State Farm Auto Insurance
|Company OverviewYear Founded: 1922Official Website: https://www.statefarm.com/Insurance Offered: Auto, motorcycle, RV, motorhome, homeowners, renters, and moreCustomer Service: 24/7 phone: 1-800-782-8332Key PointsState Farm is licensed in all 50 states, but coverage options and discounts may vary by location.State Farm has more than 19,000 insurance agents nationwide.According to the company, some drivers who use the Drive Safe and Save app get up to 50% off their premiums.Rideshare coverage can be added to some policies.|
State Farm is the largest auto insurance company in the country in terms of direct premiums written. Founded in 1922, the company offers a wide range of insurance products, including motorcycle, motor home, homeowners, renter’s, and life insurance.
Fast forward almost 100 years later and State Farm is now the largest insurance company in the United States. State Farm is known for customer service with robust coverage options and multiple discounts. It has more than 19,000 insurance agents nationwide and commands more than 16% of the private passenger auto insurance market share.
But State Farm doesn’t stop at massive amounts of market share. The company has impressive financial ratings to back up their own claims of stability and strength. They have an A++ rating from AM Best, which is the highest rating possible. This rating is based on financial strength and sound operational performance — which is exactly what you need with a car insurance company.
Another rating State Farm excels in is with the S&P Global Ratings. State Farm has an impressive AA rating, which shows strong creditworthiness.
And when it comes to customer satisfaction with auto insurance claims, you may be interested to know State Farm is one of the higher ranking companies. The company ranked 5th with the JD Power 2019 U.S. Auto Claims Satisfaction Study, which is based on the customer’s experience with settling claims.
State Farm Operation
State Farm operates with a network of over 19,000 insurance agents, which means customers are likely to find an agent within the neighbourhood. Each agent is an independent contractor; some will have additional employees too.
Customers has to work with their State Farm agent for everything from getting quotes to reviewing the application process. The agent can work with customers to determine the best coverage for the policy.
The cost of the policy is referred to as a premium. Customers can set this payment up to occur monthly, quarterly, or annually (don’t forget to ask if there’s a discount for paying the premium in an annual lump sum).
State Farm auto insurance offers an extensive list of coverage options for customers and their vehicle. Most of these are found with other insurance companies, such as:
• Collision • Comprehensive coverage • Liability •Uninsured motor vehicle
• Underinsured motor vehicle •Medical payments
In addition to these, policyholders can find coverage options not always available with the other companies, such as:
• Emergency roadside assistance •Expansive car rental and travel coverage
• Rideshare driver (Uber, Lyft, etc.) •Teen drivers • Antique and classic car
• Sports cars •Commercial auto
Not only must customers choose what coverage they need for their vehicle, but they have to determine the deductible willing to pay.
A deductible is simply the amount of money customer will pay before insurance kicks in if they have a claim. They can choose a policy with a no or low-deductible, such as $250, but their premium will be higher. If customer chooses to carry a higher deductible, in the $1,000 range for instance, then you can expect your policy to cost less.
The best way to determine the cost of a State Farm auto insurance policy is to enter the exact information for a quote. Customers aren’t obligated to purchase, so getting the exact numbers is potentially facing the best.
When it comes to auto insurance, there are multiple factors that affect the premium. Factors such as age, vehicle, driving record, location, the deductible amount, and customer’s credit score. Customers may have control over a few factors like a safe driving record, others not so much.
One aspect you do have control over is the ability to inquire about eligible auto discounts.
In order to reduce the cost of premiums, while still maintaining adequate coverage, is to look for discounts offered by the insurance company. This is an important topic of conversation for a customer and his agent.
What State Farm sets apart from other auto insurance provider’s is the number of discounts available to regular people. There are several discounts on premiums to help lower the overall cost. Discounts such as:
Drive Safe and Save™ discount
This discount rewards you for downloading the Drive Safe and Save™ app on your mobile. You’ll receive a discount automatically once you sign up. To take your discount to the next level, you need to connect your phone to Bluetooth so the app can provide feedback while you’re driving.
Steer Clear® discount
State Farm offers a discount for the younger drivers out there under 25 and has remained no-fault, accident-free and without moving violations, are likely eligible for the Steer Clear® discount.
Multiple Policy discount
Bundling insurance with renters insurance, homeowners insurance, life insurance, or other types of State Farm’s insurance can lower your insurance rates with a multiple policy discount of 17%.
Here are some other discounts offered to help lower the premium:
• Good student • Driver training • Good driving • Student away at school
• Accident-free • Defensive driving • Vehicle safety •Anti-theft • Passive restraint
• Multiple cars on a policy
Auto Insurance Features
One unique feature through State Farm auto insurance is the Rideshare coverage. If you use your vehicle for a rideshare company, such as Uber or Lyft, State Farm covers your liability if you have damage to your own car, or someone else’s, while you are on duty. Plus the Emergency Roadside Assistance is available in case you need it.
Car rental coverage
Another helpful feature offered is the car rental coverage. This is an optional service, but could prove to be worth it if you depend heavily on your vehicle for transportation. You’ll have access to features such as:
If you have to rent a car while your car is inoperable, then you can get reimbursed up to $400 per occurrence. The best part? Both you or anyone who lives in your house are eligible to receive this coverage, if you’ve selected it on your policy.
If you are in a rental car and you’re involved in an accident, you’ll receive up to $500 towards your deductible.
If you find yourself in a “qualifying event,” State Farm will make all the arrangements necessary for you to obtain a rental car.
In addition to the 19,000 State Farm agents, you have access to multiple points of communication. If you have questions about your policy or claims, you can always reach out to the customer service that operates 24/7 or a digital claim by either entering the information into your app or going online.
Lots of discounts
As mentioned previously, there are several discounts accessible – not just one or two which can make a big difference in your quote, as well as the extent of coverage you receive.
Pros & Cons
Strong financial ratings
Financial ratings may induce a snooze-fest when you read through them, but they actually hold nuggets of important information for a customer. State Farm continues to show financial strength, which means they’ll have their customer’s back now and in the foreseeable future.
The State Farm mobile app allows consumer to initiate a claim, access customer service, check the status of claims, and more, all with the touch of a button. The website is easy to navigate and offers the same information at your fingertips.
Easy to obtain a quote
Along with the helpful digital assets, customer will find it easy to get a direct quote for coverage by either calling a local agent or fill out a straightforward form online. If further information is needed, someone will reach out to you.
Wide range of coverage options
Basic coverage or looking for something more specialized, State Farm agent can prepare tailor made policy as per customer requirements. No need to worry about being over- or underinsured, since you can get the exact coverage you need.
Being a large company doesn’t mean it can cater 100% of auto insurance needs.
No gap insurance coverage
Gap insurance is optional coverage available through some insurance companies. If you total your car, but you owe more than the car is worth, then this coverage will cover your financial “gap.” State Farm does not currently offer it.
No custom equipment coverage
State Farm won’t cover your add-ons to your vehicle. If you’re going to make modifications, such as custom wheels or carbon fiber hoods, and you’re considering State Farm, then be aware your additional purchase won’t be covered if you’re in an accident.
Rideshare coverage not available in all states
While State Farm does offer rideshare insurance in some areas, it’s not available in all states.
State Farm offers a wide range of products under the auto insurance umbrella. Customers will have access to collision, comprehensive, uninsured motorists, medical payments, and liability.
Customers have options such as car rental coverage, emergency roadside assistance, rideshare driver coverage, and several other special circumstances (classic cars, teen drivers, commercial);
State Farm auto insurance is a strong option for anyone who needs auto insurance coverage, from a basic plan to a more comprehensive policy or a tailor made policy, such as for a commercial vehicle or a teen driver. State Farm also offers a long list of discounts for those of us who like to know we are getting the best deal possible for the exact coverage we need.
State Farm has held strong financial ratings throughout the years, and continues to show stability during turbulent financial markets. The customer satisfaction ratings show State Farm one of the best with the claims process. In short, State Farm offers many indications it truly can be there for you, like a good neighbour should be.