance discounts

When shopping for car insurance, it’s important to ask about car insurance discounts. There may be ways to lower car insurance premiums with a discount or two or even more. (Not all discounts are available in every state.)

Here are some discounts you are likely to see from State Farm:

Accident-free discount. If you drive without having an accident for three years in a row, you can qualify for an accident-free discount from State Farm.
Good student discount. If a student is aged 16 to 25, is going full-time to high school or college, and has a B average, 3.0 grade point average or other qualifications, you can save up to 25% discount on car insurance from State Farm.
Loyal customer discounts. Insure more than one car with State Farm and you could save as much as 20%. Insure a home or a condo or sign up for life insurance or renters insurance with State Farm alongside your auto insurance policy and you can save up to 17% with a multi-policy discount.
Defensive driving course discount. Take a defensive driving class and you may be eligible for a discount of 10% to 15%.
Good driving discount. Keep a good driving record for three years with no at-fault accidents or moving violations and you’ll qualify for a discount.
Driver training discount. If young drivers under age 21 complete driver training, you’ll get a discount.
Student away at school discount. If one of the drivers of your vehicle is a student under age 25 who moves away to go to school, you may be eligible for a discount.
Anti-theft discount. If your car has an alarm or other anti-theft device, you may qualify for a discount.
Multi-vehicle discount. You’ll get this price break if you insure more than one vehicle with State Farm.

Other State Farm tools and benefits

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.
Identity theft protection: For around $25 per year, you may add identity theft protection to your home, condo or renters insurance policy. Policies are available in all states except for North Carolina.
Boat insurance: State Farm’s standard boat insurance policy includes liability coverage in addition to protection from sinking, storms, theft and other perils.
Motorcycle insurance: State Farm’s motorcycle insurance policies may include coverage for attached sidecars and motorcycle protective gear.
ATV and off-road vehicle insurance: State Farm takes a liberal approach to which off-road vehicles it includes in its policies; camping trailers, snowmobiles, golf carts and even dune buggies may all be insured with State Farm.
Renters insurance: State Farm is on Bankrate’s list of the best renters insurance companies.
Personal banking: State Farm offers a suite of personal banking products through its partnership with US Bank®, like credit cards and checking accounts.

State Farm’s mobile app

The State Farm mobile app enables customers to manage insurance policies, roadside problems and State Farm banking accounts from their smartphones. Functionality includes:

Access insurance ID cards
Pay your insurance bill
Start a roadside assistance request
Upload photos and documents for claims
File a claim
Connect with your agent

How much does State Farm car insurance cost?

State Farm car insurance costs $1,431 per year on average for full coverage insurance. That is over $700 a year less than the average national rate of $2,148 per year. Compared to other large insurers, State Farm has the cheapest average annual rates for good drivers.

Although USAA has cheaper rates on average than State Farm, it sells only to former and active military members and their families.

The company also offers a usage-based program called Drive Safe & Save. This program calculates discounts based on your mileage and “safe driving” measurements such as smooth acceleration and braking. It also considers risk factors such as speed and time of day.

You can get up to a 30% discount once State Farm has analyzed your driving behavior. Availability and discounts may vary.

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, the 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

Is State Farm a good insurance company?

State Farm could be a good company, depending on your needs. It is 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.

State Farm Insurance Review 2023

Overview of State Farm Insurance