State Farm is not an expensive insurance company. The company ranks fifth in Wallethub's cheapest car insurance companies nationwide ranking with an average cost of $919 per year. Your premium however will vary based on the policies you select, your driving record, and your area of residence, among others.
In a nutshell, State Farm is not a very expensive company but it’s also not the cheapest company. Although cost is a deciding factor when it comes to insurance for most people, our advice would be to see what your options are from multiple companies. After you decide on the type of policy you want to have, you can start comparing premiums and include costs in your final decision.
Yes, State Farm insurance rates are competitive, since the company is one of the five cheapest insurers nationally, according to WalletHub’s cheap car insurance analysis. State Farm car insurance costs an average of $718 per year, or $60 per month.
The best car insurance for new drivers under 25 years old is from companies like Allstate, Geico, Progressive, and Safeco. They are among the cheapest car insurance companies for drivers of all ages, both under 25 and older, according to WalletHub’s Cheap Car Insurance Report. These companies provide a variety of coverage choices at affordable prices, along with numerous discounts applicable to drivers under 25.… read full answer
Drivers under 25 typically pay higher insurance premiums than older drivers, so options for reducing those high costs are especially important. When shopping for auto insurance, new drivers under 25 should consider their state’s car insurance requirements, as well as what coverage they will need to be fully protected on the road. Then, they should look into opportunities for discounts.
Many major insurance providers offer discounts that can help reduce the cost of premiums for young drivers. Companies like Geico and Allstate provide good student discounts for drivers under 25 years old who maintain at least a B grade-point average. Young drivers who take a driver’s education course or a defensive driving course are eligible for savings, too.
Finally, some companies, like Metromile and Esurance, offer usage-based auto insurance policies that calculate premiums based on how much you drive. These policies can offer an affordable alternative for young drivers who don’t drive frequently.
Once a driver turns 25, they are considered to be more experienced and less likely to be involved in an accident, thus their insurance premiums are likely to decrease. Estimates show that premiums decrease by approximately 10% for people with a good driving history once they turn 25.
Common State Farm Full Coverage Insurance Components
Liability insurance. Almost every state requires drivers to carry liability insurance, which includes property damage liability and bodily injury liability coverage. Liability insurance pays for others’ expenses after an accident you are at fault for.
Collision and comprehensive insurance. Collision insurance covers the cost of fixing or replacing the policyholder’s vehicle after an accident, regardless of who was at fault. Similarly, comprehensive insurance covers the policyholder’s car if it’s damaged by something besides an accident, like vandalism, a fire, or a natural disaster. Collision and comprehensive are not mandatory in any state, but they are usually required for leased and financed cars.
Uninsured/underinsured motorist coverage. This type of coverage protects you if you are involved in an accident with a driver who either does not have car insurance or does not have enough coverage. Uninsured/underinsured motorist insurance covers your expenses after an accident that should have been paid for by the at-fault driver’s liability insurance. It will automatically be included in your full coverage policy if it is required in your state.
Personal injury protection/MedPay. Personal injury protection (PIP) insurance and MedPay coverage both cover medical expenses for you and your passengers after an accident, regardless of fault. Depending on your state, you may be required to carry one or the other.
Although these types of insurance are commonly included in a full coverage policy, what your specific policy includes will depend on your state. Full coverage is not the official name of any type of insurance, so be sure to clarify whether these types of insurance are included if you’re purchasing a State Farm policy.
When You Should Consider Full Coverage From State Farm
A State Farm full coverage policy is a good choice for drivers who don’t want to pay for vehicle repairs out of pocket. If you are leasing or financing your car, you may be required to get full coverage.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.