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State Farm Car Insurance [Quotes + Discounts]

State Farm OverviewStats
Year Founded1922
Current ExecutivesMichael L. Tipsord
Chairman, President, and CEO
Numbers of EmployeesNearly 58,000 employees &
19,000 independent
contractor agents
Total Revenue and
Total Assets
Total Revenue $81.7 billion
Total Assets $159.9 billion
Headquarters AddressState Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Phone Number800-STATE-FARM
(800-782-8332)
Company Websitehttps://www.statefarm.com
Premiums Written$65,868,839
Loss Ratio0.62
Best ForProperty and Casualty Insurance
Life and Health
Annuities
Mutual Funds
Banking Products
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Since 1942, State Farm has been the number one auto insurance company in the U.S.  and number one in homeowners’ insurance since 1964. Approximately 72 million private vehicle owners and businesses have policies with State Farm. State Farm had over 13 million auto claims in 2018, which is about 36,000 auto claims per day.

How can potential customers obtain a policy with State Farm? This guide will show you everything you need to know about State Farm.

In addition to that, this guide will provide specific information such as why State Farm is one of the top insurance companies in the U.S., the complaint index from the NAIC, types of coverages offered at State Farm, how to file a claim with State Farm, and many other details about State Farm.

If you want to get an insurance quote right now, enter your ZIP code in our free compare quotes box above. For more extensive information on State Farm, continue through the guide.

Table of Contents

Cheap Car Insurance Rates

Policyholders and potential customers search for cost-efficient rates. Is State Farm car insurance affordable?

To determine whether State Farm is affordable is by looking at the average annual rate of State Farm car insurance and the average annual rate of each U.S. state. Once you compare the rates, you’ll see if State Farm car insurance is cost-efficient.

In addition to state-by-state comparison, we’ll show you a comparison of Farm’s market share to other major car insurance companies in the U.S. and talk about the factors that determine car insurance premiums.

State Farm Availability and Rates by State

State Farm is available in all states in the U.S.

Anyone can find a State Farm agent near their local area. Let’s examine some of the average annual rates in your state. Use the search bar to quickly find your state.

StateAverage by StateState Farm Annual PremiumHigher/Lower than State AverageHigher/Lower % than State Average
Alaska$3,421.51$2,228.12-$1,193.39-34.88%
Alabama$3,566.96$4,798.15$1,231.1934.52%
Arkansas$4,124.98$2,789.03-$1,335.95-32.39%
Arizona$3,770.97$4,756.25$985.2826.13%
California$3,688.93$4,202.28$513.3513.92%
Colorado$3,876.39$3,270.77-$605.63-15.62%
Connecticut$4,618.92$2,976.24-$1,642.68-35.56%
District of Columbia$4,439.24$4,074.05-$365.20-8.23%
Delaware$5,986.32$4,466.85-$1,519.48-25.38%
Florida$4,680.46$3,397.67-$1,282.79-27.41%
Georgia$4,966.83$3,384.88-$1,581.95-31.85%
Hawaii$2,555.64$1,040.28-$1,515.36-59.29%
Iowa$2,981.28$2,224.51-$756.77-25.38%
Idaho$2,979.09$1,867.96-$1,111.13-37.30%
Illinois$3,305.48$2,344.88-$960.60-29.06%
Indiana$3,414.97$2,408.94-$1,006.03-29.46%
Kansas$3,279.62$2,720.00-$559.62-17.06%
Kentucky$5,195.40$3,354.32-$1,841.09-35.44%
Louisiana$5,711.34$4,579.12-$1,132.22-19.82%
Maine$2,953.28$2,198.68-$754.60-25.55%
Maryland$4,582.70$3,960.87-$621.83-13.57%
Massachusetts$2,678.85$1,361.86-$1,316.99-49.16%
Michigan$10,498.64$12,565.52$2,066.8819.69%
Minnesota$4,403.25$2,066.99-$2,336.27-53.06%
Missouri$3,328.93$2,692.91-$636.03-19.11%
Mississippi$3,664.57$2,980.48-$684.09-18.67%
Montana$3,220.84$2,417.74-$803.11-24.93%
North Carolina$3,393.11$3,078.65-$314.46-9.27%
North Dakota$4,165.84$2,560.53-$1,605.32-38.54%
Nebraska$3,283.68$2,438.71-$844.97-25.73%
New Hampshire$3,151.77$2,185.46-$966.32-30.66%
New Jersey$5,515.21$7,527.16$2,011.9436.48%
New Mexico$3,463.64$2,340.66-$1,122.98-32.42%
Nevada$4,861.70$5,796.34$934.6419.22%
New York$4,289.88$4,484.58$194.704.54%
Ohio$2,709.71$2,507.88-$201.84-7.45%
Oklahoma$4,142.33$2,816.80-$1,325.53-32.00%
Oregon$3,467.77$2,731.48-$736.29-21.23%
Pennsylvania$4,034.50$2,744.23-$1,290.27-31.98%
Rhode Island$5,003.36$2,406.51-$2,596.85-51.90%
South Carolina$3,781.14$3,071.34-$709.80-18.77%
South Dakota$3,982.27$2,306.23-$1,676.05-42.09%
Tennessee$3,660.89$2,639.30-$1,021.59-27.91%
Texas$4,043.28$2,879.94-$1,163.34-28.77%
Utah$3,611.89$4,645.83$1,033.9428.63%
Virginia$2,357.87$2,268.95-$88.92-3.77%
Vermont$3,234.13$4,382.84$1,148.7135.52%
Washington$3,059.32$2,499.78-$559.55-18.29%
West Virginia$2,595.36$2,126.32-$469.04-18.07%
Wisconsin$3,606.06$2,387.53-$1,218.53-33.79%
Wyoming$3,200.08$2,303.55-$896.53-28.02%
Median$3,660.89$2,731.48-$929.41-25.39%
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Let’s talk about what the values mean in the table.

State Farm premiums are lower than most state’s average annual rate.

Only a few states have a lower rate than State Farm. Michigan is the most expensive state for car insurance. Michigan has an average annual rate that’s over $10,400. State Farm’s average annual premium for Michigan is $12,565. The states with the cheapest average annual rates are Hawaii, Virginia, and West Virginia.

The higher/lower state average and percentage show the difference in state averages and State Farm’s averages for car insurance.

Subtract State Farm’s premium from the state average to determine if the annual rate is more expensive or cheaper.

For example, State Farm’s average annual rate for California is cheaper than the state average. By subtracting State Farm’s average annual rate from the state average, we can determine the percent difference for California. You’ll have to divide the difference into the state average (513.35 / 3,688.93). This will give you a decimal answer of 0.139159, which is rounded off as 13.92 percent.

State Farm’s insurance for California is less than the state average. There’s no negative symbol, which indicates that State Farm car insurance in California is approximately 14 percent more than the California state average annual rate.

Comparing the Top 10 Companies by Market Share

For this sub-section, we’ll look at the top 10 car insurance companies in the insurance industry by comparing their market shares. Who are the top 10 companies? These 10 companies are the primary topics of discussion when it comes to car insurance. How does State Farm fit into the top 10 companies?

One of the ways we can tell is through market share. Another way we can review how State Farm compares is through average annual rates. Let’s look at and compare rates for each company.

Top Companies by Market ShareAverage Annual PremiumLatest Market Share (2018)
Allstate$4,532.969.19
American Family$3,698.771.9
Farmers$3,907.994.26
Geico$3,073.6613.41
Liberty Mutual$5,295.554.77
Nationwide$3,187.202.73
Progressive$3,935.3610.97
State Farm$2,731.4817.01
Travelers$3,729.321.9
USAA$2,489.495.87
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State Farm is the second-cheapest car insurance company based on the average premium, and State Farm has the highest market share in the table. State Farm car insurance is about 46 percent, which is $2,800 less than Liberty Mutual, the most expensive car insurance premium among the top 10 companies.

Average State Farm Male vs Female Car Insurance Rates

The first factors we’ll explore are age, gender, and marital status. California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania, and some parts of Michigan have banned car insurance rates that are determined by gender.

What are State Farm’s car insurance rates based on age, gender, and marital status in the states where gender-based premiums aren’t banned? We’ve summarized these rates in a table below.

Age, Gender, & Marital Status Summary
and Age
Average Premium
Single 17-year-old female$5,953.88
Single 17-year-old male$7,324.34
Single 25-year-old female$2,335.96
Single 25-year-old male$2,554.56
Married 35-year-old female$2,081.72
Married 35-year-old male$2,081.72
Married 60-year-old female$1,873.89
Married 60-year-old male$1,873.89
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Here’s a look at how age affects State Farm premiums compared to national averages.

Females pay less than male policyholders. Older and married policyholders over 35 years old pay less than teen drivers. Married drivers pay the same rate regardless of gender, however, 60-year-old drivers with a State Farm policy pay the least.

Average State Farm Rates by Make and Model

Older vehicles come with cheaper car insurance rates, while new vehicles are more expensive for car insurance. The latest vehicles are worth more.

The value of older vehicles is cheaper car insurance rates. Classic and customed vehicles, on the other hand, have average annual rates that are just as expensive as the latest model vehicles. Let’s look at car insurance costs by make and model. We’ll use Ford, Honda, and Toyota models as an example.

Make and ModelState Farm Rates
Average$3,260.00
2015 Ford F-150$3,204.23
2015 Honda Civic Sedan$3,024.24
2015 Toyota RAV4
XLE
$3,226.02
2018 Ford F-150$3,497.17
2018 Honda Civic Sedan$3,189.99
2018 Toyota RAV4: XLE$3,418.33
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These vehicles are a good example of how car insurance is determined by the make and model of a vehicle. Most of the average annual rates are close to the State Farm’s average annual rate. The cheapest rate was a 2015 Honda Civic Sedan with an average annual rate of $3,024.

Average State Farm Commute Rates

Annual commute mileage is the estimate of how many miles you’re expected to travel during the policy. Car insurance companies, including State Farm, estimate commute mileage by 10-mile commute / 6,000 annual mileage and 25-mile commute/ 12,000 annual mileage. Let’s examine the commute rate averages from State Farm.

Annual Commute MileageState Farm Average Premium
10 miles/
6,000 annual mileage
$3,175.98
25 miles/
12,000 annual mileage
$3,344.01
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State Farm is one of the car insurance companies that does issue a higher rate for more miles you’re estimated to travel throughout the policy. However, the commute rates fall within State Farm’s average annual rate.

Average State Farm Coverage Level Rates

The state’s minimum requirements (liability coverage) for car insurance has different levels. Car insurance requirements have something called coverage limits, often referred to as coverage rules. What this means is that your liability car insurance will have amounts that cover a certain limit.

For example, if you want the minimum coverage for car insurance, the insurer may show you a coverage limit of 10/30/15, which means $10,000 for bodily injury of one person per accident, $30,000 for bodily injury of two or more people per accident, and $15,000 for property damage per accident.

These rules are separated into three levels: low, medium and high. The higher the coverage level, the higher the coverage limit for car insurance. The higher your coverage limit, the more expensive the average annual rate will be. Let’s look at average annual rates based coverage levels from State Farm.

State Farm Coverage TypeAverage Premium
Low$3,055.40
Medium$3,269.80
High$3,454.80
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In the long-term, it may be more helpful to get medium coverage limits. Accidents are unexpected events and drivers can’t measure how badly accidents will be before they occur. A policyholder has a better chance to be covered if they take proactive measures in case they’re in a bad accident that leaves you or someone extremely injured.

Medium and high coverage levels are a few hundred dollars more, but it could save you money and inconvenience if the coverage limits can cover the entire cost of an accident, injury, and property damage.

Average State Farm Credit History Rates

State Farm will have to review your credit history if you want a policy with them. Car insurance companies reassure that reviewing your credit report will not damage your credit. State Farm and other car insurance companies need to see your credit report to determine your financial ability to make premium payments.

According to Experian experts, there’s a correlation between a person’s credit score and the total cost to insure that person, which means a person with poor or fairly poor credit has a higher chance of risk.

So how much is a car insurance premium per year based on State credit history at State Farm? Let’s have a look at those rates.

Credit History SummaryState Farm Average Premium
Poor$4,951.20
Fair$2,853.00
Good$2,174.26
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The average annual premium for State Farm policyholders with poor credit is $2,219.72 more than State Farm’s average annual premium of $2,731.48. Those with fair credit pay approximately $122 more while those with good credit pay roughly  $557 less than the State Farm average annual rate.

Average State Farm Driving Record Rates

State Farm encourages all of its policyholders to be cautious as they drive. Those who have clean driving records will pay the least for car insurance. Accidents, DUIs, traffic violations, and speeding violations are factors that can increase car insurance rates.

How cheap are car insurance rates based on driving record? Let’s look at driving record rates by reviewing State Farm’s average annual rates.

Driving Record SummaryState Farm Average Premium
Clean Record$2,821.18
With One Accident$3,396.01
With One DUI$3,636.80
With One Speeding Violation$3,186.01
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It’s expensive to insure DUI convicted drivers as seen in the data. You’re likely to pay a significant amount more if you have more than one DUI on your record.

Accidents are the second-most expensive rate while speeding violations have the least increase on average annual rates. Too many traffic violations, DUIs, and accident could put a driver in the high-risk pool, and a driver may lose their policy and will have to get insurance through SR22.

Coverages Offered

Now that you know what you could pay per year for car insurance, let’s explore what type of coverage you need. This section covers the types of coverage you can expect from State Farm, additional coverages you may need, State Farm bundling options, discounts at State Farm, and programs available at the company.

We’ll start with types of coverage State Farm offers its policyholders. We’ll use this section to go in-depth about State Farm’s coverages.

Types of Coverages Offered

Liability is required for all car insurance policyholders and companies. Liability is required for all drivers in each of the 50 states in the U.S. Liability coverage pays another person or persons’ medical expenses, vehicle repair costs, and property damage if you are the person or party that’s responsible.

Collision coverage pays for vehicle damage to your car after an accident has occurred regardless of who is at fault. Comprehensive coverage pays for damage from sudden events such as falling objects, storm damage, vandalism, and vehicle theft.

State Farm is also required to carry uninsured and underinsured coverage. Most drivers and U.S. states are required to have uninsured motorist and underinsured motorist insurance.

Uninsured motorist coverage is car insurance coverage that activates when you’re in an accident with another party that does not have car insurance. Underinsured motorist coverage activates when someone’s coverage isn’t enough to cover the cost of bodily injury, vehicle repair costs, or property damage.

Medical payments cover additional medical bills, particularly, medical bills that relate to personal injury. Also, medical payments will cover funeral expenses if a person is killed in an accident. Sometimes, medical payments are bundled with Personal Injury Protection (PIP).

Additional State Farm  Coverages

State Farm lists a few more car insurance coverages that are convenient for their policyholders. One of them is called Car Rental Reimbursement or Rental Car Reimbursement. This coverage pays for rental car fees and payments while your car is being repaired.

Another helpful coverage from State Farm is Travel Expense coverage, which pays for lodging, meals, and transportation when you’re in an accident that’s more than 50 miles from your home.

If you have travel expense coverage, it may be helpful to add Emergency Road Service coverage from State Farm, also. Emergency Road Service is a car insurance coverage that can help tow your vehicle to an auto repair shop or your home in case your vehicle breaks down. State Farm provides specialized insurance coverage for rideshare drivers, too.

We talked about classic cars and modified cars being insured earlier in the guide. State Farm offers collector and classic car insurance, which insures remastered vehicles that are antiques (vehicles older than 25 years) and classics (vehicles older than 10 years and younger than 25).

State Farm doesn’t list modified car insurance on their website, but they mention something called sports car insurance. Sports cars are modified vehicles meant for speed, so if you want to insure your modified vehicle, State Farm may suggest sports car insurance.

State Farm Bundling Options

State Farm policyholders can save over $800 if they bundle their car insurance and home insurance under State Farm. State Farm has other special bundles for homeowners, renters, and other items that require insurance. Policyholders with State Farm car insurance should contact their local State Farm agents to bundle other insurances with their car insurance.

State Farm Discounts

Policyholders who have a State Farm policy are insisted on holding on to their discounts. “Don’t mess with my discount” is the popular slogan for policyholders and potential customers. What discounts could a policyholder get from State Farm? We’ve summarized State Farm discounts into a data table.

Type of Discount SummaryDiscount Amount / %
Anti-lock Brakes5%
Anti-Theft15%
Claim Free15%
Defensive Driver5%
Distant StudentAsk a State Farm Agent for more details.
Driver's Ed15%
Driving Device/App50%
Good CreditAsk a State Farm Agent for more details.
Good Student25%
Homeowner3%
Low Mileage30%
MarriedAsk a State Farm Agent for more details.
MilitaryAsk a State Farm Agent for more details.
Multiple Policies17%
Multiple Vehicles20%
Newer Vehicle40%
Paperless/Auto Billing$2
Passive Restraint40%
Safe Driver15%
Vehicle Recovery5%
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Some discounts may not be available in some states, but there are discounts available to most State Farm policyholders.   Federal employees, however, will not receive discounts from State Farm car insurance companies. Also, there aren’t any discounts on “green vehicles” either.

State Farm Programs

State Farm offers a variety of programs besides insurance. Some of these programs are related to their community service while others help out with the environment.

One of the most well-known community programs at State Farm is the State Farm Matching Gift® Program.

This program gives support to higher education by matching charitable contributions made by State Farm associates and retirees to those who are qualified for two-year colleges and four-year universities. The second program under Matching Gift deals with contributing to nonprofit organizations.

Here are two other programs from State Farm that could be helpful for the community and those who bundle their car insurance with home insurance.

Did you know that State Farm has a banking department? It’s called State Farm® Bank. Policyholders and other customers of State Farm can manage their accounts, deductibles, mortgages, loans, and credit.

State Farm Rating by Agency

Ratings are determined by policyholders and other entities such as financial and credit rating agencies. Policyholders and former customers give feedback on their concerns and experience with different agencies, surveys, and websites. Financial and credit rating agencies utilize the same customer-based feedback but with additional review.

Those reviews include an opinion of a company’s financial and credit strength. Every year financial strength and credit agencies report the financial performance and overall customer satisfaction of insurance companies.

State Farm is one of the best companies among insurance companies in the U.S. due to its overall score from different financial and company performance rating agencies.

This section will explore each agency’s grade for State Farm. Each agency uses its grading system differently, but there are some similarities. Our analysis will break down each agency’s rating system to give you an understanding of how well or how poor State Farm performs.

Here’s a quick look at State Farm’s ratings from each financial and credit agency.

AgencyRating
AM BestA++
Better Business BureauA+ (Greenville, SC)
Moody'sAa1 (State Farm Life)
S&PAA
NAIC Complaint
Index Ratio
0.49 (2018)
J.D. Power4/5 (Overall Satisfaction)
Consumer Reports89
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“A” ratings appear to be the best ratings. Therefore, we can assume State Farm performs well for its policyholders and earns major profits per year. So, what do these ratings mean? Let’s explore it more.

A.M. Best

Founded in 1899, A.M. Best has considered the first credit rating agency in the U.S. A.M. Best started with one founder who had a one-room office in New York. As of today, A.M. Best has offices in over 100 counties with regional offices in major cities around the world such as New York City, London, Dubai, Hong Kong, and Mexico City. They’re one of the most influential financial strength rating agencies

A.M. Best Financial Strength Rating is the company’s opinion on the financial strength and capability to meet ongoing insurance policy and contract obligations.

To grade companies on their financial strength, A.M. uses its financial strength rating grade insurance companies. A.M. Best ratings go from A+ (superior) to D (poor). Here’s what each rating means.

Rating CategoriesRating SymbolsRating NotchesCategory Definitions
SuperiorA+A++Assigned to insurance companies that have, in A.M. Best's Opinion, a superior ability to meet their ongoing insurance obligations
ExcellentAA-Assigned to insurance companies that have, in A.M. Best's Opinion, an excellent ability to meet their ongoing insurance obligations
GoodB+B++Assigned to insurance companies that have, in A.M. Best's Opinion, a good ability to meet their ongoing insurance obligations
FairBB-Assigned to insurance companies that have, in A.M. Best's Opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
MarginalC+C++Assigned to insurance companies that have, in A.M. Best's Opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions.
WeakCC-Assigned to insurance companies that have, in A.M. Best's Opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.
PoorD-Assigned to insurance companies that have, in A.M. Best's Opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions.
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State Farm has an A++ grade from A.M. Best, which the highest financial strength rating (FSR) result.

This means State Farm, in A.M. Best’s opinion, has a superior ability to meet their ongoing insurance obligations.

Better Business Bureau

One of the most well-known agencies on the list is the Better Business Bureau (BBB). The BBB is a private, nonprofit agency that records and reports how businesses interact with their customers. Like any rating agency, the BBB grades each company in its database, even car insurance companies. Their grades and ratings are based on these factors:

  • Company’s complaint history with BBB
  • Type of company and time in the company
  • Transparent company practices
  • Company’s failure to honor commitments to BBB
  • Advertising issues, licensing and government actions are known to BBB

The BBB lists the ratings of each company on different levels. Therefore, a national grade may be different from city, county, and state-level ratings.

BBB ScoreBBB Letter Rating
97-100A+
94-96.99A
90-93.99A-
87-89.99B+
84-86.99B
80-83.99B-
77-79.99C+
74-76.99C
70-73.99C-
67-69.99D+
64-66.99D
60-63.99D-
0-59.99F
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State Farm ratings, for the most part, are rated as A+ or Excellent from the BBB.  In Greenville, South Carolina, State Farm has an A+ rating.

Moody’s Rating

Moody’s Corporation, which is MCO on the New York Stock Exchange (NYSE), is the parent company of Moody’s Investors Service. The corporation, as a whole, reported $4.4 billion in 2018. Moody is a world-wide credit-rating agency.

Moody’s Investors Service provides credit ratings and research covering debt instruments and securities.

This agency tracks the credit ratings of companies in 135 counties. Moody’s rating system is much different than some of the others.

Moody grading scale is as follows:

Moody's Grading ScaleMoody's Grading Summary
AaaObligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.
AaObligations rated Aa are judged to be of high quality and are subject to very low credit risk.
AObligations rated A are judged to be upper-medium grade and are subject to low credit risk.
BaaObligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics.
BaObligations rated Ba are judged to be speculative and are subject to substantial credit risk.
BObligations rated B are considered speculative and are subject to high credit risk.
CaaObligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.
CaObligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.
CObligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.
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Moody gives State Farm Life and Accident Assurance Company an Aa1 rating based on their insurance financial strength (IFS). IFS is the universal acronym used to describe an agency’s rating system.

S&P Rating

S&P is a credit rating agency that’s in the top three credit agencies worldwide. They base their opinions on a company’s capabilities and willingness to meet obligations on time. The S&P rating system is unique to Standard & Poor’s Global. Listed below is a table explaining the S&P Grading system.

Investment GradeInvest Grade Summary
AAAExtremely strong capacity to meet financial commitments
AAVery strong capacity to meet financial commitments
AStrong capacity to meet financial commitments, but somewhat susceptible to economic conditions and changes in circumstances
BBBAdequate capacity to meet financial commitments, but more subject to adverse economic conditions
BBLess vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions
BMore vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments
CCCCurrently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments
CCHighly vulnerable; default has not yet occurred but is expected to be a virtual certainty
CCurrently highly vulnerable to non-payment, and ultimate recovery is expected to be lower than that of higher-rated obligations
DPayment default on a financial commitment or breach of an imputed promise and also used when a bankruptcy petition has been filed
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S&P rates State Farm as AA, which says the company has a very strong capacity to meet financial commitments.

NAIC Complaint Index

Consumer feedback is as important as any credit rating or financial rating. The National Association of Insurance Commissioners (NAIC) collects consumer feedback reviews and compiles the numbers into annual complaint index reports.

Where does State Farm stand when it comes to consumer complaints? Let’s examine NAIC’s research and figures in the data table below.

Private Passenger
Policies
201620172018
Total Complaints9,2061,4811,402
Complaint Index
(better or worse
than National Index)
2.16
(worse)
0.52
(better)
0.57
(better)
National Complaint Index0.781.21.16
US Market Share16.64%16.66%15.84%
Total Premiums$35,685,484,012$38,588,069,994$39,059,618,736
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The total number of complaints decreased from 2016 to 2018. In one year, State Farm decreased its number of complaints by more than 7,000. As a result, they earned more than $2 million after 2016.

J.D. Power

J.D. Power, on the other hand, is a combination of a company’s financial strength review and overall customer satisfaction review. They use something called the Power Circle Ratings and the customer satisfaction index.

J.D. Power says, “All ratings are based on the opinions of consumers who have actually used or owned the product or service being rated.”

To determine the customer satisfaction index, however, J.D. Power surveys customers of a particular company or product to rate various aspects of their service or product experience. J.D. Power conducts annual research based on consumer feedback.

This research is placed in a report called the Customer Satisfaction Index Ranking. The rankings are measured on a 1,000 point scale and through the Power Circle Ratings.

  • Five out of five circle rating: Among the best
  • Four out of five circle rating: Better than most
  • Three out of five circle rating: About average
  • Two out of five circle rating: The rest

J.D. Power’s research is released in various studies and reports, which cover each major area in the U.S. What’s J.D. Power’s position on State Farm car insurance? Let’s examine J.D. Power’s opinion of State Farm in this summarized table based on J.D. Power’s research.

RegionCustomer Satisfaction
(out of 1,000)
J.D. Power Circle RankingJ.D. Power Circle Rating
California824Better than mostoooo
Central828About averageooo
Florida834About averageooo
Mid-Atlantic834About averageooo
New England844Better than mostoooo
New York845Better than mostoooo
North Central841Better than mostoooo
Northwest820About averageooo
Southeast853Better than mostoooo
Southwest831Among the bestooooo
Texas835About averageooo
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State Farm has been great with its customers on average with four out of five overall satisfaction. J.D. Power ratings show State Farm performing well in satisfying their customers. State Farm has customer rankings that scored over 800 for each region in the U.S.

Consumer Reports

Consumer Reports can tell you about the consumer experience and customer service from agents, policies, and claims.

Consumer Report is a nonprofit group where consumers can review whether a product, a service, or a company is right for you.

Is State Farm right for policyholders and potential customers? We’ve researched and summarized the Consumer Reports feedback of State Farm. The Consumer Report ratings are based on 23,609 Consumer Report subscribers. Here are the results based on the total number of subscribers’ responses.

Claims HandlingScore/Rating
Reader Score89 out of 100
Ease of reaching an agentExcellent
Simplicity of the processVery good
Promptness of response - very goodVery good
Damage amountVery good
Agent courtesyExcellent
Timely paymentVery good
Freedom to select repair shopVery good
Being kept informed of claim statusExcellent
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State Farm received an overall good rating when we averaged the Consumer Report research. Consumer Reports review of State Farm is close to the ratings of other agencies as well, which shows that State Farm has earned its number one spot as one of the top car insurance companies in the U.S.

Consumer Affairs

Consumer Affairs is another nonprofit group with a website that includes direct reviews from consumers and allows anyone to view these results in real-time. The total number of reviews on Consumer Affairs gives State Farm an average rating of four stars, which is based on reviews from 2,623 customers of State Farm car insurance.

State Farm History

State Farm was founded in 1922 by a retired farmer and insurance salesman in Bloomington, Illinois. The insurance salesman, George Jacob “G.J.” Mecherle started State Farm to help people manage the risks of everyday life and help them recover from accidents and sudden events.

Today, State Farm has 100 products and services. State Farm has 18,000 exclusive agents and over 82 million policies and accounts. Stater Farm also processes about 35,000 claims a day.

With so many claims, the volume of mail associated with these policies, accounts, and claims has created a strong relationship between State Farm and the USPS. State Farm mailed over one billion pieces of outbound mail, which used over $300 million in postage in 2014. State Farm received over 41 million payments from inbound mail from policyholders and potential customers.

State Farm Market Share

From the previous data, we see State Farm as one of the best, but how do they fit into the market share of insurance companies?
Market share is the percent of an industry, in this case car insurance industry.

Market share is the total number of sales earned by a company over time. You can calculate the market share of a company by factoring the company sales over time then divide them by the total sales of the industry. This makes it easier to compare companies in the car insurance industries.

What’s the market share for State Farm? Our data is from an annual NAIC report. We’ve summarized the data for your convenience.

Market Share Summary2015 Market Share2016 Market Share2017 Market Share2018 Market Share
Total Market Share18.02%18.26%18.07%17.01%
Market Share of
Liability
18.47%18.35%18.17%16.97%
Market Share of
Physical Damage
18.29%18.12%17.91%17.08%
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Market Share Over Time

The graph below shows how State Farm’s market share has shifted over the past few years.

State Farm’s market share has gradually decreased since 2015, but not enough to where they lose their position as the number one car insurance company in the U.S.

State Farm Position for the Future

We can see that State Farm car insurance has performed well with its customers and maintained steady profits over the last few years. Could this trend continue in the future?

At the moment, it’s likely the car insurance will remain among the top insurance companies in the U.S. State Farm has been the top car insurance company since 1942. And the trend continues into 2020 based on the numbers and customer feedback.

State Farm Online Presence

Besides being listed as one of the top car insurance companies by financial and credit agencies, State Farm is available for home insurance, renters insurance, and fire insurance. State Farm agencies are located across the U.S., but State Farm can help you manage your policy online.

State Farm has made use of the internet and smartphones to communicate with policyholders and potential customers faster. State Farm has 170,000 subscribers on Youtube and 102,000 followers on Twitter.

State Farm Commercials

“Like a good neighbor, State Farm is there.” Whether it be YouTube videos or commercials on broadcast television, State Farm’s slogan has entered popular culture. State Farm uses comedy and popular figures in pop culture to deliver information about their services. Let’s watch some of State Farm’s most popular commercials.

This commercial encourages policyholders and potential customers to drive safely and protect their clean driving record discount.

Let’s have a look at one more commercial.

This one further shows State Farm’s flexibility where policyholders can track their services and make payments through the State Farm mobile app. The State Farm app is available for Android and Apple iOS.

Aaron Rodgers appears in this commercial due to the State Farm’s endorsement of the NFL quarterback. Airing Aaron Rodgers in the commercial helps promote their overall insurance service and mobile app.

State Farm in the Community

Most companies get involved with the community. State Farm is a company with a rich history of community involvement. State Farm has a car and home safety program that help educate communities, prepare communities through disaster and recovery programs, and programs that promote economic empowerment.

Here’s a video provided by State Farm and their promise in providing neighborhood assistance.

So to reiterate the video, here’s a list of State Farm programs used to help and empower communities:

  • Grants
  • Better Education
  • Safety
  • Neighborhood Empowerment
  • Volunteering

Grants and Better Education are often done through scholarship and meeting eligibility requirements. Safety, neighborhood empowerment, and volunteering are where State Farm employees directly help their communities by donating time and money to the local community.

State Farm Employees

Speaking of employees, there are roughly 58,000 employees and 19,000 independent insurance agents at State Farm and State Farm locations around the U.S. Let’s get a closer look at State Farm and what it’s like for State Farm.

The Glassdoor reports that 45 percent of employee reviews recommended State Farm to others. Thirty-seven percent of employee reviewers approve of CEO, Michael L. Tipsord.

The final rating on the Glassdoor was 3.1 out of 5 stars. Glassdoor awarded State Farm as 38th Best Places to Work in 2011. From 2013 to 2014, State Farm’s CEO was recognized as one of the Top CEOs in the U.S.

State Farm’s overall employee satisfaction rating on Payscale is 3.3. out of 5 stars.

Appreciation, Company Outlook, Fair Pay, Learning and Development, Manager Communication, Manager Relationship, Pay Policy and Pay Transparency influences the overall rating on Payscale. The highest-rated among them were Manager Relationship, which had four stars, followed by Manager Communication which is 3.8 stars.

Let’s talk briefly about State Farm’s awards and accolades.

State Farm is praised for employing military vets and also praised for the number of women in executive positions at their company. It’s an equal opportunity company that’s earned its place on the Forbes Fortune 500 list and voted as the world’s most admired company in Fortune Magazine.

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Canceling Your Policy

Why would a policyholder want to cancel their car insurance policy?

Drivers shift car insurance companies or policies for various reasons. Some drivers cancel their policies because they found a cheaper policy or a policy with more perks. Whatever your reason is for canceling, it’s a policyholder’s right to do so. We’ll explore how you can cancel your State Farm policy.

Cancellation Fee

There’s no cancellation fee when you cancel your policy with State Farm.

Is there a refund?

Even though there’s no fee for canceling, you can get a refund when you cancel only if you’ve paid your premium beforehand. When you cancel your policy with State Farm, they will issue a refund for any unused parts of your policy.

How to Cancel a State Farm Policy (Step-by-Step Guide)

How can you cancel your State Farm policy? In this sub-section, we’ll explain the step-by-step guide on how a State Farm policyholder can cancel their car insurance.

Cancel by Phone

  • Contact a local State Farm agent and explain that you’d like to cancel your policy. Be sure to have your policy number, name, date of birth and Social Security number. If you’re canceling because you’ve sold your car, provide proof of your car’s license plate forfeiture or a bill of sale.
  • Cancellations by phone are effective immediately. If you don’t want immediate cancellation, you can schedule it for a date in the future.
  • Inform the DMV when you cancel and enroll in another car insurance as soon as possible. Ask your agent about specific state guidelines.
  • The agent might ask for your new provider’s name, policy number, and effective date if you’re switching providers.

Cancel by Mail

State Farm asks you to send a letter explaining that you want to cancel and include the following:

  • Your name, address, and phone number.
  • Your State Farm policy number and the date you want to end your policy.
  • If you’re switching providers, include your new insurer’s name, policy number and policy start date.
  • If you’ve sold your vehicle, proof of license plate forfeiture or proof a bill of sale.

Be sure to sign, date and mail your letter at least two weeks before your intended cancellation date. This gives State Farm enough time for shipping and processing to take its course effectively, and it gives a policyholder enough time in case they want to change their mind about canceling. Mail your cancellations to this address:
Corporate Headquarters
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710

Cancel in Person

To cancel in person, go to your local State Farm agent’s office and provide the information to the agent:

  • Your name, address, and phone number.
  • Your State Farm policy number and the date you want to end your policy.
  • If you’re switching providers, include your new insurer’s name, policy number and policy start date.
  • If you’ve sold your vehicle, proof of license plate forfeiture or proof a bill of sale.

When can I cancel?

You can cancel anytime you like. Be sure to have all the necessary information for the cancellation to go accordingly.

How to Make a Claim with State Farm

Accidents happen unexpectedly at a rate that we don’t care to admit. When you’re in an accident, you’ll need to make a claim. In this section, we’ll explain how a policyholder can make a claim. In addition to making claims, let’s examine State Farm’s direct premiums written and the loss ratio.

Ease of Making a Claim

Policyholders can file a claim with State Farm online or through the State Farm® Mobile App.

Here’s a short video on how you can file a claim with State Farm online.

If you prefer to speak to an agent, they are available 24/7 at 1-800-732-5246 or you can contact your local agent directly but availability may be limited. Be sure to have this information when you file a claim:

  • Date and time of the incident
  • Vehicles involved
  • Description of the incident
  • Description of damages
  • Location of incident

Be aware of your state’s statute of limitations for personal injury, bodily injury, and property damage to file a claim as well. The statute of limitations varies for each state.

Premiums Written

What are premiums written and what do they mean?

Investopedia defines premiums written as the total premiums received before reinsurance is granted.

Premiums written or direct premiums written represent the total growth of a company’s insurance business over time, which includes the company itself and its affiliated companies.

Although car insurers can see these direct premiums increase from the renewal of policies, new direct premiums written have the greatest reward for companies.

What are State Farm’s direct premiums written? Does State Farm have a steady increase in direct premiums written over time? Let’s examine the numbers.

YearState Farm Direct Premiums Written
2015$35,588,209
2016$39,194,660
2017$41,817,416
2018$41,963,578
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State Farm’s direct premium written increased from $35 million to nearly $42 million in a four-year trend.

Loss Ratio

What about the loss ratio?

The loss ratio represents the number of claims paid out versus the number of premiums received. Therefore, the loss ratio is money being paid out in claims from a car insurance company and the money they earned from policyholders. Let’s see State Farm’s total loss ratio in a four-year trend.

YearState Farm Loss Ratio
201566.1
201677.02
201768.79
201863
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Any loss ratio that exceeds 100 indicates a car insurance company that’s not earning money. Low loss ratios indicate car insurance companies that don’t effectively pay out claims. For example, if a company has a loss ratio of 55, it means that the company spent $55 in claims for every $100 made in premiums.

For State Farm, we see the loss ratio in a four-year trend change gradually. The average loss ratio within the four-year trend is 68.73, which means State Farm spent $68.73 in claims for every $100 they made in premiums between 2015 and 2018.

How to Get a Quote Online

Getting a quote from State Farm requires potential customers to go through a few steps. We’ll provide those steps for you in this section of the guide. In addition to the steps, we’ll provide screenshots of what the webpage looks like.

State Farm Get a quote scren

Navigate the website, and click on the link that says “Get a Quote” at the top of the webpage to start.

Enter your ZIP Code to Access a Quote

After you click on “Get a Quote”, the next screen should take you to a screen that says Account Authentication.

State Farm Account Authorization Screen

You’ll have to enter your ZIP code to continue the quote process. Once you enter your ZIP code and choose what type of insurance you want a quote for, you’ll proceed to the next screen.

Add Your Vehicle Information

The next screen will need your vehicle information. You can add as many vehicles as you want.

Click on vehicle information to reveal the dialog boxes where you have to enter information on the vehicle you want to insure.

Add the Number of Drivers

State Farm will want to know how many drivers will be on the policy. This is important just in case you’re a parent who is insuring a vehicle for a teenage driver.

State Farm Auto Insurance Add a Driver

The information you entered previously should appear. Scroll down the webpage and you’ll see where you can insert more information.

Report Anything about Your Driving History

Potential customers will have an opportunity to inform State Farm about their driving record. It’s important to answer this section accurately as possible. If you have any records of tickets, at-fault accidents, license suspensions, or other violations report them in the quote process.

State Farm Auto Insurance Driver History

There are places where you can click and add your information as it relates to your driving history. It’s in your best interest to accurate information.

Add Additional Information

After you’ve successfully added all the driving record information, State Farm will need you additional details such as how long you’ve lived at your place of residence, discount eligibility, and contact information.

State Farm Auto Quote Additional Info

Enter the information on the webpage as directed by State Farm. Be sure to scroll through the webpage to make sure you don’t miss anything.

State Farm Quote

When all of the information is entered, State Farm will finally show you a quote for car insurance.

State Farm Auto Insurance Quote

These quotes represent a coverage level in your state or local area. Not only does state farm show you what you could pay for the next six months, the quote system breaks down how much you’ll pay for the month.

Design of Website and App

Web design and Mobile App display and interactivity can make a difference in a policyholder experience. A web application and a webpage that’s difficult to navigate will frustrate customers. State Farm has implemented a web design that helps its visitors navigate through their information and select the information they’re looking for.

This section will describe the design of the website and review its versatility.

Let’s review the website again. We showed some of it in the How to Get A Quote section, but let’s take a second look.

State Farm Get a quote screnState Farm’s website has a simple design. The links are direct and will take you directly to the information you need. What’s not listed can be found using the internal search engine to find the information.

Is the design a plus or minus?

The design is a plus. The State Farm website is flexible for any level of web surfing.  Some people enjoy eloquent and interactive menus, but those can distract a policyholder and often take more time than they should.

Mobile App

Let’s have a look at the State Farm® Mobile App from Google Play.

State Farm App on Google Play

State Farm rates as four stars from 17,056 reviews. State Farm has three apps: The State Farm® Mobile App, the Drive & Safe® Mobile App, and the Steer Clear® Mobile App.

How easily can you manage your account using just the app?

Before we talk about the interface of the app, let’s look at its design.

State Farm Mobile App Screen

Like most mobile apps, State Farm has done well with simplicity, making its usability easy for all users.

The State Farm® Mobile App will let its account holders file and manage claims, access policy ID, get roadside assistance, upload information, upload photos, and documents, contact an agent, and access banking accounts with State Farm.

Is the design a plus or minus?

The mobile app design provides icons the user can touch to access different parts of the app, so they can get to the information faster. This use of the mobile app reflects the simple and easy navigation of the website. The design is responsive which means the app can be used on tablets, too.

Pros and Cons

We’re getting close to the end of the guide, so we’ll use this time to examine some of the pros and cons of State Farm.

State Farm ProsState Farm Cons
Third-lowest average premium among the top 10 providersRates can be expensive depending on what city or state you live
Strong financial standing and rankings
Does not provide discounts for federal employees, green vehicles, and occupational
Policies are available in all 50 statesReceived an "about average" Power Circle Ranking in 5 out of 11 regions
Customers have a variety of online options and an easy-to-use appAdd-ons are available but limited
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State Farm is number one in car insurance, but it’s only the second-cheapest car insurance among the top 10 companies. Federal employees don’t receive discounts, but they can receive discounts that are available to all other policyholders. Be advised, some add-ons are limited. Get everything you need when you sign up for State Farm, and ask your agent questions.

The Bottom Line

State Farm’s market share, direct premiums, and overall customer service are all proof that State Farm is one of the top insurance companies among the insurance industry. The State Farm car insurance rates are cheaper in some states, but more expensive in others.

In addition to State Farm policies, State Farm is involved with the community. State Farm’s community programs have helped thousands across the nation. Despite the average J.D. power ratings, State Farm remains strong as an insurance company and could help you avoid significant financial damage, which could hurt your financial future. But that is up for you to decide.

State Farm Car Insurance FAQs

For the final section of the State Farm guide, let’s go over some questions that you may have that weren’t addressed. If there are questions here that you don’t see or want to be addressed, ask them in the comment section of our guide and we’ll try to answer them.

Is Windshield Repair or Replacement covered under Comprehensive Coverage?

Absolutely. Comprehensive car insurance coverage will repair or replace a windshield. However, policyholders may have to pay a deductible depending on the state and car insurance company.

Ask a State Farm agent for more details regarding windshield replacement and deductible. those with a State Farm bank account may be able to deposit money into their account to use it for deductibles at a later date.

Does State Farm have Accident Forgiveness?

Some of State Farm’s consecutive policyholders may receive this benefit, but it’s unclear. Ask your State Farm agent about accident forgiveness as policies change within short times.

Accident forgiveness is when a car insurance company will opt out of increasing your car insurance rates when you’re in an accident. So what we’re saying is State Farm may give a policyholder that benefits if a policyholder keeps renewing their policy every six months.

How much liability car insurance should I get?

That depends on the state you live in and how much your vehicle is worth. Coverage limits determine the total amount of coverage for bodily injury and property damage. The lowest coverage limit is the minimum requirements for car insurance. For states like California, that’s known for a low coverage limit for property damage, medium and high coverage limits are better for the policyholder.

What’s the difference between collision and comprehensive coverage?

Collision coverage is when a driver is in an accident and the car insurance company pays for the property damage regardless of who as at fault, but comprehensive coverage is for damage from unexpected events such as weather, vehicle theft, falling objects, etc. Both work differently, but collision coverage is the most expensive of the two.

What is “full coverage”?

Although car insurance companies see full coverage as a myth, policyholders often use this term regardless of the myth among insurance companies. “Full coverage” is the combination of liability, collision, and comprehensive coverage. Other car insurance coverages may be bundled within it as well, it all depends on the state in which you live.

How much liability car insurance should I get?

That depends on the state you live in and how much your vehicle is worth. Coverage limits determine the total amount of coverage for bodily injury and property damage. The lowest coverage limit is the minimum requirements for car insurance. For states like California, that’s known for a low coverage limit for property damage, medium and high coverage limits are better for the policyholder.

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