What are the State Farm payment options?

To cancel State Farm insurance, the policyholder must call 800-STATEFARM, mail a cancellation letter, or cancel at a local State Farm office. You will need to provide basic information about yourself, your State Farm policy number, and the date you would like your policy to end. State Farm may also ask for the details of your new car insurance policy to verify you won’t be … read full answerdriving without insurance.

How to Cancel State Farm Insurance Policies

• Cancel by phone by calling your agent or 800-STATEFARM (1-800-782-8332).
• Cancel my mail by writing a letter that includes your State Farm policy number, name, address, phone number, plus the date and time you want your policy to end. Sign, date, and mail your letter to: Corporate Headquarters of State Farm Insurance / One State Farm Plaza / Bloomington, IL 61710.
• Cancel in person by visiting your nearest State Farm insurance office and speaking with an agent.

If you’ve sold your vehicle, you may be asked to provide a bill of sale. If you’ve already paid your premium for the policy period in full, State Farm will refund the unused portion. State Farm does not impose a cancellation fee or penalty for early termination.

Finally, it’s important to remember that you don’t need to cancel your policy just because you’re going through some life changes. For example, if you’re moving or buying a new car you can just have State Farm update your mailing address or vehicle information.

To get the State Farm low mileage discount, a customer must drive fewer than 7,500 miles per year. Exactly how much State Farm’s low mileage discount can save a customer depends on many factors, like their address, car type, and driving history.

How to Get the State Farm Low Mileage Discount… read full answer

1. Drive fewer than 7,500 miles per year.
2. Provide odometer information to a State Farm agent, who will call to verify the reading. Agents call to verify odometer information when it’s time to renew a policy, and sometimes mid-term.
3. Confirm your low mileage discount is being applied to your bill. It will last as long as you continue to drive fewer than 7,500 miles annually.

How State Farm Verifies Low Mileage

To verify a customer meets the annual mileage requirement, a State Farm agent will contact the customer to collect their odometer information for the past year. State Farm will then continue to contact the customer periodically to collect the car’s odometer readings. If those readings show the customer has increased their driving to more than 7,500 miles per year, they will lose the discount.

Car insurance is tax-deductible for self-employed people who use their car for business reasons, as well as for select other occupations. For example, car insurance is tax-deductible for armed forces reservists who travel for duty, some performing artists, and certain government employees who are paid via fees-per-service.

Business use means trips taken for work, but commuting to and from work is not deductible. For example, a photographer’s drive to her studio would not be deductible, but her drive from her studio to a client’s house during working hours would be. However, if the photographer had a studio in her house, then her drive from her home studio to a client’s house for work purposes would qualify as tax-deductible.… read full answer

How to Deduct Car Insurance on Taxes

Car insurance can be deducted by eligible taxpayers based on either mileage or actual cost. If you choose to deduct based on mileage, the official rate – $0.58 per mile in 2019 – incorporates all the expenses that go into driving, so insurance cannot be deducted separately. On the other hand, deducting based on actual expenses requires taxpayers to add up costs like insurance premiums, repairs, gas, tires, and registration fees.

Self-employed taxpayers can use Schedule C to deduct their vehicle expenses, whether using actual cost or mileage. Other eligible taxpayers can use Form 2106 for Employee Business Expenses.

Car Insurance Tax Deductibility Tips

• If a car is used exclusively for business, the entire amount of its actual cost can be deducted.
• If a car is driven for both business and personal reasons, the total cost can be prorated. For example, if the car is used for business half of the time, half of its actual cost can be deducted.
• If a taxpayer is deducting based on mileage, they should keep careful track of their work-related miles and can deduct only that amount.

Regardless of which type of deduction you choose, it’s important to keep careful records of business vehicle use. In addition, it’s usually best to calculate your deduction using both the actual value and mileage methods, so you can choose the method that gives you the highest tax savings. If you’re still unsure whether you can deduct your car insurance, visit the IRS website or talk to a tax expert.