State Farm Insurance Review 2017: Complaints, Ratings and Coverage

Auto Insurance, Insurance

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State Farm insurance reviews and ratings

  • Low on NerdWallet’s car insurance company ratings compared with other large insurers.
  • More complaints about auto insurance than the industry median. Mixed satisfaction ratings from car insurance customers.
  • Financial strength rating is top-notch.

Overview

State Farm is the nation’s largest auto and home insurer and the eighth-largest life insurance company. Its agents sell only State Farm products. If you’re looking for a well-known brand name with a generous selection of products and consumer-friendly pricing, State Farm might be right for you.

Our rating

State Farm ranked 19th of 21 insurers in NerdWallet’s rankings of the best car insurance companies, with a rating of 3 out of 5 stars. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for claims satisfaction and customer service
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

State Farm had greater than the median number of complaints to state regulators in 2015 for a company of its size for auto insurance, and fewer than the median number of complaints for homeowners and life insurance, according to the latest data from the National Association of Insurance Commissioners.

Auto insurance complaints
Home insurance complaints
Life insurance complaints

1 star

5 stars

5 stars

Customer satisfaction

  • State Farm ranked “better than most” for overall purchase experience for auto insurance in J.D. Power’s 2016 U.S. Insurance Shopping Study.
  • It ranked “about average” for overall customer satisfaction in J.D. Power’s 2016 Auto Insurance Claims Satisfaction Study.
  • In J.D. Power’s 2016 U.S. Home Insurance Study, State Farm ranked “about average” for overall customer satisfaction.
  • State Farm ranked “better than most” for overall customer satisfaction in J.D. Power’s 2016 U.S. Property Insurance Claims Study.
  • State Farm ranked first for overall satisfaction in J.D. Power’s 2016 Life Insurance Study.

Financial strength: A++ (superior)

State Farm’s financial strength is “superior,” according to ratings agency A.M. Best. An insurer’s financial strength indicates how well it can pay claims.

State Farm auto insurance

State Farm’s rental car and travel expenses coverage is superior to its competition’s. Not only does State Farm auto insurance pay for a rental car if yours is in the shop due to a covered collision, but it also pays for meals, lodging and transportation if you’re stranded more than 50 miles from home. Coverage limits apply and vary by state.

Drive Safe & Save: This usage-based program calculates discounts based on your mileage and “safe driving” measurements such as smooth acceleration and braking. It also considers risk factors such as speed and time of day. You’ll get an initial discount of up to 5% when you sign up, and up to 50% once State Farm has calculated your discount based on your driving behavior. Availability and discounts may vary.

The Steer Clear Driver Program is a driver training refresher course available online, through an agent or via mobile app. State Farm offers savings of up to 15% for drivers under 25 who complete the course and have had no at-fault accidents or moving violations within the past three years.

Rideshare insurance: If you drive for a company such as Uber or Lyft, this option allows you to have one policy that covers both personal and ridesharing use. This option is available in roughly half of U.S. states.

State Farm homeowners insurance

State Farm’s homeowners insurance claims network is available 24 hours a day, online or by phone.

The Premier Service Program puts you in touch with qualified contractors who can make repairs included in your policy. The service providers guarantee their work for up to five years. Premier Service is free, but it’s not available everywhere.

State Farm life insurance

Select Term Life Insurance: Policies are available for 10, 20 or 30 years, depending on your age, up to 75. Coverage amounts start at $100,000.

Instant Answer Term Life: $50,000 of life insurance is available for people ages 16 to 45, lasting until age 50 or 10 years after the policy is issued, whichever is later. State Farm doesn’t require a medical exam, but you’ll have to fill out a health questionnaire, and your answers may disqualify you.

Mortgage Life policies can help pay off your mortgage if you die. You can buy $50,000 or more in coverage for a policy lasting 15 or 30 years, depending on your age, up to 60. Like your mortgage balance, the death benefit decreases over the life of the policy, but it will never fall below 20% of the original value, while premiums remain level.

State Farm also offers whole life, universal life and variable universal life, which are varieties of permanent life insurance.

More about State Farm

Website: State Farm’s website is intuitive, easy to navigate and loaded with useful information. You can get a quote and buy a policy online, find a nearby agent or manage a claim.

Pocket Agent mobile app: State Farm’s customer app lets you view your insurance card and policy information, get a quote, submit a claim online and view a claim status. It even has an ATM locator.

State Farm also has mobile apps for two of its auto insurance programs: the Steer Clear program for drivers under 25 and the Drive Safe & Save program that tracks driving behavior.

Other types of insurance from State Farm include:
Condo insuranceIdentity theft insurance
Renters insuranceBoat insurance
Flood insuranceOff-road vehicle insurance
Farm and ranch insuranceCommercial auto insurance
Health insuranceBusiness insurance
Manufactured home insuranceUmbrella insurance
Long-term care insuranceDisability insurance

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Updated Jan. 27, 2017.

NerdWallet’s auto insurance star ratings and rankings are based on the following three factors, each weighted equally:

  • 2015 consumer complaints data from the National Association of Insurance Commissioners. The median complaint ratio for the industry is 1. Lower ratios are better. Insurers whose median complaint ratios were more than 1 received fewer points; those lower than 1 received more points.
  • 2015 regional customer service satisfaction data from J.D. Power. The higher the average J.D. Power rating across regions, the more points the insurer scored in our calculation.
  • 2015 auto claims satisfaction data from J.D. Power. The higher the J.D. Power rating, the more points the insurer scored in our calculation.

Only larger insurers with data available in all three of these categories were included. In case of ties, NAIC consumer complaints data were used to break the tie. Smaller insurers not listed here may also be good choices and are worth consideration.