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.
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.
To learn more, check out WalletHub’s review of State Farm and see State Farm’s full profile.
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