Pssst! We want to let you in on a big secret in the insurance industry. It’s a common misconception that finding affordable insurance to suit your unique needs is a tough process. The secret that most carriers and agents don’t want you to know is that it is surprisingly simple to find the best company for you! I’ve started a series of reviews to help you in your research. If you have any questions, leave them in the comments below or give us a call today!
- Editor Rating
- Rated 4 stars
- State Farm Insurance
- Reviewed by:
- Published on:
- Last modified:
- Customer ServiceEditor: 93%
- Claims ServiceEditor: 88%
- Annual PriceEditor: 79%
- Coverage OptionsEditor: 91%
|Company Name:||State Farm Insurance|
|Address:||ONE STATE FARM PLAZA
BLOOMINGTON, IL 61710-0001
|California Company ID #:||0948-0|
|Date Authorized in California:||06/18/1928|
|Company Type:||Property & Casualty|
|State of Domicile:||ILLINOIS|
State Farm: A Company Snapshot
State Farm was founded as a mutual automobile insurance company in 1922, by a retired farmer named George J. Mecherle.
The company began by specializing in auto insurance for farmers specifically but has since grown to service over 80 million policies annually. Today, State Farm is probably one of the biggest names in the insurance industry, offering auto, home and life insurance options to suit a variety of unique needs. In addition to these three categories, State Farm also offers over 100 additional products, including:
- Auto Insurance
- Homeowner’s Insurance
- 10, 20 and 30-year term life insurance policies
- Group Life Insurance
- Long Term Care Insurance
- Business Life Insurance
The company’s success continues to grow due to its ability to embrace technological trends in this insurance industry, including an intuitive website and Pocket Agent, an application option for smartphone users.
Additionally, State Farm can truly boast that they are a “good neighbor” of a company, with over 18,000 agents!
State Farm Insurance: An Overview
There is something to be said for being such a well-known company; State Farm ranks among the top 10 property, casualty and life insurance companies in the US and holds roughly 20% of the home insurance market as well as 19% of nationwide market share for automobile insurance.
State Farm may seem like an obvious choice; a well-known brand with a large array of products and incredibly competitive pricing. State Farm is name brand for a reason.
|One-stop shopping for a variety of insurance products.||Below average customer satisfaction for claims.|
|Personal service from over 18,000 local agents.||Fewer home insurance discount options than competitors.|
|High financial ratings from AM Best and Standard & Poor's.||No quoting tools or access to rates from major competitors.|
|Expansive coverage options.||Limited to State Farm branded products only.|
There are a few area in which the company really stands out:
- State Farm Auto Insurance earned an AA rating from Standard & Poor, an industry benchmark for financial strength. This rating is based on the company’s ability to pay out its claims
- State Farm Auto Insurance also earned an AM Best rating of A++, due to the company’s superior financial condition.
- A large network of over 18,000 local agents, all offering a personal touch.
- Competitive auto insurance prices, and a one-stop-shop for auto, home and life insurance.
- Superior rental and travel expense coverage. State Farm will pay for a rental car should yours be in the shop following a collision and, if you happen to be stranded more than 50 miles away from home, State Farm will also pay for your lodging, transportation and meals.
However, this company may be better suited to those looking for a broad array of products offered rather than exceptional customer service.
Being such a big name, it comes as no surprise to consumers that State Farm’s customer service generally rated well in J.D. Power’s regional consumer studies, due in large part to the personal service offered by the company’s wide network of agents. However, the company has shown a downward trend in customer satisfaction when it comes to auto insurance claims, leading to State Farm’s overall average service rating. Average customer satisfaction may not be the only downside to choosing this company, either.
Below are some of the areas in which State Farm falls short:
- Exclusivity; customers can only buy State Farm products through State Farm agents. This means that if their products aren’t a good fit for you, you don’t have the flexibility of an agent who will help you shop around.
- Although State Farm’s offerings are vast, the company tends to offer fewer home insurance discount options.
- On average, the auto complaints and claims for State Farm tend to skew greater than the industry median for such a large company.
- If you prefer to shop around on your own using instant quote tools, State Farm may not be your best option.
Discounts and Deals
There is a benefit to going with such a large company: discounts. State Farm offers customers many ways to save money on insurance purchases.
Let’s take a closer look at some of the auto insurance discounts:
|Discount Description||Discount Amount|
|Low Annual Mileage Driven||1%-45%|
|Mature Driver Course||5%|
As a driver, you may be eligible to receive discounts for anti-theft devices, taking a defensive driving course, being an accident-free driver or insuring multiple vehicles. If you drive minimally and safely, you can enroll in State Farm’s usage-based program. This program offers a 5% discount when you sign up and a savings of about 50% after your driving behavior has been evaluated.
State Farm’s Steer Clear Safe Driver Discount also offers 15% savings for drivers under 25 who have successfully completed their online or app-based Steer Clear course, with no accidents or moving violations within three years.
Additionally, the big-box approach to insurance means you can bundle things like homeowners, renters, condo, life insurance and auto insurance for a discount of roughly 22%!
There are fewer discounts for homeowners through state farm; however, you may be eligible for a discount if you have more than one policy with State Farm or if you have fire, smoke or burglar alarms.
Company Complaint Information
State Farm’s AM Best and Standard and Poor ratings mean that the company is able to pay out any claims made against them; however, customer satisfaction was lower among those who made auto insurance claims. This earned State Farm an overall rating of “about average” in a 2015 J.D. Power survey.
The company earned an average rating in a similar Consumer Reports survey as well.
to be without Merit.
How Does State Farm Compare to Other Insurance Companies?
See how State Farm compares to other top insurance providers in California:
State Farm ranks among the top 10 property, casualty and life insurance companies in the US and ... Read Review
|$837||Rated 4 stars|
Compared to big name insurers like Allstate and State Farm, which have over 80 years under their ... Read Review
|$814||Rated 4 stars|
AAA’s history of providing roadside assistance and travel services have made them a go-to for ... Read Review
|$687||Rated 3.5 stars|
Allstate serves over 16 million people, and is best known for its auto insurance options. The ... Read Review
|$812||Rated 3.5 stars|
Infinity currently clocks in as the third largest provider of “nonstandard” car insurance ... Read Review
|$1012||Rated 3 stars|
If you are a driver with poor credit, a spotty driving record or a history of suspended/revoked ... Read Review
|$594||Rated 2.5 stars|
Farmers has become a household name and carries with it a good reputation. The company has an A.M. ... Read Review
|$973||Rated 2.5 stars|
The Bottom Line
When it comes to shopping for insurance, you have two general options: a big box option or a boutique option.
A name brand option like State Farm is the Target of insurance: it offers the convenience of a one-stop-shop for all of your insurance needs. While this is best for those looking for quick and broad options, it may not be right for those who are looking for a more customized, “boutique-style” insurance shopping experience.
Your best bet is to speak to an independent agent about your insurance options. Independent agents are able to quickly and efficiently compare prices from multiple carriers, allowing you to tailor your insurance choices to your specific situation.
My bottom line is always you. I started this series of reviews to arm my clients with the knowledge they need to find the best companies and policies out there. If you have any questions, comments or concerns, give me a call today!
One-Stop-Shop for Auto, Home, Business
Over 18,000 Local Agents
High Financial Strength Ratings
Expansive Coverage Options
Below Average Claims Satisfaction
Limited Home Insurance Discounts
No Competitor Rating Tools
Branded Product Offerings Only
State Farm Insurance
Summary: State Farm ranks among the top 10 property, casualty and life insurance companies in the US and holds roughly 20% of the home insurance market as well as 19% of nationwide market share for automobile insurance.