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State Farm Insurance Review 2020

Jan. 2, 2020
Auto Insurance, Insurance
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

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State Farm insurance reviews and ratings

  • The largest personal auto insurer in the country.
  • Had fewer than the median number of complaints to state regulators in 2019 relative to its size for auto, home and life insurance.
  • 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 ranks 10th in our list of the 20 best car insurance companies for 2020.

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 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 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 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’s home insurance discounts:

  • Multiple line discount.
  • Home alert protection discount.
  • A discount if you use certain impact-resistant roofing products.

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.

Return of Premium Term Life is available for either 20- or 30-year terms with level premiums, though you can renew for longer at increased rates. Coverage starts at $100,000, and if you pay premiums faithfully and outlive your term, you’ll get your money back.

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

State Farm complaints and customer satisfaction

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

Though State Farm often shows competitive rates for auto insurance in our analysis, its customer satisfaction ratings for purchasing auto insurance and property claims are mediocre.

2019 J.D. Power StudyState Farm ranks...
Insurance Shopping (Auto)About average
Auto Insurance Claims SatisfactionAbout average
Home InsuranceBetter than most
Property Insurance ClaimsAbout average
Life InsuranceAmong the best

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
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 driversAverage ratings for car insurance shopping and property insurance claims customer satisfaction from J.D. Power
Generous rental car and travel expenses coverage
Among the highest rated life insurance companies by 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 and life insurance.

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. Lacie Glover