State Farm, one of the nation’s oldest insurers, provides auto insurance with various discounts. Those with children learning to drive may be especially pleased to know that safe driver programs and deals are offered to their children’s age group.
State Farm’s auto insurance rates could be higher than competing carriers, despite the company’s many discounts. You might want to try it, especially if you already have a policy with State Farm.
State Farm Auto Insurance
Average annual premium: $1,310
Market share: 16%
Premiums wrote: $40.4 bn
J.D. Power Customer Satisfaction Score: 892
Company's Overview
State Farm was started by G.J. Mecherle in 1922, when he began peddling auto insurance. The Bloomington, Illinois-based company caters to drivers for ridesharing services and those who own high-end vehicles, in addition to offering standard plans. All fifty states and the District of Columbia have access to State Farm.
Types of Coverage
State Farm provides the following types of insurance:
1. Collision
Your deductible must be reached before State Farm will pay out on a collision claim, and the car’s actual cash worth sets the policy’s limits. Only accidents in which your vehicle was struck will be covered, even if only one car was involved.
2. Liability
In the event that you cause an accident and are judged liable for the damages and medical bills incurred by the other motorist, this insurance will help cover those expenses. To comply with state law, you must obtain the bare minimum.
3. Comprehensive
If your automobile is stolen, damaged by fire, lightning, or other covered peril, or if an animal collides, you’ll be covered under your comprehensive policy. However, collision damage caused by other drivers is not covered. Having this protection may be a requirement for your car financing.
4. Car Rental and Travel Expenses
After an eligible accident, State Farm will either cover the cost of a rental automobile outright or provide reimbursement. If your car is damaged and you can’t drive it, the provider may also cover other trip costs, such as housing and meals. All-Peril or Collision coverage from your current insurer is required for enrollment.
5. Uninsured and Uninsured Motor Vehicle
State Farm will cover your medical bills, automobile repairs (in some areas), and missed wages if an uninsured or underinsured driver causes an accident in which you are not at fault.
6. Medical Payments
In the event of an auto accident, you or a member of your immediate family, as well as any passengers in your vehicle at the time of the incident, are financially protected against the cost of medical treatment and burial fees thanks to Med Pay, also known as Medical Payments Coverage. Adding this protection is possible only if doing so is lawful in your state.
7. Rideshare Driver
If you use your vehicle to provide ridesharing services, you may wish to acquire supplementary insurance to protect yourself in the event of an accident or a claim for damages from an injured passenger. When added to your monthly car insurance payment, State Farm estimates a 15% to 20% increase.
Discounts
The following are some of the discounts available from State Farm that might significantly reduce your monthly premiums:
Prices Are Reduced When Purchased in Bundles
- Auto insurance customers who also get coverage for their homes, apartments, or vehicles with State Farm can receive a discount.
- Customers who insure multiple vehicles through State Farm might receive a savings of up to 20%.
History of Driving and Personal Behavior
- If you have not had an accident for three years or more, State Farm will lower your insurance cost.
- Drivers who sign up for Drive Safe & Save and keep a trip log on the accompanying app may be eligible for a discount.
- If you’re under 25 and you download the Steer Clear app, view the videos, take the tests, and log your trips within six months, you might be eligible for a discount.
- Successful completion of a driver safety course, such as a defensive driving course, typically results in a premium reduction for the student driver.
- There is a 25% academic achievement discount for high school students.
- There may be a discount for students under 25 who relocate away to attend college and then only use the automobile during school breaks.
Equipment for Automobiles
- In some cases, you may be eligible for a discount if your automobile is equipped with a verified anti-theft equipment, such as an alarm.
- Discount for vehicles equipped with factory-installed airbags or other passive restraint systems and manufactured in or before 1993 will qualify for a lower premium for medical coverage.
The Availability of Various Methods of Payment
Customers can pay their State Farm insurance premiums using any major credit or debit card, as well as with money orders, checks, or money. Customers have the option of setting up automatic payments through their bank, credit card, or debit card.
Pros & Cons
Pros Clarified
- There is insurance for ridesharing services: In some cases, policyholders who drive for ridesharing services like Uber or Lyft may be eligible to extend their coverage to include ridesharing drivers.
- A sizable agent pool is readily available: Company representatives say you may receive the insurance you need from one of their more than 19,000 agents around the country.
- Discounts on several policies are available: Many discounts available from State Farm might help you save money on your insurance costs. There are a variety of discounts available, such as those for safe vehicles, good drivers, teens, and policy bundling.
Cons Clarified
- If your car collection exceeds four units, you must use a broker: Prospective policyholders with more than four automobiles or drivers will be required to consult an agent, which may be inconvenient for some.
- News about price increases in premiums: Customers have complained that, even after applying reductions, State Farm’s vehicle insurance premiums are greater than those of its rivals.
Customer Satisfaction
Satisfaction Ratings
Buying insurance from State Farm can be done in several ways, and customers appear pleased with the service they receive. J.D. Power’s 2021 U.S. Insurance Shopping Study ranked the company second overall, out of eight insurers, with a score of 872, one point higher than the national average of 871. In addition, in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study, the insurer rated sixth out of eighteen insurers with a score of 892 out of 1,000, twelve points higher than the industry average of 880.
You may rest assured that State Farm will have the resources to pay your claim because of the company’s solid financial standing. They have the highest possible grade from the insurance rating agency AM Best, an “A++” (Superior) for financial strength.
Complaint Index
The number of customer complaints is one indicator of customer satisfaction with a given insurance provider. The National Association of Insurance Commissioners (NAIC) compiles insurance company complaints from policyholders and evaluates them against the norm for the insurance sector. With a 1.18 complaint index, State Farm is above the market standard of 1.0.
Customer Service
To get in touch with State Farm, policyholders can either dial the toll-free number (1-800-782-8332), send an encrypted message through the company’s website or mobile app, or visit their neighborhood agency.
Is State Farm Auto Insurance A Worth Insurance to Get?
State Farm is a good option for drivers wanting insurance affordable prices and dependable service. State Farm provides excellent ratings for customer service and affordable prices for most types of drivers, including those with less experience and the elderly. Those who have been convicted of driving under the influence may also wish to look into State Farm. We found that its rate for such motorists was the lowest of all those we looked at.
State Farm offers cheap rates for most drivers, but those with low credit may want to look elsewhere. We found that State Farm’s rate for these motorists was one of the highest in our analysis.
Conclusion
State Farm is one of the oldest and largest vehicle insurance providers in the United States, and they provide a wide variety of discounts, including some for teenagers that aren’t offered by other providers. More than 19,000 agents make it possible to get the individualized attention you need while yet receiving comprehensive coverage.
State Farm isn’t the cheapest option available, and they have a higher than normal number of customer complaints filed with the NAIC. In spite of this, State Farm is a fantastic choice for parents looking to insure their teens on their auto policies, as the company offers a variety of discounts and makes its online resources easy to access.