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State Farm Insurance Review: Homeowners, Auto, Renters & Life Quotes

Rachel Carey
Financial Guru
Updated: 1/2019

State Farm Insurance ReviewState Farm Insurance ranks as one of the most financially secure and popular insurance companies for many types of insurance. The most important concerns about insurance services – when rating and comparing different companies – include coverage costs, benefits, discounts and claims satisfaction. State Farm receives high marks in most categories, but the company offers fewer discounts than some of its competitors.

Table of Contents

State Farm’s Reputation and Overview

State Farm Insurance’s claim of providing personalized service like a “good neighbor” is justified with round-the-clock support from more than 18,000 agents in all 50 states and three Canadian provinces. It’s easy to file claims online, and through the company’s proprietary mobile app.

You can actually file your claim by phone at the scene of an accident or disaster. State Farm enjoys high ratings from three credit reporting agencies as well as one of the highest ratings for claims satisfaction according to the J.D. Power Auto Claims Satisfaction Study. The high rating of claims satisfaction for State Farm is also backed by Consumer Reports.

State Farm’s online resources include more than just an easy claims process. You can find comprehensive information on financial planning, tips on auto maintenance and tips for dealing with accidents.

In general, State Farm provides standardized insurance services efficiently, but it doesn’t offer as many discounts and special kinds of coverage as some of the other big names in insurance.

State Farm Insurance Review

Types of State Farm Insurance

State Farm offers a broad range of insurance coverage for homeowners, renters, drivers, business owners and those who need basic health insurance or supplemental coverage. The following are the major categories of State Farm insurance that concern most consumers:

Auto Insurance

State Farm is the largest auto insurance company in the United States. The company offers all standard protections but doesn’t do as well when it comes offering the latest discounts and best possible rates. One of the benefits of State Farm automobile insurance is the ability to get rideshare coverage in 42 states and the District of Columbia. The company also insures Uber and Lyft drivers in those states, which many companies don’t.

The company’s coverage of rental car and travel expenses is exceptional. State Farm not only pays for a rental car while your vehicle is being repaired but also pays for lodging, meals and transportation if you’re stranded more than 50 miles from home because of a covered collision. It’s important to check your policy, however, because coverage can vary by state.

The benefits of State Farm Auto Insurance policies include consumer confidence based on the company’s long-standing success in business since 1922. As America’s largest auto insurance company, State Farm is never far away. An agent can get to you almost as quickly as demonstrated by the company’s advertising campaign where agents teleport instantly to the scene of an accident. The real-world benefits of getting your auto insurance at State Farm include:

  • Rideshare coverage in most states
  • Extensive national resources
  • Rental reimbursement
  • Agents that are accessible worldwide
  • Discounts for safety equipment and driver education
  • Coverage of Lyft and Uber drivers in 42 states and Washington, D.C.
  • Ability to file claims online easily
  • Access to critical information online such as how to jump-start a car, use driver-assisted safety features and protect your vehicle

The State Farm mobile app doesn’t work at 100-percent efficiency. Some drivers encounter connectivity problems, but there are always other options for filing your claim or getting roadside assistance.

Comparison Shopping

Both Progressive and Travelers Insurance companies score higher on offering more discounts. Progressive offers more coverage options and discounts for urban drivers who don’t commute by car daily. Progressive also provides the Snapshot feature that rewards drivers for safe and infrequent driving. Travelers Insurance scored higher in most categories with both J.D. Power and Consumer Reports, but your particular experience will depend on your state, insurance needs and personal profile.

State Farm wins with drivers in the 42 states where people can get Uber and Lyft coverage and rideshare insurance. Allstate Insurance scores a little lower than State Farm in most categories.

State Farm Insurance Review

Auto Insurance Discounts at State Farm

State Farm offers many of the standard discounts that most major carriers offer. These discounts include:

Accident-free Discount

  • Accident-free Discount State Farm offers a progressive discount for accident-free driving based on the number of years that you hold a State Farm Auto Insurance policy without an accident. The discount for 3 years of safe driving is 15 percent. The discount rises to 20 percent for 6 years and 25 percent for 10 years.

Multiple Vehicle Discount

  • Multiple Vehicle Discount The discount for insuring multiple vehicles at State Farm can save you up to 20 percent.

Bundling Discount

  • Bundling Discount When you bundle State Farm Auto Insurance with other insurance – such as Homeowners, Life Insurance and Renters Insurance – you can save up to 17 percent on your premiums.

Defensive Driving Discount

  • Defensive Driving Discount State Farm offers a discount for taking a defensive driving course approved by your state’s motor vehicle authority. State Farm accepts programs from states that allow anyone to take a course and receive a discount and those states that only allow drivers over the age of 55 to receive a discount for taking a defensive driving course. You should check with your local DMV or a State Farm website to see if you can qualify in your state. After completing the course – if you qualify – you’ll receive up to a 10 percent discount.

Good Driving Discount

  • Good Driving Discount State Farm offers discounts for good driving practices. The company has two proprietary mobile apps that track driving habits. The Steer Clear program is designed to lower the costs of insurance for drivers under the age of 25 who drive safely. The Drive Safe & Save program tracks general driver behavior from OnStar service, the mobile app and other resources.

Safety and Anti-theft Discounts

  • Safety and Anti-theft Discounts Strate Farm has replaced its old safety restraint discount with a discount based the vehicle model’s claims history for passenger and driver injuries. It pays to choose a safe vehicle. The discount can range up to 40 percent of the portion of your policy allocated to medical payments and personal injury protection.

Good Student Discount

  • Good Student Discount Student drivers who maintain a 3.0 or higher GPA can qualify for up to a 25 percent discount of their State Farm Auto Insurance premiums. Any driver under the age of 25 can qualify for up to a 15 percent discount if he or she has no at-fault accidents and completes the Steer Clear program. Students can also qualify for a discount if they only drive while they’re at home from college.
State Farm Insurance Review

Life Insurance

State Farm carries whole life and universal life insurance policies for long-term financial planning and protection. These are permanent types of life insurance. The company also offers Return of Premium Term Life insurance for 20- or 30-year terms. Coverage begins with a $100,000 benefit and goes up based on your desired benefit and your ability to cover the premiums comfortably.

You can renew your term policy at a higher rate. If you’ve reliably paid your premiums and outlived your term, you receive all your premiums back. The types of State Farm Life Insurance include:

Whole Life

  • Whole Life State Farm’s whole life policies aren’t as competitive as its term life policies. The company enjoys a reputation for good service and sound finances, but you can usually find less expensive whole life policies. State Farm also offers fewer living benefits in its whole life policies than other insurance companies. State Farm Whole Life policies are permanent, and your premiums stay the same as you age. If you die, your beneficiaries receive the full policy benefit tax-free. The policy also earns a cash value that you can borrow against in a financial emergency. State Farm has discontinued its variable policies such as Variable Universal Life Insurance. The company’s policies for whole life insurance are considered to be on the expensive side when compared to those of other insurance companies. However, you might be able to save based on bundling your insurance services. State Farm Whole Life Insurance offers many of the most popular coverage options, or riders, that include:
  • Flexible care
  • Disability income
  • Accidental death
  • Child coverage
  • Funeral expenses
  • Estate protection
  • Long-term care benefit
  • Accelerated benefits

Universal Life

  • Universal Life Universal life insurance is also a type of permanent life insurance that immediately assigns excess premium payments to the cash value of the policy. You can tap this investment account for educational expenses and other needs. You can get loans from the cash value or withdraw funds directly. The policy continues as long as there is enough cash value to cover the life insurance premium.

Select Term Life

  • Select Term Life Starting at $100,000 of coverage, Select Term Life Insurance plans include 10-, 20- and 30-year terms for people up to age 95. You can get a higher benefit depending on your needs.

Instant Answer Term Life

  • Instant Answer Term Life This insurance provides $50,000 of term life insurance coverage for people between the ages of 16 and 45 without any health exam. You will need to fill out a detailed health questionnaire, and your answers could disqualify you for coverage.

Homeowners Insurance

State Farm enjoys a good reputation for its homeowners insurance coverage, and it ranks as the top provider of homeowners insurance in the United States. However, the company’s policies have limits that can come as a surprise unless you read all the fine print. For example, homeowners policies won’t cover business activities conducted in your home.

Health Insurance

State Farm offers health insurance coverage for individuals under the Affordable Care Act as well as supplemental health insurance including plans for Medicare and employer-provided health plans. You can also get a prescription, vision or dental plan as a separate policy. Short-term health plans are also available. Businesses can buy health plans including HMO, PPO and POS plans.

State Farm health insurance receives high ratings because its policies are underwritten by Assurant, which is a respected health company that has provided health insurance since 1892. Coupled with State Farm’s excellent customer service ratings, its health insurance policies are considered sound and competitive.

Other Types of State Farm Insurance

State Farm offers small business coverage, liability insurance and group coverage, but it doesn’t provide accident insurance. The company also offers banking services, annuities, estate planning and mutual funds. State Farm offers renters insurance, disability insurance and insurance for personal articles.

The company also offers boat insurance, farm and ranch insurance, off-road vehicle insurance, manufactured home insurance, disability insurance and umbrella business coverage. If your State Farm policy doesn’t provide the coverage you need, you can often obtain it with a special rider, or amendment, to your policy. One popular amendment that State Farm doesn’t offer is an Accelerated Death Benefit Rider that allows policyholders to use some of their death benefits for end-of-life costs.

Any State Farm insurance plan can become more affordable when you bundle services. State Farm Whole Life Insurance doesn’t enjoy as favorable a rating as its Homeowners and Auto Insurance plans, but that can vary based on bundling discounts and the different underwriting criteria used for life insurance policies. State Farm is respected enough that it’s wise to get a quote based on your personal circumstances.

Sometimes, peace of mind is the most important factor in choosing insurance. State farm has a solid financial profile backed by almost a century of service. The company has ranked in the top spot for customer satisfaction for the last four years at J.D. Power, and it receives top ratings from independent financial rating agencies including Global, Moody’s, S&P, Fitch and A.M. Best. State Farm also offers policyholders many ways to pay their premiums from a diverse selection of payment structures.

FAQ

If you’re thinking of using State Farm to insure your car, you may have some important questions. Below are some common questions people often have about State Farm and its services. Check them out!

General State Farm Questions

If you have any general questions about State Farm or their services, you may be able to find the answer to your questions here.

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What is State Farm?

State Farm is a large group of different insurance and financial services companies that primarily works with policy holders in the United States. It is one of the most recognized insurance companies in the country.

Who owns State Farm?

Technically, State Farm is not a publicly traded company. Instead, it is a company that is mutually owned by the policy holders within the insurance firm. This is a complicated form of ownership.

Is State Farm insurance good?

As with most large insurance companies, State Farm has mixed reviews online. While the company is one of the most well-known insurance companies in the country, it does have various complaints posted on consumer watchdog groups. Still, State Farm does offer some excellent features and benefits.

Is State Farm publicly traded?

No. State Farm is not a publicly traded company. Instead, the company is technically mutually owned by its policy holders. This is a unique form of insurance ownership.

When is a car totaled by State Farm?

This will depend on the type of car that you own. State Farm will assess the damage against the total cost of your vehicle and the price of making repairs.

Does State Farm have health insurance?

Yes, as one of the largest insurance providers in the nation, State Farm offers health insurance options to its policy holders. You have a range of different policy options at your disposal.

Does State Farm have roadside assistance?

Yes, but it will depend on the type of policy that you hold with State Farm. If you want roadside assistance, it’s critical to ensure that it’s included in your policy when you purchase it.

How long does State Farm take to send check?

This will depend on your claim. In some cases, it can even take weeks — State Farm may be having to check the validity of your claim or process other potential issues. You should contact them to receive an ETA on your check.

How many claims before State Farm drops you?

This will depend on your circumstances. In some cases, it appears you’re at risk for being dropped if you have more than two accidents in a three-year period. Be careful on the roads!

How much does State Farm pay Aaron Rodgers?

The exact details of Aaron Rodgers’ payment are not entirely clear, but it appears that he may make over $7m per year from his endorsement. Again, this is only speculation.

Does State Farm have accident forgiveness?

Yes, State Farm does have an accident forgiveness program, but it is a bit stricter than some of the other insurance providers on the market. In most cases, you’ll need nine accident-free years of being a State Farm client to be eligible for this benefit.

Is State Farm open on Saturday?

Yes, State Farm is open on Saturdays — you can call their customer service department. If you want to go to an agent’s office, the hours will depend on your individual agent.

What happens if you miss a payment with State Farm?

If you miss a payment with State Farm, it’s critical to contact your agent as quickly as possible. They may be able to arrange a grace period for you to get your payment arrangements in order.

When was State Farm founded?

State Farm was originally founded in 1922 — this makes it one of the oldest insurance providers in the United States.

State Farm Policy Questions

If you have questions about State Farm policies, make sure to check out this section of FAQs.

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What does State Farm homeowners insurance cover?

This will depend on the type of coverage that you purchase. In most cases, it will cover costs from theft, fire, windstorm, hail damage, or a range of other problems. You need to make sure you know what exactly the coverage includes before you purchase your policy.

Does State Farm cover rental cars?

This will depend on the type of insurance that you have, but if you have comprehensive insurance you should be covered. Make sure to confirm your coverage details with State Farm.

What does State Farm renter's insurance cover?

Most renter’s insurance policies will cover theft and damage from vandalism or other issues, but this will depend on the level of insurance coverage that you have.

Does State Farm cover windshield replacement?

Yes, but you may have to pay a large deductible, depending on the type of policy that you hold. Make sure to check your policy details to find out what type of coverage you have.

Does State Farm homeowners insurance cover mold?

This will most likely depend on the source of the mold in your home. You should ask your State Farm agent if mold is covered before you make any claims on your policy.

Does State Farm homeowner's insurance cover roof leaks?

Most homeowners insurance should cover roof leaks. This is especially true if the roof leak has happened on a roof that has already been inspected by State Farm. In many cases, the damage to other parts of your home will also be covered.

What does State Farm full coverage auto insurance cover?

Full coverage auto insurance, which is also called comprehensive insurance, can cover almost all type of damage that occur to your vehicle. It’s the best way to reduce your overall risk. Make sure to ask your insurance agent what is covered under your comprehensive plan.

What does State Farm liability insurance cover?

If you’re looking for liability insurance for your vehicle, State Farm offers liability coverage that pays the medical costs of third-parties if they’re hurt in an accident. Medical costs in the United States can be expensive, so it’s important to have this type of coverage.

Does State Farm cover bee removal?

This is a bit of a grey area. In fact, State Farm has been sued over this question in the past. It’s a good idea to assume you’re not covered for bee removal — but you can always ask your agent.

Does State Farm cover blown engines?

This will depend on the reason that the engine is blown — if it’s due to a collision, you may be able to get coverage.

Does State Farm insurance cover pothole damage?

If you want to be covered for potholes, you’ll most likely need to obtain a comprehensive insurance plan. Again, this is a bit of a grey area, so make sure to speak to your agent about this type of coverage.

State Farm Pricing Questions

If you have any questions about State Farm pricing, make sure to check out the questions below.

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How much is State Farm car insurance per month?

This will depend on the type of coverage that you purchase from your agent. There are a wide variety of price points — your driving record and vehicle will also be a major factor. Comprehensive insurance is typically the most expensive.

How much is State Farm renters insurance?

Again, this will depend on the type of insurance and the amount you need covered. Make sure to ask for a quote before you purchase a policy — it’s a good idea to compare rates.

Other State Farm Questions

If you have any other questions about State Farm, explore the various answers in the section below.

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What happens if my car is totaled by State Farm?

You should make a claim as quickly as possible. When you get into an accident, make a claim so that State Farm can begin to assess if your car is totaled.

Where is State Farm stadium?

State Farm stadium is located in Glendale, Arizona. It is used by the Arizona Cardinals who play in the National Football League.

Where is State Farm headquarters?

State Farm headquarters is in Bloomington, Illinois. The company also has offices throughout the nation that host local agents.

Does State Farm homeowners insurance cover tornado damage?

This is a bit of a grey area. While State Farm does typically cover wind and storm damage, you may find it harder to claims against a Tornado. Speak to your agent about whether or not your plan includes this coverage.

Does State Farm insurance cover bed bugs?

Unfortunately, State Farm does not offer coverage for this form of damage at the moment. You may be able to find this coverage with another insurance provider.

Does State Farm insure mobile homes?

State Farm does provide mobile home insurance under its ‘manufactured home’ insurance program. If you need coverage for a mobile home, make sure to check out this policy.

Does State Farm offer personal loans?

State Farm does offer a range of loans through State Farm Bank, but these loan products don’t appear to be as competitive as other financial institutions.

How does State Farm determine value of totaled car?

There are a variety of different factors that will be considered when State Farm assesses the value of a totaled car. Make sure to ask your agent about the exact method of calculation if you believe they have incorrectly valued your vehicle.

How to pay State Farm insurance by phone?

If you want to pay by phone, you can use the key code on the bill that you’re trying to pay.

Is State Farm good at paying jewelry claim?

As a large provider, you should be able to trust State Farm to pay legitimate claims. This being said, there are some mixed reviews online.

What makes State Farm different from competitors?

This will depend on the type of policy that you purchase. One thing that makes State Farm different is that it’s a company that is owned by its policy holders — this is preferred by some customers.

Does State Farm cover locksmith?

In most cases, if you have comprehensive insurance, State Farm should be able to cover your locksmith costs — you’ll most likely need emergency road service coverage. Make sure to check with your agent if you’re unsure if you have enough coverage for this benefit.

Does State Farm full coverage include towing?

If you have emergency road service coverage, you should be able to claim for reasonable expenses which includes towing.

Does State Farm have a grace period?

Yes and this will depend on the type of loan that you’re purchasing. For auto insurance, most grace periods are ten business days.

How does State Farm emergency road service work?

If you have emergency road service included in your policy, State Farm will pay for any reasonable expenses associated with a breakdown or accident.

How much does State Farm pay for bodily injury?

This will depend on the type of injury and the costs that incur from the injury. Make sure to speak with your agent if you are injured in an accident.

How to file a personal injury claim with State Farm?

You can file the claim online, through a mobile app, or by calling State Farm directly. Speak to your agent if you have any questions.

How to pay my State Farm bill online?

You can head directly to the State Farm website to pay your bill online — they also have detailed instructions about all of their payment methods.

Will State Farm cover roof replacement?

This will depend on the reason that the roof needs to be replaced. If it is damaged by fire, wind, or storm, many of State Farm’s policies will cover a roof replacement.

Does car insurance go down at 25 with State Farm?

While there’s no specific data on insurance decreasing at 25 on State Farm policies, most auto insurance policies do decrease as you age.

Rachel Carey

Rachel Carey

Financial Guru

Rachel is dedicated to helping individuals and families boost their budgets so they can enjoy the lifestyle they deserve. Rachel graduated with a degree in Family and Consumer Sciences. She’s a prolific finance writer, producing tons of articles on different aspects of personal and family budget management.

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