State Farm is known for nationwide availability in addition to great prices and high customer satisfaction scores. And the carrier has expanded its coverage to rideshare insurance for Uber and Lyft drivers. Here’s how to know if State Farm is a good pick for you.
State Farm is the largest insurer out there, based on US market share among national insurers, according to the Insurance Information Institute. This carrier services all 50 states and Washington DC, in addition to a handful of provinces in Canada. But is the quality of its auto insurance policies commensurate with its sheer size? That’s what we’re here to determine.
In addition to its wide availability and multiple insurance products, State Farm offers, sometimes hundreds of dollars lower than the national average. If you’re looking to buy your first policy or to switch carriers, State Farm is a worthy contender.
Here’s our review of State Farm for 2022.
State Farm’s customers are extremely happy with the service the carrier provides based on high customer-satisfaction scores in J.D. Power Surveys (more on that below). With lower-than-average rates, this insurer could save you money. State Farm also has a robust list of discounts, from a telematics program to a discount specifically geared toward young drivers.
In addition, you can pick up home, renters, boat, motorcycle and motorhome insurance and bundle them for additional savings.
While State Farm has a robust, it doesn’t have them all. For example, the carrier doesn’t offer gap insurance, which could be beneficial if you’re leasing or financing your vehicle. Gap coverage helps you pay in the event an accident leaves your car badly damaged or totaled, covering the difference between your vehicle’s market value and the amount you owe on it.
Moreover, while the carrier has active policies in all 50 states, it currently isn’t offering new policies in Massachusetts or Rhode Island.
Another drawback of signing up with State Farm is that it’s difficult to get accident forgiveness on your policy. To qualify for State Farm’s accident forgiveness, you must be both a State Farm customer and accident-free for nine years. This is particularly burdensome if you’re a young driver and haven’t had much time behind the wheel. For comparison, Geico offers accident forgiveness after five years without an accident — or you can purchase the feature outright. Progressive’s policies also automatically come with “small accident forgiveness” that covers claims up to $500.
Whether you have a clean driving history or you’re, signing a policy with State Farm could save you money, as the carrier’s costs are hundreds of dollars below the national average. With State Farm, the average annual premium for full coverage premium according to Bankrate is $1,561 — $210 under the national average.
|State Farm average annual full-coverage premium||National average annual full-coverage premium|
|Clean driving history||$1,397||$1,771|
|Adding a teen driver||$2,077*||$3,852|
*Rates from 2021
State Farm offers just about every major coverage type you might need for an auto policy. Here are some of them:
State Farm has a robust list of discounts. Here are some notable ones:
*Not available in California, Massachusetts and Rhode Island.
Customers are generally very satisfied with State Farm’s services. The carrier scored 892 out of 1,000, compared with an industry average of 880, according to a J.D. Power survey. And customers are also particularly happy with their digital shopping experience at State Farm when looking for a quote, ranking third for in this category in J.D. Power’s Digital Experience Survey.
Along with high customer satisfaction levels, State Farm touts a low number of complaints nationally. The carrier is indexed at 0.67 by the National Association of Insurance Commissioners. (1.00 is the industry average; 2.00 index would mean a company gets twice the complaints.)
|J.D. Power Auto Claims Satisfaction||881 out of 1,000|
|NAIC Complaint Index||0.67|
State Farm’s telematics program, Drive Safe and Save, monitors how much and how safely you drive. You get an initial discount just for enrolling in the program, and you could save as much as 30% off your bill based on your driving behaviors. There are two ways to participate in the program: You can sign up and use State Farm’s smartphone app, or if you have a 2020 or newer Ford or Lincoln vehicle, you can use your FordPass or Lincoln Way app to connect to this program.
Beyond its stellar car insurance coverage options, State Farm has many other insurance products (including boat, home, motorcycle and motorhome). If you wanted, you could bring all of your policies under one roof and simplify the entire process.
CNET reviews insurance carriers and products by exhaustively comparing them across set criteria. For auto insurance, we examine average annual premium rates for full coverage, consumer complaints, collision repair scores, the carrier’s financial strength, auto claims satisfaction and overall customer satisfaction. Our data comes from a multitude of sources.
Auto insurance rates come from Bankrate, which gathers data using Quadrant Information Services. We also use both J.D. Power annual surveys that collect data on customer auto claims satisfaction and overall customer satisfaction.
Consumer complaints are taken from the National Association of Insurance Commissioners (NAIC), which collects consumer complaints across states, indexing complaints on a scale that takes into account the industry average. We collect the financial strength rating of each carrier from the A.M. Best Rating. Lastly, we collected collision repair scores from the Crash Network Insurer Report Card, which collects data from collision repair professionals, including mechanics, to gauge the quality of collision claims service from insurance carriers.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.