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State Farm: The “Good Neighbor” Auto Insurance Company

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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.

State Farm Insurance Review

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++.

Ratings Agency Rating
AM Best (2016) A++
Better Business Bureau (2016) A+
JD Power & Associates Overall Rating 4 out of 5 (Better than most)

State Farm Insurance Discounts

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
Good Student 25%
“Steer Clear” 15%
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%

State Farm Auto Insurance Options

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:

  • Liability (Property Damage and Bodily Injury – usually required)
  • Medical Payments (mandate varies by state)
  • Collision (optional; adjustable deductible)
  • Comprehensive (optional; adjustable deductible)
  • Uninsured Motor Vehicle (mandate varies by state)
  • Underinsured Motor Vehicle (mandate varies by state)
  • Car Rental & Travel Expenses (optional)
  • Emergency Road Service (optional)

Comparing State Farm Insurance Quotes

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:

State Farm Auto Insurance Quote Comparison Legend: State Farm Married Homeowners Senior Drivers Single Renter Young Driver (Under 25) 50 100 150 200 250 300 $319 $145 $209 $72

 
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.

Pros and Cons of State Farm Insurance

Pros Cons
“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
One State Farm Plaza
Bloomington, IL 61710
www.statefarm.com
Phone: 309-766-2311
Fax: 309-766-4655
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