State Farm is one of the most popular car insurers in the country. But is it worth your consideration? Our State Farm car insurance review has all the answers.
In this State Farm car insurance review, we will walk you through its auto coverage options, policy costs, discounts offered, availability, accessibility as well as how it matches up against other car insurers on the market.
State Farm car insurance offers liability coverage, collision coverage, comprehensive coverage, medical payments coverage, personal injury protection as well as uninsured and underinsured motorist coverage. They also offer optional coverage such as car rental and travel expenses coverage, emergency roadside service, rideshare coverage and classic car insurance.
We are not an insurance company. Instead, we are an unbiased and independent partner for consumers, committed to helping insurance shoppers compare different options on the market.
And with that information, you can make an informed decision that aligns best with your coverage needs. With that said, here is everything that you need to know about State Farm car insurance.
About State Farm Insurance
Headquartered in State Farm is currently the largest provider of auto insurance policies in the country. Launched in 1922, State Farm started with single-line auto insurance policies.
Since then, they have expanded their coverage options, and they are currently offering hundreds of insurance products and services.
With more than 19,000 agents, a user-friendly website, a mobile app and a 24/7 customer support team, State Farm is accessible to almost everyone in the country.
What Car Insurance Coverage Does State Farm Offer?
State Farm offers a complete range of car insurance options. It offers the standard coverage that you will find elsewhere, as well as several optional coverages. Here are the types of coverage that State Farm offers.
Liability coverage or liability car insurance will help to pay for the other driver’s medical injuries and property damage if you are held liable for an accident.
So, what does State Farm’s liability insurance cover? Well, liability car insurance covers two main items. These are bodily injury liability and property damage liability.
As the name suggests, bodily injury liability will pay for the expenses associated with the injuries sustained during an accident, which are legally liable. It will pay for bills associated with those bodily injuries like pain and suffering, medical expenses as well as lost wages.
On the other hand, property damage liability coverage will pay for the damage caused to another party’s vehicle or property.
Therefore, if you caused an accident, your State Farm’s property damage liability coverage will pay for repairing or replacing the other party’s car.
It will also help to cover the costs for property damage involving stationary objects such as fences, mailboxes, signposts, and walls, among others.
Each state has minimum requirements pertaining to the amount of car liability insurance that you should carry. Therefore, if you purchase additional car liability insurance from State Farm, then your premiums will also rise.
State Farm’s liability coverage will not cover damage caused to your vehicle or your medical bills.
As noted above, State Farm’s liability coverage will not pay to repair or replace your vehicle, if it’s damaged in a car accident. And this is where collision insurance coverage comes in.
If your vehicle is damaged in a collision with another car, after hitting an object, or after rolling over during an accident, then State Farm’s collision coverage will pay to have it repaired or replaced.
Collision insurance will cover your car when it’s damaged in the following scenarios:
- A single-car accident that only involves your car
- Car accident with another vehicle
- Your car colliding with a stationary object like a structure or tree
- Your vehicle hitting an obstruction or barrier on the road
State Farm’s collision coverage also extends to temporary substitute cars, newly-acquired cars as well as vehicles that you are using but they are not registered to anyone in your household, as long as it’s a covered accident.
Collision insurance will not cover damage caused by flood, hail, fire, falling or flying objects, vandalism, storms, natural disasters, hitting or being hit by an animal and theft.
Similar to other car insurance companies, State Farm’s collision coverage will be limited to your car’s actual cash value. You will also have to pay a deductible before you can receive the payout from State Farm.
State Farm’s collision coverage will not pay for damage caused by natural disasters, fire, theft and vandalism.
Therefore, if your car is damaged in any of the above situations, you will have to pay out-of-pocket for its repair and replacement costs. But as you probably know, repairing or replacing a car doesn’t always come cheap.
Fortunately, State Farm’s comprehensive coverage can take care of that. Comprehensive coverage will cover your car’s repair or replacement costs, beyond what is covered in your State Farm collision insurance.
State Farm’s comprehensive coverage will protect you from losses caused by:
- Car theft
- Damage caused by vandalism
- Explosions and fires
- Damage caused by natural disasters like hurricanes and winds
- Damage caused by riots or civil unrest
- Damaged caused by hitting or being hit by an animal
While comprehensive coverage is normally offered under standard coverage options, it’s more of an optional or additional coverage.
It’s mainly designed for people who own high-value vehicles, those living in areas prone to weather-related disasters as well as those in areas with high car theft rates.
Medical Payments Coverage
Medical payments coverage will pay for medical care for you, your passengers or your family members when you are hurt or injured during a car accident, regardless of who is responsible.
State Farm’s medical payments coverage will pay for your medical expenses in the following scenarios:
- You are injured while using public transportation means
- Your child is hit by a car while walking across the street
- Your spouse is injured while traveling as a passenger in another person’s vehicle
- One of your passengers is injured when your vehicle is rear-ended by another car
It’s important to note that medical payments insurance only covers bodily injuries resulting from a car accident.
It will cover costs such as medical treatment, ambulance fees, EMT fees, hospital expenditures like X-rays, and aftercare bills like professional nursing services. It will also cover funeral expenses if a covered individual dies during an auto accident.
Personal Injury Protection
Also known as first-party benefits insurance, personal injury protection is a type of car insurance, which provides medical costs and loss of income coverage for you and your passengers after you are involved in a car accident, whether you are at fault or not.
State Farm’s personal injury protection coverage will pay for your medical bills, surgical fees, ambulance fees, as well as rehabilitation fees.
Personal injury protection will also pay for lost income, if you or your passengers are no longer able to work, due to injuries sustained from the car accident.
It will also cover child care expenses like paying babysitters, if injuries have made it impossible for the covered individual to take care of their children.
Your State farm PIP insurance will also help to take care of extended household services such as house cleaning and lawn care if the injuries you sustained during the accident have made it impossible for the covered individual to perform these duties.
Currently, 12 states mandate some level of PIP insurance. They include Hawaii, Florida, Kentucky, Kansas, Michigan, Minnesota, New York, New Jersey, Pennsylvania, Utah, Hawaii and North Dakota.
Therefore, if you live in any of the above states, then you need to add PIP insurance to your State Farm car insurance policy.
Underinsured and Uninsured Motorist Coverage
You may sometimes be involved in a car accident and the at-fault driver’s limits are not high enough to pay for the resulting vehicle damage and injuries, or they don’t have liability insurance at all.
In such a case your State Farm’s underinsured and uninsured motorist coverage will help to pay for those costs.
State Farm’s underinsured and uninsured motorist coverage will pay for related damages to your vehicle, medical expenses, lost wages, as well as pain and suffering.
Whether to purchase State Farm’s underinsured and uninsured motorist coverage will depend on various factors such as the value of your car, your financial situation, as well as the state where you live.
Fourteen jurisdictions require underinsured motorist coverage while uninsured motorist coverage is a requirement in 22 states.
Therefore, if you live in a state where underinsured or uninsured motorist coverage is required, then you will need to add it to your State Farm car insurance policy.
As earlier noted, State Farm also offers several optional car insurance packages, on top of their standard coverage. Some of their optional car insurance packages include:
Car Rental and Travel Expenses Coverage
If your car is being repaired due to damage caused by a covered accident, then State Farm will reimburse your car rental costs under this policy.
State Farm gives you the option of either renting a car from one of the companies in their network or using your preferred car rental company.
If you opt to rent a car from one of the companies in the network, then State Farm will pay the rental company directly.
On the other hand, if you decide to use your preferred rental company, then you will first have to pay the rental fees, then State Farm will reimburse you.
The travel expenses part of this coverage will pay for your meals and lodging up to $500 per loss while the car rental part will take care of your transportation costs, up to your limit.
For instance, if your car rental expense limit is $20 per day and $400 per occurrence limit, then State Farm will not cover any additional expenses above these limits. Hence, you will have to pay out of pocket for all extra expenses that you incur above your limits.
Emergency Road Service Coverage
State Farm also runs a roadside assistance service, designed to take care of common reasonable expenses, in case your vehicle breaks down on the road.
If you have added this coverage to your State Farm car insurance policy, then the company will pay for emergency services such as:
- Towing your vehicle to the nearest repair station if it’s not drivable
- Mechanical labor up to one hour at the breakdown site
- Fuel delivery
- Oil, battery or tire change
- Lock-out services of up to one hour if your car keys are stolen, lost or locked inside the vehicle
Labor costs above the first hour as well as additional towing costs beyond what you would normally pay to tow your car to the nearest repair shop are not covered under this service.
State Farm’s rideshare insurance is designed for policyholders who plan on using their personal cars to drive for ridesharing companies like Uber and Lyft.
As long as your app is on and you are available for hire, then State Farm’s rideshare coverage will provide additional protection on top of your personal car policy. It will provide coverage for:
- Car damage
- Medical expenses
- Rental reimbursement
- Emergency road service
- Uninsured and underinsured motorist coverage
On average, rideshare coverage will add approximately 15% to 20% to your current State Farm car insurance premium. The actual figure will depend on the coverages you’ve chosen, applicable discounts and other rating factors.
For instance, if your 6-month State Farm car insurance policy costs $600, then purchasing State Farm’s rideshare coverage will add approximately $90 and $120 to your premium.
Classic Car Insurance
Unlike new vehicles, classic cars and antique cars tend to appreciate with time. Furthermore, conventional car insurance may not be enough to replace or repair a damaged classic car.
Therefore, such cars like a specialized classic car policy, tailored to their unique coverage needs. And this is where State Farm’s classic car insurance comes in.
For a car to qualify for State Farm’s classic car insurance, it must either be a classic car or an antique car.
Under the classic car category, the vehicle should be 10 to 24 years old, with historic interest such as a muscle or rod car. And for a vehicle to qualify under the antique car category, then it must be more than 25 years old.
Also, classic cars and antique cars must meet the following requirements to qualify for State Farm classic car insurance:
- The vehicle should not be driven more than 2,500 miles per year.
- It should only be driven to exhibitions, shows, parades, car activities and other similar events
- The car should be restored, preserved and maintained in its original condition
- The vehicle should always be stored in an enclosed building
Available coverage for eligible cars includes liability, comprehensive, underinsured and uninsured motorist coverage as well as medical payments. State Farm also offers spare parts coverage of up to $500 for classic cars.
You should keep in mind that the eligibility criteria and availability of State Farm’s classic car insurance will depend on the individual car, state requirements and various other factors. This coverage is not available in North Carolina and Massachusetts.
What is the Cost of State Farm Car Insurance?
The cost of car insurance across the country is approximately $1,700 for full coverage and around $470 for minimum coverage annually.
State Farm’s car insurance costs approximately $1,400 for full coverage policy and approximately $500 if you opt for minimum coverage annually.
Compared to the national average, State Farm’s car insurance policy appears affordable for most people.
But considering there are cheaper options on the market, it may not be the best option for someone looking for a budget-friendly car insurance company.
What Determines the Cost of State Farm Car Insurance Rates?
You should keep in mind that the above figures are just averages. The actual cost of your State Farm car insurance policy will depend on various factors such as:
- Make and model of your vehicle
- Vehicle ownership, whether owned, leased or hired
- Vehicle use
- Factory-installed safety features
- Driving history
- Coverage limits
State Farm will consider the above factors on a case-by-case basis and then use them to determine your rates.
For instance, if you have a clean driving record going back several years, there is a high chance your State Farm car insurance rates will be lower, compared to someone with a record of at-fault accidents, speeding tickets, moving violations and license suspensions.
On the same note, if you drive a car that’s expensive to repair, you should expect your insurance rates to be higher, compared to insuring a car that has inexpensive repair parts.
Furthermore, if you opt for full coverage, then your rates will be significantly higher than a driver who only purchases the minimum state coverage required.
Does State Farm Offer Auto Insurance Discounts?
Car insurance doesn’t come cheap. However, State Farm offers numerous discounts, which can help its policyholders to save money on car insurance premiums. Here is a list of all the State Farm car insurance discounts:
If you are a State Farm car insurance policyholder and you stayed for three continuous years without a chargeable accident, then you will qualify for this discount.
The discount you will receive will increase with time, if you remain a State Farm car insurance policyholder and maintain an accident-free driving record.
Defensive Driving Course Discount
Taking a defensive driving course may also give you a discount. Drivers who complete this course successfully may qualify for a 10% to 15% discount on their car insurance premiums.
Good Student Discount
Getting good grades in school can earn you a discount of up to 25% off your State Farm car insurance premiums.
To qualify for this discount, you must be within the age of 16 to 25, enrolled full-time in college, high school, or homeschooling.
You also need to show proof of earning a 3.0 GPA if you are in college, a B if you are in high school, or qualifying test scores if you are homeschooling.
Good Driving Discount
New State Farm policyholders will qualify for this discount if they go for 3 continuous years or more without a moving violation, getting a ticket, or being involved in at-fault accidents.
You should note that the good driving discount is separate from the accident-free discount. While they may appear similar, the good driving discount is only applicable to new customers while the accident-free discount is available to all customers.
Driver Training Discount
If all the under-21 operators that you have added to your State Farm car insurance policy complete an approved driver education course, then you may qualify for the driver training discount.
Vehicle Safety Discount
You can earn a discount of 40% on your medical payments coverage, if your car came out in 1994 or later.
The discount percentage that you will receive will depend on your car’s make and model as well as its repair history. State Farm adjusts the discount percentages every year.
Passive Restraint Discount
If your car was built in 1993 or earlier and it has factory-installed passive restraint equipment, then you can qualify for a 40% discount on your medical payments coverage.
Passive restraint equipment refers to things like seat belts and front airbags installed in most vehicles from 1983 onwards.
Similar to other car insurance companies, State Farm also offers a discount to its customers, who have installed anti-theft devices in their cars.
Some of the anti-theft features that may unlock this discount include factory-installed anti-lock braking systems, a car alarm that can be heard for at least 300 feet away for 3 or more minutes, and factory-installed daytime running lights
Others include window-etched VIN, automatic, manual cutoff systems, and electronic recovery devices, among others.
Multiple Auto Discount
State Farm will give you a discount on your car insurance policy if you insure two or more vehicles in your household. With this discount, you can save as much as 20% on your State Farm car insurance policy.
Multiple Line Discount
Combining your car, homeowners, condo, life or renters insurance with your State Farm car insurance can earn you a discount of up to 17%.
According to State Farm, if you combine your car and homeowners insurance, you can save up to $854 annually.
Drive Safe and Save Program
Just like other car insurers, State Farm runs a usage-based driver discount program, known as Drive Safe and Save.
To join this program, you simply need to send the word “SAVE” to 78836. After sending that message, you will receive a notification, prompting you to download and install the Drive Safe and Save mobile app.
State Farm will then send you a Bluetooth beacon, which you will attach to your vehicle’s rearview mirror. From there, you simply need to finalize the registration and turn on the beacon and hit the road.
The Bluetooth beacon will be recording your driving habits and sending them to the mobile app. It will record how quickly you accelerate, your braking tendencies, turning, annual mileage, time of day when you drive and your vehicle’s location.
Signing up for the program will earn you a 5% discount. And if you display safe driving habits, then you can earn a discount of as much as 30% to 50%.
State Farm will then calculate the discounts that you have earned and apply them upon renewal.
Customers who have used this program have reported receiving a discount of approximately 10% to 15%, which is in line with other usage-based programs.
Unlike other usage-based programs that normally end after 6 months, State Farm’s Drive Safe and Safe program will continue as long as you choose to keep it.
Furthermore, you will not be dinged for engaging in risky driving behaviors, unlike other programs such as Snapshot from Progressive.
State Farm’s Drive Safe and Save program is not available in California. Also, the driver’s phone has to meet the eligibility requirements. Drivers whose phones are not eligible can still participate in the program if their vehicles are equipped with OnStar.
Steer Clear Discount
Steer Clear is a program for teens and young drivers, designed to help them improve their driving skills while earning discounts on their State Farm car insurance policies.
To qualify for the discount, you must be under the age of 25, have a valid driver’s license, not have moving violations or at-fault accidents for the past 3 years, and complete the program's requirements successfully.
Meeting the eligibility requirements and completing the program’s requirements successfully may earn you a discount of up to 20% off your State Farm car insurance premiums.
State Farm Car Insurance Availability
State Farm car insurance is currently available in all 50 states and Washington D.C. However, its rideshare insurance coverage is not available nationwide. Also, discounts offered, availability and eligibility requirements vary from state to state.
State Farm Customer Service
According to the information posted on its website, State Farm has over 19,000 independent contractor agents nationwide.
And you can contact these agents by email or via phone during normal working hours. In case you need help outside the normal business hours, you can still get in touch with State Farm’s customer service team, which is available 24/7 via phone.
Apart from email, phone, or office visits, you can also get in touch with State Farm through their mobile app.
You can use this app to file a claim, request emergency roadside assistance, contact your State Farm insurance agent, or access your insurance ID cards. The mobile app is available for both iOS and Android devices.
How to Make a Car Insurance Claim with State Farm
Filing a car insurance claim with State Farm is an easy and fast process. You can report a claim through the mobile app or do it online via the website. You can also call their claims team to report the claim, regardless of whether it’s day or night.
After reporting the claim, State Farm will request you to provide details of where the incident occurred, the date and time when it happened as well as a brief description of what transpired.
You may also be asked to provide a police report number as well as the contact information of the other party where applicable.
After filing the claim, State Farm will review it and then get back to you, informing you of the next steps.
From there, you should then get a damage repair estimate from your preferred repair shop or use any of the company’s select-service shops.
If you use any of State Farm’s select shops, then they will pay the shop directly. And if you opt to use your preferred auto repair shop, State Farm will deposit money directly into your account or give you a check.
How Does State Farm Car Insurance Compare?
Third-party rating companies collect data on how insurance companies perform in various areas such as customer satisfaction, customer complaints and financial strength. So, how does State Farm match up against the competition?
Customer Satisfaction Rating
According to the 2020 J.D Power U.S Auto Claims Satisfaction Survey, State Farm earned a score of 881 out of 1000. The industry average that year was 872, which means that their customer satisfaction rating was slightly higher than the average score.
Customer Complaint Index
According to the National Association of Insurance Commissioners 2020 report, State Farm earned a customer complaint index score of 1.40. The industry average is 1.0, meaning their customer complaint index is slightly higher than the national median score.
Besides the customer satisfaction rating and the complaint index, an insurance company’s financial strength is also a vital consideration.
According to A.M Best, State Farm earns a financial strength score of A++, which is the highest-ranking possible. Therefore, State Farm is adequately capable of fulfilling its ongoing financial obligations to its clients such as paying out claims.
- Above-average customer satisfaction score
- Numerous policy discounts
- Reliable mobile app
- Robust customer service network
- A high number of complaints
- Higher than average premium costs
State Farm has established itself as a top contender for shoppers looking for an auto insurer with multiple coverage options.
Also, its extensive customer service network makes it easy to get in touch with their agents, for personalized assistance.
And while it may not be the cheapest option on the market, it offers several discounts, which can help to lower the cost of your car insurance costs, without losing coverage.
About THE AUTHOR
I've spent many years selling cars, working with auto detailers, mechanics, dealership service teams, quoting and researching car insurance, modding my own cars, and much more.Read More About Charles Redding