|STATE FARM OVERVIEW||STATS|
|Current Executive||Michael L. Tipsord, Chairman, President, and CEO|
|Number of Employees||Nearly 58,000 employees & 19,000 independent contract agents|
|Total Revenue & Assets||Total Revenue: $81.7 billion|
Total Assets: $159.9 billion
|Headquarters Address||State Farm Insurance|
One State Farm Plaza
Bloomington, IL 61710
|Best For||Property and Casualty Insurance|
Life and Health
State Farm’s Rating Agency
State Farm is one of the United States’ biggest insurance companies. They insure 44.1 million auto policies. They have $159.9 billion in assets and over 19,000 agents.
In fact, State Farm is the largest car insurance provider in the country.
For decades now, State Farm has branded itself “like a good neighbor.”
But being a good neighbor isn’t the most important question for drivers to ask about their insurance company. Instead, drivers should ask if a car insurance provider meets all their needs.
When shopping for car insurance, the key issues you need to prioritize include:
- The level of insurance coverage you need
- The amount of money you can afford to pay for your car insurance premium
- The type of insurance company you want to do business with
Trying to determine whether State Farm or any other insurer is right for you can be difficult. Without rate comparisons, thorough coverage options, solid data, and financial assessments, gaining knowledge about car insurance coverage is nearly impossible.
But that’s why we’ve created this guide: to help you gain the knowledge you need to make a smart car insurance decision for you and your family. And we’ve included this convenient tool to help you find and compare rates in your area.
You’ve come to the right place if you’re looking for an easy-to-follow, inclusive review of State Farm car insurance.
So, if you’re ready to learn as much as you can about State Farm, keep reading. Together, let’s take an in-depth look at the nation’s largest car insurance provider.
The table below offers an overview of the various ratings top agencies give State Farm car insurance. In the following sections, we’ll dig more deeply into these ratings.
|AGENCY||STATE FARM RATING|
|Better Business Bureau||A+|
|NAIC Complaint||0.57 (2018)|
|Index Ratio||0.49 (2018)|
|J.D. Power||4/5 (Overall Satisfaction)|
A.M. Best calls itself “the oldest and most widely recognized” agency providing ratings and financial data exclusive to the insurance industry.
They rank a company’s financial strength by assigning ratings from an A++ to a D.
Currently, A.M. Best gives State Farm their highest ranking, a superior A++.
But you might be wondering: What does that mean for the insurance giant?
An A++ rating means A.M. Best believes State Farm has a superior ability to meet the ongoing insurance policy and contract obligations of their customers
You should also know that A.M. Best has additionally awarded State Farm a Long-Term Issuer Credit Rating (ICR) of aa+.
According to A.M. Best, an ICR is “an independent opinion of an entity’s ability to meet its ongoing financial obligations.” With this aa+ rating, A.M. Best experts believe that State Farm has the utmost ability to meet ongoing financial obligations for its customers.
In that way, they are definitely like a good neighbor.
Better Business Bureau
The Better Business Bureau (BBB) awards State Farm Insurance an A+, their highest rating, on the national level.
But what is the BBB to begin with? The BBB is a private, nonprofit organization that analyses how a business interacts with its customers, awarding businesses a grade from A+ (highest) to F (lowest). These grades are based upon a number of factors, including:
- The business’ complaint history with BBB
- Type of business
- Time in business
- Transparent business practices
- Failure to honor commitments to BBB
- Licensing and government actions that are known to BBB
On the BBB homepage, you can find local ratings for most companies by simply entering your location.
You probably know that your credit rating matters when it comes to any number of things, from buying a house to, in some cases, even getting a job. But did you know that companies have credit ratings, too?
That’s where Moody’s steps in.
Moody’s rankings range from Aaa (the highest quality) to C (the lowest quality).
They currently give State Farm a Aa rating, and explain that “obligations rated Aa are judged to be of high quality and are subject to very low credit risk.”
Another of the “Big Three” credit-rating agencies, Standard & Poor’s offers ratings ranging from AAA (the best) to D (the worst). According to S&P, State Farm Insurance recently earned an AA, representing a “very strong capacity to meet financial commitments.”
Check out the video below to see how S&P ratings should be taken into account when considering doing business with a company.
NAIC Complaint Index
For 2018, the National Association of Insurance Commissioners (NAIC) assessed State Farm had a complaint ratio of 0.57, far lower than the national complaint ratio for all insurers of 1.16.
And State Farm’s customer satisfaction has been steadily improving, you’ll be wise to know, which is an important factor to consider when choosing a car insurance provider.
The table below provides State Farm’s complaint date from 2016 to 2018.
|State Farm Complaint Index||2.16||0.52||0.57|
|National Complaint Index||0.78||1.2||1.16|
|United States Market Share||16.64%||16.66%||15.84%|
As you can see, State Farm’s complaint ratio has been declining drastically since 2016. The lower the complaint ratio, the better the customer service.
And how satisfied are State Farm customers with their car insurance provider?
So now that you know how many complaints State Farm gets, you might want to know how satisfied customers say they are with the Bloomington, Illinois-based company.
That’s where J.D. Power steps in: to provide you with customer satisfaction scores.
J.D. Power’s 2019 U.S. Auto Insurance Study ranks auto-insurance companies by region and measures customer satisfaction in five areas (in order of importance):
- Policy offerings
- Billing process and policy information
Additionally, the group’s Power Circle ratings, which you may have heard of before on car commercials, are generated from the opinions of those who have actually used the insurance provider. These ratings range from five out of five circles (“Among the Best”), to two out five circles (“The Rest”).
We wanted to know how State Farm fared in customer satisfaction and in the Power Circle ratings in each region. The table below provides J.D. Power ratings for State Farm for each of its 11 regions in the United States.
(Out of 1,000)
|JD POWER CIRCLE RANKING|
|California||824||Better than most|
|New England||844||Better than most|
|New York||845||Better than most|
|North Central||841||Better than most|
|Southeast||853||Better than most|
|Southwest||831||Among the best|
While J.D. Power provides a great overview of a company’s overall customer satisfaction, Consumer Reports offers a closer look at the day-to-day relationship between a car insurance provider and its customers.
Consumer Reports is an independent nonprofit that uses consistent and up-to-date customer feedback to help inform the purchasing decisions of us all. They recently gave State Farm a score of 89 out of 100.
The table below provides a breakdown of different areas Consumer Reports considers when rating a car insurance provider. The good news: State Farm performs consistently well within all break-out areas.
|Reader Score||89 out of 100|
|Ease of reaching an agent||Excellent|
|Simplicity of the process||Very good|
|Promptness of response - very good||Very good|
|Damage amount||Very good|
|Timely payment||Very good|
|Freedom to select repair shop||Very good|
|Being kept informed of claim status||Excellent|
Now that we know how State Farm rates — consistently pretty high — let’s take a look at the company’s history.
State Farm History
Picture it: 1922, central Illinois. Retired farmer George Jacob “G.J.” Mecherle sells his first automobile insurance policy for $11.17.
But let’s face it. We know you’re interested in much more than the company’s origins. You want to know where State Farm is going— in its finances, outlook, advertising, community service, and more.
Nearly 100 years later, State Farm Insurance is the largest insurer of cars in the United States and ranked as #36 on the Fortune 500 list of largest companies in the country.
In the sections below, we’ll look at the company’s growth and potential.
State Farm Market Share
According to Investopedia, a company’s market share “represents the percentage of an industry, or a market’s total sales, that is earned by a particular company over a specified time period.”
As we’ve already discussed, State Farm is the largest car insurer in the United States. And although the company has seen a slight dip in its overall market share during the last few years, their share still remains several percentage points above that of their closest competitor, Geico.
The table below offers you State Farm’s total market share, share of liability and share of property damage from 2015 to 2018.
|YEAR||TOTAL MARKET SHARE||MARKET SHARE OF LIABILITY||MARKET SHARE OF PHYSICAL DAMAGE|
|2017||18.07 %||18.17 %||17.91 %|
|2016||18.26 %||18.35 %||18.12 %|
|2015||18.29 %||18.47 %||18.02 %|
State Farm’s Position for the Future
State Farm is the car insurance company in the United States, as we’ve seen. And though they face more and more competition from companies such as Geico and USAA, we believe the future is bright for the company.
State Farm’s Online Presence
State Farm makes it really easy to find a local agent through their online search tool.
State Farm Commercials
We’re willing to bet that most folks know State Farm’s jingle by heart: Like a good neighbor, State Farm is there.
Without a doubt, State Farm’s use of television commercials has strategically helped cement this slogan into the canon of popular culture.
But we think State Farm’s commercials are about much more than just repeating a catchy phrase. As exemplary pieces of marketing, they’re both memorable and informative, helping potential customers know what the company has to offer.
Here’s an example. In this State Farm ad, titled “Kim’s Discount,” the company uses a series of humorous scenarios to showcase its Drive Safe & Save Discount, a signature of the company’s offerings.
And here’s a commercial highlighting a common headache we all face: potholes.
And finally, here’s one that showcases their extremely user-friendly mobile app.
State Farm in the Community
You would expect a company that prides itself on being “like a good neighbor,” to be, well, a good neighbor. And State Farm does not disappoint to that end.
The community service arm of State Farm Insurance focuses on three main areas:
- Auto and home safety programs and activities
- Disaster preparedness and recovery programs and services
- Education, economic empowerment, and community development projects, programs, and services
Some specific examples of State Farm’s community service include The Neighborhood of Good, Community Grants, and supporting educational organizations that positively impact students.
Here is a moving video that showcases State Farm’s Neighborhood Assist Program.
State Farm’s Employees
So how do State Farm employees like their company?
Our research shows that State Farm employees have had their fair share of both positive and negative experiences, although it is not evident that those experiences have impacted the overall product the company offers consumers.
Here’s a look at two popular job tracking sites and what they have to say about working at State Farm.
Glassdoor reports that:
- The average employee review for State Farm is 3 out of 5
- State Farm employee reviews helped the company earn an impressive distinction — being named to Glassdoor’s Best Places to Work Employees’ Choice list in 2011, ranking 38th.
Payscale finds that:
- State Farm employees have given the company an average rating of 3.3 out of 5 in overall satisfaction
- Employees gave State Farm the highest marks in manager relationships (4/5), followed by manager communication (3.8/5), and learning and development (3.6/5).
- However, employees gave State Farm lower marks in categories tied to pay (2.7/5 in fair pay and pay policy)
The video below offers a cool story about how one man went from being a basketball player to a thriving State Farm independent insurance agent.
Cheap Car Insurance Rates
If you’re like us, you love a good deal.
And that desire doesn’t disappear when you shop for car insurance. That is in large part why we’ve created this guide: to help you navigate not only the particulars of car insurance quality but also cost.
Read on to find out more about finding the most affordable rates for car insurance.
State Farm Availability and Rates by State
Is State Farm available where you live? If you’re in the United States, the answer is yes.
State Farm car insurance policies are available for purchase in all 50 states and the District of Columbia.
Find an insurance agent near you.
In our research of State Farm nationwide, we found that the drivers paying the highest average premium live in Michigan, paying just over $12,000 a year, way more than any other state. The states with the next highest premiums were New Jersey and Nevada, with rates at roughly $7,500 and $5,800 respectively.
Conversely, we found the lowest average rates in the beautiful state of Hawaii, where the average premium is a little over $1,000. Hawaii is followed by Massachusetts and Idaho, both with rates averaging under $2,000.
Check out the table below to see how your state stacks up compared to the other 50 (and the District of Columbia), and if they’re higher or lower than your state’s average with other companies.
|STATE||ANNUAL PREMIUM||HIGHER/LOWER |
THAN STATE AVERAGE
|PERCENT HIGHER/LOWER |
THAN STATE AVERAGE
|District of Columbia||$4,074.05||-$365.20||-8.23%|
Comparing the Top 10 Companies by Market Share
So how much of the market does each car insurance company take up?
Good question. As we’ve already discussed, State Farm is the largest car insurance provider in the United States. But that doesn’t mean you don’t want to know more about what companies fall in line behind your good neighbor.
In the table below, we offer the top 10 companies by market share for 2018, also including their amount of direct premiums written and loss ratios.
|Rank||Company||Market Share||Direct Premiums Written||Loss Ratio|
Average State Farm Male vs Female Car Insurance Rates
Do men and women pay different amounts for car insurance? Often, they do.
In most places, men will pay more than women, especially teenage men, who can pay substantially more than their female peers.
Six states — California, Hawaii, Massachusetts, Montana, North Carolina and Pennsylvania — have banned gender discrimination in car insurance premiums, and we imagine more states will follow suit.
So how does gender bias look for State Farm car insurance consumers?
Though rates are different for single men and women at ages 17 and 25, married men and women at ages 35 and 60 are averaging the same State Farm rates.
The table below shows average State Farm rates for folks of various genders, ages, and marital statuses.
|MARITAL STATUS, GENDER, 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|
But how does your typical commute affect your State Farm insurance rates?
Average State Commute Rates
When it comes to State Farm insurance, your commute distance only has a minimal effect on your car insurance premium, as the table below illustrates.
|10 miles/6,000 annual mileage||$3,175.98|
|25 miles/12,000 annual mileage||$3,344.01|
Average State Farm Coverage Level Rates
Perhaps obviously, the more car insurance you need, the higher your premium will be.
State Farm is no exception to this trend.
The table below illustrates how rates steadily decrease as they move from high to low.
|COVERAGE TYPE||AVERAGE PREMIUM|
Average Company Credit History Rates
Our credit history affects so many parts of our lives, from buying a home to even, in some cases, getting a job.
Our car insurance premiums are not free from their effect, either.
This short video offers a great explanation as to how and why credit scores help determine car insurance premiums.
The table below provides average premiums for State Farm drivers of various credit histories.
|CREDIT HISTORY||AVERAGE PREMIUM|
But what will affect your car insurance premiums even more than your credit history?
It’s a factor that worries a lot of folks: your driving record.
Average State Farm Driving Record Rates
Most of us don’t have spotless driving records. Just ask Seinfeld’s Newman.
The fact that drivers with a clean record are paying the least in premiums doesn’t surprise us. But how do drivers with one speeding violation, one accident, or one DUI compare?
The table below reflects this data for State Farm consumers.
|DRIVING RECORD||AVERAGE PREMIUM|
|With One Accident||$3,396.01|
|With One DUI||$3,636.80|
|With One Speeding Violation||$3,186.01|
When you’re shopping for car insurance, you need to know about more than just rates and rankings. You need to know what kind of coverages a company offers and various factors that can affect your rate for that specific company.
Types of Coverages Offered
State Farm offers a wide swatch of coverage options important for consumers to consider when shopping for car insurance. These include:
- Liability. This covers bodily injury or property damage done to another car or person in a car accident that you caused. Every state requires some level of liability insurance.
- Collision. This covers vehicle damage done to your car following an accident, whether or not you were at fault.
- Comprehensive. This covers unexpected and unpredictable events such as vandalism, hail, or hitting an animal.
- Uninsured motor vehicle. This kicks in if you’re involved in an accident with someone who is uninsured.
- Underinsured motor vehicle. This kicks in if you’re involved in an accident with someone with insufficient coverage.
- Medical payments. This covers medical expenses for you and passengers in your vehicle.
Additionally, State Farm offers some easy add-ons that might be a good idea for certain types of drivers:
- Car rental and travel expenses
- Rideshare driver
- Emergency road service
- Classic car coverage
State Farm Discounts
State Farm offers a lot of substantial discounts to its customers. From military to good student, make sure to ask your local State Farm agent if you qualify for any of the discounts in the table below.
|State Farm Discounts Offered||Maximum Possible Savings|
|Distant Student||Speak with your agent to learn more|
|Good Credit||Speak with your agent to learn more|
|Married||Speak with your agent to learn more|
|Military||Speak with your agent to learn more|
What Stands Out
Our research shows that State Farm offers a variety of great discounts that clearly appeal to drivers of all ages and experience levels.
There are, however, some noticeable omissions: discounts for federal employees, occupational discounts and discounts for green vehicles.
Canceling Your Policy
Need to cancel your policy? State Farm makes it pretty easy.
State Farm allows you to cancel your policy by phone, by mail or fax or in person.
- You’ll typically need to have the following: policy number, name, date of birth, and Social Security number. If you’re canceling because you’ve sold your car, you’ll likely need proof of your vehicle’s plate forfeiture or bill of sale.
- Cancellations by phone are typically effective immediately, or you can schedule it for a date in the future.
- Many states require you to inform the DMV when you cancel or change your auto insurance. Check your state’s guidelines.
- If you’re switching providers, you may need to provide the new provider’s name, policy number, and effective date.
By mail or fax. Write a letter that includes:
- Your name, address, and phone number.
- Your State Farm policy number and the date and time you want your policy to end.
- If you’re switching providers, your new insurer’s name, policy number and policy start date.
- If you’ve sold your vehicle, proof of plate forfeiture or your bill of sale.
Sign, date, and mail your letter at least two weeks before your intended cancellation date to:
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Or fax your cancellation letter: (888) 633-0405 or (905) 750-5002.
In-person. Bring the following:
- Your name, address, and phone number.
- Your State Farm policy number and the date and time you want your policy to end.
- If you’re switching providers, your new insurer’s name, policy number, and policy start date.
- If you’ve sold your vehicle, proof of plate forfeiture, or your bill of sale.
Almost every state requires a minimum level of constant car insurance coverage. It is imperative that if you are switching insurance providers, there is no gap in your coverage, or you risk facing penalties and fines.
State Farm does not generally charge a cancellation fee for its customers, and you can cancel at almost any time.
How to Make a Claim
Unfortunately, accidents happen, both major and minor.
So how do you make a claim with State Farm Insurance?
State Farm makes filing a claim fairly straightforward and simple. Claims can be filed:
- With the mobile app
- By calling (800) SF-CLAIM (800-732-5246) (available 24/7)
- By contacting your agent
This video shows how easy filing a claim online with State Farm can be.
And don’t forget, in the case of an accident you’ll need some information to file your claim. Here’s the basics of what State Farm requires:
- Date and time of the incident
- Vehicles involved
- Description of the incident
- Description of damages
- Location of incident
When you’re dealing with the nation’s largest car insurance provider — way to go, State Farm — it’s probably not surprising to read that State Farm writes a lot of premiums. $65,868,839 in premiums for 2018, in fact.
To assess the financial health of insurance companies, you should look at its loss ratios. Loss ratios are the money insurance companies pay out on claims compared to the money they take in on premiums.
For example, if an auto insurer collects $100 of premiums and pays out $65 in claims, the company’s loss ratio is 65 percent.
The video below explains loss ratios quite well, we’ve found.
State Farm’s current loss ratio is 63 percent.
The table below offers both loss ratios and direct premiums written by State Farm from 2015 to 2018.
|YEAR||DIRECT PREMIUMS WRITTEN||LOSS RATIO|
How to Get a Quote Online
As more and more consumers are turning to the web to meet their car insurance needs, providers are paying attention. Drivers looking to get a State Farm quote online can follow our step-by-step guide:
First, head to StateFarm.com and click the Get a Quote tab across the top of the homepage. Next, you’ll be prompted to select Auto insurance and to enter your ZIP code in order to continue.
Next, you’ll be prompted to enter some pretty stand personal details: your name, address, city, state, ZIP code, date of birth, and the date you’d like your policy to begin.
Then you’ll be led to this screen. Here you’ll be asked to add information about your vehicle or vehicles. Once you’re done, you’ll be prompted to enter your personal driver information.
Next, you’ll also be asked to give a summary of your driving history. That includes at-fault accidents, tickets, major violations and license suspensions. It’s important to answer these questions as honestly as possible before an agent reviews your application for car insurance.
Finally, you’ll be asked to provide additional information including the registered owner of the car (or cars) you wish to insure, how long you’ve been with your current car insurance provider and an email address where you can be reliably reached.
Once you’ve completed these fairly simple and straight-forward steps, you’ll be provided with a set of customizable quotes, each representing varying levels of car insurance coverage.
Design of Website and App
State Farm’s website is cleanly designed and easy to navigate.
But it’s the 21st century, so chances are you might be navigating State Farm through a mobile app. State Farm’s easy-to-use mobile app was designed to help manage your accounts, get roadside assistance, file a claim, and much more as you live a busy life on the go.
You can find their app in the Apple App Store, Google Play or by texting MOBILE to 78836 to get a link directly texted back to you.
Pros and Cons
So now that we’ve learned a lot about State Farm, let’s look at some of the specific pros and cons of taking out a car insurance policy with them.
|Has the third-lowest average premium among the top 10 providers||Rates can be pricey depending on where you live|
|Consistently strong financial standing and solid rankings||Could stand to offer more discounts, like federal employees, green vehicles and occupational|
|Policies are available in all 50 states and the District of Columbia||Received an "about average" Power Circle Ranking in 5 out of 11 regions|
|Customers have a variety of online options and an easy-to-use app||Limited add-ons are available|
Here are some takeaways from this list:
- Customers looking to save money on car insurance may find good bargains with State Farm, as they offer the third-lowest average rates among the nation’s top auto insurance providers. Yet, even with these lower rates, some drivers may find themselves with higher-than-normal premiums depending on where they live.
- In terms of its financial health, State Farm has consistently proven to be stable and reliable in the eyes of industry experts. Availability is also a strong suit with State Farm, as drivers will be hard-pressed in not being able to locate a State Farm agent, or in finding what they need online or in the State Farm app.
- While State Farm offers a number of discounts, some noticeable ones are missing — including those for federal employees, green vehicles, and those tied to certain occupations. State Farm also appears to be lacking in add-ons, such as GAP (Guaranteed auto protection) insurance or pay-as-you-drive insurance.
- Finally, in the J.D. Power Auto Claims Satisfaction Study, State Farm received “About Average” Power Circle rankings in five regions. While average certainly doesn’t equate to poor, it may be worthwhile for State Farm to strengthen its customer service relations base, especially in view of an increasingly competitive industry.
The Bottom Line
State Farm has a lot of customers — more, in fact, than any other car insurance company in the entire United States. And that certainly says something. State Farm rates consistently at the top or at least average among its competitors, and being the biggest company also means you have the financial wherewithal to meet your customer’s needs.
With over 19,000 independent agents across the United States, it’s clear State Farm has also made a tremendous investment in communities across the nation. While that isn’t necessarily indicative of their auto insurance policies, it does show a sense of commitment. Like a good neighbor, they say, after all.
Bottom line? In spite of some shortcomings — like limited add-ons and higher rates in some states — State Farm is clearly a constant and reliable company — one we are sure will continue to see growth for many decades to come.
State Car Insurance FAQs
Now that we’ve covered the basics of doing business with State Farm Insurance, you might still have some lingering — even pressing — questions. We’ve created this FAQ to assist to that end.
Can I get copies of my State Farm ID card online?
Absolutely. You can view, print and email a new insurance card, or request a mailed ID card through the State Farm website.
Handy to know in the case of an accident or if you get pulled over by the police: you can also pull up your current State Farm ID through the mobile app.
Can I make payments to State Farm online?
Yes, you can make payments through the State Farm website, and you can even pay using a phone number, policy number, payment plan account number or key code.
Does State Farm coverage include windshield repair?
This is a great question, as glass claims are the top claims by number filed in the United States.
You’ll need to check your individual policy to verify whether you’re covered for windshield repairs.
That being said, State Farm covers both windshield repairs and replacements, depending on the extent of the damage. Your deductible may apply. Click here to learn more at State Farm’s website.
How much liability car insurance should I get with State Farm?
The minimum amount of liability coverage you’re legally required to have varies by state, as you probably know.
You may also decide to purchase liability coverage beyond your state’s minimum requirements, and our research shows this is often a great idea. The State Farm agent who handles your policy will be able to advise you on your state’s minimum requirements, as well as to whether or not you need coverage beyond the minimum.
Does State Farm cover flooding?
If your car floods, it would be covered under comprehensive coverage. But remember, you will need to make sure that you sign up for — or upgrade to — comprehensive coverage if flooding is a concern for your vehicles.
Now that you’ve read through this comprehensive review of State Farm Insurance, it’s time to hit the road.
But before you go, we’d like to know, did we miss anything in this guide? Which section was most helpful to you?
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