Sara Routhier, Managing Editor of Features and Outreach, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming worl...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Jul 10, 2020

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State Farm OverviewStats
Year Founded1922
Current ExecutivesMichael L. Tipsord
Chairman, President, and CEO
Numbers of EmployeesNearly 58,000 employees &
19,000 independent
contractor agents
Total Revenue and
Total Assets
Total Revenue: $81.7 billion
Total Assets: $159.9 billion
Headquarters AddressState Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Phone Number800-STATE-FARM
(800-782-8332)
Company Websitehttps://www.statefarm.com
Premiums Written$65,868,839
Loss Ratio0.62
Best ForProperty and Casualty Insurance
Life and Health
Annuities
Mutual Funds
Banking Products
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State Farm is one of the top car insurance companies in the U.S. In fact, it has been the number-one auto insurer in the U.S. since 1942 and number one in homeowners insurance since 1964.

Approximately 72 million private vehicle owners and businesses, including small businesses, have policies with State Farm. In 2018, State Farm reported that their fire and auto claims were over 13 million claims, which is about 36,000 per day.

What can an individual, such as ourselves, do to obtain a policy with State Farm? This guide will show and tell you everything you need to know about State Farm and how to obtain a policy with the company.

In addition to that, this guide will provide specific information such as average annual rates, complaint index, types of coverage offered at State Farm, how to file a claim with State Farm, and many other details that’ll inform you about State Farm.

If you want to get a quick look at some car insurance quotes, enter your ZIP code our free quote box above. For more extensive information on State Farm, continue through the guide.

Table of Contents

Cheap Car Insurance Rates

Most potential policyholders who search for car insurance are looking for something that’s cost-efficient and reliable. Reliability may come in the form of coverage. Is State Farm car insurance affordable?

One of the ways we’re able to determine that is looking at the average annual rate of State Farm car insurance and compare it to the average annual rate for car insurance by state. In addition to state-by-state comparison, we should compare State Farm’s market share to other major car insurance companies in the U.S. and explore the factors that determine car insurance.

State Farm Availability and Rates by State

It’s no question that State Farm is available to all states in the U.S. It’s the part of the reason why they’re considered one of the best insurance companies. Anyone can find a State Farm agent near their local area.

Before you contact State Farm, have a look at some of the average annual rates in your state. Use the search bar to find your state quickly.

StateAverage by StateState Farm Annual PremiumHigher/Lower than State AverageHigher/Lower % than State Average
Alabama$3,566.96$4,798.15$1,231.1934.52%
Alaska$3,421.51$2,228.12-$1,193.39-34.88%
Arizona$3,770.97$4,756.25$985.2826.13%
Arkansas$4,124.98$2,789.03-$1,335.95-32.39%
California$3,688.93$4,202.28$513.3513.92%
Colorado$3,876.39$3,270.77-$605.63-15.62%
Connecticut$4,618.92$2,976.24-$1,642.68-35.56%
Delaware$5,986.32$4,466.85-$1,519.48-25.38%
District of Columbia$4,439.24$4,074.05-$365.20-8.23%
Florida$4,680.46$3,397.67-$1,282.79-27.41%
Georgia$4,966.83$3,384.88-$1,581.95-31.85%
Hawaii$2,555.64$1,040.28-$1,515.36-59.29%
Idaho$2,979.09$1,867.96-$1,111.13-37.30%
Illinois$3,305.48$2,344.88-$960.60-29.06%
Indiana$3,414.97$2,408.94-$1,006.03-29.46%
Iowa$2,981.28$2,224.51-$756.77-25.38%
Kansas$3,279.62$2,720.00-$559.62-17.06%
Kentucky$5,195.40$3,354.32-$1,841.09-35.44%
Louisiana$5,711.34$4,579.12-$1,132.22-19.82%
Maine$2,953.28$2,198.68-$754.60-25.55%
Maryland$4,582.70$3,960.87-$621.83-13.57%
Massachusetts$2,678.85$1,361.86-$1,316.99-49.16%
Median$3,660.89$2,731.48-$929.41-25.39%
Michigan$10,498.64$12,565.52$2,066.8819.69%
Minnesota$4,403.25$2,066.99-$2,336.27-53.06%
Mississippi$3,664.57$2,980.48-$684.09-18.67%
Missouri$3,328.93$2,692.91-$636.03-19.11%
Montana$3,220.84$2,417.74-$803.11-24.93%
Nebraska$3,283.68$2,438.71-$844.97-25.73%
Nevada$4,861.70$5,796.34$934.6419.22%
New Hampshire$3,151.77$2,185.46-$966.32-30.66%
New Jersey$5,515.21$7,527.16$2,011.9436.48%
New Mexico$3,463.64$2,340.66-$1,122.98-32.42%
New York$4,289.88$4,484.58$194.704.54%
North Carolina$3,393.11$3,078.65-$314.46-9.27%
North Dakota$4,165.84$2,560.53-$1,605.32-38.54%
Ohio$2,709.71$2,507.88-$201.84-7.45%
Oklahoma$4,142.33$2,816.80-$1,325.53-32.00%
Oregon$3,467.77$2,731.48-$736.29-21.23%
Pennsylvania$4,034.50$2,744.23-$1,290.27-31.98%
Rhode Island$5,003.36$2,406.51-$2,596.85-51.90%
South Carolina$3,781.14$3,071.34-$709.80-18.77%
South Dakota$3,982.27$2,306.23-$1,676.05-42.09%
Tennessee$3,660.89$2,639.30-$1,021.59-27.91%
Texas$4,043.28$2,879.94-$1,163.34-28.77%
Utah$3,611.89$4,645.83$1,033.9428.63%
Vermont$3,234.13$4,382.84$1,148.7135.52%
Virginia$2,357.87$2,268.95-$88.92-3.77%
Washington$3,059.32$2,499.78-$559.55-18.29%
West Virginia$2,595.36$2,126.32-$469.04-18.07%
Wisconsin$3,606.06$2,387.53-$1,218.53-33.79%
Wyoming$3,200.08$2,303.55-$896.53-28.02%
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Now that you have an idea of what you could pay per year with State Farm, let’s talk about what it means.

The averages by the state are what a policyholder is likely to pay in their respective states. The State Farm averages for each state are lower except for a few. The most expensive average by the state is Michigan, with an average annual rate of $10,498.64. State Farm’s average annual premium for Michigan is nearly $2,000 more, with an average annual rate of $12,565.

The cheapest average annual rates by state are Hawaii, Virginia, and West Virginia, and the state premiums from State Farm are even cheaper, averaging less than $2,300 for annual car insurance.

We included the higher/lower than state average and percentage to show you the difference in state averages and State Farm’s averages for car insurance.

We simply subtracted State Farm’s premium from the state average and determined if it was more expensive or cheaper.

For example, we know that State Farm’s average annual rate for Ohio is cheaper than the state average from subtracting State Farm’s average annual rate from the state average.

To determine the percent difference for Ohio, for example, you will have to divide the difference into the state average (201.84/2,709.71). This will give you a decimal answer of 0.0744, which is rounded off as 7.45 percent.

Because State Farm’s insurance for Ohio is less than the state average, a negative symbol appropriately explains the difference, so -7.45 percent indicates that State Farm car insurance in Ohio is 7.45 percent less than the Ohio state average annual rate.

Comparing the Top 10 Companies by Market Share

Who are the top 10 companies by market share? Wherever you look, you’ll see these 10 companies as the topic of discussion when it comes to car insurance. How do they compare to State Farm regarding average annual premiums? Are they more expensive or cheaper? Let’s review that answer in the data listed below.

CompanyAverage Premium
Allstate$4,887.95
American Family$3,443.09
Farmers$4,194.27
Geico$3,125.01
Liberty Mutual$6,073.45
Nationwide$3,450.00
Progressive$4,035.52
State Farm$3,260.00
Travelers$4,434.91
USAA$2,537.30
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Among the top 10 companies, State Farm is the third-cheapest car insurance company based on the average premium. State Farm car insurance is roughly 46 percent (at least $2,800) less than Liberty Mutual, which is the most expensive car insurance premium in the table.

Market Share Over Time

As with all companies, State Farm’s market share has shifted over time. Here’s a look at how it has changed between 2015 and 2018.

Average State Farm Male Versus Female Car Insurance Rates

Car insurance companies can determine car insurance rates through several factors. As we continue through the rest of this section, you’ll see how these factors influence car insurance rates.

The first one we’ll explore is gender. Most states across the U.S. determine car insurance based on gender. The states that have banned gender-based car insurance are California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania, and some parts of Michigan.

Age, Gender, and Marital Status Summary
and Age
Average Premium
Single 17-year-old male$7,324.34
Single 17-year-old female$5,953.88
Single 25-year-old male$2,554.56
Single 25-year-old female$2,335.96
Married 35-year-old male$2,081.72
Married 35-year-old female$2,081.72
Married 60-year-old male$1,873.89
Married 60-year-old female$1,873.89
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From the table, we can see that females pay much less than male policyholders. Married policyholders over 35 years old pay significantly less than teen drivers. Also, married drivers pay the same rate regardless of gender.

Average State Farm Rates by Age

Your age also plays a part in how State Farm determines your car insurance rate. Here’s a look at how State Farm compares to the national average for various age groups.

As you can see, 17-year-olds have the highest rates and 60-year-olds have the lowest.

Average State Farm Rates by Make and Model

Your vehicle is a factor in determining car insurance rates. Older vehicles come with cheaper car insurance rates, while new vehicles are more expensive for car insurance. The reason is that newer vehicles are worth more. Older vehicles have cheaper values and car insurance companies issue rates that coincide with the cost of the vehicle.

Classic and custom vehicles, on the other hand, are just as expensive as the latest models and have car insurance coverages just for those types of vehicles. For now, let’s look at an example of the car insurance cost by make and model.

Make and ModelState Farm Rates
Average$3,260.00
2018 Ford F-150$3,497.17
2018 Toyota RAV4: XLE$3,418.33
2015 Toyota RAV4
XLE
$3,226.02
2015 Ford F-150$3,204.23
2018 Honda Civic Sedan$3,189.99
2015 Honda Civic Sedan$3,024.24
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Most of the average annual rates are close to the State Farm average across the U.S. These vehicles were chosen due to their popularity around the nation. The cheapest among them was a 2015 Honda Civic Sedan, which has an average annual rate of $3,024.24.

Average State Farm Commute Rates

Next, let’s talk about commute rates. Annual commute mileage is the estimate of how many miles you’re expected to travel within the duration of the policy, which is a year. Car insurance estimates commute mileage in two categories: 10-mile commute/6,000 annual mileage and 25-mile commute/12,000 annual mileage. Let’s review the averages from State Farm regarding commute rates.

Annual Commute MileageState Farm Average Premium
10 miles/
6,000 annual mileage
$3,175.98
25 miles/
12,000 annual mileage
$3,344.01
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Some car insurance companies don’t charge higher or lower rates based on commute mileage, however, State Farm does. Fortunately for the policyholder, the rates are close to the average rate you’d pay for car insurance at State Farm.

Average State Farm Coverage Level Rates

The coverage level depends on the state’s minimum requirements for car insurance. All minimum requirements have coverage limits, often referred to as rules. These rules are separated into three levels: low, medium, and high. The higher the coverage level, the higher the coverage limit for car insurance and the more expensive the average annual rate will be.

Let’s review the average annual rates of coverage levels from State Farm.

Coverage TypeAverage Premium
Low$3,055.40
Medium$3,269.80
High$3,454.80
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In some cases, it may be cheaper in the long term to get medium coverage limits due to the average cost of vehicles. Be proactive in case you’re in a bad accident that leaves you or someone extremely injured.

Although it’s a few hundred dollars more, it could save you a great deal of trouble if coverage limits can cover the entire cost of an accident. Deductibles may be included, but you’ll be covered.

Average State Farm Credit History Rates

State Farm will consider your policy based on your current credit history. When they review your credit report, it will not damage your credit in any way. The reason they’ll want to see your credit is that they want to determine your financial ability to make premium payments.

According to Experian experts, there’s a correlation between a person’s credit score and the total cost to insure that person, which means a person with poor or fairly poor credit has a higher chance of risk.

Here are the average annual rates from State Farm regarding credit history.

Credit History SummaryState Farm Average Premium
Poor$4,951.20
Fair$2,853.00
Good$2,174.26
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As we’ve seen with other data tables, the average annual rate for policyholders with poor credit is $1,691.20 higher than State Farm’s average annual rate. Those with fair and good credit much less than the State Farm average annual rate.

Average State Farm Driving Record Rates

All drivers should be cautious about how they drive on the roadways. Those who have clean driving records will pay the least for car insurance. Accidents, DUIs, and speeding violations can increase car insurance rates.

Let’s take a look at one of State Farm’s popular commercials that pushes drivers to drive safely.

Let’s examine the clean record discount from State Farm.

Driving Record SummaryState Farm Average Premium
Clean Record$2,821.18
With One Speeding Violation$3,186.01
With One Accident$3,396.01
With One DUI$3,636.80
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DUI convictions are the most costly for State Farm policyholders when it concerns driving record. Accidents are the next most expensive rates while speeding violations have the least increase on average annual rates.

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Coverage Offered

Now that you know what you could pay per year for car insurance, let’s talk about what types of coverage State Farm offers its policyholders. We’ll use this section to go in-depth about State Farm’s coverage.

Types of Coverage Offered

State Farm lists all the coverage available on the website, we’ll summarize them here in this sub-section.

Liability is required for all car insurance policyholders. Liability coverage pays another person or persons’ medical expenses, vehicle repair costs, and property damage if you are the person or party that’s responsible.

Collision coverage pays for vehicle damage to your car after an accident has occurred regardless of who is at fault, while comprehensive coverage pays for damage from sudden events such as falling objects, storm damage, vandalism, and vehicle theft.

In some states, uninsured motorist and underinsured motorist insurance are required. Uninsured motorist coverage is car insurance coverage that activates when you’re in an accident with another party that does not have car insurance, but underinsured motorist coverage activates when someone’s coverage isn’t enough to cover the cost of bodily injury, vehicle repair costs, or property damage.

Medical payments cover additional medical bills, particularly, medical bills that relate to personal injury. Also, medical payments will cover funeral expenses if a person is killed in an accident.

State Farm has a few more car insurance coverage that is convenient for their policyholders. One of them is called car rental reimbursement, which pays for rental car fees while your car is being repaired. Another helpful coverage is travel expense coverage, which pays for lodging, meals, and transportation when you’re in an accident that’s more than 50 miles from your home.

If you have travel expense coverage, it may be helpful to add emergency road service coverage as well. Emergency road service is car insurance coverage that pays for car repairs or other services just in case your vehicle breaks down.

If you’re a rideshare driver, there’s coverage just for you as well. State Farm offers rideshare drivers with specialized insurance designed to support rideshare companies.

Earlier in the guide, we talked about classic cars and modified cars being insured. State Farm offers collector and classic car insurance, which insures remastered vehicles that are antiques (vehicles older than 25 years) and classics (vehicles older than 10 years and younger than 25).

State Farm doesn’t list modified car insurance on their website, but they mention something called sports car insurance. Sports cars are modified vehicles meant for speed, so if you want to insure your modified vehicle, State Farm may suggest sports car insurance.

State Farm Bundling Options

State Farm has a special bundle for homeowners who have State Farm car insurance. State Farm policyholders can save over $800 if they bundle their car insurance and home insurance under State Farm. Policyholders with State Farm car insurance should contact their local State Farm agents to bundle their home insurance with their car insurance.

State Farm Discounts

State Farm wants to encourage drivers to maintain their discounts. “Don’t mess with my discount” is the popular slogan for policyholders and potential customers. But what discounts could a policyholder get from State Farm? Let’s explore the discounts in a data table.

Type of Discount SummaryDiscount Amount / %
Anti-lock Brakes5%
Anti-theft15%
Claim Free15%
Defensive Driver5%
Distant StudentSpeak with your agent to learn more
Driver's Ed15%
Driving Device/App50%
Good CreditSpeak with your agent to learn more
Good Student25%
Homeowner3%
Low Mileage30%
MarriedSpeak with your agent to learn more
MilitarySpeak with your agent to learn more
Multiple Policies17%
Multiple Vehicles20%
Newer Vehicle40%
Paperless/Auto Billing$2
Passive Restraint40%
Safe Driver15%
Vehicle Recovery5%
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Be advised that these discounts vary by state. Some discounts may not be available in some states. For now, there aren’t any discounts for federal employees or discounts for energy-efficient (referred to as green) vehicles.

State Farm Programs

Besides insurance, State Farm offers a variety of programs. Some of these programs are related to their community service.

One of the most well-known community programs at State Farm is the Matching Gift program.

This program gives support to higher education by matching charitable contributions made by State Farm associates and retirees to those who are qualified for two-year colleges and four-year universities. The second program under Matching Gift deals with contributing to nonprofit organizations.

Here are two other programs from State Farm that could be helpful for the community and those who bundle their car insurance with home insurance.

  • State Farm Premier Service Program®
  • State Farm Environmental Programs®

Also, did you know that State Farm has a banking department? It’s called State Farm Bank, where policyholders and other customers of State Farm can manage their accounts, mortgages, loans, and credit. They have a list of different services and programs on their website.

Rating Agency

How are insurance companies judged on their performance? Many consumers have their opinions, but the strongest of these opinions and judgments come from financial rating agencies that monitor the financial strength and overall customer satisfaction of insurance companies.

State Farm is one of the best among insurance companies in the U.S. due to its overall score from different financial and company performance rating agencies.

Throughout this section, we’ll explore each agency’s grade for State Farm. All of them use their grading system, which makes it complicated for some policyholders who are searching for a policy from an insurance company. We’ll break each agency’s rating system to give you an understanding of how well or how poor State Farm performs.

Before we move on, let’s give you a quick look at the ratings for State Farm from each financial and performance review agency mentioned in this section.

AgencyRating
AM BestA++
Better Business BureauA+ (Greenville, SC)
Moody'sAa1 (State Farm Life)
S&PAA
NAIC Complaint
Index Ratio
0.49 (2018)
J.D. Power4/5 (Overall Satisfaction)
Consumer Reports89
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We can assume that with an “A” rating, State Farm performs well for its policyholders and earns major profits per year. So, what do these ratings mean? Let’s explore it more.

A.M. Best

It’s on record that A.M. Best is the world’s first credit rating agency, which was founded in 1899. The agency began with one founder who had a one-room office in New York. Today, the company has locations in over 100 counties with regional offices in major cities around the world, such as New York City, London, Dubai, Hong Kong, and Mexico City.

Their stake as one of the most influential financial strength rating agencies is rooted in age and credibility.

A.M. Best Financial Strength Rating is the company’s opinion of an insurer’s (insurance company) financial strength and capability to meet ongoing insurance policy and contract obligations.

To grade companies on their financial strength, A.M. Best uses its financial strength rating. Their ratings go from A+ (superior) to D (poor). State Farm has an A++, which the highest rating in the A.M. Best financial strength rating (FSR) results. This means State Farm, in A.M. Best’s estimation, has a superior ability to meet their ongoing insurance obligations.

Better Business Bureau

Probably the most well-known agency on the list is the Better Business Bureau (BBB). The BBB is a private, nonprofit agency that records how businesses interact with their customers.

Like A.M. Best, the BBB grades each company in its database. Their grades are from the best rating, which is A+ to the worst rating, which is F.

The BBB ratings are based on these particular factors:

  • Business’s complaint history with BBB
  • Type of business
  • Time in business
  • Transparent Business Practices
  • Failure to honor commitments to BBB
  • Licensing and government actions are known to BBB
  • Advertising issues are known to BBB

The BBB lists the ratings of each company on different levels. Therefore, a national grade may be different from city, county, and state-level ratings. State Farm ratings, for the most part, are rated as A+ or Excellent from the BBB. In Greenville, South Carolina, State Farm has an A+ rating.

Moody’s Rating

Moody is one of the top credit-rating agencies worldwide. This agency keeps track of the credit ratings of companies in 135 counties. Their rating system is much different than some of the others. Moody grading scale is as follows:

Moody's Grading SummaryMoody's Grading Scale
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.Aaa
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.Aa
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.A
Obligations rated Baa are judged to be medium-grade and are subject to moderate credit risk and as such may possess certain speculative characteristics.Baa
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.Ba
Obligations rated B are considered speculative and are subject to high credit risk.B
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk.Caa
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.Ca
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.C
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Moody gives State Farm Life and Accident Assurance Company an Aa1 rating based on their insurance financial strength (IFS). IFS is the universal acronym used to describe an agency’s rating system.

S&P Rating

S&P is another credit-rating agency that’s considered one of the top three credit-rating agencies worldwide. They, too, generate their opinions based on a company’s capabilities and willingness to meet obligations on time. Listed below is a chart explaining the S&P Grading system.

Invest Grade SummaryInvestment Grade
Extremely strong capacity to meet financial commitmentsAAA
Very strong capacity to meet financial commitmentsAA
Strong capacity to meet financial commitments, but somewhat susceptible to economic conditions and changes in circumstancesA
Adequate capacity to meet financial commitments, but more subject to adverse economic conditionsBBB
Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditionsBB
More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitmentsB
Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitmentsCCC
Highly vulnerable; default has not yet occurred but is expected to be a virtual certaintyCC
Currently highly vulnerable to non-payment, and ultimate recovery is expected to be lower than that of higher-rated obligationsC
Payment default on a financial commitment or breach of an imputed promise and also used when a bankruptcy petition has been filedD
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Now that you know what the rating system is like for S&P, you’re probably wondering about State Farm’s rating with this credit-agency. S&P rates State Farm as AA, which says the company has a very strong capacity to meet financial commitments.

NAIC Complaint Index

Consumer feedback is just as important as any credit rating or financial rating. The National Association of Insurance Commissioners (NAIC) reviews complaints from consumers and compiles the numbers into annual reports. Where does State Farm stand when it comes to consumer complaints? Let’s review the figures in the data table below.

Private Passenger
Policies
201620172018
Total Complaints9,2061,4811,402
Complaint Index
(better or worse
than National Index)
2.16
(worse)
0.52
(better)
0.57
(better)
National Complaint Index0.781.21.16
US Market Share16.64%16.66%15.84%
Total Premiums$35,685,484,012$38,588,069,994$39,059,618,736
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Based on the data, we see State Farm has improved its consumer-company relations.

The total number of complaints show a disparity from 2016 to 2018. In one year, State Farm decreased its number of complaints by more than 7,000. As a result, they earned more than $2 million after 2016. This major decrease in complaints and premium profits is impressive, to say the least.

J.D. Power

J.D. Power, on the other hand, is a combination of financial strength review and overall customer satisfaction review. They use something called the Power Circle Ratings and the customer satisfaction index.

Regarding Power Circle Rating, J.D. Power says, “All ratings are based on the opinions of consumers who have used or owned the product or service being rated.”

To determine the customer satisfaction index, however, J.D. Power surveys customers of a particular company or product to rate various aspects of their service or product experience.

So how does State Farm fit into all of this? J.D. Power conducts annual research based on consumer feedback. This research is placed in a report called the Customer Satisfaction Index Ranking. The rankings are measured on a 1,000 point scale. The Power Circle Ratings are measured from:

  • 5 out of 5 circle rating – among the best
  • 4 out of 5 circle rating – better than most
  • 3 out of 5 circle rating – about average
  • 2 out of 5 circle rating – the rest

J.D. Power’s research comes in many ranking reports, which cover each major area in the U.S. We’ll list how State Farm performs in each area in this summarized table. The performance is measured using J.D. Power’s 1,000-point scale and circle ratings.

RegionCustomer Satisfaction
(out of 1,000)
J.D. Power Circle RankingJ.D. Power Circle Rating
California824Better than mostoooo
Central828About averageooo
Florida834About averageooo
Mid-Atlantic834About averageooo
New England844Better than mostoooo
New York845Better than mostoooo
North Central841Better than mostoooo
Northwest820About averageooo
Southeast853Better than mostoooo
Southwest831Among the bestooooo
Texas835About averageooo
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On average, State Farm has been great with their customers. J.D. Power ratings show State Farm performing well in satisfying their customers. As you can see from the table, State Farm has customer rankings that scored over 800 for each region in the U.S.

Consumer Reports

If you’ve ever been curious about how other customers feel about a particular company, you can always search for consumer reports online. Consumer Reports can tell you about the consumer experience with customer service from agents, policies, and claims.

Consumer Report is a nonprofit group that uses consumer or customer feedback, which can help you determine what product, service, or company is right for you.

Is State Farm right for you? We’ve researched for you and summarized the Consumer Reports feedback of State Farm. These ratings are based on 23,609 Consumer Report subscribers’ responses to State Farm car insurance satisfaction questions about the claims process.

Claims HandlingScore/Rating
Reader Score89 out of 100
Ease of reaching an agentExcellent
Agent courtesyExcellent
Being kept informed of claim statusExcellent
Simplicity of the processVery good
Promptness of response – Very goodVery good
Damage amountVery good
Timely paymentVery good
Freedom to select repair shopVery good
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Based on the data we collected, State Farm received a good to excellent rating when we averaged the Consumer Report research. The results are parallel to other agencies as well, which shows that State Farm has earned its stake as one of the top car insurance companies in the U.S.

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Company History

State Farm was founded in 1922 by a retired farmer and insurance salesman in Bloomington, Illinois. The insurance salesman, George Jacob “G.J.” Mecherle started State Farm to help people manage the risks of daily life and help them recover from sudden events.

Today, State Farm offers nearly 100 products and services. State Farm has 18,000 exclusive agents, over 82 million policies and accounts, and processes about 35,000 claims a day.

With so many claims, the volume of mail associated with these policies, accounts, and claims has created a strong relationship between State Farm and the USPS.

By 2014, State Farm mailed over one billion pieces of outbound mail, which used over $300 million in postage. In addition to the spending dollars on postage, State Farm received over 41 million payments from inbound mail from policyholders and potential customers, which shows the importance of the USPS to State Farm and State Farm policyholders.

State Farm Market Share

What is State Farm’s position in the insurance industry? From the previous data, we see State Farm as one of the best, but how do they fit into the market share of insurance companies?

Market share is the percent of an industry, in this case, car insurance industry.

To put it more clearly, market share is the total number of sales earned by a company over time. You can calculate the market share of a company by factoring the company sales over time then divide them by the total sales of the industry during the same period. This makes it easier to compare companies concerning industries and industry competitors.

So, what’s the market share for State Farm? We provided that answer in a data table below.

Market Share Summary2015 Market Share2016 Market Share2017 Market Share2018 Market Share
Total Market Share18.02%18.26%18.07%17.01%
Market Share of
Physical Damage
18.29%18.12%17.91%17.08%
Market Share of
Liability
18.47%18.35%18.17%16.97%
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The market share for State Farm has gradually decreased since 2015, but not enough to where they lose their position as the number one car insurance company in the U.S.

State Farm Position for the Future

We can see that State Farm car insurance has performed well with its customers and maintained steady profits over the last few years. Could this trend continue in the future?

At the moment, it’s likely the company will remain among the top insurance companies in the U.S. State Farm has been the top car insurance company since 1942. The trend continues into 2020 based on the numbers and customer feedback.

State Farm Online Presence

State Farm has a strong online presence. Besides being listed as one of the top car insurance companies by financial and credit agencies, State Farm is available across platforms. Agencies are located across the U.S., but State Farm can help you manage your policy online.

Cyberspace has been a leading force in innovation and connectivity in the last decade, and State Farm has adapted to this tool and has made use of the internet to get information to their policyholders and potential customers faster.

State Farm has 170,000 subscribers on Youtube and 102,000 followers on Twitter.

State Farm Commercials

“Like a good neighbor, State Farm is there.” This slogan is played throughout the media, whether it be YouTube videos or commercials on broadcast television. State Farm uses comedy and popular figures in pop culture to deliver information about their services. Let’s take a look at some of State Farm’s popular commercials.

This one further shows State Farm’s versatility where policyholders can track their services and make payments through the State Farm® Mobile App. The State Farm® Mobile App is available for Android and Apple iOS.

https://www.youtube.com/watch?v=2MANrTQjBIA

State Farm is encouraging policyholders to download the mobile app by using one of the NFL’s most prolific quarterbacks. This could help attract potential customers.

State Farm in the Community

Many companies get involved with the community. State Farm is one of those companies with a rich history of community involvement. State Farm has car and home safety programs that help educate communities and promote efficiency, prepare communities through disaster and recovery programs, and programs that promote economic empowerment.

Here’s another video provided by State Farm and their promise in providing neighborhood assistance.

State Farm use these tools to help communities:

  • Grants
  • Better Education
  • Safety
  • Neighborhood Empowerment
  • Volunteering

Each tool used is implemented by State Farm employees who volunteer to help community members in need through grants, scholarships, neighborhood involvement, and other means of donating time to their fellow neighbors.

State Farm Employees

There are at least 58,000 employees and 19,000 independent insurance agents that work for State Farm. Let’s get a closer look at State Farm. What’s it like for their employees?

The Glassdoor reports 45 percent of employee reviews recommended State Farm to their friends. Thirty-seven percent of employee reviewers approve of CEO, Michael L. Tipsord. The final rating on the Glassdoor was 3.1 out of 5 stars. In 2011, Glassdoor awarded State Farm as 38th for Best Places to Work. In 2013–2014, State Farm’s CEO was recognized as one of the Top CEOs in the U.S.

State Farm’s overall employee satisfaction rating on Payscale is 3.3. out of five stars. Several other categories influence the overall rating, which are Appreciation, Company Outlook, Fair Pay, Learning and Development, Manager Communication, Manager Relationship, Pay Policy, and Pay Transparency.

The highest-rated among them were Manager Relationship, which had four stars, followed by Manager Communication, which is 3.8 stars.

Speaking of ratings, let’s talk briefly about State Farm’s awards and accolades.

Did you know that State Farm was one of the top places of work that employed military veterans? State Farm is often praised for employing military vets and also praised for the number of women in executive positions at their company. It’s an equal opportunity company that’s earned its place on the Forbes Fortune 500 list and voted as the world’s most admired company in Fortune Magazine.

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Canceling Your Policy

Sometimes it’s in your best interest to cancel a policy. Whatever your reason is for canceling, it’s in your right to do so. For this section, we will explore how you can cancel your policy with State Farm.

Cancellation Fee

There’s no cancellation fee when you cancel your policy.

Is there a refund?

When you cancel your policy with State Farm, they will issue a refund to you, the policyholder, for any unused parts of your policy.

How to Cancel

Here’s the step-by-step guide on how a State Farm policyholder can cancel their car insurance.

To cancel a State Farm policy by phone, follow these steps:

  1. Contact a local State Farm agent and explain that you’d like to cancel your policy. You’ll need your policy number, name, date of birth and Social Security number. If you’re canceling because you’ve sold your car, you may need to provide proof of your car’s license plate forfeiture or a bill of sale.
  2. Cancellations by phone are effective immediately. if you don’t want immediate cancellation, you can schedule it for a date in the future.
  3. Inform the DMV when you cancel and change/enroll in another car insurance as soon as possible. Ask your agent about specific state guidelines.
  4. The agent might ask for your new provider’s name, policy number, and effective date if you’re switching providers.

To cancel a State Farm policy by mail, follow these steps:

If you want to cancel by mail, State Farm asks you to send a letter explaining that you want to cancel and include the following:

  • Your name, address, and phone number
  • Your State Farm policy number and the date you want to end your policy
  • If you’re switching providers, include your new insurer’s name, policy number and policy start date
  • If you’ve sold your vehicle, proof of license plate forfeiture or proof a bill of sale

Be sure to sign, date, and mail your letter at least two weeks before your intended cancellation date. This will leave time for shipping processing to take its course effectively. Mail your cancellations to this address:
Corporate Headquarters
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710

To cancel a State Farm policy in person, follow these steps:

  • Your name, address, and phone number
  • Your State Farm policy number and the date you want to end your policy
  • If you’re switching providers, include your new insurer’s name, policy number and policy start date
  • If you’ve sold your vehicle, proof of license plate forfeiture or proof a bill of sale

When can I cancel?

You can cancel anytime you like. Be sure to include all the necessary information for the cancellation to go smoothly.

How to Make a Claim

Accidents happen unexpectedly. When they happen, you’ll need to make a claim. State Farm makes it fairly easy for their policyholders. In this section, we’ll explain how a policyholder can make a claim. In addition to making claims, let’s review the direct premiums written and the loss ratio of State Farm.

Ease of Making a Claim

Whenever you’re in an accident or unexpected event happens that damages your vehicle or cause injury, you can file a claim with State Farm online or through the State Farm mobile app.

Here’s a short video on how you can file a claim with State Farm online.

If you prefer to speak to an agent, they are available 24/7 at 1-800-732-5246. Or you can contact your local agent directly (only available during local business hours).

Be sure to have this information when you file a claim:

  • Date and time of the incident
  • Vehicles involved
  • Description of the incident
  • Description of damages
  • Location of incident

Be aware of your state’s statute of limitations for personal injury, bodily injury, and property damage to file a claim as well. The statute of limitations varies for each state.

Premiums Written

What are premiums written, and what does it mean?

Investopedia defines premiums written or direct premiums written are the total premiums received before reinsurance is granted.

Direct premiums written represent the total growth of a company’s insurance business over time, which includes the company itself or affiliated companies.

Although car insurance companies can see these direct premiums increase from the renewal of policies, the winner for direct premiums written are from new policies.

What does it mean for State Farm? Does State Farm have a steady increase in direct premiums written?

yeardirect premium written
2015$35,588,209
2016$39,194,660
2017$41,817,416
2018$41,963,578
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Based on the data table, State Farm’s direct premium written increased from $35 million to nearly $42 million.

Loss Ratio

What about the loss ratio? The loss ratio represents the number of claims paid out versus the number of premiums received from policyholders. Therefore, the loss ratio is money being paid out in claims from a car insurance company and the money they earned from policyholders.

Let’s see State Farm’s total loss ratio in a four-year trend.

yearState Farm Loss Ratio
201566.1
201677.02
201768.79
201863
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Any loss ratio that exceeds 100 indicates a car insurance company that’s not earning money. Low loss ratios indicate car insurance companies that don’t pay out claims. For example, if a company has a loss ratio of 60, it means that the company spent $60 in claims for every $100 made in premiums.

For State Farm, we see a fluctuating loss ratio in a four-year trend. The average loss ratio within the four-year trend is 68.73, which means State Farm spent $68.73 in claims for every $100 they made in premiums between 2015 and 2018.

How to Get a Quote Online

Getting a quote from State Farm requires you undergo a few steps. We’ll provide those steps here for you to give you an idea of what to expect. In addition to the steps, we’ll provide screenshots of what the web page looks like.

Navigate the website, and click on the link that says Get A Quote at the top of the web page.

State Farm website home page

Since you’re not a policyholder yet, you’d enter your ZIP code next to the “Get a Quote” button.

Enter Your ZIP Code to Access a Quote

It should take you to a screen that says Account Authentication. You’ll have to enter your ZIP code to get a quote.

State Farm website Retrieve Quote page

Once you enter your ZIP code, State Farm’s website will take you through a series of pages where it will ask for sensitive information. Rest assured that their site is secured so your information will be safe.

Add Your Vehicle Information

The next screen will ask you for vehicle information. If you can’t remember the details about your vehicle, it may be a good idea to have a copy of your vehicle registration.

State Farm website auto quote add vehicles screen

Click on vehicle information to reveal the dialog boxes where you have to enter information on the vehicle you want to insure.

Add the Number of Drivers

State Farm will need to know the number of drivers that will be on a potential policy.

State Farm website auto quote add drivers screen

The information you entered previously should appear. Scroll down the web page, and you’ll see where you can insert more information.

Report Anything about Your Driving History

This is one of the most important parts of the quote process. Answer these prompts as accurately as possible.

State Farm website auto quote driving history screen

There are places where you can click and add your information as it relates to your driving history.

Add Additional Information

Additional information is needed, so State Farm can determine if you are eligible for discounts.

State Farm website auto quote additional info screen

Enter the information on the web page as direct by State Farm. Be sure to scroll through the web page to make sure you don’t miss anything.

State Farm Quote

Finally, a quote will be revealed to you.

State Farm website auto quote quote results screen

After putting in all the necessary information, State Farm will present a quote that resembles the principles of coverage level rates.

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Design of Website/App

Web design and app display make a difference in user or policyholder experience. A web application or web page that’s difficult to navigate will frustrate customers, so State Farm has implemented a web design that helps its visitors navigate through their information. This section will describe the design of the website and review its usability.

Let’s review the website again. We showed some of it in the How to Get A Quote section, but let’s take a second look. Navigate to the Quote Section.

State Farm’s website has a simple design and direct links that will take you directly to the information you need. Whatever’s is not listed on the front page, you can use their internal search engine to find the information you need.

Is the design a plus or minus?

The design is a plus. The State Farm website makes it easy for any user to navigate its interface. Although some people enjoy interactive menus, it can be problematic if too much is going on.

State Farm® Mobile App

Here’s a look at the mobile app from Google Play. Out of 17,056 reviews, the State Farm app is rated at four stars. State Farm has three apps: the State Farm® Mobile App, the Drive & Safe® Mobile App from State Farm, and the Steer Clear® Mobile App.

State Farm mobile app screen from Google Play

What you’re seeing in the photo above is the Google Play download page of State Farm® Mobile App. Let’s take a look at some screenshots of the App in the sub-sections below.

How easily can you manage your account using just the App?

Before we talk about the interface of the app, let’s look at its design.

State Farm mobile app auto insurance screen

The State Farm® Mobile App will let its user and customers file and manage claims, access policy ID, get roadside assistance, upload information upload photos and documents, contact an agent, and access banking accounts with State Farm.

Is the design a plus or minus?

Simplicity continues with buttons, information, and menu options being simplified for the user’s convenience. It reflects the simple, easy navigation of the website with a responsive design that probably fits well for tablets, also.

Pros and Cons

As we bring the guide to a close, let’s examine some of the pros and cons of State Farm.

State Farm ProsState Farm Cons
Third-lowest average premium among the top 10 providersRates can be expensive depending on what city or state you live
Strong financial standing and rankings
Does not provide discounts for federal employees, green vehicles, and occupational
Policies are available in all 50 statesReceived an "about average" Power Circle Ranking in 5 out of 11 regions
Customers have a variety of online options and an easy-to-use appAdd-ons are available but limited
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Although State Farm is number one in car insurance, it’s only the third-cheapest car insurance among the top 10 companies. Some of the average annual rates from State Farm may be expensive for some policyholders. Federal employees don’t receive discounts for being a federal employee, but they can receive the discounts that are available to all other policyholders.

Some add-ons are limited, so be sure to get everything you need when you sign up for State Farm.

The Bottom Line

State Farm’s market share, direct premiums, and overall customer service are all proof that State Farm is one of the top insurance companies in the U.S. The State Farm car insurance rates are more expensive than some of the companies with lower rates per year, but State Farm makes up for it with their customer service approach.

In addition to its promise to policyholders, State Farm is involved with the community. State Farm’s community programs have helped thousands across the nation. Despite the average J.D. ratings, State Farm remains strong insurance.

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State Farm Car Insurance FAQs

For the final section of the State Farm guide, let’s go over some questions that you may have that weren’t addressed. If there are questions here that you don’t see or want to be addressed, ask them in the comment section of our guide, and we’ll try to answer them.

Does State Farm have accident forgiveness?

It’s not very clear whether State Farm has an accident forgiveness program. With that in mind, it’s likely the company doesn’t have an accident forgiveness program. Some of State Farm’s consecutive policyholders may receive this benefit, but it’s unclear. Ask your State Farm agent about accident forgiveness as policies change within short times.

Is windshield repair or replacement covered under comprehensive coverage?

Yes. Comprehensive car insurance coverage will repair or replace a windshield. However, policyholders may have to pay a deductible depending on the state and car insurance company. Ask a State Farm agent for more details regarding windshield replacement.

Can I pay for car insurance online or through the mobile app?

Yes. All policyholders can pay for their premiums online. To further express their flexibility, State Farm encourages policyholders to download the app to their mobile devices because it’s more convenient for customers to pay their premiums.

What type of car insurance pays for damage when my vehicle is stolen?

Comprehensive coverage pays for all damage from unexpected events like vehicle theft.

How much liability car insurance should I get?

That would depend on which state you live in and how much your vehicle is worth. Coverage limits determine the total amount of coverage for bodily injury and property damage.

The lowest coverage limit is the minimum requirements for car insurance. Medium and high coverage limits will give you a higher coverage limit just in case the bodily injury and property damage exceed the lowest minimum requirements for car insurance in that state.

State Farm is the top car insurance company as shown in the market share data and premiums written data. Based on the overall ratings from each financial and credit rating company, State Farm rates in the good to excellent percentile, and their average annual rates are second-most affordable. To exercise their flexibility, State Farm has gone mobile for their policyholder’s convenience.

Is it the best car insurance company and is it the most affordable? That’s up to you to decide. For a quick quote of your local area, enter your ZIP code in the free quote box below.

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