State Farm Car Insurance Review for 2021

State Farm Rating and Review

U.S. News Overall Rating

State Farm doesn’t have a mascot or a spokesperson, but there’s a good chance you can sing along with the jingle, “Like a good neighbor, State Farm is there.”

State Farm’s average insurance rates are some of the cheapest in the country for most kinds of drivers, and it gets high marks from customers for service.

As a matter of fact, the convenience of having an agent in the neighborhood was a common point of praise from respondents in our survey. As one respondent said, “I know if I ever have a problem, I can visit their office and speak face to face with an actual person who is a member and supporter of our community.”

In fact, State Farm has been there in our neighborhoods for nearly a century now. State Farm was founded in 1922 by a farmer who turned to selling car insurance to farmers when his farm wasn’t bringing in enough money. In the decades since its founding, the company has expanded its business to include most kinds of insurance. It now holds 83 million policies of all kinds in the United States.

It’s also one of the best insurance companies in our rankings of nine of the top auto insurance companies in the country. It took second place after USAA, which is very strict about its military-family membership.

State Farm performed well when we looked at average rates for a variety of driver types, and it also scored highly among its policyholders for claims handling, customer service, and customer loyalty.

State Farm Pros and Cons

Pros

    • Third-lowest rates in our study

    • Second-highest customer satisfaction ratings

    • Lower average rates for drivers with one violation on their record

Cons

    • Highest rates for drivers with poor credit history

    • Customer satisfaction can depend on the individual agent or local office

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State Farm Car Insurance Costs

State Farm has some of the least expensive car insurance rates among major insurance companies. Only USAA and Geico have lower rates in our study.

State Farm’s overall average rate comes in at number three in our study, making it one of the cheapest car insurers in our rankings.

With an overall average rate of $1,168, State Farm is a 33% increase over USAA’s average rate of $875, though it is still far lower than the national average of $1,320. State Farm’s average rate is only about a 6% increase over number two Geico’s average of $1,100. The average rate at Allstate, the most expensive insurer in our study at $1,788, is an increase of 52% compared to State Farm’s average rate.

The Cheapest Car Insurance Companies in 2021

Average Annual Rates:

State Farm Car Insurance Rates by Age

Group

State Farm Average Rate

National Average Rate

25-year-old female

$1,262

$1,487

25-year-old male

$1,396

$1,554

35-year-old female

$1,139

$1,274

35-year-old male

$1,139

$1,278

60-year-old female

$1,038

$1,149

60-year-old male

$1,038

$1,183

Drivers age 25 have the highest rates in our study no matter which insurance company we looked at, but State Farm does not penalize this demographic too harshly. The average rate for women is $1,261, and for men it is $1,396. That’s 10% to 15% lower than the national averages for these rates.

Rates for older drivers are slightly lower. Women at 35 years old have an average of $1,139 according to our study, and men the same age have an average rate of $1,138. At age 60, married women have an average rate of $1,038, while men have a rate of $1,037. It’s interesting to note that these average rates for middle-age and older drivers are not quite identical, but they are within a dollar of each other. In any case, all of these rates from State Farm are about 10% lower than the national averages for each demographic.

To find these average rates, we created driver profiles for men and women in each of the following ages: 25 years, 35 years, and 60 years. The profiles have a clean driving record, 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

State Farm Car Insurance Rates by Annual Mileage

Annual Mileage

State Farm Average Rate

National Average Rate

6,000 miles

$1,054

$1,278

12,000 miles

$1,169

$1,321

To determine how mileage affects what you pay for car insurance, we looked at data for annual commutes of 6,000 miles, which is lower than average, and a more typical 12,000 miles a year. Driving half as much did not mean paying half as much, though lower mileage did result in slightly lower rates. At State Farm, the average rate for 6,000 miles per year was $1,054. For 12,000 miles, the rate was $1,169. That’s an increase of only about 11%. Both of these rates are lower than the national averages by about 15%.

Learn more about low mileage car insurance »

To find these average rates, we created driver profiles with low mileage (6,000 miles per year) and high mileage (12,000 miles per year). The profiles covered men and women in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

State Farm Car Insurance Rates by Coverage Type

Coverage Type

State Farm Average Rate

National Average Rate

Low

$1,086

$1,248

Medium

$1,169

$1,321

High

$1,256

$1,397

Drivers with low coverage have an average rate of $1,086 in our study, and those with medium coverage have an average rate of $1,168. Each of these levels of coverage is about a 13% savings compared to the national averages. Drivers with a high level of coverage have an average rate of $1,255 with State Farm, which is a 10% decrease from the national average of nearly $1,400 for this category. This is another set of data that shows State Farm can potentially save money for many customers.

We used the following criteria to define our coverage levels.

Low Coverage: The state liability limits.

Medium Coverage: $50,000/$100,000 of coverage for:

$50,000 of coverage for:

  • Property damage liability

  • Uninsured motorist property damage liability

  • Underinsured motorist property damage liability

High Coverage: $100,000/$300,000 of coverage for:

$100,000 of coverage for:

  • Property damage liability

  • Uninsured motorist property damage liability

  • Uninsured motorist property damage liability

$100,000 of coverage for:

  • Property damage liability

  • Uninsured motorist property damage liability

  • Underinsured motorist property damage liability

For more information, read What Is Uninsured Motorist Car Insurance? »

To find these average rates, we created driver profiles with low coverage, medium coverage, and high coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both men and women aged 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis. 

State Farm Car Insurance Rates by Credit History

Credit Score

State Farm Average Rate

National Average Rate

Poor

$2,803

$2,227

Fair

$1,552

$1,569

Good

$1,165

$1,311

This is one of the few categories where State Farm ranks very low. Its average rate for drivers with poor credit is the most expensive in our study – $2,802. That’s a 75% increase over the lowest average rate for this demographic, USAA’s $1,602. It’s also 26% more than the national average for drivers with poor credit, $2,227.

Drivers with fair or good credit histories fare better with State Farm. The average rate for fair credit is $1,552, according to our study, while drivers with good credit have a rate of $1,165. These are both lower than the national averages for these groups.

To find these average rates, we created driver profiles with good credit, fair credit, and poor credit. We used men and women aged 25 years, 35 years, and 60 years. The profiles have a clean driving record, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 are the vehicles used in our analysis. 

State Farm Car Insurance Rates by Driving Record

Driving Record

State Farm Average Rate

National Average Rate

Clean record

$1,169

$1,321

With 1 speeding violation

$1,299

$1,604

With 1 accident

$1,405

$1,872

With 1 DUI

$1,568

$2,112

State Farm’s average rates for drivers with one violation on their record are below the national average in each category we looked at. The rate for a clean record is $1,168, and with one speeding violation, that rises to about $1,300. Having one accident raises the rate to $1,405, and one DUI raises the rate to $1,568. State Farm’s rate for a driver with a DUI is the lowest in our study, a 26% decrease from the national average of $2,112 for this demographic.

To find these average rates, we created driver profiles with a clean record, one speeding violation, one accident, and one driving under the influence (DUI) conviction. These driving record representative profiles were based on 25-, 35-, and 60-year-old men and women with 12,000 miles of driving per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150. 

Who Should Get State Farm Car Insurance?

As the third cheapest car insurer in our rankings, most drivers should see lower rates with State Farm. Our study showed that those who have a violation on their driving record could see some of the best rates when compared with other companies. Of course, those rates are still higher than if you had a clean record, even with State Farm. The company also has some of the lowest average rates for younger drivers.

While State Farm’s rates are lower than the national average across the board, according to our study, they do have the highest rates for drivers with poor credit history. If you know your credit history is less than stellar, you’ll probably find a better rate with most other insurance companies.

State Farm vs. Other Insurance Companies

State Farm vs. Allstate

State Farm is the third-cheapest car insurer in our study, while Allstate is the most expensive. Allstate’s average rate of $1,787 is a 53% increase over State Farm’s average of $1,168. Allstate’s average rate is only less expensive for drivers with poor credit history. For every other demographic we looked at, State Farm’s average rate is lower.

State Farm also has higher overall scores from its customers and ranks near the top in our survey. Allstate, on the other hand, ranks at the bottom. State Farm received higher marks in every category, including customer service, claims handling, and customer loyalty.

Read more in our Allstate vs. State Farm Head to Head »

State Farm vs. Farmers

Farmers is among the most expensive insurance companies in our study. Its overall average rate of $1,635 is a 40% increase over State Farm’s average rate of $1,168. Like Allstate, Farmers insurance rates are more expensive than State Farm’s with the exception of the average rate for drivers with poor credit history. State Farm has the highest rate for this demographic, $2,803. Farmers has a slightly lower rate of $2,522, a savings of 11%.

Though it is more expensive, Farmers earns decent marks from its customers, coming in fifth place in our survey. However, State Farm lands in second place, with higher scores in customer service, loyalty, and likelihood of renewing. Farmers did score slightly higher with customers for its claims handling.

Read more in our State Farm vs. Farmers Head to Head »

State Farm vs. Geico

Geico is the second-cheapest car insurer in our study, with an average overall rate of $1,100. That’s a 6% decrease from State Farm’s average rate. According to study data, in almost every demographic, Geico’s rates are just a hair less expensive than State Farm’s. One exception is the rate for those with poor credit history, where Geico’s average rate of $1,719 is one of the lowest. But State Farm has lower rates for drivers with one violation on their record. The difference is especially large for drivers with one DUI. Geico has the highest average rate for this demographic, $2,836. State Farm’s rate of $1,568 is one of the lowest in our study and a 45% decrease from Geico’s rate.

State Farm just edges out Geico to take second place in our customer satisfaction survey. Respondents rated State Farm higher in customer service, loyalty, and the likelihood of renewing. But people in our survey were more likely to recommend Geico car insurance to others.

Read more in our Geico vs. State Farm Head to Head »

State Farm Car Insurance Complaints

State Farm’s rates are low enough to earn third place in our analysis of premiums, and its service is good enough to earn second place among customers in our survey. Again, only USAA had lower rates and better customer satisfaction scores. One weakness, according to some State Farm customers, is the perceived value of the insurance, though it still scored fairly well for satisfaction with available discounts and using good driver tracking to lower rates. Other respondents noted the higher rates for having a poor credit history.

  • “If I could switch I would because my rates are through the roof since they base your payments on your credit.”

  • “May find equal service for lower costs if someone shopped around.”

  • “I was not satisfied with the handling of my claim. I was informed that I was the one who had to contact the other insurance company to receive my payment. Very frustrating.”

Types of Coverage From State Farm Car Insurance

  • Collision

  • Comprehensive

  • Liability

  • Uninsured/underinsured motorist

  • Emergency road service

  • Rideshare driver coverage

  • Rental car insurance

  • Recreational vehicle coverage

  • Commercial vehicle coverage

State Farm offers a full slate of auto insurance. It offers the typical collision, comprehensive, liability, uninsured, and underinsured motorist coverages. Emergency road service is available, which includes an hour of mechanical labor, an hour of a locksmith’s time, towing, or delivery of gas or a battery, depending on why you’re stuck on the side of the road. These services available from most large national auto insurance companies.

State Farm also offers insurance specific to rideshare drivers for companies like Uber and Lyft. Most of these companies provide some insurance coverage while the app is on and you are waiting for a match or have a rider in your car. This add-on carries your personal insurance coverage over, even while you’re using the app and picking up passengers. If your personal deductible with State Farm is lower than the rideshare company’s deductible, you pay the lower amount. The company says that this coverage adds 15-20% to your premium.

State Farm Car Insurance Discounts

There are several discounts available from State Farm that can lower your rates. The Drive Safe & Save program uses an app to collect driving data to determine your individual rate. Younger drivers with a clean record can enroll in Steer Clear, an app-based safe driving course for policyholders under the age of 25. Other discounts are typical across the industry, such as rate reductions for at least three accident-free years in a row and up to 25% savings for students who get good grades. Keep in mind that discounts can vary from state to state, and customers or potential customers should always check with the company for eligibility.

  • Accident-free discount (maintain a clean record for three years)

  • App-based safe driving discount

  • Defensive driving course discount

  • Good student discount

  • Driver training discount for new drivers

  • Student away at school discount

  • Multiple policy discount

  • Vehicle safety discount for certain makes and models from 1994 or later

  • Passive restraint (airbag) discount

  • Anti-theft system discount

Other Types of Policies From State Farm

If you can use it to get from point A to point B, State Farm is probably able to insure it. The company offers motorcycle insurance for everything from scooters to trail bikes to classic motorcycles. Boat coverage includes yachts, jet skis, and kayaks, and off-road insurance covers ATVs, campers, snowmobiles, and more. State Farm also insures higher value (and higher risk) vehicles like sports cars, antiques, and collectibles.

  • Homeowners insurance, including personal property and identity restoration

  • Rental insurance

  • Condo insurance

  • Farm and ranch insurance

  • Business insurance, including worker’s comp

  • Life insurance

  • Health insurance

  • Disability insurance

  • Commercial vehicle coverage

  • Motorcycle coverage

  • RV coverage

  • Boat coverage

  • Off-road vehicle coverage

  • Sports and classic car coverage

  • Business vehicles

State Farm Financial Fitness

State Farm has a rating of A++ (Superior) from AM Best. This indicates that State Farm has a superior ability to meet its ongoing insurance obligations. In other words, AM Best is very confident that State Farm has the funds available to pay out claims.

  • Website: www.statefarm.com

  • Phone: 1-800-STATE-FARM (1-800-782-8332)

  • Mailing Address: One State Farm Plaza, Bloomington, IL 61710

  • Twitter: @StateFarm

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How We Created This State Farm Car Insurance Review

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings. 

We surveyed 4,806 consumers who filed a car insurance claim or started a new auto insurance policy in the last five years, asking questions about their car insurance company. Of the survey respondents, 404 filed a claim with State Farm and 319 started a policy with State Farm. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. In general, questions for consumers who have filed a claim were given more weight than questions for consumers who have only opened a policy. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies Rankings, as well as our sub-rankings: Best Car Insurance Companies – Customer Service, Best Car Insurance Companies – Claims Handling, and Best Car Insurance Companies – Customer Loyalty, and this company profile.

Our Study Rates

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 12,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

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