Reviews Report
- State Farm is the largest auto insurance company by market share in the United States.
- State Farm is consistently rated high by AM Best, J.D. Power, and other third parties.
- State Farm has a broad range of car insurance add-ons not offered by many others, such as rideshare coverage.
Founded in 1922, State Farm is one of the largest car insurers in the United States and provides coverage for most drivers’ needs. Data from 2018 shows State Farm as the top car insurance writer ahead of GEICO, Progressive, and Allstate.
State Farm auto insurance is not the cheapest car insurance on average, but you get what you pay for with State Farm. The company is highly ranked in all regions in the 2021 J.D. Power U.S. Auto Insurance Satisfaction Study, which measures overall customer satisfaction. With a wide variety of product offerings, valuable discounts, and notable claim handling services, obtaining a State Farm auto insurance quote is a wise step.
State Farm’s Average Premium In Your State
| State | Average Annual Full Coverage Premium |
| Alabama | $1,470 |
| Alaska | $1,190 |
| Arizona | $1,232 |
| Arkansas | $1,281 |
| California | $1,943 |
| Colorado | $1,696 |
| Connecticut | $1,477 |
| Delaware | $1,804 |
| Florida | $1,739 |
| Georgia | $1,375 |
| Hawaii | $1,069 |
| Idaho | $853 |
| Illinois | $935 |
| Indiana | $913 |
| Iowa | $1,041 |
| Kansas | $1,280 |
| Kentucky | $1,540 |
| Louisiana | $3,119 |
| Maine | $811 |
| Maryland | $2,007 |
| Massachusetts | $736 |
| Michigan | $3,856 |
| Minnesota | $1,167 |
| Mississippi | $1,318 |
| Missouri | $1,642 |
| Montana | $1,121 |
| Nebraska | $1,437 |
| Nevada | $1,668 |
| New Hampshire | $958 |
| New Jersey | $1,244 |
| New Mexico | $1,396 |
| New York | $2,333 |
| North Carolina | $958 |
| North Dakota | $1,224 |
| Ohio | $906 |
| Oklahoma | $1,773 |
| Oregon | $1,093 |
| Pennsylvania | $1,143 |
| Rhode Island | $955 |
| South Carolina | $1,457 |
| South Dakota | $1,242 |
| Tennessee | $1,154 |
| Texas | $1,411 |
| Utah | $1,648 |
| Vermont | $1,129 |
| Virginia | $993 |
| Washington | $951 |
| Washington, D.C. | $1,994 |
| West Virginia | $1,195 |
| Wisconsin | $785 |
| Wyoming | $1,234 |
Data source: Bankrate.com
State Farm Car Insurance Overview
State Farm earned almost $41 billion in car insurance premiums in 2019, giving the company the highest U.S. market percentage of 16.10%. State Farm is recognized for its excellent customer and claims service consistent with its 881 out of 1,000 rating in claims satisfaction by J.D. Power.
State Farm has the highest A++ (Superior) rating from A.M. Best, demonstrating the confidence that the company has the financial strength to meet all future insurance obligations. Furthermore, State Farm has over 19,000 independent agents throughout the U.S. cementing its ability to meet most customer needs and requests in every state.
PROS
CONS
State Farm Home and Auto Insurance Bundles
Like many of the other large insurers in the U.S., State Farm offers multi-policy discounts — or bundling discounts — to customers that buy another policy with their State Farm auto insurance. For example, homeowners can bundle their home and car insurance with State Farm and save up to $965 on their premiums.
Renters can get bundling discounts with State Farm, as well. If renters bundle their renters and auto insurance, State Farm states they can save up to $722 on premiums.
State Farm Car Insurance vs. The Competition
| Provider | J.D. Power Customer Satisfaction* | AM Best | No. of Discounts |
| State Farm | 847 | A++ | 13 |
| Geico | 833 | A++ | 16 |
| Progressive | 830 | A+ | 13 |
| Liberty Mutual | 827 | A | 17 |
Information accurate as of June 2021
*J.D. Power’s 2021 Auto Insurance Satisfaction Study average rating across all regions. Based on a 1,000-point scale.
State Farm vs. Geico
Both State Farm and Geico rank extremely well in the 2021 J.D. Power Customer Satisfaction Study across all regions. Geico ranked below average, however, in the 2020 J.D. Power Auto Claims Satisfaction Study. State Farm’s streamlined and user-friendly claims process is reflected in its higher rating.
From a price standpoint, Geico has more discounts than State Farm. There is a good chance that with a careful comparison, you can find a more affordable car insurance package with Geico, but be certain that coverage and limits are identical.
State Farm vs. Progressive
The most recent NAIC data rates Progressive with a 1.46 customer complaint rating, which is nearly identical to State Farm’s 1.44 rating. However, Progressive did not fare as well as State Farm in the 2020 J.D. Power Auto Claims Satisfaction Study. Progressive’s 856 rating was well below the national average of 872 and even further below State Farm’s 881 ratings.
However, State Farm and Progressive offer a broad variety of discounts with flexible opportunities to create affordable car insurance packages.
State Farm vs. Liberty Mutual
Liberty Mutual is much smaller than State Farm with only 4.6% of the national car insurance market. Furthermore, Liberty Mutual was rated below average at 867 in the 2020 J.D. Power Auto Claims Satisfaction Study.
Both companies offer a wide range of discounts and while Liberty Mutual may provide a more flexible series of options to find affordable coverage, it is well worth obtaining quotes from both companies to compare.
State Farm FAQ
Methodology
We evaluated State Farm based on discounts, coverage, online resources, financial strength, and customer satisfaction to create our best car insurance reviews. To compare car insurance companies with other providers across the board, we analyzed:
- Discounts: Auto insurance companies that advertised more discounts received higher scores in our methodology.
- Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each car insurance company’s financial stability.
- Customer Satisfaction: J.D. Power ranks car insurance companies by customer satisfaction, so we used its 2021 Auto Insurance Satisfaction Study to compare the average rating of insurers across all regions.
- Coverage: Car insurance companies were awarded higher scores for advertised coverages beyond the body liability, property liability, collision, and personal injury protection.
- Online Resources: We reviewed the digital resources of each car insurance company and awarded higher scores to insurers with mobile claim estimates, digital insurance cards, and more.
Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Rick Hoel is an international business attorney and legal and insurance writer for Reviews.com. Over the last several years, he has covered topics dealing with personal and commercial insurance and technology and the law.
