State Farm insurance rates go up by an average of 59% after an accident. Drivers who have State Farm accident forgiveness will not see their car insurance rates go up at all after their first accident in 9 years, however. Even if the accident can’t be forgiven, it will only affect your insurance rate for 3-5 years, depending on your state.
The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder’s driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.
State Farm has accident forgiveness for drivers who have been State Farm customers for nine years with no accidents on record. State Farm accident forgiveness allows qualifying drivers to avoid surcharges and keep their accident-free discount after one at-fault accident per policy.
Requiring customers to be accident-free for nine years makes State Farm unique among major insurers. Most competitors only require three to five years without accidents to qualify for accident forgiveness.… read full answer
Without accident forgiveness, an at-fault crash leads to an average premium increase of 56% for State Farm customers. However, it’s important to note that State Farm accident forgiveness is state-specific and is not available everywhere. Contact a State Farm agent in your area for more information on your eligibility.
Your State Farm rate could have gone up for many reasons, such as a recent claim or a new driver being added to the policy. Other factors that could cause State Farm to raise your rate include getting into an accident, being convicted of a moving violation, and adding coverage to your policy. State Farm may also raise your premiums for reasons that are beyond your control, such as recent natural disasters, increasing repair and healthcare costs, and crime trends.… read full answer
Top Reasons Why State Farm Raises Rates
New driver or car added to a policy
Recent switch to an expensive car
Relocation to a high-risk zip code
Decline in creditworthiness
How to Lower Your State Farm Insurance
If you’re struggling to afford your State Farm premium, there are a few steps that you can take to lower your rate. You can start by looking for State Farm discounts that you can qualify for, such as the multiple line or anti-theft discount. You can also make changes to your policy, including raising your deductible and reducing your coverage.
Another option is to switch insurance companies. Each insurer calculates rates differently, so you may be able to get the same amount of coverage elsewhere at a lower price. As a general rule, you should get quotes from at least three different companies every 6-12 months to make sure that you’re still getting the best deal.
State Farm is so cheap because the company has more customers than any other provider, and their large market share allows them to keep their prices competitive. A minimum coverage policy from State Farm costs an average of $77 per month, and State Farm premiums can be made even cheaper by taking advantage of discounts such as passive restraint discount and anti-theft discount. Plus, State Farm rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.… read full answer
Average Monthly Rates for State Farm vs. Top Competitors
Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.
State Farm is especially cheap for young drivers in particular. That’s because State Farm has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a 3.0 GPA.
Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though State Farm is among the cheapest car insurance companies, the only way to confirm you’ve found the lowest price is to compare quotes from multiple companies.
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