State Farm Car Insurance Review 2023

About the Company 

State Farm Insurance is one of the largest insurance providers in the United States and has been in business for almost a century. It started with auto insurance and hit its one million policies in 1944. Since then, State Farm expended to other types of insurance, including health, life, home, and even a range of financial services. 

State Farm has less than the median number of complaints to state regulators relative to its size for life, home, and auto insurance. It has a lot to offer, brilliant ratings and wonderful discounts. But is it the right company for you?

How we Reviewed

We wanted you to make an informed decision when choosing your auto insurance company. So, we made sure to go into detail about different aspects of State Farm – what it has to offer and where it is lacking. 

We highlighted the following in this review:

• Types of insurance covered by the State Farm
• Where this insurance is available 
• Insurance offers or extras
• Customer satisfaction and reviews
• Customer support
• Ease of use
• Pricing review
• Comparison with competitors
• Claims handling

Where is it Available?

State Farm insurance covers all parts of the United States. You can easily find their agents in areas near you. 

Types of Insurance Covered and Missing Coverages

State Farm offers a wide range of auto insurance, including underinsured, uninsured, liability, comprehensive, and collision motorist coverages. The company also offers emergency roadside service that includes delivery of battery or gas, towing, locksmith for an hour, or mechanical labor, depending on what service you require. 

State Farm provides insurance to ride-share drivers as well for companies like Lyft and Uber. While the majority of such companies offer insurance coverage to their drivers, this add-on service gives you enhanced coverage. 

However, the company doesn’t offer new car replacement or gap coverage, which could prove useful a new vehicle is damaged. State Farm also doesn’t provide coverage for any of the custom equipment you might have added to the vehicle. 

Aside from auto insurance, State Farm offers other types of insurance as well, including:

• Home and property insurance
• Renters insurance
• Health insurance
• Boat insurance
• Identity theft insurance
• Business insurance
• Umbrella insurance
• Ranch and farm insurance 
• Condo insurance

Insurance Offers or Extras

State Farm offers several discounts. Aside from the usual offers, you can also enjoy:

State Farm’s Drive Safe & Save Program: You can get rewarded for your good driving. They monitor your driving habits and then reward you accordingly. Once you are enrolled, you will receive a small device that must be installed in your vehicle. This device keeps a track of your driving habits, including braking and acceleration. After a few months, an agent will review the results and will adjust the new rate as per your driving behavior before your policy renews. You get a 5% discount once you enroll in this program and earn more savings on each renewal. 

State Farm’s Steer Clear Program: The company offers various discounts to young drivers to help them in managing high premiums. The program is specifically for younger drivers who are under the age of 25. It is a refresher driver course that must be completed through the company’s app or online. After the successful completion of the course, you will be eligible for more savings.

Classic and Antique Cars Coverage: State Farm is among the few auto insurance companies offering special insurance coverage for antique and classic vehicles. However, to qualify for it, your car has to be properly maintained or restored and driven on a limited basis. You will have to consult your local agent for State Farm to receive a quote as this coverage isn’t available online. 

Customer Satisfaction and Reviews

The company has been rated slightly higher than its competitors in both claims satisfaction and shopping experience. A good indication of its customer satisfaction is the few complaints it receives in comparison to the size of the company.

State Farm received four stars out of five on the basis of the National Association of Insurance Commissioners’ (NAIC)’ complaints data. It has also been rated AA by S&P Global for its strong claims-paying ability.

 

The company has an A++ rating for its financial strength by AM Best which means it has a stable enough financial strength to pay the insurance claims of their clients. This rating is the highest possible an insurance company can receive. While they do have the funds to pay for a claim, there have also been some dissatisfied customers regarding the company’s claim handling and payment.

Customer Support

Clients are mostly satisfied with the customer support offered by State Farm. They have clearly mentioned their contact details to reach out to the appropriate agent. They have separate contact numbers for filing life claims, health claims, auto glass claims, and auto/home/property claims. 

There is also a 24/7 helpline open for emergency roadside service. You can pay insurance through their app, or online. There are separate contact details for banking and investments, technical issues with your account, and for general inquiries. 

They also offer assistance to clients who are speech or hearing impaired. 

Ease of Use and Policy Customization

State Farm’s website is easy to use, intuitive, and offers plenty of information for both new and existing clients. They have a simple and effective method of helping the clients get a quote using a form. You can also buy a policy online, manage or file a claim, and locate your nearest agent. 

Aside from their website, State Farm also has a pocket agent app where the clients can review their policy information, insurance card, get quotes, file a claim, view the claim status and more. They also have apps for their two insurance plans – Drive Safe & Save program and Steer Clear program. 

The process of filing a claim with the insurance company is easy. You have an option to submit the claim through the website, app, phone, or email. In order to file a claim online, you will need to create a username. Once the claim has been filed, you can easily check its status and view or upload relevant documents. 

The policies offered by State Farm are no-frills. Even though they are rather comprehensive, the policies don’t really leave much room for customization. 

Pricing Review

State Farm offers lower rates for the majority of the demographics. However, it is certainly not the cheapest option for many. Also, it is not a good option for drivers with poor credit. The average study rate of State Farm is $1,235, which is lower than most. The average national rate for 25-year-old individual is about $1,468, $1,204.67 for a 35-year-old individual, and $1,198 for a 45-year-old. 

The national average rate as per the credit score was – $1,231 for good credit history, $1,605 for medium credit history, and $2,744 for bad credit history. For full coverage, the national average rate was $1,325 and for low coverage, it was $1,143. 

Comparison with Competitors

Here is a comparison between State Farm auto insurance and a few of its competitors:

Allstate Auto Insurance

State Farm auto insurance have less expensive average rates as compared to Allstate auto insurance. However, Allstate offers better rates for clients who have a score lower than 520. If you have an exceptional credit score then State Farm is the way to go. 

Both companies offer a simple and easy case filing process. State Farm has a higher customer satisfaction rate as compared to Allstate. 

Allstate offers a higher amount of optional coverage options than State Farm. They also offer their clients gap insurance and new car replacement, which are not offered by State Farm. 

Both of these companies have received fewer complaints in state regulators, as compared to other competitors. 

Geico Auto Insurance

Geico offers a lower representative rate. It is a great option for individuals with a poor credit score. Both companies scored high on customer satisfaction. Geico is the cheapest auto insurance as compared to other top competitors. 

Geico offers more tech options, including an app function that monitors the maintenance of the car and virtual assistance. On the other hand, State Farm offers other discount programs, including Steer Clear program and State Farm’s Drive Safe & Save program.

Geico also offers coverage for mechanical breakdown and accident forgiveness. Whereas, State Farm offers usage-based insurance. 

Progressive Auto Insurance

Progressive has had the least number of complaints as per three years of data. However, State Farm has also scored low customer complaints. 

State Farm is considerably cheaper than Progressive and has better customer satisfaction scores. However, Progressive offers a vast range of coverage options that are not offered by State Farm. 

While State Farm only offers usage-based insurance, Progressive insurance offers not just usage-based insurance, but also custom parts coverage, deductible rewards, accident forgiveness, and gap insurance. Progressive also offers Google home voice assistance.

Claims Handling

The filing of a claim with State Farm is a rather simple process. You can submit the claim through the mobile app or online. You can also consult your agent or call them to start the claim. 

Once the claim has been filed from your end, the company will start reviewing it. They determine whether the incident is covered in your policy and calculate the damage or loss. A representative will get in touch with you after a few weeks to explain the coverage, ask for more information, or to share the next steps with you. 

Next, you will be provided with the repair options and estimates to help you make the right decision. The estimates will depend on the damage and incident. The payment is then made as per your policy’s terms. State Farm might directly pay the repairer, transfer the money in your account, or send it through the mail. 

If the case is won by the client, State Farm issues a judgment or settlement award check. You would receive the money in two to three weeks. The lawyer you hire will settle the payment of your attorneys, medical providers and others, and you will receive the leftover amount.