State Farm Auto Insurance Review
Even though car insurance rates seem to be climbing lately, the auto insurance industry remains very competitive.
In today’s economy with all the innovative technology, there is simply no reason that anyone should be overpaying for car insurance.
In fact, most auto insurance companies no longer offer an annual policy which means that you can easily shop your car insurance twice a year to make certain you’re getting the best rates available. And, with all of the content being published about auto insurance companies, it’s easy to find out if a company you’re considering demonstrates that they are worthy of your business.
Here is our take on State Farm Auto Insurance for your review.
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Table of Contents
State Farm Auto Insurance
State Farm has come a long way since its founding in 1922. Through outstanding marketing efforts, outstanding service, and competitive rates for auto insurance, State Farm has been able to continually dominate the auto insurance marketplace.
As the largest U.S. insurance provider, State Farm strongly competes in just about every insurance niche that U.S. consumers spend their hard-earned dollars on every year.
The company is very competitive in auto insurance, homeowners’ insurance, commercial auto, business insurance, life insurance, and specialty health insurance products. For that matter, if you need any type of insurance product, your local State Farm agent will likely end up being your number one resource for insurance products.
Financial Stability Ratings for State Farm
Certainly, one of the first metrics you should check off your due diligence list is whether the company you are considering is financially stable and whether it will be there for you when it’s time to file a claim.
Here are the current ratings for State Farm Insurance Company:
- A.M. Best: A++ – this is the highest rating that A.M. Best assigns.
- S&P Global: AA – this extremely high rating is based on the strong claims-paying ability of State Farm Insurance Company.
Not only is State Farm a highly-rated insurance company, but they are also typically at the top of the heap year after year.
And, when it comes to feedback and ratings for the company’s service commitments, they are rated above their closest competition according to a J.D. Power auto claims satisfaction survey.
Insurance Products available from State Farm
Although this review is about State Farm Auto Insurance, we would be remiss not to mention all of the other products they offer to individuals, families, and businesses:
| Automobile | Home & Property | Life | Health | Business |
|---|---|---|---|---|
| Car Insurance | Home Insurance | Term Life | Supplemental Health | Professional Liability |
| Motorcycle | Condominiums | Whole Life | Medicare Supplements | BOP |
| Boat Insurance | Renters | Universal Life | Individual Medical | Commercial Auto |
| Off-road vehicles | Mobile Homes | Annuities | Disability Income | Workers' Comp |
| RVs | Farm & Ranch | General Liability | ||
| Rental Properties | Commercial Property | |||
| Personal Unbrella | Commercial Umbrella | |||
To round out its extensive insurance product portfolio, we must also note that State Farm offers banking and investment services to its insurance customers as well.
State Farm Auto Insurance
In their efforts to make sure that State Farm auto insurance customers can properly mitigate the risk of owning and driving a vehicle, State Farm starts with the packaged Personal Auto Policy and then adds additional coverages to make certain the policy will meet the needs of every customer and prospective customer.
Here is what the Personal Auto Policy package of coverages looks like:
| COVERAGE | DESCRIPTION |
|---|---|
| Bodily Injury Liability | Pays for injuries to other drivers or passengers in an at-fault accident subject to the limits in the policy. |
| Property Damage Liability | Pays for repairs or replacement of another person's vehicle or property during an at-fault accident subject to the limits of the policy. |
| Medical Payments | Medical Payments covers medical expenses for you and other passengers in your vehicle in an accident no matter who's at fault. This coverage will even cover you for injuries sustained in another person's vehicle or as a pedestrian up to the limit in the policy. |
| Personal Injury Protection (PIP) | PIP covers the driver, all passengers, or a pedestrian involved in an accident no matter who's at fault. PIP helps pay for medical expenses, lost wages, loss of services, and funeral expenses up to the policy limits. This coverage is typically mandatory in "no-fault" states. |
| Uninsured/Underinsured Motorist | Uninsured/Underinsured motorist covers your medical expenses if the other driver (at-fault) is uninsured or underinsured. Some states also allow uninsured/underinsured property damage that covers your vehicle as well. |
| Comprehensive Coverage | Comprehensive coverage pays to repair or replace your vehicle after a non-collision event such as fire, vandalism, theft, or acts of nature subject to your deductible. |
| Collision Coverage | Collision coverage pays to repair or replace your vehicle after an accident that involves another vehicle or object subject to your deductible. |
| Emergency Roadside Assistance | Roadside assistance is available if you are locked out of your vehicle or required roadside assistance like a tire change or fuel for an empty tank. Your coverage for each event is subject to the limit you purchased on your policy. |
| Rental Reimbursement | Rental reimbursement helps pay for rental expenses if you are in an at-fault accident or hit by an uninsured driver. Most policies will have a limit per-day and per-accident. |
Although the Personal Auto Policy form provides a list of coverages that can mitigate almost every risk for personal auto ownership, State Farm also provides specific coverage for people who use their personal auto in the ridesharing industry.
This is an important add-on because more and more car owners are supplementing their income by working for ridesharing services like Uber and Lyft.
For these folks in the ridesharing business, the Rideshare coverage provided by State Farm (and very few others) plugs the liability gap you have when you don’t have a customer in your vehicle. This means that your rideshare coverage kicks in while you are driving to pick up a fare and your Uber or Lyft coverage is typically not in force.
Discounts Matter and State Farm has Plenty
Most consumers have become aware that discounts on auto insurance can dramatically impact their auto insurance rates and most companies are offering many that you can qualify for and save money;
Here’s what you can expect from State Farm Auto Insurance:
Driver Discounts
| Accident Free Discount | Earned after 3 years with State Far, and no at-fault accidents |
| Defensive Driving Course | Earn additional discounts after completing an approved defensive driving course |
| Good Student | Students who earn good grades are rewarded with additional discounts until after you graduate. |
| Student Away at School | This discount is offered when a driver is away at school and only uses an insured vehicle when at home for a visit. |
| Driver Education | This discount is available when all drivers under 21 and listed on your policy have completed an approved driver education course |
Vehicle Safety Discounts
| Safe Vehicle Discount | If your car is a 1994 or later you could save on your medical related coverage. |
| Passive Restraints | Vehicles equipped with one or more passive restraints will earn discounts on medical-related coverages |
| Anti Theft | Vehicles that have alarm systems or other approved anti-theft device will earn a discount on comprehensive coverage |
Loyalty Discounts
| Multi Vehicle Discount | Save money with a policy discount when you insure one or more vehicles on the same policy |
| Multi-Policy Discount | Policyholders can save up to 17% when they purchase 2 or more insurance products like home and auto |
What State Farm Customers are Saying
Rather than asking a few family members or friends what they think about State Farm Auto Insurance, it’s easy to go online and get feedback from thousands of customers and forment customers. Here’s what they’re saying about State Farm auto insurance:
- ConsumerAffairs.com – 3.75 out of 5 stars (2,274 reviews)
- WalletHub.com – 4 out of 5 stars ( 444 reviews)
- Clearsurance.com – 4 out of 5 stars (17,242 reviews)
Frequently ask Questions
Does State Farm have good ratings?
Not only does State Farm Auto Insurance have good customer reviews, the company also earns outstanding financial ratings from all of the national rating services.
Does State Farm offer many discounts?
Yes. State Farm offers at least 10 discounts that can help you dramatically reduce your car insurance rates. Make sure you speak with your agent about every possible discount.
Does State Farm offer rideshare coverage?
Yes. State Farm is one of a hand full of auto insurance companies that will provide liability coverage on your vehicle when you are using your car for ride-sharing.
