Reviewed By Joshua Adamson
on January 30, 2016

State Farm State Farm

Overall 4 / 5

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Curiosity may have killed the cat, but sometimes inquiring minds aren’t a bad thing. Finding in-depth information about your potential car insurance company is one instance where you’ll want to know all you can. That’s why we’ve done the research to uncover the intricacies that make State Farm the number one auto insurance company in the United States in 2015. We are not affiliated with State Farm–just insurance experts who want to provide you with the inside scoop on its car insurance. Read our complete analysis below.

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What Do You Want to Know More About?

The Plus Side

  1. Popularity. At almost 60,000,000,000 in premiums written in 2015, State Farm is the largest auto insurance company in the nation according to The National Association of Insurance Commissioners.
  2. Savings, Savings, and More Savings. With more discounts than most companies, State Farm has something for almost every type of driver. Have a clean driving history? Looking for accident forgiveness? Enrolled in school and get good grades? State Farm rewards you with multiple options to save on your annual policy. For example, its Drive Safe & Save® program, will save you an initial 5% just for signing up and an additional 50% if you’re a safe driver.
  3. Network Savings. The State Farm Select Service Program provides a network of auto repair specialists to customers at no additional charge. In order to be part of the program, repairers must meet program requirements that are centered around a high quality customer experience.
  4. Teen Driver-Friendly. In addition to its affordable teen driver policies, State Farm has created tools designed exclusively for new drivers. For example, Road Aware is a 3-D tool focused on teaching teens how to safely scan for hazards on the road. There is also Road Trips, a web-based program that helps parents prepare for teaching their teens to drive by providing video tutorials and an ability to track a teen’s driving progress.

The Downside

Mechanical breakdown coverage is not offered. While mechanical breakdown coverage is not common, having the largest insurance company provide it would be a major win for customers. This would help cover costs associated with repairs done to parts not covered by a vehicle warranty.

States Where State Farm Provides Auto Coverage

With more than $35 billion in direct written premiums in 2014, it makes sense that State Farm offers car insurance coverage in all 50 states and Washington D.C.. See how competitively priced it is in your neighborhood as well as how it ranks for popularity and customer service.


Auto Insurance

States with the Most Drivers Covered by State Farm Auto Insurance
Every company competes for customers. The percentage of customers it has in a certain area is called a company’s “market share.” For example, State Farm serves 32.92% of all drivers in Louisiana.  State Farm made the top 10 for 48 states and Washington D.C. based on market share. Here are the state’s State Farm ranks number one for:

 New Policies WrittenMarket Share
Alabama649,83924.61%
Alaska122,42527.37%
Arizona660,26717.47%
Arkansas398,18324.76%
California3,114,99714.30%
Colorado668,15820.06%
Delaware171,71223.40%
Georgia1,488,89023.72%
Idaho106,97314.51%
Illinois2,005,71531.81%
Indiana760,15524.50%
Iowa322,27221.68%
Kansas326,93420.51%
Kentucky598,84423.73%
Louisiana1,218,71832.92%
Maine87,58513.83%
Michigan1,427,24318.36%
Minnesota758,58124.51%
Mississippi414,22026.11%
Missouri761,23424.00%
Montana132,62621.74%
Nebraska242,79623.45%
Nevada329,08617.90%
New Hamshire93,08712.67%
New Mexico237,65920.37%
Ohio1,104,99619.25%
Oklahoma565,09724.39%
Oregon484,54221.17%
Pennsylvania1,494,15319.72%
South Carolina739,53924.48%
South Dakota88,09919.23%
Tennessee807,03123.96%
Texas3,043,74118.66%
Utah253,07417.22%
Virginia809,25117.17%
Washington645,92015.40%
West Virginia311,67526.56%
Wyoming82,43823.32%

State Farm Auto Insurance Quotes and Costs

We analyzed annual premiums from each state to give you an idea of how State Farm auto insurance rates compare to other popular companies.  Our research found that while State Farm is the cheapest for teen drivers, its cost is competitive with drivers 60 and over as well.

 18, SINGLE FEMALE18, SINGLE MALE25, SINGLE FEMALE25, SINGLE MALE60, MARRIED FEMALE60, MARRIED MALE
FARMERS$2,423.91$2,759.71$1,029.02$1,102.65$723.35$623.18
AMERICAN FAMILY$2,335.85$2,678.43$680.11$782.67$855.00$579.88
PROGRESSIVE$3,452.00$3,889.96$1,792.15$1,706.16$891.82$722.22
ALLSTATE$2,300.53$2,500.58$1,525.23$1,177.18$947.96$910.52
STATE FARM$1,895.23$2,055.57$1,010.65$1,204.94$973.60$662.14
GEICO$2,451.89$2,723.95$1,235.52$984.45$1,011.18$964.54
USAA$2,531.41$2,667.15$869.28$1,321.65$1,028.31N/A
NATIONWIDE$2,262.28$2,623.48$1,647.23$1,787.71$1,206.64$1,150.89

How much State Farm quotes you depends on a number of factors that help it determine how much risk it is taking on with you as a customer. To give you a snapshot of how much you may pay, we looked at a variety of profiles in 27 states. According to our research, women’s rates are 25% more expensive than State Farm’s male customers. When looking at national data from more than 200 insurance companies, men typically pay 11% more than women—making State Farm one of few companies to charge men less on average.

 Average Annual Rates
Married Drivers$1,076.95
Single Drivers$1,909.82
Male Drivers$1,429.51
Female Drivers$1,946.72
Teen Drivers$2,864.88
Drivers in Their 20's$1,652.40
Drivers in Their 30's$1,494.68
Drivers 50 and Over$786.96

* These are real numbers from 2014, but are subject to change in the coming months or years. They are only here to show you how companies stack up against each other.

State Farm Auto Insurance Discounts

Here are a number of ways you can save money on your auto insurance policy if you choose State Farm insurance:

Drive Safe & SaveTM: Get an initial 5% discount for sign-up, then up to 50% off  using this usage based driving platform.  That means your driving patterns including how much you drive, and how safely you drive–will determine how much you can save.

Accident-Free Discount: If you’ve gone three years without an accident, you could be eligible.  How much you save depends on how many years you’ve been accident free.

Defensive Driving Discount:  State Farms’s defensive driving discount applies only to drivers over the age of 55 who have completed a Motor Vehicle Accident Prevention Course, voluntarily within the last three years.  Once completed, drivers can present a certificate of completion to State Farm to get this discount.

Driver Training Discount:  Have multiple drivers under the age of 21 in your household?  You can be eligible for this discount once all drivers have completed driver education courses that cover both classroom work and on the road driving experience.  After completion, a certificate must be given to State Farm to prove eligibility.

Good Driving Discount.  Similar to the accident-free discount, State Farm’s good driving discount applies to households in which every driver has remained accident free for three years.

Good Student Discount: Studying pays off if you are a State Farm customer!  If you are a current student under the age of 25, you can be eligible if you meet at least one of the following:

  • Have an average grade point average of 3.0 or higher
  • Are ranked in the top 20% of your class
  • Have been included on your school’s Dean’s List

Drivers who have recently graduated with an Associate’s degree or higher, and meet one of the above requirements may also be eligible to this discount.

Multi-Car Discount: If you insure two or more vehicles in your household with State Farm, you can save up to 20% on your auto insurance rates.

Multi-Policy: Most commonly known as bundling or umbrella insurance, if you use State Farm to insure your home, motorcycle, apartment in addition to your car, you may save up to 22% on your auto insurance policy.

Passive Restraint Discount: There are multiple passive restraint systems, such as airbags, that meet federal safety standards that can help you save up to 40% with State Farm.

Steer Clear Safe Driver Discount: State Farm created its Steer Clear program to help drivers save money for safe and efficient driving.  By using OnStar, SYNC, or simply your mobile phone to track your mileage and driving characteristics, you can receive up to a 5o% discount.  This discount will be determined by using the data gathered in the past 12 month.

Away At School Student Discount: Do you have a college student who lives more than 100 miles away, leaves their car at home while away, and only drives when back home for school vacations and holidays?  You could be eligible for even more savings.

Vehicle Safety Rating Discount: Get up to 40% savings for cars 1994 and newer based on its loss experience.  Speak with an agent to see if you qualify.

Industry Rankings

In order to provide unbiased advice, we looked at industry rankings to see how companies look on paper and to their customers. Weiss Ratings, Standard & Poor’s, and A.M. Best measure financial strength and JD Power is the leading source of customer satisfaction ratings. Here are the most recent State Farm rankings:

Weiss Ratings gave State Farm a B+ for financial strength, which means “good.” Our analysis shows that while it ranks the highest for its capability in handling economic scenarios due to its overall capital, it scored the lowest in its stability rating.

Standard & Poor’s gave State Farm an AA—a high rating by its standards.

A.M. Best gave State Farm an A++—which is the highest grade a company can receive.

JD Power’s 2015 gave State Farm the following scores:

Claims Satisfaction

Overall Satisfaction
Service Interaction
Appraisal
Repair Process
Rental Car Experience
Settlement


Source: www.jdpower.com

Insurance Shopping Results

Overall Satisfaction
Policy Offerings
Pricing
Local Agent Interaction
Website User Experience


Source: www.jdpower.com

Hear It From Current Customers

“They are reliable!”-Chad

“They have great customer care.”-Hailey

“When I call State Farm for anything they actually help me out and get things taken care.  I’ve never had an issue with them.”-Eric

“State Farm agents will bend over backwards to get me the best option, and they remember my personal life as well!” –Nathanial

Our Favorite Features

Are you looking for an insurance company that has something for everyone?  State Farm’s assortment of discounts, online tools, and more make it a good fit for almost any driver.  Here are some standout features we discovered during our research:

Pocket Agent app will help you get in touch with you agent faster when you need them, submit a claim, view your insurance information, and more. Most insurance companies have similar apps, but State Farm’s has better customer feedback and ranks higher than most in iTunes and Google Play.

Steer Clear® safe driver discount for drivers under 25, encourages them to be safer when they’re on the road and rewards that responsibility with policy discounts. By completing the course, drivers can save up to 15%. All program materials are online, or you can download the app for iPhone and Android, so that you can complete it at your own time.

State Farm has a great team. State Farm has over 18,000 agents and 1,700 catastrophic claims specialist that are there when you need them.

Classic Car Enthusiasts. State Farm loves classic cars and provides quality insurance for them. It even has its own split Camaro—which is half restored and half modernized. If you love classic cars, you have something in common with this company and can know they’ll insure yours with the best interest at heart.

Words To The Wise

You are the decision maker, we’re just the fact checkers. We want to provide you the data so you can determine which company is best for you. Here’s the facts with State Farm:

State Farm is best for most drivers.

State Farm offers great programs and discounts for teen drivers and seasoned, older drivers too—making it a great choice for just about anybody.

About State Farm
State Farm has been around since 1942 and continuously received high rankings for their financial strength and customer service.  With active engagement in the community—reporting $60 million donation dollars to date—its mantra, “Like a good neighbor, State Farm is there,” rings true.

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