State Farm 2019 Auto Insurance Review: Rates, Claims Satisfaction, and Coverage

BravoDollar Editor rating:

Summary:

The nation’s largest auto insurance offers a breadth of coverage, a range of discounts, and  a network of 18,000 agents; State Farm caters to a wide range of consumers particularly to those who value the service an agent can provide in their local neighborhood.

Pros:

  • Broad range of coverage options coupled with bundling discounts if purchased with State Farm home insurance; State Farm can be your one-stop shop for auto and home insurance.
  • Local service with 18,000 insurance agents across the nation

Cons:

  • Pricing is not as competitive as other major providers such as GEICO
  • Above average claims satisfaction with a ranking of 3/5

As the largest nationwide auto and home insurance provider with a wide network of local offices, State Farm is a good choice for a customer looking for a local agent who can explain and recommend the best coverage options to suit their insurance needs.

In addition, State Farm also offers banking services such as checking and savings, credit cards, auto and home loans as well as other types of insurance. This makes it appealing to those who are looking to handle their financial transactions in one place. Lastly, State Farm’s tenure (founded in 1922), size and financial strength make it a reliable source of insurance.

The Value Equation ($$$)

The first thing that typically comes to mind when purchasing auto insurance is cost. Your insurance premium will depend on your age, location, coverage choices, driving history, and type of vehicle among others factors. The key is not to find the cheapest insurance premium since that might just mean that your coverage options are the bare minimum requirements for the state you live in and may not cover you sufficiently in the event of an accident.

To get a quote from State Farm, you can start an online quote, but to complete the purchase, your quote will be sent to a nearby agent that you get paired with or your agent of choice.

State Farm’s online quote process results in 3 recommended packages ranging from basic (minimum state coverage) to standard to premium (this typically includes rental car insurance and emergency road services).

Here is a snapshot of how State Farm’s average premiums compares to 2 other large national providers

 State FarmGEICOProgressive
18 year old, no accident$5,820$3,500$8,240
30 year old, no accident$1,328$1,110$1,255
Drivers with DUI$3,849$2,551$2,149
Drivers with 1 at-fault accident $2,845$1,850$2,700

State Farm consistently offers a mid to high premium in comparison to large competitors like GEICO and Progressive, the 2nd and 3rd largest insurance providers in the US.

Discounts

State Farm’s discounts are comprehensive and these fall into the following categories

  • Vehicle Equipment Discounts – cars with car alarms and anti-theft devices
  • Driving History/Education/Affiliation Discounts – discounts include good driver and occupational discounts
  • Customer Loyalty Discounts – multiple car discounts or bundled renters/home insurance policies
  • Driving Usage – State Farm has a program called Drive Safe & Save™. This discount is based on usage so if you drive less than your estimated annual mileage, you will receive a discount. You get 5% for enrollment and track your mileage either through an OnStar device or the Drive Safe & Save™ mobile app.

Typical to the majority of auto insurance companies, the discounts are determined up front during the quote process when State Farm evaluates your vehicle, driving history, mileage and bundles. These discounts may be removed if you fail to qualify for the given criteria. For example, your Good Drive Discount may be removed if you get a ticket and do not qualify for the 3 years without a ticket criteria.

>>MORE: State Farm Pet Insurance Review

Claims Satisfaction

The second most important factor in choosing an auto insurance provider is typically whether or not the claims experience will be smooth.

How easy is it to file a claim with State Farm?

  • Call their Claims Department: 800-SF-CLAIM (800-732-5246)
  • Call your local insurance agent
  • File a claim through their mobile app or on their website at www.statefarm.com

What is the average consumers’ experience and satisfaction with State Farm?

Every year, J.D. Powers surveys approximately 10,000 consumers who have recently filed a claim in the last 6 months. Based on this survey, insurance providers are ranked on a 1000 point scale. State Farm Insurance falls slightly above the national average with a score of 864/1000 with the industry average at a 861.

In comparison, another large nationwide provider, Farmers Insurance, scores 874/1000 with a 4 star ranking which is better than most insurance providers. Some complaints about State Farm’s claims experience include dissatisfaction with timeliness of response and dropped coverage after too many claims.

Coverage Options

As the nation’s largest auto insurance provider, State Farm Insurance offers a broad variety of coverage options. The chart below compares State Farm to the top 2 largest insurance providers in the US. Note that many of the features are available in all 3 with very few unique features:

FeaturesState FarmProgressiveGEICO
Liability
Physical Damage
Uninsured Motorist
Roadside Assistance
Rideshare (Uber/Lyft)
Rental Reimbursement✔ Also includes up to $500 in travel expense coverage
Gap InsuranceOnly for State Farm Bank financed vehiclesX
Pet InjuryXX

Website Experience

State Farm’s website is comprehensive and includes the ability to download your ID card, pay your bills, and view/manage your claims and coverage. State Farm also offers highly rated mobile app – their Pocket Agent app, to pay your premiums, file a claim, and get roadside assistance.

The Bottom Line  

  • State Farm’s breadth of offerings including auto and home insurance coupled with its other financial products make it a good choice for consumers looking to manage all their finances with the same company.
  • Consumers who like to deal with a local agent will also appreciate State Farm’s network of 18,000 dedicated agents.
  • However, State Farm’s average premium prices are typically higher than other nationwide providers making it not the best choice for value-seeking customers.
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