State Farm Auto Insurance Review 2023

By Andrew Marder 

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Our Take

5.0

NerdWallet rating 

The bottom line:

With generous coverage and discounts for good driving habits, State Farm is a popular insurer with fewer complaints compared to other large competitors.

State Farm Auto Insurance
NAIC complaints
Fewer than expected
Ease of use
Above average
Discounts
Average set of discounts

Pros & Cons

Pros

  • Numerous discounts offered, including two programs — one for safe driving and the other for young drivers.
  • Generous rental car and travel expenses coverage.
  • Customer satisfaction rating for buying auto insurance is better than average, according to J.D. Power.

Cons

  • Doesn't offer gap insurance.

Full Review

State Farm earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

State Farm is one of the largest private passenger auto insurers, 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 is rated No. 9 on NerdWallet’s 2023 list of Best Car Insurance Companies.

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance policy that works best for you. These carrier ratings are specific to auto insurance — a company's rating for other products may be different on our site. See our criteria for evaluating auto insurance companies.

In our auto insurance reviews, our editorial team considers both the customer and the insurer. These are some of the factors we take into account:

Financial strength. We use A.M. Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. NerdWallet does not recommend companies with a rating lower than a B. 

Complaints. These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best auto insurance companies have fewer than the expected number of complaints.

Ease of use. This category looks at how easily consumers can interact with an insurer through its mobile app and website. This includes how much coverage information is offered online, whether a user can start and track a claim online and get a quote and mobile app scores based on the Apple and Google Play store ratings.

Discounts. We look at both the kind of discounts a company offers and the total number of discounts available.

Where State Farm stands out

Customer support. State Farm had fewer than the expected number of complaints when compared to other companies of the same size.

Ease of use. If you're looking for a seamless online experience, you would do well to consider State Farm. The company lets you make payments, plus track and start claims online. It also lets you manage your policy through its app, which is rated highly by both Apple and Google Play.

Where State Farm falls short

State availability. Although State Farm sells policies in most states, it doesn't sell new policies in Massachusetts and Rhode Island.

Compare to other insurers

State Farm

Progressive

Geico

Star rating

5.0

NerdWallet rating 

5.0

NerdWallet rating 

4.5

NerdWallet rating 

NAIC complaints

Fewer than expected.

Fewer than expected.

Close to expected.

Discounts

Average set of discounts.

Great set of discounts.

Great set of discounts.

Ease of use

Above average.

Above average.

Average.

Bottom line

State Farm is a popular insurer with fewer complaints compared to other large competitors.

Progressive offers a variety of discounts and insurance products to cater to most people, but ranks below average for customer satisfaction.

Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy.

Read our detailed reviews

State Farm auto insurance coverage

When you're shopping for car insurance coverage, it's important to understand what car insurance coverage you want and what you’re required to buy. For instance, most states require a minimum amount of car insurance to drive a vehicle. Alternatively, if you want extra protection, you may be interested in full coverage insurance. Read about the most common types of car insurance coverage to see how they work.

State Farm’s rental car and travel expenses coverage is superior to what’s offered by its competitors. 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.

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.

Auto insurance discounts

Depending on your state, you may be able to save on auto insurance by:

  • Remaining accident-free for a specified period of time.

  • Taking a driver safety course.

  • Being a student (or having one on your policy) who stores their vehicle at home while away at school.

  • Meeting State Farm's standards for a good driver.

  • Meeting State Farm's standards for a good student.

  • Ensuring all operators of your vehicle under age 21 complete an approved driver education course.

  • Having certain safety features in your car.

  • Installing an anti-theft device.

  • Having a factory-installed air bag or other passive restraint device in your older model vehicle.

  • Insuring multiple vehicles with State Farm.

  • Buying multiple policies from State Farm (bundling).

  • Renewing your auto policy with State Farm for three years or more.

🤓Nerdy Tip

First time shopping for auto insurance? Unsure of where to start? Check out our guide on how to shop for car insurance.

Pricing based on tracked driving habits

State Farm offers a usage-based program called Drive Safe & Save. This 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.

Complaints and customer satisfaction

State Farm had fewer than the expected number of complaints about auto insurance to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners.

State Farm received an overall satisfaction score of 80 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June 2022. To put that in perspective, the average score among seven insurers was 77, and the highest was 82.

2022 J.D. Power study

State Farm ranking

Insurance Shopping (Auto)

No. 1 out of 8 companies.

Auto Insurance Claims Satisfaction

No. 7 out of 21 companies.

More about State Farm insurance

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

Mobile app: State Farm’s customer app lets you view your insurance card and policy information, contact your agent, 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.

Life, homeowners and renters insurance from State Farm

State Farm offers home and renters insurance in every state except Massachusetts and Rhode Island. It is also available in Washington, D.C. To learn more about the coverage options available, read our State Farm homeowners insurance review and State Farm renters insurance review.

State Farm also offers term, whole and universal life insurance. To read about this product, see our State Farm life insurance review.

Other insurance from State Farm

  • Condo insurance.

  • Identity theft insurance.

  • Boat insurance.

  • Farm and ranch insurance.

  • Off-road vehicle insurance.

  • Manufactured home insurance.

  • Commercial auto insurance.

  • Business insurance.

Methodology

2022 auto insurance survey methodology

The survey of 7,755 adults age 18 and older was conducted online by Russell Research on behalf of NerdWallet in June 2022. Respondents were asked to rate one auto insurance brand they obtained or renewed a policy with within the past 12 months, and the policy had to be in their name at the time of the survey. These brands were rated on overall satisfaction, overall value, online experience, trustworthiness and customer support on a scale of 1-100. 

Of those respondents: 300 were Progressive customers, 300 were State Farm customers, 299 were Allstate customers, 299 were Geico customers, 121 were USAA customers, 116 were Liberty Mutual customers, 105 were American Family customers, 105 were Farmers customers, 105 were Travelers customers and 101 were Nationwide customers.

The results have been weighted to be nationally representative. Additional subgroup sample sizes may be available upon request. Any differences noted between subgroups have been tested at 95% confidence level.

Insurer complaints methodology NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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 and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. 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 and full ratings methodology for auto insurance.

Frequently asked questions