Pros
- Highly-rated claims service
- Nationwide availability with local agents in all 50 states
- Rideshare coverage in most states
- Discounts available
Cons
- Average customer service
- Complaints about premium increases over time
- No accident forgiveness
State Farm Review Summary
State Farm is a pretty good insurance company overall, earning a rating of 4.1/5 from WalletHub editors, good customer reviews, and great scores from organizations such as the Better Business Bureau (BBB) and J.D. Power. State Farm also has great ratings from financial groups like AM Best and Moody’s, and it has received praise from customers for providing personalized attention when purchasing policies and during the claims process.
Those things help to explain how State Farm became the largest auto insurance company in the United States (with 44.1 million auto policies) as well as the largest provider of homeowners insurance. State Farm is also a leader among life insurance and small business insurance providers. In short, the company deserves a spot near the top of every insurance shopper’s list.
Summary: State Farm Scores by Review Category
| Category | Score |
|---|---|
| State Farm Quotes / Pricing | 20/30 |
| Customer Service & Reviews | 22.5/30 |
| State Farm Financial Stability | 10/10 |
| State Farm Claims Process | 15/15 |
| State Farm Types of Insurance and Additional Services Offered | 5/5 |
| State Farm Discounts | 5/5 |
| State Farm Transparency | 5/5 |
| OVERALL | 82.5/100 |
Now that you’re familiar with State Farm’s scores in each of our review categories, let’s see how the company compares to top competitors in a handful of key areas. Hopefully, this will help you find the best insurance company for your needs.
State Farm Car Insurance Pricing
Category Rating: 60% (20 out of 30)
| Sample Age | Average Quote |
|---|---|
| 18-Year-Old | $123 per month |
| 21-Year-Old | $84 per month |
| 45-Year-Old | $60 per month |
| 45-Year-Old with a Speeding Ticket | $91 per month |
| 45-Year-Old with DUI | $187 per month |
| 55-Year-Old | $57 per month |
| 65-Year-Old | $47 per month |
State Farm received a score of 20/30 in the cost portion of this review, as its premiums rank in the third quartile among the cheapest major car insurance providers that WalletHub evaluated. Learn more about WalletHub’s Methodology.
State Farm Customer Service & Reviews
Category Rating: 70% (22.5 out of 30)
- Reviews on WalletHub: 3.4/5
- J.D. Power: 4.2/5
- NAIC: 1.18
- BBB: A+
The company has received average ratings in the customer service department, so it lost a few points in this category. Negative customer reviews online focus largely on customer service issues and unexplained rate increases when it comes time for policy renewals. Also, State Farm’s NAIC score is 1.18. Customer complaints reported by the NAIC include unsatisfactory settlements and unexpected delays/denials for claims payments.
State Farm's Financial Stability
Category Rating: 100% (10 out of 10)
- Standard & Poor’s: AA
- Moody’s: Aa1
- AM Best: A++
State Farm is on great financial footing, earning a rating of A++ from AM Best, one of the nation’s leading credit rating agencies for the insurance industry. State Farm has also earned A ratings from Standard & Poor’s and Moody’s. Such good ratings from these companies mean that State Farm is very strong financially and has the financial capability to pay out claims.
State Farm Claims
Category Rating: 100% (15 out of 15)
With State Farm, you can file a claim any time online using the company’s easy-to-navigate website or mobile app. State Farm also offers 24/7 claims support by phone at 800-SF-CLAIM (800-732-5246).
State Farm’s ease of accessibility has earned the insurance company full marks in this category, per WalletHub’s grading criteria.
Learn more about State Farm's claims process.
State Farm’s Types of Insurance
Category Rating: 100% (5 out of 5)
- Auto insurance
- Boat insurance
- Business Owners Policy insurance
- Commercial Auto insurance
- Condominium insurance
- Contractors Policy
- Farm and Ranch insurance
- Health insurance
- Home insurance
- Identity Restoration insurance
- Life insurance
- Long-Term disability insurance
- Manufactured Home insurance
- Motorcycle insurance
- Motorhome insurance
- Off-road Vehicles insurance
- Personal Articles insurance
- Pet Medical insurance
- Rental Property insurance
- Renters Insurance
- Roadside Assistance
- Short-Term disability insurance
- Small Business insurance
- Surety & Fidelity Bonds
- Travel Trailers insurance
- Umbrella insurance
- Workers’ Compensation insurance
State Farm’s varied list of insurance options earned the company full marks in this category.
As an auto insurance provider in particular, State Farm offers all the major coverage options that are commonly required by states, including bodily injury liability, property damage liability, uninsured/underinsured motorist, collision, and comprehensive. State Farm also offers extra coverage options that you can add to your auto policy for enhanced protection.
Supplemental State Farm Car Insurance Coverage Options:
- Emergency Road Service: Pays for certain emergency roadside services, including towing, mechanical repair, fuel delivery, jump-starts, tire repairs, and locksmith services.
- Rental Reimbursement: Covers rental costs while your car is in the repair shop due to an accident. Policyholders must have comprehensive or collision coverage to add this coverage option.
- Rental Car Deductible: Covers your deductible expense if you have an accident in your rental car.
- Travel Expense: Covers hotel reservations, meals and transportation (up to $500) if you are involved in an accident more than 50 miles from home and your vehicle becomes inoperable. Policyholders must have comprehensive or collision coverage to add this benefit.
- Rideshare Driver Coverage: Extends your personal auto policy to protect you while you’re working. Rideshare coverage may add 15% - 20% to your auto policy premium, and you can only get a personalized quote for it by calling a State Farm agent.
State Farm also insures a variety of recreational vehicles, including motorcycles, scooters, golf carts and ATVs, as well as boats and other watercraft. However, the availability and details of these policies vary by state.
Specialty Types of State Farm Car Insurance:
- State Farm Business Auto Insurance for individuals who use their personal vehicles for business purposes. Types of vehicles include cars, dump trucks, utility trucks, and more. State Farm’s commercial auto insurance offers all the traditional coverage options, and it protects your employees who drive their own cars for work purposes.
- State Farm Sports Car Insurance for individuals who drive high-performance vehicles with powerful engines, but are still looking for a reasonably priced auto insurance policy.
- State Farm Collector & Classic Car Insurance for classic vehicles that are 10-25 years old and not driven on a regular basis. Vehicles more than 25 years old are considered antiques, and State Farm insures those under a separate policy.
If you’re thinking about adding a supplemental coverage option to your policy or signing up for a specialty insurance policy, get in touch with a State Farm agent to make sure the extra coverage makes sense for your personal situation and your wallet.
State Farm Discounts
Category Rating: 100% (5 out of 5)
- Multi-policy discount
- Multi-vehicle discount
- Anti-theft discount
- Passive restraint discount
- Vehicle safety discount
- Good student discount
- Driver training discount
- Good driving discount
- Accident-free discount
- Student away at school discount
- Defensive driving course discount
- Steer Clear®
- Drive Safe & Save™
- Daytime Running Lights Discounts
- Anti-Theft Device Discount
While State Farm offers more than a dozen discount options, it’s not the most extensive list among auto insurance providers. Also, keep in mind that the availability and eligibility criteria for these discounts vary by state.
State Farm’s Transparency
Category Rating: 100% (5 out of 5)
You can find key information on the State Farm website and mobile app quickly and easily, so it got the highest score possible in the transparency department. You can also call a live agent at 800-782-8332 to get information and answers to your questions.
Bottom Line
State Farm is a pretty good insurance company, scoring well in terms of customer service, coverage options and claims processing. State Farm also offers generous discounts for auto insurance policies, as well as discounts for bundling multiple insurance plans.
State Farm Car Insurance vs. Competitors
| Insurer | State Farm | Geico | Allstate | Progressive |
|---|---|---|---|---|
| Average Premium* | $1,410 per year | $1,009 per year | $1,569 per year | $1,296 per year |
| Number of Car Insurance Discounts | 16 | 17 | 12 | 13 |
| Offers Home Insurance | Yes | Yes | Yes | Yes |
| Complaints Score (lower is best) | 1.18 | 1.23 | 2.70 | 1.45 |
| Editor’s Rating | 4.1 | 4.4 | 2.9 | 3.9 |
*Complaints Score represents the company's overall NAIC rating. Car insurance-specific rating may differ.
*Average annual premiums are based on a variety of driver profiles. Individuals' premiums may differ, but these rates illustrate how costs from these insurers typically compare. Learn more about how these rates were calculated in the methodology section below.
For more car insurance research, check out WalletHub’s Cheap Car Insurance Study. And if you have experience with State Farm that you think might help other consumers, you can also write a State Farm insurance review.
Video: State Farm Insurance Review
Methodology
In order to provide fair, helpful reviews of insurance companies such as State Farm that can lead consumers to the best insurance coverage for their needs, WalletHub rates each insurance company in seven major categories: Cost, Insurance Types, Customer Service & Reviews, Discounts, Claims, Financial Stability and Transparency. Below, you can find an overview of what each section in our scoring rubric entails.
- The “Cost” section includes information about how expensive the insurance policies are. State Farm’s average premiums and quartile rankings are based on data from California, the largest state State Farm operates in. Rate information is provided by Quadrant Information Services. Individual rates will be different.
- The “Insurance Types” section examines what types of insurance policies the company offers.
- The “Customer Service & Reviews” section measures the insurance company’s reputation as well as user reviews and information from watchdog organizations.
- The “Discounts” section examines how many and what types of discounts the company offers. It also takes into consideration whether or not there are discounts for bundling policies.
- The “Claims” section examines the ways in which customers can make claims with the policy. It considers whether or not customers can make claims by phone or online, as well as whether or not the company has a 24/7 support line.
- The “Financial Stability” section considers the company’s status with credit rating agencies AM Best, S&P and Moody’s.
- The “Transparency” section measures how clearly the insurer discloses key information on its website.
The final score takes these seven categories into account and reflects how close an insurance company is to WalletHub’s definition of a 5-star insurer. For more information, please read WalletHub’s full insurance company methodology.
Ask The Experts
To gain more insight about State Farm Insurance, WalletHub posed the following questions to a panel of experts. Click on the experts below to view their bios and answers.
1. How important should State Farm Insurance reviews be to potential customers?
2. Why do insurance companies like State Farm spend so much money on commercials?
3. Do national companies like State Farm tend to be a better deal for consumers vs a local insurance company?
4. Does State Farm’s status as the largest insurance company in the U.S. benefit customers?
5. Should State Farm's reputation for handling claims be a factor for customers when choosing insurance?
Ask the Experts
Assistant Professor, Department of Apparel, Housing, and Resource Management, College of Liberal Arts and Human Sciences, Virginia Polytechnic Institute and State University
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Ph.D., Professor of Marketing, Penn State Lehigh Valley
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Ph.D., Co-Director, Consumer Insights and Business Innovation Center (CiBiC); North American Food & Health Innovation Executive Advisory Council (FIEAC); Direct Selling Education Foundation (DSEF) Fellow; Associate Professor, Department of Marketing, Daniels College of Business, University of Denver
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Ph.D., Assistant Professor of Marketing, Department of Business & Computer Science, Everett Dobson School of Business and Technology, Southwestern Oklahoma State University
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Executive in Residence, Barney Barnett School Of Business And Free Enterprise, Florida Southern College
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Ph.D., Assistant Professor of Marketing, Pamplin School of Business, University of Portland
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