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State Farm Auto Insurance Review 2021

Jan. 2, 2021
Auto Insurance, Insurance
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

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State Farm auto insurance reviews and ratings

  • The largest personal auto insurer in the country.
  • Has more auto insurance complaints than expected for a company of this size.
  • Offers rideshare insurance in most states.

State Farm is the nation’s largest private passenger auto insurer, but it offers a wide variety of other insurance and financial products, sold exclusively by State Farm agents. 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.

State Farm auto insurance

4.5 NerdWallet rating

State Farm auto insurance earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account pricing and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

Based on these ratings, State Farm is among NerdWallet’s Best Car Insurance Companies for 2021.

» MORE: Car insurance quotes: What you need to know

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, and you need to have comprehensive or collision coverage to opt in.

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 up to a 30% discount once State Farm has analyzed 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 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 not available in all states.

» MORE: Compare car insurance rates

State Farm’s auto insurance discounts:

  • Accident-free discount.
  • Discount for taking a driver safety course.
  • Student away at school discount.
  • Good driving discount.
  • Discount if all operators of your vehicle under 21 complete an approved driver education course.
  • Good student discount.
  • Vehicle safety discount.
  • Passive restraint discount.
  • Discount for having an anti-theft device.
  • Multiple auto discount.
  • Multiple line discount.

State Farm complaints and customer satisfaction

State Farm had more complaints than expected for a company of this size to state regulators, according to the National Association of Insurance Commissioners.

State Farm often shows competitive rates for auto insurance in our analysis and its J.D. Power customer satisfaction rating is better than average.

2020 J.D. Power StudyState Farm ranks...
Insurance Shopping (Auto)Above average
Auto Insurance Claims SatisfactionAbove average

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.

Homeowners, renters and life insurance

State Farm offers homeowners insurance online and through its network of over 19,000 agents. For more information, read our State Farm homeowners insurance review. Renters looking into the company may also be in luck — State Farm’s renters insurance is at the top of NerdWallet’s rankings.

» MORE: State Farm renters insurance review

You can also get life insurance from State Farm. The company sells term life insurance and you can read our State Farm life insurance review to figure out if it’s a good fit for you.

Other types of insurance from State Farm include:
Condo insuranceIdentity theft insurance
Renters insuranceBoat insurance
Farm and ranch insuranceOff-road vehicle insurance
Manufactured home insuranceCommercial auto insurance
Umbrella insuranceBusiness insurance

Recap: State Farm pros and cons

ProsCons
Numerous discounts offered, including two programs — one for safe driving and the other for young driversState Farm had more complaints than expected for a company of its size.
Generous rental car and travel expenses coverage
Customer satisfaction rating for purchasing auto insurance is better than average, according to J.D. Power.

Auto insurance ratings methodology

NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, website transparency and affordability. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

 

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