State Farm is a well-known and popular insurer with a range of auto insurance policies. According to S&P Global Market Intelligence analysis, the insurer holds a 16% share of the market based on premiums written, making State Farm the nation’s largest auto insurance company.
While the size of State Farm works as an advantage for policyholders who are looking for stability and security, its policy options, costs, and customer experience vary. If you’re considering State Farm auto insurance, here’s what you need to know.
State Farm offers a range of auto insurance coverage options, including:
State Farm does not offer GAP insurance, the coverage that makes up the difference between your car’s value and your car loan balance if your car gets totaled. This type of insurance can help you avoid having to make payments on a vehicle you no longer own.
Instead, State Farm offers a similar program called Payoff Protector, but it’s only available and automatically included if you finance your vehicle through State Farm Bank.
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Read on to learn about the advantages of State Farm auto insurance.
According to The Zebra, the average State Farm insurance policy costs $108 per month. However, you might get a different quote based on your age, gender, and the state where you live. Other factors, including your driving record, will also affect rates.
| Age Range | Monthly Rate |
| Teens | $286 |
| 20s | $142 |
| 30s | $106 |
| 40s | $104 |
| 50s | $99 |
| 60s | $96 |
Source: The Zebra
State Farm offers several car insurance discounts, including the Steer Clear Program for safe drivers under age 25. Young drivers typically pay high insurance rates, but the Steer Clear Program provides savings for younger drivers with no at-fault accidents or moving violations in the past three years.
Other factors can impact your car insurance quote from State Farm. Location, credit score, and driving record. Let’s take a closer look.
The state where you live will impact insurance costs, along with where you park your car. Living in a large city with higher crime and accident rates means car insurance costs go up, compared with smaller towns with low crime and accident rates. Living in Tornado Alley or America’s Plains states can affect how insurers build your insurance quote, too.
According to The Zebra, you’ll pay $64 per month on average if you live in New Hampshire but pay $228 in Michigan.
Your credit score also impacts your car insurance rate. According to an analysis by The Zebra, drivers in general with very poor credit scores pay 115% more on average than those with exceptional credit.
There is some good news. By improving your credit score by as little as one tier, you can lower your car insurance costs by 17%.
Insurers cannot consider credit scores for drivers seeking insurance in California, Massachusetts, Hawaii, and Michigan.
According to The Zebra, State Farm is among the cheapest options for drivers after a DUI. The average monthly premium after a DUI comes to $165.
State Farm is one of the best car insurance companies for drivers with at-fault accidents on their driving record. According to The Zebra, the average monthly premium is $135 after such an accident.
In general, it’s best for drivers to shop around for car insurance quotes before determining which plan works best.
J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study ranked State Farm at 892, above the industry average of 880. The study looked at 7,345 auto insurance customers settling claims.
In another survey of just under 40,000 car insurance customers, the J.D. Power 2021 U.S. Auto Insurance Study said State Farm was among the top insurers by region in several categories and fell below average in just one.
The annual study provides an in-depth look at how car insurance companies perform nationally. J.D. Power gathered customer feedback on the following five criteria: billing process and policy information, claims, interaction, policy offerings, and price.
According to the study, here’s how State Farm ranked:
When you buy insurance, you want to know that the company can pay your claim within a reasonable timeframe. Even as insurance companies are checking your credit to determine your insurability and premiums, consumers can also use credit ratings to assess their insurer’s financial fitness.
With headquarters in Bloomington, Illinois, State Farm started 100 years ago in 1922. The company insures more cars and homes than any other insurer in the United States.
When considering policy options, keep in mind that State Farm agents are independent contractors without a base salary. Their compensation is entirely based on sales and commission. Understanding this income model can help you be cautious of unnecessary insurance add-ons. Also, because agents aren’t employees, responsiveness and customer helpfulness can vary.
Keep in mind that State Farm insurance may need to be procured a little differently. A State Farm agent is only able to sell State Farm insurance. This means that if you switch your car insurance to State Farm, you’ll also be switching agents.
