State Farm Car Insurance At A Glance
State Farm has been selling car insurance longer than most Americans have been alive. State Farm was started in 1922 by a retired farmer who believed rural drivers deserved fair rates. This Illinois-based company has grown into the nation’s largest auto insurer with over 19,000 local agents across the country. The company operates as a mutual insurer, meaning policyholders technically own a piece of the pie rather than outside shareholders calling the shots. This format allows the company to focus on long-term customer relationships rather than quarterly earnings reports.
While State Farm might not always be the cheapest option on the block, it delivers solid coverage and a claims experience that outperforms many competitors. The company shines brightest for drivers who value face-to-face relationships with their insurance agent and those looking to bundle multiple policies under one roof.
Overall, we rated State Farm car insurance 9.3 out of 10, earning it a spot on our list of the best car insurance companies. Read more and learn about State Farm, and whether it might be right for you.
Key Strengths
State Farm consistently scores above average in customer satisfaction surveys, especially when it comes to claims handling. The company’s extensive network of local agents means you can actually walk into an office and talk to someone who knows your name. Its mobile app receives outstanding reviews from users, and the Drive Safe & Save telematics program lets careful drivers earn meaningful discounts. Financial stability remains rock solid despite recent challenges in some markets.
Key Weaknesses
Rates tend to run higher than budget-focused competitors like GEICO or Progressive, especially for younger drivers and those with poor credit. State Farm lacks accident forgiveness, which many competitors now offer as standard. The company also does not sell traditional gap insurance and has limited its availability in Massachusetts and Rhode Island entirely.
Who Is State Farm Best For?
State Farm works best for families looking to bundle home, auto, and life insurance together for maximum savings. The company also makes a lot of sense for teen drivers and their parents since rates for young motorists often come in below industry averages. If you prefer working with a dedicated local agent rather than navigating everything through an app or call center, State Farm delivers that personalized experience better than most national carriers. Drivers with a few blemishes on their record, including those with a single at-fault accident or speeding ticket, may also find competitive rates here.
State Farm Car Insurance
State Farm is a highly reliable and customer-focused insurance provider, making it an excellent choice for drivers who prioritize personal service and a smooth claims experience. The company’s extensive, localized network of over 19,000 agents offers personalized, face-to-face assistance that many national carriers lack. This agent-based model contributes to State Farm consistently scoring above the industry average in customer satisfaction surveys, especially for claims handling. Furthermore, its financial stability is exceptional, holding "Superior" and "very strong" ratings from major agencies like AM Best and Standard & Poor's, which assures policyholders of the company's ability to pay claims even in challenging market conditions.
The insurer offers significant value for specific customer profiles, especially families and those looking to consolidate their policies. State Farm is particularly competitive for teen drivers, with rates for young motorists often coming in below industry averages, making it a cost-effective option for parents. The company provides substantial savings through its extensive discount menu, with the average customer saving between $1,127 to $1,273 annually when bundling home or renters insurance with their auto policy. Additionally, safe drivers can earn up to 30% off their premium through the highly-rated Drive Safe & Save telematics program, rewarding good habits on the road.
Overall, State Farm earns its position as America's largest auto insurer by delivering on fundamental strengths: a reliable claims process, strong financial backing, and high-quality customer service. It is the ideal choice for customers who value a dedicated local agent, want the convenience and savings of bundling multiple insurance needs—such as home, auto, and life—under one company, and are willing to pay slightly more for a comprehensive, full-service experience. While it may not offer the absolute lowest rates for every driver, its consistent, above-average performance in handling claims and providing personalized support solidifies its standing as a superior insurance product.
- Trusted Local Service: Access a massive network of over 19,000 local agents for personalized, face-to-face assistance that outperforms many national carriers in customer satisfaction.
- Exceptional Financial Strength: Insure with confidence knowing State Farm holds "Superior" financial stability ratings from AM Best and Standard & Poor's, assuring its ability to pay claims.
- Big Savings for Bundling: Unlock substantial discounts by consolidating your home, auto, and life insurance policies—customers save an average of over $1,100 annually when they bundle.
- Industry-Leading Mobile App: Easily manage your policy, file claims, and get roadside assistance with an app that consistently ranks among the best in the industry.
- Rewards for Safe Driving: Enroll in the Drive Safe & Save program to earn up to 30% off your premium just for maintaining safe driving habits.
State Farm Affordability
State Farm pricing falls somewhere in the middle of the pack among major insurers, though your individual experience will vary dramatically based on where you live and your personal driving history. Full coverage policies average roughly $2,090 to $2,200 annually nationwide, which runs close to or slightly above the national average depending on which study you reference. Minimum liability coverage averages around $523 to $674 per year, placing State Farm among the more affordable options for basic coverage.
The company tends to price competitively for certain demographics while being pricier for others. Teenage drivers and those with accidents or violations on their record often find rates below industry averages at State Farm. Young adults in their mid-twenties and senior drivers over 60, however, may pay slightly more than competitors charge.
State Farm offers an extensive discount menu that can significantly reduce your premium. The Drive Safe & Save telematics program delivers up to 30% savings for safe driving habits, and you earn a discount just for signing up for the program. Bundling your auto policy with homeowners or renters insurance saves an average of $1,127 to $1,273 annually. The multi-vehicle discount knocks up to 20% off when insuring two or more cars, while the good student discount rewards young drivers maintaining a B average with up to 25% savings. Other available discounts include Steer Clear for drivers under 25, defensive driving course credits, anti-theft device discounts, vehicle safety feature savings, and loyalty rewards for accident-free customers.
State Farm Coverage Options
State Farm provides all the standard coverage types you would expect from a major insurer. Liability insurance covers bodily injury and property damage you cause to others, with limits you can customize based on your assets and risk tolerance. Collision coverage covers the cost of repairing or replacing your vehicle after an accident, regardless of fault, while comprehensive coverage handles non-collision damage from theft, vandalism, weather events, or animal strikes.
Uninsured and underinsured motorist protection helps cover your expenses when the other driver involved in your accident does not have enough insurance to pay for your damages or injuries. Medical payments coverage takes care of medical and funeral expenses for passengers in your vehicle after an accident, regardless of who caused the crash.
Beyond these basics, State Farm offers several add-on coverages worth considering. Rideshare insurance extends your personal policy protection while driving for companies like Uber or Lyft, filling the gap that typically exists between your personal coverage and the rideshare company’s commercial policy. Emergency roadside service covers towing, flat tire changes, jump starts, lockouts, and fuel delivery if you get stranded.
The rental car and travel expenses coverage stands out as particularly generous compared to competitors. This feature pays for a rental vehicle while yours sits in the shop and can cover up to $500 in lodging, meals, and transportation if you break down more than 50 miles from home.
One notable gap in State Farm’s lineup: the company does not offer traditional gap insurance. Instead, customers financing through State Farm Bank can access Payoff Protector, which serves a similar purpose but remains unavailable to those with outside financing. State Farm also lacks accident forgiveness, meaning your rates will likely increase after an at-fault crash, even if you have been a perfect driver for years.
State Farm Reliability
State Farm remains one of the most financially stable insurance companies in America, though recent performance challenges have resulted in a modest ratings adjustment. In November 2025, AM Best downgraded State Farm’s financial strength rating from A++ to A+, still categorized as “Superior” but reflecting concerns about five consecutive years of underwriting losses and elevated claims from weather events. The company maintains an AA rating from Standard & Poor’s for its main auto insurance operations and an Aa1 rating from Moody’s, both indicating very strong financial positioning.
These ratings matter because they reflect the company’s ability to pay claims when disaster strikes. Despite recent headwinds from severe weather, rising repair costs, and challenging conditions in markets like California, State Farm’s balance sheet strength remains among the strongest in the industry. The company holds the largest share of the market in personal auto insurance nationwide, writing approximately 24% of all private passenger auto premiums in the country.
State Farm’s NAIC complaint index hovers around 0.79 to 0.85, depending on the reporting period, meaning the company receives fewer complaints than expected based on its enormous market share. A score below 1.0 indicates better-than-average performance. The company has been serving policyholders for over 100 years and shows no signs of going anywhere despite regional challenges in catastrophe-prone states.
State Farm Customer Service
State Farm generally earns positive marks for customer service, though experiences can vary significantly depending on your local agent. The company’s agent-based model means your satisfaction largely depends on the quality of the specific office handling your account.
Phone support operates around the clock at 800-782-8332, allowing you to reach someone at any hour for urgent matters. Local agent offices maintain their own schedules, which typically follow standard business hours with some evening and weekend availability depending on location. Wait times vary but generally fall within reasonable ranges for a company of State Farm’s size.
The State Farm mobile app receives exceptional ratings from users, earning 4.8 stars on the iOS App Store from over 1.1 million reviews and 4.6 stars on Google Play from roughly 340,000 reviews. The app allows policyholders to pay bills, access digital ID cards, file and track claims, request roadside assistance, enroll in Drive Safe & Save, and contact their agent directly. Over 18 million customers actively use the app, and the company reports hundreds of millions of annual app visits.
The company’s website provides straightforward navigation for getting quotes, managing policies, and accessing account information. Chat support appears within the app and website for quick questions.
Third-party ratings paint a mixed picture. State Farm holds an F rating with the Better Business Bureau, though this reflects the company’s decision not to seek BBB accreditation rather than necessarily poor service. Many large insurers choose not to engage with the BBB due to accreditation fees and requirements. On Trustpilot, State Farm carries a 1.5 out of 5 rating, reflecting frustrations primarily related to claims disputes and rate increases. However, J.D. Power surveys tell a more favorable story: State Farm scored 710 out of 1,000 in the 2024 U.S. Auto Claims Satisfaction Study, well above the industry average of 697 and ahead of competitors like GEICO, Progressive, and Allstate. The company also ranked fourth out of 17 insurers in J.D. Power’s Insurance Shopping Study.
Feedback on Reddit and insurance forums tends toward the positive, with customers frequently praising their local agents and the reliability of claims handling. Common complaints center on higher premiums compared to direct writers and occasional inconsistency between different agent offices.
State Farm Claims Process
Filing a claim with State Farm can happen through multiple channels: the mobile app, the company website, by phone at 800-732-5246, or through your local agent directly. The app allows you to upload photos and documents straight from your phone, which can speed up the process considerably for straightforward claims.
Once you file, State Farm assigns a claims representative to guide you through the process. The company performed above average in J.D. Power’s 2024 Auto Claims Satisfaction Study, scoring 710 compared to the industry average of 697. This suggests most customers experience relatively smooth claims handling, though individual experiences certainly vary.
Claim settlement times depend heavily on the complexity of your situation. Straightforward fender benders with clear liability typically resolve within days or a couple of weeks. More complicated claims involving injuries, disputed fault, or total losses can take considerably longer. State Farm does not publicly disclose average settlement timelines or denial rates.
Customer reviews of the claims experience reveal a somewhat polarized picture. Many policyholders report positive interactions with responsive adjusters and fair settlements, particularly when working through their local agent. Others express frustration with settlement offers they consider low, pressure to use preferred repair shops, and communication delays during complex claims. Body shop professionals give State Farm a C-minus rating in the CRASH Network annual survey, suggesting some tension exists between the company and repair facilities over payment practices.
State Farm Application Process
Getting a quote from State Farm takes just a few minutes online, by phone, or in person with a local agent. The website walks you through questions about your vehicle, driving history, and desired coverage levels. You can complete the entire purchase online for many policies, though some situations may require agent involvement.
State Farm does not typically require a large down payment when starting a new policy. You can choose to pay in full or set up monthly payments with the first month due at sign-up. The company offers automatic payment options and accepts various payment methods, including Apple Pay through the mobile app.
Quotes generate quickly through the online system, though rates are subject to verification of the information you provide. State Farm may pull your driving record and, in most states, your credit-based insurance score to finalize your premium. The website includes tools to help estimate coverage needs and compare different deductible options.
Local agents provide another path to coverage, offering face-to-face consultations where they can explain options and help customize your policy. Many customers prefer this approach for the personalized attention, especially when bundling multiple policies or dealing with unusual coverage situations.
Pros & Cons of State Farm
State Farm brings plenty to the table, but it may not suit every driver’s needs.
Pros
The company’s massive network of local agents means personalized service remains accessible in nearly every community across America. State Farm consistently earns above-average customer satisfaction scores, particularly for claims handling. The mobile app ranks among the best in the industry with an intuitive design and comprehensive functionality. Bundling multiple policies together unlocks substantial savings, and the Drive Safe & Save program rewards careful drivers with discounts up to 30%. Financial stability remains exceptional despite recent challenges, and teen drivers often find rates below industry averages.
Cons
Pricing runs higher than budget competitors for many driver profiles, especially young adults and seniors. The absence of accident forgiveness means a single mishap can spike your rates for years. State Farm does not offer traditional gap insurance, limiting options for drivers with financed vehicles. The company has pulled out of Massachusetts and Rhode Island entirely for new auto policies and faces ongoing challenges in California’s homeowners market. Some customers report inconsistent experiences depending on their local agent’s quality, and the BBB rating appears troublingly low at first glance.
Our Verdict & Rating for State Farm
State Farm delivers on its promise of being a reliable, full-service insurance provider with an emphasis on personal relationships and comprehensive coverage. The company works best for customers who value having a dedicated local agent, want to consolidate multiple insurance needs under one roof, and prioritize claims service over rock-bottom pricing. Families with teen drivers may find particularly good value here, as State Farm’s rates for young motorists often beat the competition.
That said, bargain hunters focused purely on price should shop around. Direct writers like GEICO and Progressive frequently undercut State Farm on premiums, especially for single policies without bundling. The lack of accident forgiveness also stings for drivers who want protection against rate hikes after their first at-fault incident.
Overall, State Farm earns its position as America’s largest auto insurer through solid fundamentals rather than flashy features. The company handles claims well, maintains strong financial backing, and provides customer service that outperforms most competitors. If those qualities matter more to you than finding the absolute lowest premium, State Farm deserves serious consideration.
Who Should Consider State Farm?
Drivers looking to bundle home, auto, and life insurance with one company stand to save significantly. Families with teenage drivers often find rates below industry averages. Anyone who prefers working with a dedicated local agent rather than call centers or apps will appreciate the personalized service. Safe drivers can maximize savings through the Drive Safe & Save telematics program. Those with minor violations or a single accident may find more competitive rates than elsewhere.
Who Should Consider Another Provider?
Shoppers focused primarily on finding the cheapest premium should compare quotes from direct writers. Drivers who want accident forgiveness built into their policy will need to look elsewhere. Anyone financing a vehicle and needing gap insurance should explore competitors who offer this coverage. Residents of Massachusetts or Rhode Island cannot purchase new State Farm auto policies. Tech-forward customers who prefer handling everything through an app without agent interaction might find other insurers more streamlined.
About Our Methodology
We use a weighted scoring system for car insurance reviews. We compared 20 companies on key factors, including their car insurance rates, to inform our ratings. Once we scored each company, we applied a curve based on the best overall product. Here’s what we look for:
- Financial Strength & Solvency: 20%
- Coverage Options: 10%
- Affordability: 30%
- Claims Process: 20%
- Customer Service: 20%
How State Farm Scored
- Financial Stability: 9/10
- Coverage Options: 7/10
- Affordability & Value: 7/10
- Claims Process: 8/10
- Customer Service: 8/10
- Overall: 9.3/10
You can learn more about how each company scored and what curve was applied here: Car Insurance Reviews.
