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State Farm Insurance Review 2018: Complaints, Ratings and Coverage

Auto Insurance, Insurance

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State Farm insurance reviews and ratings

  • Places 8th out of 23 insurers for auto insurance in NerdWallet's rankings
  • Had fewer than the median number of complaints to state regulators in 2017 relative to its size for auto, home and life insurance
  • Offers rideshare insurance in most states

Overview

State Farm is the nation’s largest 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.

Our rating

State Farm ranked 8th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

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

Complaints

State Farm had fewer than the median number of complaints to state regulators in 2017 relative to its size for auto, home and life insurance, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • State Farm ranked “about average” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study.
  • It ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Auto Insurance Claims Satisfaction Study.
  • In J.D. Power’s 2017 U.S. Home Insurance Study, State Farm ranked “better than most” for overall customer satisfaction.
  • State Farm ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 U.S. Property Claims Satisfaction Study.
  • State Farm ranked “the best” for overall satisfaction in J.D. Power’s 2017 Life Insurance Study, winning the top award.

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.


Our rating

State Farm ranked 8th out of 23 insurers in NerdWallet’s ranking of the best car insurance companies, earning 4 stars out of 5 for overall performance. NerdWallet’s rating is a score based on:

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

Complaints

State Farm had fewer than the median number of complaints to state regulators in 2017 relative to its size for auto, home and life insurance, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • State Farm ranked “about average” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Insurance Shopping Study.
  • It ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 Auto Insurance Claims Satisfaction Study.
  • In J.D. Power’s 2017 U.S. Home Insurance Study, State Farm ranked “better than most” for overall customer satisfaction.
  • State Farm ranked “about average” for overall customer satisfaction in J.D. Power’s 2017 U.S. Property Claims Satisfaction Study.
  • State Farm ranked “the best” for overall satisfaction in J.D. Power’s 2017 Life Insurance Study, winning the top award.

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 up to a 50% 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 available in 42 U.S. states and the District of Columbia.

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 remove water or make flooring repairs included in your policy. The service providers guarantee their work for up to five years. Premier Service is not available everywhere.

State Farm life insurance

Select Term Life Insurance: Policies are available for 10, 20 or 30 years, depending on your age, renewable up to age 95. 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.

The CarCapture mobile app allows you to take a photo of a car you’re interested in purchasing, tell you the make and model, then show you where you can buy one.

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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NerdWallet’s star ratings are based on the following three factors, each weighted equally to produce a 300-point maximum total score:

  • 2017 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.
  • 2017 company satisfaction data from the Consumer Reports Winter Survey. Higher satisfactions ratings from Consumer Reports were given higher scores in our calculation.
  • 2017 J.D. Power ratings from three studies encompassing regional customer service satisfaction, auto claims satisfaction and shopping satisfaction. Ratings from each of the separate 2017 studies were averaged to form one overall score from J.D. Power. The higher the average, the more points the insurer scored in our calculation.

Only larger insurers with data available in all three of these categories were included. Smaller insurers not listed here may also be good choices and are worth consideration.