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State Farm Car Insurance Rates vs. Competitors
State Farm is included on the list of best life insurance companies by Forbes Advisor. See how their rates compare to other companies:
State Farm car insurance cost comparison for good drivers
State Farm has relatively competitive car insurance rates for good drivers. Its national average rate for good drivers is below the average of $2,150 per year for the companies we analyzed.
|Company||National average annual cost for good drivers|
State Farm car insurance cost comparison for drivers with a speeding ticket
State Farm offers competitive rates for drivers who have a speeding ticket on their records. If this is your situation, it’s smart to shop around for car insurance quotes because of the wide variation in rates among companies.
|Company||National average annual cost for drivers with a speeding ticket|
State Farm car insurance cost comparison for drivers who caused an accident with injury
State Farm auto insurance rates are decent for drivers who caused an accident with an injury to someone else.
|Company||National annual average cost for drivers who caused an accident with injury|
State Farm car insurance cost comparison for drivers with a DUI
The national average car insurance cost for drivers with a DUI is $3,537 a year and State Farm’s auto insurance rates come in below that.
|Company||National average annual cost for drivers with a DUI conviction|
State Farm car insurance cost comparison for drivers with poor credit
Average State Farm auto insurance rates are very high average cost for drivers with poor credit compared to competitors.
All states except California, Hawaii, Massachusetts and Michigan allow car insurance companies to use a credit history when determining rates. Insurers say that a person’s credit correlates with the chances someone will make an insurance claim in the future. This correlation leads to higher rates.
|Company||National average annual cost for drivers with poor credit|
State Farm car insurance cost comparison for adding a teen driver
State Farm’s average car insurance cost to add a teen driver is about $300 below the average, at $2,124 a year.
Adding a teen can cause your car insurance rates to skyrocket. You can easily pay more than $2,000 a year to add a 16-year-old driver to a parent’s policy. Our analysis found that the national average cost is $2,419 a year, among the companies we analyzed.
|Company||Increase per year for adding a 16-year-old driver|
State Farm car insurance cost comparison for young drivers ages 18 to 25
State Farm car insurance rates are relatively low for drivers between ages 18 and 25. Its cost is below the national average of $4,706 a year, among large insurers we analyzed.
The costs below are for young drivers on their own auto insurance policies. You can usually reduce costs by keeping a young driver on a parent’s policy as long as possible.
|Company||National average annual cost for young drivers|
State Farm car insurance cost comparison for senior drivers age 70 and 80
State Farm auto insurance costs for drivers age 70 and 80 are fairly competitive compared to top competitors. The national average is $2,498 a year, based on our analysis of large insurers. State Farm comes in about $400 a year below the average.
|Company||National average annual cost for senior drivers|
Auto Insurance Complaints Against State Farm
State Farm has a lower level of auto insurance complaints than many insurers, based on complaints made to state insurance departments across the country. State Farm complaints are also substantially below the industry average.
Auto insurance complaints tend to be about claim denials, delays and unsatisfactory settlements.
State Farm’s Grade from Collision Repair Professionals: C-
In a survey of collision repair professionals by the CRASH Network, State Farm earned a C- grade.
The opinions of auto body professionals are valuable because they see how insurers compare in the use of lower-quality repair parts, whether insurers encourage the use of repair procedures recommended by car makers and whether insurers have claims processes that lead to fast and satisfactory claims for customers.
Does State Farm Offer Accident Forgiveness?
No, State Farm doesn’t provide accident forgiveness insurance. Some insurers offer this type of protection, which means your rates won’t increase because of one at-fault accident. Even though State Farm doesn’t offer accident forgiveness, Forbes Advisor found that the company still has the lowest average rate for drivers who caused an accident among 10 large auto insurance companies evaluated (aside from USAA which is available only to military members, veterans and their families).
Does State Farm Offer New Car Replacement?
No, State Farm doesn’t offer new car replacement coverage. New car replacement coverage from other insurance companies replaces the vehicle with a new vehicle of the same make and model if the car is totaled in an accident covered by the policy. One caveat is that the vehicle typically must be two model years old or less.
Does State Farm Offer Gap Insurance?
No, State Farm doesn’t have gap insurance. Gap insurance is useful if you total your car and you owe more on your lease or loan than what the car insurance policy pays out for the loss.
This coverage may be worthwhile if you have a large car loan or lease.
Does State Farm Offer a Diminishing Deductible?
No, State Farm doesn’t have a diminishing deductible option. Insurers with this option let drivers enroll in a program that reduces their deductible for every year in which they don’t file a collision or comprehensive coverage claim.
Does State Farm Offer SR-22s?
Yes, State Farm offers SR-22 insurance. SR-22s are sometimes required by states for risky drivers, such as those with DUI convictions or who caused multiple accidents. An SR-22 proves to the state that you have purchased car insurance coverage. SR-22 rules vary by state, but most states demand the driver retain the certificate for about three years.
Does State Farm Offer Usage-Based Insurance?
Yes, State Farm has an optional usage-based insurance program called Drive Safe & Save.
Drive Safe & Save can get you a discount on a State Farm car insurance policy of up to 30% based on how you drive.
You can either install the Drive Safe & Save app on your smartphone or use OnStar. The program collects miles driven and gauges your “basic driving characteristics” to develop a score and calculate a discount, if any.
Does State Farm Offer Pay-Per-Mile Insurance?
No, State Farm doesn’t provide pay-per-mile car insurance. Pay-per-mile programs can lead to lower car insurance rates, depending on how much you drive.
Pay-per-mile insurance programs typically have a base rate and then a per-mile rate. These types of programs are best for drivers who don’t log a lot of miles. For instance, drivers who commute to work via public transportation or those who work from home might benefit from a per-mile insurance program.
State Farm Reportedly Denying Coverage for Hyundai and Kia Models
State Farm has stopped selling new car insurance policies in some cities for certain models Hyundais and Kias, according to the St. Louis Post-Dispatch. The reason is that the theft rate of certain Hyundai and Kia models has soared after a viral TikTok video showed an easy method to steal 2011-2021 models due to their lack of engine immobilizers.
Both State Farm and Progressive are reportedly declining new insurance on these Hyundai and Kia models in certain cities across the country.
Comprehensive insurance covers the theft of your vehicle, and a flood of stolen vehicle claims would be costly to State Farm. Those who already have State Farm insurance on a Hyundai or Kia should have their coverage still in place but may see a rate increase at their next renewal period, especially for comprehensive coverage.
State Farm Car Insurance Discounts
When shopping for car insurance, it’s important to ask about car insurance discounts. There may be ways to lower car insurance premiums with a discount or two or even more. (Not all discounts are available in every state.)
Here are some discounts you are likely to see from State Farm.
- Accident-free discount. If you drive without having an accident for three years in a row, you can qualify for an accident-free discount from State Farm.
- Good student discount. If a student is age 16 to 25, is going full-time to high school or college, and has a B average, 3.0 grade point average or other qualifications, you can save up to 25% discount on car insurance from State Farm.
- Loyal customer discounts. Insure more than one car with State Farm and you could save as much as 20%. Insure a home or a condo or sign up for life insurance or renters insurance with State Farm alongside your auto insurance policy and you can save up to 17% with a multi-policy discount.
- Defensive driving course discount. Take a defensive driving class and you may be eligible for a discount of 10% to 15%.
- Good driving discount. Keep a good driving record for three years with no at-fault accidents or moving violations and you’ll qualify for a discount.
- Driver training discount. If young drivers under age 21 complete driver training, you’ll get a discount.
- Student away at school discount. If one of the drivers of your vehicle is a student under age 25 who moves away to go to school, you may be eligible for a discount.
- Anti-theft discount. If your car has an alarm or other anti-theft device, you may qualify for a discount.
- Multi-vehicle discount. You’ll get this price break if you insure more than one vehicle with State Farm.
State Farm’s Steer Clear Program
Looking for ways to save money on car insurance for a young driver? The State Farm Steer Clear app allows you to do just that.
To sign up for the State Farm Steer Clear app, drivers must be under 25 and have no at-fault accident or violations in the past three years. The app provides five training modules that consist of lessons, driving scenarios and quizzes. If you complete all modules within six months of starting, you might be eligible for discounts.
More Insurance from State Farm
State Farm also sells:
- Life Insurance
- Supplemental health insurance
- Medicare supplement
- Disability insurance
- Farm and ranch insurance
- Business insurance such as commercial liability umbrella, commercial auto and workers compensation
State Farm’s Mobile App
The State Farm mobile app enables customers to manage insurance policies, roadside problems and State Farm banking accounts from their smartphones. Functionality includes:
- Access insurance ID cards
- Pay your insurance bill
- Start a roadside assistance request
- Upload photos and documents for claims
- File a claim
- Connect with your agent
A Brief History of State Farm
State Farm was founded in 1922 by a retired farmer and insurance salesman George Jacob “G.J.” Mecherle. Although it began as a single-line auto insurance company, State Farm now offers more than 100 different products and services across five different industries.
State Farm is the largest auto insurance company in the U.S. with a market share of about 16% for private passenger auto insurance.
To identify the best car insurance we evaluated each company on its auto insurance rates, the coverage options offered, complaints against the company and its collision repair process.
Auto insurance rates: 50% of score. We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car insurance coverage options: 25% of score: Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category, we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.
Collision repair (5% of score): Auto body shop professionals have an insider view of each company’s approach to repairs. The best car insurance companies don’t apply pressure to cut costs or install lower-quality repair parts. Some insurers also have processes that help speed up repair and claims processes, making for more happy customers. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.