WalletHub, Financial Company
State Farm is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $718 per year, the average State Farm car insurance policy is actually cheaper than coverage from most competitors. In fact, State Farm is one of the cheapest car insurance companies nationally.
Even though State Farm offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $1,803 per year for State Farm insurance, compared to $718 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $1,140 per year for State Farm coverage, which is 59% more than drivers with a clean record.
Factors That Can Make State Farm Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you’re struggling to afford your State Farm insurance, there are ways for you to lower your rate. For example, you can take advantage of State Farm discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It’s usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if State Farm is charging you a high premium, you may be able to find a cheaper policy with another insurer.
To learn more, check out WalletHub’s State Farm review.
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