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 $919 annually or $77 per month.
Factors That Affect State Farm Insurance Rates
Car make and model
Sample State Farm Car Insurance Rates
Average Annual Cost of Minimum Coverage
These sample quotes are representative of State Farm’s insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete State Farm car insurance review.
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.
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.
You can lower your State Farm car insurance costs by taking advantage of State Farm discounts, opting for a higher deductible, and reducing your coverage, among other things. State Farm considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.… read full answer
How to Lower the Cost of Car Insurance from State Farm
Use State Farm’s auto insurance discounts
State Farm offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 25% if they've been insured with State Farm for at least three continuous years without an accident . Or you can save up to 25% on your premium if a high school or college student listed on your policy maintains at least a 3.0 GPA.
Raise your car insurance deductible
Opting for a higher deductible on any of your insurance policies from State Farm can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.
Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.
Improve your driving record
Practicing save driving habits and avoiding moving violations can help you qualify for lower State Farm insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. State Farm even offers a 10-15% discount to drivers who take an approved defensive driving course.
Build and improve your credit
Because your credit history is correlated with your likelihood of filing an insurance claim, State Farm uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.
Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your State Farm premium.
Drive an insurance-friendly car
Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from State Farm to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.
Sign up for Drive Safe & Save
Drive Safe & Save, the State Farm telematics program, rewards you for good driving with a discounted premium. Specifically, Drive Safe & Save tracks miles driven, acceleration, braking, turns, speed, and distracted driving. By using Drive Safe & Save, drivers can save up to 50% on their rate.
Finally, if you’re still struggling to afford your State Farm policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.
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