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AutoinsuranceEZ.com Rating:Their trademark slogan is “like a good neighbor, State Farm is there”. This simple sentence explains their business philosophy of distributing their insurance products through a network of local agents so that you can get the neighborly, personal service you deserve. The company has been in business since the early 1920’s, and in recent years has expanded their reach into life, health, motorcycle insurance, banking services (in select areas) and a variety of other financial products.
It seems as though State Farm is, most recently, strong in both the financial strength and the customer service areas of their business. In recent years, their rating with the BBB has improved from a C+ to an A+, and their financial strength potential, according to AM Best, is an impressive A++.
|AM Best (2016)||A++|
|Better Business Bureau (2016)||A+|
|JD Power & Associates Overall Rating||4 out of 5 (Better than most)|
Many of the major insurance providers – and State Farm is one of them – offer various discounts in order to entice old customers to stay, or new customers to switch over. Their most famous discount, called Drive Safe & Save, collects some of your basic driving information (like your annual mileage) and uses that info to offer you up to 50% in policy discounts. However, keep in mind that drivers who already receive a low mileage discount and end up driving more than the 7,500 annual low mileage limit may actually see their premiums rise. State Farm collects their data either with an in-vehicle subscription service, like On-Star, or through a free smartphone app.
|Discount Type||Maximum Possible Savings|
|Vehicle Safety Discount||40% (Medical Coverage Only)|
|Passive Restraint Discount||40% (Medical Coverage Only)|
|“Drive Safe & Save” (good road citizens / good driving)||Depends on state|
|Defensive Driving course completion||Depends on state|
|Multiple Auto Discount||20%|
|Multiple Line Discount||17%|
Like all major insurance providers, your local State Farm agent will be able to write you up an insurance policy capable of covering your vehicle according to state mandatory minimums. But State farm also offers its customers some pretty standard additional coverage options, depending on how much protection you want/can afford:
Will State Farm save you money based on your current personal circumstances? Many drivers think that most premiums are created equal; however, there are specific demographics of drivers that get charged higher monthly rates than others:
It’s a little unusual that the lowest premiums in the chart above are going to one of the highest-risk demographics out there: the young driver under the age of 25. This could be explained by an “Away at School” discount, which results in dramatically fewer miles being driven yearly. Or State Farm may have a different way of evaluating risk compared to many of its competitors.
|“Drive Safe & Save” Program could earn some customers better discounts||Certain in-vehicle communication subscription services (Such as OnStar) are required for access to Drive Safe & Save|
|Personalized, local customer service thanks to independent agent business model||Some agents are more knowledgeable, helpful, and efficient with claims handling than others|
|Standard variety of insurance plans and options to choose from||Quoted rates in certain areas are more expensive than others|
It seems like State Farm is putting a lot of work into making themselves competitive. They’ve seemingly put effort into improving their customer service in recent years, their “Drive Safe & Save” program offers a substantial discount to low-mileage drivers, and their commercials sure are catchy. But in some circumstances, the average driver may still end up paying as much or more than the average monthly premium in their area. If State Farm is on your short list of companies, make your comparison shopping easier by entering your zip code on this page for fast, free quotes from major companies like State Farm.Corporate Headquarters