Key Takeaways
- State Farm offers plenty of coverage options including add-ons like roadside assistance and discount programs like Drive Safe & Save™.
- State Farm home insurance is more affordable than the industry average and a good option for shoppers on a budget.
- You can get term, whole or universal life insurance coverage through State Farm.
State Farm is the largest insurance provider in the country — it wrote nearly $93.8 billion in premiums in 2023. That was about $31 billion more than Progressive, the next-largest company. As the market leader, State Farm offers many coverage options in auto, home and life insurance. We at the MarketWatch Guides team will give you an overview of these options to help you decide if State Farm is right for you.
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State Farm Insurance: Summary Review
Flip Card State Farm Insurance Rating
MarketWatch Guides Team Rating 4.6 / out of 5 stars
Rating is based off of MarketWatch Methodology Guidelines
Rating breakdown
Industry Standing 4.6 / 5
Availability 4.4 / 5
Coverage 4.7 / 5
Cost and Discounts 4.5 / 5
Customer Experience 4.7 / 5
Our Take
State Farm has a great reputation in the insurance industry and is known for its reliability. It ranks among our top providers for auto, home and life insurance due to its quality coverage and dedication to its customers. The company has a strong representation of local insurance agents throughout the U.S., adding the advantage of personalized service for those who value it. State Farm’s costs are average, with some competitors offering more affordable coverage on average.
How We Rate State Farm Insurance by Category
| Overall Rating | 4.6 |
| Industry Standing | 4.6 |
| Availability | 4.8 |
| Coverage | 4.7 |
| Cost and Discounts | 4.4 |
| Customer Experience | 4.6 |
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| Overall Rating | 4.7 |
| Industry Standing | 4.2 |
| Coverage | 5 |
| Cost | 4.6 |
| Customer Experience | 4.9 |
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| Overall Rating | 4.7 |
| Industry Standing | 4.2 |
| Coverage | 5 |
| Cost | 4.6 |
| Customer Experience | 4.9 |
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State Farm Industry Ratings
Our review scores throughout this article are a combination of ratings from industry organizations, customer reviews and other sources. For a more detailed look, we’ve provided scores from individual ratings sources below:
AM Best: B
Better Business Bureau (BBB): C-
National Association of Insurance Commissioners (NAIC) Complaint Index: 1.09
Trustpilot: 2.2 out of 5
BBB customer rating: 1.2 out of 5
State Farm Auto Insurance
Looking at State Farm’s auto insurance offerings, we rate it 9.2 out of 10 overall and name it Best Customer Experience. State Farm has high ratings across multiple J.D. Power studies plus it offers low average rates. Our rating includes multiple data points in categories of industry standing, availability, coverage, cost and customer experience.
Pros
Strong reputation in consumer studies
Good discount opportunities for students and teens
Affordable average rates for many types of drivers
Cons
Not available in all states
Service may vary by agency location
Read more: State Farm Car Insurance Review
State Farm Car Insurance Cost
According to rate data from Quadrant Information Services, good drivers pay about $2,544 per year or $212 per month for full-coverage insurance. This is just 5% cheaper than the national average of $2,681 per year for full coverage. Similarly, minimum coverage from State Farm costs an average of $861 per year or $72 per month. This is right at the national average of $869 per year.
State Farm Car Insurance Rates
Many factors influence the cost of insurance. We took a look at State Farm’s rates for a variety of situations which you can compare below. Generally, State Farm is cheaper than the national average except for drivers who have poor credit scores.
| Coverage Profile | State Farm Average Full-Coverage Monthly Cost | National Average Full-Coverage Monthly Cost |
|---|---|---|
| Minimum Liability | $72 | $72 |
| Full Coverage | $212 | $223 |
| Young Drivers* | $521 | $519 |
| Seniors** | $209 | $202 |
| After a Speeding Ticket | $220 | $270 |
| After an Accident | $234 | $299 |
| After a DUI | $227 | $323 |
| With Poor Credit | $843 | $446 |
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State Farm Car Insurance Discounts
State Farm offers a good number of discounts to help many drivers save money:
- Multi-policy: Save for building auto with other coverages like home or renters.
- Multi-car: Save for bundling multiple vehicles under one policy.
- Good driving: Save for going three or more years without moving violations or at-fault accidents.
- Defensive driving course: Complete a qualifying course for this discount.
- Good student: Students save up to 25% if they maintain a B average.
- Driver training: Drivers under 21 can get this discount for taking an approved course.
- Student away at school: Applies if you have a student under 25 on your policy who only drives when they come home for holidays.
- Vehicle safety: Save money based on your car’s safety features.
- Passive restraint: Save up to 40% on medical-related coverage if your car has passive restraint systems.
- Anti-theft: Applies if your car has an approved anti-theft device
- Steer Clear program: Drivers under 25 can save by completing an educational course in this app.
- Drive Safe & Save: Save up to 30% for practicing good driving habits with this usage-based program.
What Affects the Cost of State Farm Car Insurance?
Car insurance rates are personalized to each driver. You won’t find the same prices as your friends or neighbors. That’s because many factors affect the likelihood that you’ll file a claim in the eyes of insurance companies. These factors include:
- Age
- Location
- Driving record
- Vehicle
- Marital status
- Credit score
- Gender
State Farm Car Insurance Coverage
State Farm customers can get the six standard car insurance types from the company:
- Liability auto insurance: Compensates other drivers when you cause an accident
- Collision insurance: Repairs or replaces your vehicle after an accident no matter who was at fault
- Comprehensive insurance: Repairs or replaces your vehicle after environmental damage, vandalism, theft or crashing into a stationary object
- Medical payments coverage (MedPay): Covers medical bills up to a limit after an accident
- Personal injury protection (PIP): Covers medical bills, death benefits and lost wages
- Uninsured/underinsured driver coverage: Covers your hospital and repair bills if someone without enough insurance causes an accident
State Farm Auto Insurance Add-Ons
State Farm also offers a few add-ons beyond the standard coverage options:
- Roadside assistance: Covers lockout assistance, battery jump-start, spare tire installation, fuel delivery and towing
- Rental car reimbursem*nt: Reimburses you up to a limit for a rental car when your vehicle is in the shop for a repair covered by comprehensive or collision insurance
- Travel expense coverage: Reimburses you for food and lodging up to $500 if your car is in an accident over 50 miles from home and covered by comprehensive or collision insurance
- Rideshare insurance: Provides coverage while you’re on a rideshare app waiting to accept a job
Some options you won’t find from State Farm include new car replacement, mechanical breakdown insurance, gap insurance, custom parts coverage or personal items coverage.
State Farm Home Insurance
State Farm ranks among our top picks for the best homeowners insurance options, earning the distinction of being Our Pick for new homeowners. Our research shows that State Farm home insurance generally costs about the same as the national average, or cheaper, depending on where you live.
State Farm Home Insurance Cost
On average, State Farm home insurance customers pay about $2,085 per year or $174 per month for coverage for a $350,000 property. This is according to our home insurance cost data from Quadrant Information Services in 2024. State Farm is cheaper than the national average of $2,511 per year for a $350,000 home. What you pay depends on your home, location and coverage amounts.
State Farm Homeowners Insurance Quotes
Our team analyzed home insurance cost data for different dwelling coverage amounts. Below, you can see that State Farm is cheaper than the national average for four different policy values.
| Dwelling Coverage | State Farm Average Annual Cost | National Average Annual Cost |
|---|---|---|
| $250k | $1,698 | $1,981 |
| $350k | $2,085 | $2,511 |
| $450k | $2,556 | $3,062 |
| $750k | $3,835 | $4,669 |
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For this data, our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We then took the average of these individual quotes to calculate a national average premium per provider. Our sample rates are for informational purposes only. Actual premiums will vary.
Read more: Compare Home Insurance Quotes
State Farm Home Insurance Discounts
Compared to competitors, State Farm offers fewer discount opportunities to save on your policy. Their offerings for home insurance discounts are as follows:
- Multi-line discount: When you bundle your home and auto insurance policies with State Farm, you could save up to $1,073. Discounts vary based on which policies you bundle.
- Home security insurance discount: You may qualify for a home insurance discount if you installed a fire, smoke or burglar alarm or any other type of monitoring system in your home.
- Roofing discount: If you have or install a roof with impact-resistant roofing products, such as hail-resistant shingles or class four shingles, you may be eligible for a discount on your home insurance premium.
Read more: How To Save On Home Insurance
State Farm Home Insurance Coverage
Home insurance policies help protect your home and its contents after a covered event. Six common coverages are included in a standard State Farm home insurance policy. These include:
| State Farm Home Insurance Coverage | Description |
|---|---|
| Dwelling | This covers the physical structure of your home and any other structures attached to it. |
| Other structures | Other structures on your property, such as a detached garage, pool house, greenhouse or tool shed are protected by this option. |
| Personal property | This covers the contents of your home, such as furniture, appliances or clothes. |
| Loss of use/additional living expenses | If your home is damaged by a covered event, this insurance helps pay for a hotel, food and other expenses. |
| Personal liability | If someone is injured on your property, this helps protect you against legal liability for bodily injury or property damage. |
| Medical payments | This pays for injuries incurred to others on your property. |
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Read more: What Does Homeowners Insurance Cover?
Additional State Farm Home Insurance Policies
State Farm also offers these add-on home insurance policies:
- Personal liability umbrella policy: This add-on option increases your covered amount for personal liability. Home insurance policies typically provide a minimum of $100,000 to $500,000 in personal liability coverage, but a personal liability umbrella policy could provide coverage for over $1 million.
- Flood insurance: This insurance add-on covers losses directly caused by flooding.
- Earthquake insurance: This add-on insurance covers some of the losses and damage that earthquakes can cause to your home, belongings and other buildings on your property.
In addition to these add-ons, the company also offers insurance coverage for RVs and other motorhomes. We ranked them as the 6th best RV insurance company and named it the Best for Local Service.
State Farm Renters Insurance
Out of our picks for the best renters insurance companies, State Farm ranks third and earned the title of Our Pick for Affordable Premiums. The company offers plenty of coverage options for a reasonable price and has great customer service ratings.
State Farm Renters Insurance Cost
Renters insurance costs tend to be affordable from State Farm with an average monthly cost of $11 based on our analysis. This pricing makes it the cheapest renters insurance company in the U.S. However, the quote you get will vary depending on your location, home size, coverage level and more.
Read more: Compare Renters Insurance Quotes
State Farm Renters Insurance Discounts
State Farm doesn’t offer many discounts specific to renters insurance. The only discounts you can get are for bundling multiple policies and adding security measures to your home. You can also choose a higher deductible for cheaper pricing.
State Farm Renters Insurance Coverage
Below you can compare the basic coverage options available for renters insurance with State Farm:
| Renters Insurance Policy | Coverage Details |
|---|---|
| Personal property | This provides coverage for property such as electronics and furniture that are damaged for a covered loss. |
| Loss of use | If you are displaced from your rented home and it is left uninhabitable, you’ll be covered. |
| Personal liability | This covers you in case someone is hurt on your property and needs payment for injuries or damages. |
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Read more: What Does Renters Insurance Cover?
Additional State Farm Renters Insurance Policies
You can customize your State Farm renters insurance policy with optional add-on coverages:
- Identity restoration: This provides you with protection in the event of a cyber attack, identity theft or fraud.
- Additional business property: For issues directly relating to business owners, this additional protection provides coverage for your organization.
- Incidental business liability: This policy gives additional protection for liabilities relating to claims alleging error or omission in providing professional services.
The company also provides pet insurance coverage.
Is State Farm Life Insurance Good?
State Farm ranks as the sixth best life insurance company in our research. Life insurance policies from the company are much more affordable than they are from other providers. While they don’t offer a full suite of coverage options, you can find serviceable coverage with some of the best customer service in the industry.
State Farm Life Insurance Online
State Farm offers three types of life insurance policies that can be purchased online. These are:
- Term life insurance: This provides death protection for a stated period of time or term (typically 10 to 30 years). It can be purchased in large amounts for a relatively small premium and is well suited for short-range goals like paying off a loan or providing extra protection as your children grow.
- Whole life insurance: This policy can help your family in case the unexpected happens. The guaranteed death benefit helps replace a family’s loss of income and helps with mortgage costs or educational needs. These policies build cash value that grows tax-free.
- Universal life insurance: This provides a flexible way to protect your loved ones and build tax-deferred cash value. It can be structured as a survivorship or joint policy.
State Farm Insurance Reviews: The Bottom Line
Considering its reputation, low average costs and variety of coverage options, State Farm is a good choice for auto, home or life insurance. We recommend comparing multiple companies when you shop to find the best deal for your situation.
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State Farm Insurance: FAQ
Below are some frequently asked questions about State Farm insurance:
Yes, State Farm has a generally good reputation in the industry. It consistently scores well in multiple J.D. Power consumer satisfaction studies. However, it currently has a C- rating with the BBB.
State Farm is generally good about paying out claims in a timely manner. The company received a score of 891 out of 1,000 in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study, which landed it in fifth place and above the industry average.
According to our research, State Farm tends to be right around the national average in most categories.
We rate State Farm 9.2 out of 10 for its affordable average rates and good customer service record. State Farm also has a B financial strength rating from AM Best and a C- rating from the BBB.
Whether you are a State Farm customer or got in an accident with one of State Farm’s insured drivers, you can call (800) 732-5246 (800-SF-CLAIM) to file a claim with a local agent. You can also file an insurance claim online or through State Farm’s mobile app.
State Farm covers towing with its roadside assistance add-on. State Farm’s collision or comprehensive insurance may also cover towing in the event of an accident. If you only have bodily injury and property damage liability insurance, you will have to pay for towing unless the other driver’s insurance covers it.
Young drivers pay the most for car insurance, but average rates decrease with age. Depending on your situation and insurance policy, your rates may decrease by about 10% to 15% when you turn 25.
Yes, State Farm has options for standard health insurance options along with supplemental and disability coverages. The company does not provide very specific information on their website, but you can call a local agent or find quotes for a policy online.
Currently State Farm has no offerings for travel insurance coverage. However, if you are in the market for a policy, we believe the best travel insurance companies are Faye, Travelex and Nationwide Travel.
How We Rate Insurance Providers
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto, home and life insurance companies. We collected data on dozens of insurance providers to grade the companies on a wide range of ranking factors. Learn more about how we rate insurance providers in each industry below:
- Auto Insurance: Our team has analyzed more than 130 auto insurers based on their industry standing, availability, coverage, cost and discounts, customer service, and technology. We evaluate both national and regional insurers to determine the most reputable options on the market. Learn more about our auto insurance methodology.
- Home Insurance: We assessed dozens of home insurance providers and created a scoring system to compare each company’s quality and service. We took a comprehensive look at insurers’ reputations in the industry, coverage offerings, average costs and customer service. See our rating process in more detail in our home insurance rating methodology.
- Life Insurance: Our team has researched and ranked more than 30 life insurance companies using an in-depth scoring system that analyzes brand trust, coverage options, availability and ease of use, and riders. We look at how customizable each provider’s policies are to fit consumers’ needs. To learn more, read our full life insurance methodology for reviewing and scoring providers.
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
