state farm insurance review — if you’re shopping for auto coverage, State Farm deserves a close look. As the largest auto insurer in the United States, State Farm holds an 18.64% market share. The company was founded in 1922 in Bloomington, Illinois. It operates as a mutual company, meaning policyholders own it — not Wall Street shareholders. State Farm is available in all 50 states plus the District of Columbia. With roughly 19,000 exclusive local agents, it offers a level of in-person service that direct-to-consumer insurers cannot match. In this state farm insurance review, we break down coverage options, discounts, customer ratings, and pricing so you can decide if State Farm fits your needs.
State Farm Coverage Options
State Farm offers a full lineup of standard auto insurance coverages. Liability coverage pays for bodily injury and property damage you cause to others. Collision coverage handles damage to your vehicle after an accident. Comprehensive coverage protects against theft, hail, vandalism, and animal strikes. Uninsured and underinsured motorist coverage kicks in when the other driver lacks adequate insurance. Medical payments coverage and personal injury protection are also available depending on your state.
Beyond the basics, State Farm provides several add-on options. Rental car and travel reimbursement pays for a rental while your car is in the shop. Roadside assistance covers towing, flat tires, lockouts, and fuel delivery. For gig economy workers, State Farm offers rideshare insurance for Uber and Lyft drivers. This fills the gap between your personal policy and the rideshare company’s coverage. As part of this state farm insurance review, it is worth noting that the company also offers payoff protector coverage — similar to gap insurance — which covers the difference between your car’s value and your remaining loan balance if the vehicle is totaled.
State Farm Discounts Available
State Farm provides a wide range of discounts that can significantly lower your premium. The multi-policy bundling discount saves approximately 15% to 25% when you combine auto with homeowners or renters insurance. A multi-car discount of roughly 10% to 20% applies when you insure two or more vehicles. Good drivers with a clean record for three or more years can save up to 25%. For example, the good student discount offers around 15% to 25% off for full-time students under 25 who maintain a B average.
Drive Safe & Save is State Farm’s flagship telematics program. It tracks your driving habits through the mobile app or compatible connected vehicles. Average savings run about 15%, with some drivers saving up to 30%. However, unlike some competitors, this program has no penalty for poor driving scores — it can only lower your rate. The Steer Clear program is designed for drivers under 25 who complete a safe-driving course. Additional discounts include anti-theft device savings of 5% to 15%, defensive driving course credits, and small discounts for paperless billing and autopay.
State Farm Customer Ratings and Satisfaction
Financial stability is a major strength in any state farm insurance review. State Farm carries an A++ (Superior) rating from AM Best — the highest possible grade. This means the company has exceptional ability to pay claims. In the J.D. Power 2024 U.S. Auto Insurance Study, State Farm scored above average among large national insurers. The company consistently ranks in the upper tier for overall customer satisfaction.
State Farm’s NAIC complaint index typically falls below 1.0. A score of 1.0 represents the national median. In most cases, State Farm scores in the 0.6 to 0.9 range, indicating fewer complaints than expected for its size. The company also holds an A+ rating with the Better Business Bureau. However, consumer review platforms like Trustpilot show mixed results, with ratings around 2 out of 5 stars. This is common among large insurers where dissatisfied claimants post reviews disproportionately. As a result, app store ratings provide a more balanced picture — the State Farm app holds 4.8 stars on the Apple App Store and 4.6 stars on Google Play.
State Farm Average Rates
This state farm insurance review finds the company’s pricing competitive. The average annual full-coverage premium with State Farm runs approximately $1,800 to $2,100. That translates to roughly $150 to $175 per month. By comparison, the national average for full coverage across all insurers is around $2,300 to $2,500 per year. State Farm is typically 10% to 20% below the national average. Liability-only coverage averages roughly $500 to $700 annually.
Rates vary significantly by driver profile. A clean-record adult aged 30 to 60 might pay around $1,400 to $1,800 per year. Young drivers aged 18 to 25 face steeper premiums of $3,500 to $5,500 annually. Drivers with one at-fault accident can expect roughly $2,500 to $3,200 per year. In most cases, bundling discounts and Drive Safe & Save can bring these figures down further. However, like all major insurers, State Farm has implemented rate increases in many states due to rising repair costs and increased accident severity.
State Farm Insurance Review: Pros and Cons
Pros:
- Largest agent network in the country with approximately 19,000 local agents for in-person service
- A++ AM Best financial strength rating ensures exceptional claims-paying ability
- Drive Safe & Save telematics program can save up to 30% with no penalty for poor scores
- Rates typically 10% to 20% below the national average for full coverage
- Highly rated mobile app with 4.8 stars on the Apple App Store
Cons:
- Not the cheapest option for every driver profile — GEICO and Progressive may beat State Farm in some states
- Requires working through a local agent for many policy changes, which may frustrate those who prefer fully digital service
- Recent rate increases in several states have narrowed the pricing advantage over competitors
Who Should Choose State Farm?
This state farm insurance review suggests the company is an excellent fit for several driver profiles. If you value in-person service, the 19,000-agent network is unmatched. Families who bundle auto with home or renters insurance benefit most from the multi-policy discount. Young drivers and students can take advantage of the Steer Clear program and good student discount to offset high premiums.
State Farm also works well for drivers who want telematics savings without risk. Drive Safe & Save rewards good driving habits but never penalizes bad ones. Typically, safe drivers in suburban and rural areas see the most competitive rates. However, if you prefer a fully digital experience with no agent interaction, a direct-to-consumer insurer like GEICO or Progressive might be a better match. This state farm insurance review recommends getting a personalized quote to compare.
State Farm Claims Process
Filing a claim with State Farm is straightforward. You can report claims through the mobile app, online at statefarm.com, by calling 1-800-732-5246, or through your local agent. The app lets you upload photos and describe the incident directly. For minor damage, digital photo estimates eliminate the need for an in-person inspection.
State Farm operates a Select Service network of approved repair shops. These shops offer faster turnaround and guaranteed repairs. You can also choose your own shop if you prefer. In the J.D. Power 2024 Auto Claims Satisfaction Study, State Farm scored competitively among large insurers. This state farm insurance review notes that the local agent model adds a personal touch to the claims experience that purely digital insurers lack.
Frequently Asked Questions
Is State Farm the cheapest auto insurance?
State Farm is not always the cheapest, but it is consistently among the most affordable large national insurers. Its rates typically run 10% to 20% below the national average. However, individual quotes depend on your state, driving record, and vehicle.
Does State Farm offer usage-based insurance?
Yes. State Farm’s Drive Safe & Save program tracks your driving habits through the mobile app or a connected vehicle. This state farm insurance review found that drivers save an average of 15%, with potential savings up to 30%. The program cannot increase your rate.
How financially stable is State Farm?
State Farm holds an A++ (Superior) rating from AM Best, the highest possible financial strength grade. As a mutual company, it reinvests profits back into the business rather than paying shareholders. This state farm insurance review confirms the company has exceptional claims-paying ability backed by over a century of operation.
Compare Insurance Rates
Ready to see if you could be paying less? Compare quotes from top insurers in your area. Getting multiple quotes is the most effective way to find a better rate.
(paid link)
Official Sources & Resources
For verified information on auto insurance companies and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- National Highway Traffic Safety Administration (NHTSA): nhtsa.gov
- AM Best — Insurer Financial Strength: ambest.com
Content last reviewed April 2026. If you notice any outdated information, please contact us.