When it comes to auto insurance in the US, there are few companies you’ll see and recognize as much as State Farm. State Farm is the largest auto insurer in the country and has over 83 million insurance policies and accounts. State Farm has branded itself as a company that is “like a good neighbor.” But will you feel that way when quality protection is needed for your car and money?
Our State Farm insurance review explored a wide variety of data to see if this is true. We looked at financial strength ratings, consumer complaints, coverage offerings, and technology. Our analysis was based on the official RiskGuarder Review Methodology so that we could provide an objective, fact-based review for you to consider when making a financial decision.
State Farm at a Glance: Key Takeaways
- Our Rating: 4.2 / 5.0 Stars – The RiskGuarder Score
- Financial Strength: Excellent (A++ from A.M. Best)
- Customer Complaints: Better than average (NAIC Score: 0.89)
- Customer Satisfaction: Above average in J.D. Power studies
- Best For: Drivers seeking comprehensive agent support, bundling opportunities, and established claims handling
- Potential Drawbacks: May not offer the lowest rates for all drivers; limited usage-based insurance options
Table of Contents
Our State Farm Rating: A Data-Driven Breakdown Of State Farm Insurance Review
At a macro level, our State Farm ratings represent a weight evaluation of multiple essential items that matter to policyholders. State Farm receives a worthy 4.2 out of 5.0 stars for our overall rating which makes them a great option for many drivers. This, however, does not mean State Farm will be the best for everyone.
Financial Strength & Stability
State Farm has impressive financial strength, evidenced by receiving an A++ (Superior) rating from A.M. Best, which is the top rating available. An A++ is an evaluation of State Farm’s ability to meet its future and ongoing insurance obligations and indicates strong operating results and a very strong balance sheet. For policyholders, this means State Farm should have no issue paying claims when the time comes, regardless of economic conditions or disaster events.
The company’s financial strength is exemplified by its significant surplus of over $78 billion and profits over the decades. Also, because of State Farm’s size, it represents a diversified book of insurance business, providing further stability, and a feeling that State Farm is one of, if not the, most financially sound insurers in the market.
Customer Complaints & Satisfaction
According to the National Association of Insurance Commissioners (NAIC), State Farm also has a complaint index of 0.89 for auto insurance. This is lower than the national average of 1.0, which indicates that the company has fewer complaints than would be expected for a company of its size.. The lower the number, the better because it shows State Farm is handling customer issues better than many of its competitors.
According to the J.D. Power reports, State Farm is above average in claims satisfaction and included rankings for certain indicators of satisfaction results such as settlement process experience and communication with customers during claims. State Farm scored a little lower than some other insurance carriers that are digital first in regards to shopping experience and pricing competitiveness.
Pricing & Available Discounts
Although State Farm may not always be the cheapest provider on the market, they provide many discounts for qualifying customers, leading to significant reductions in premiums. Where they provide the most savings is their multi-policy discount, which can save up to 25% by bundling auto and home insurance together. Notable savings include safe driver discounts, good student discounts for those under 25 with good grades, and discounts from successfully completing a defensive driving course.
State Farm is primarily pricing focused on rewarding long-term customers and customers with multiple products with them. This approach can be more beneficial for individuals looking to consolidate their insurance with one provider.
Pros and Cons of State Farm
| Pros | Cons |
|---|---|
| Exceptional financial stability (A++ rating) | May not offer the lowest rates for all drivers |
| Large local agent network | Limited usage-based insurance options |
| Strong claims satisfaction ratings | Digital tools lag competitors |
| Comprehensive bundling discounts | Fewer innovative coverage options |
| Wide range of coverage options and endorsements | Can be more expensive for high-risk drivers |
| Better than average complaint record | Limited flexibility in policy customization |
| Established brand with long history | May require agent interaction for some services |
State Farm Auto Insurance Coverage Options
State Farm provides a comprehensive auto insurance coverage that meets state requirements and the needs of individuals. Each auto policy has liability coverage, (bodily injury and property damage), medical payments coverages, uninsured motorist coverage and physical damage coverages such as collision and comprehensive coverage.
For coverage options, we appreciate State Farm’s many options for optional endorsements and add-ons. Accident Forgiveness keeps your first accident off of your record, so it won’t affect your rates, but it’s not available in every state. New Car Replacement coverage replaces your car with a brand new car of the same make/model, in case your car is totaled during the first few model years.
The company also provides Rideshare Coverage for drivers using rideshare services like Uber or Lyft that provides coverage where personal auto policies stop and commercial rideshare companies coverage starts. Rental Car Coverage reimburses for rental expenses while your car is repaired from the covered claim. State Farm has a Drive Safe & Save program that provides usage-based insurance discounts for safe driving behaviors, but is not as comprehensive as some of the other companies’ similar programs. The program monitors speed, hard accelerations, hard brakes, and time of day driving, to determine eligibility for the discount. State Farm offers Custom Parts and Equipment Coverage to cover aftermarket modifications and accessories when the value is above the policy limits of the basic policy for higher value vehicles. Emergency Road Service is also included and operates 24/7 for roadside assistance for towing, jump starts, flat tires, and lock outs.
Digital Experience: Website and Mobile App
State Farm’s digital presence has improved noticeably in recent years and is ahead of many competitors, although it is still playing catch-up to some technology-specific companies. The State Farm mobile app allows customers to manage policies, pay bills, file claims, and find digital ID cards. In addition, the app has a helpful claims process in which customers can submit photos in the app and easily track their claims status in near real-time.
The State Farm website is also helpful for policy management since it links to many policy functions like viewing coverage levels, making a payment, and changing policy information online. However, in some instances, the State Farm quotes on-demand experience generates an avenue that directs users to an agent if you want a quote, which can be incredibly frustrating for people hoping for an entirely self-service experience.
One of the most distinct features of State Farm’s digital experience changes is its claims management technology. Photo estimating applications can be used for minor damage to expedite the claims process quickly. State Farm also has a substantial investment in virtual claims inspections and the ability to submit photos and documents digitally.
The biggest limitation regarding the digital experience for State Farm is straightforward – given that most changes to policies and/or complex transactions still require an agent to assist, it can be advantageous for customers to have everything done online. Additionally, State Farm’s ability to provide quote comparisons does not work as effectively as some of the newer insurtech companies.
Our Verdict: Is State Farm a Good Choice?
Upon thorough examination of the major insurance providers in the U.S., State Farm stands out as a wise choice for many drivers, specifically those that value genuine financial stability, agent support, and extensive coverage. The A++ rating provides significant peace of mind, and their complaint history is average as well which suggests a level of competency in customer service.
State Farm is a great fit for drivers that like to work with their local agents, look to bundle multiple products, and have some peace of mind with going with a large, established insurer. Additionally, the reason why State Farm works for their customers is because the agent network is so expansive so when you need agent support, there will probably be someone local when you need help.
However, State Farm may not be the ideal selection for price-sensitive consumers or consumers wanting the latest in digital experiences. If a driver is simply interested in getting as affordable a rate as possible, they may find better deals than what State Farm offers if they don’t qualify for multiple discounts or need the support of an agent.
The company does a great job at traditional insurance tenets of financial strength, claims handling, and full coverage variety. They may not have made their mark as innovators or offer the best prices but they provide a dependable full-service insurance experience that has satisfied millions of customers for decades.
For the people asking “is State Farm good” or any derivation of that question, that answer depends on what is most important for you in shopping for and buying an insurance policy. If you think stability, full service, and are willing to pay a little more for those things, State Farm is a great choice. If cost is most important to you, it would be best to shop around for quotes from multiple providers before decision making.
“If stability and agent support are your top priorities, State Farm is an excellent choice. The best way to know for sure is to get a personalized quote directly from their website.”
Frequently Asked Questions about State Farm
Is State Farm cheaper than GEICO or Progressive?
Usually, State Farm is generally a competitive rate, but it may not be the lowest price. GEICO and Progressive usually have lower initial base rates especially for drivers with clean records. However, State Farm can be competitive with their bundling and long-term customer discounts. It’s still best to get personalized quotes from all three companies.
How good is State Farm’s claims process?
State Farm consistently ranks at or above the average with respect to claims process overall satisfaction in J.D. Power ratings. State Farm customers are particularly happy with communication during the claims process and time to settlement. Their widespread network of preferred repair shops and investments in digital claims options enhance the overall experience and are largely the reason for positive usage responses.
What discounts does State Farm offer?
State Farm has a wide range of valuable discounts like multi-policy bundling (up to 25%), safe driver discounts, good student discounts, defensive driving course completion, and Drive Safe & Save usage-based discounts. The multi-policy discount is often their largest savings opportunity.
Does State Farm have good customer service?
State Farm’s customer service is a mixed bag. Their large network of agents provides personalized local service that many customers cherish. On the other hand, their NAIC complaint index of 0.89 shows that on a scale of 0 to 2, they are better than average at handling customer problems. While many customers value the personal service provided by an agent, others may prefer the fully digital, self-service experience offered by some competitors.
Is State Farm worth it for new drivers?
For new drivers, State Farm can be an excellent option, especially if the student is eligible for good student discounts and/or if their parents have State Farm policies that can be bundled. Inexperienced drivers will have good protection for the potential errors they may make from an inexperienced perspective because of the comprehensive coverage options and financial stability offered by State Farm, but any insurer will have new driver premiums that reflect the increased risk associated with new drivers.
