Pros

  • Additional savings for safe drivers through State Farm’s “Drive Safe & Save” program
  • Neighborhood based insurance agents allow customers to meet their representatives face-to-face
  • Consumers have a wide-variety of insurance plans and options to select from

 Cons

  • “Drive Safe & Save” savings require subscription to in-vehicle communication services
  • Mixed reviews of how quickly they handle their claims process
  • Because they employ agents locally, State Farm’s rates tend to be more expensive

State Farm Premium Comparison

In our chart below you’ll be able to see sample rates for four demographics. We looked at 50 car insurance companies to help you get a deeper insight into where State Farm is positioned against the competition:

In sample rate comparisons for the state of New Jersey, State Farm was consistently more expensive than the average auto insurance company across all four demographics that we looked at. The exception to this was coverage for young, single females where State Farm’s rates were 17% cheaper than average. Because car insurance rates fluctuate as much as they do, when it comes to purchasing your policy we always suggest that people shop for multiple quotes to make sure that they’re getting the best deal in their area. As a general rule of thumb, consumers should look at three companies before making a decision on auto insurance. Below is a list of cheap auto insurance providers in your area (enter your zip code below) to begin your search.

State Farm Auto Insurance Policy & Coverage

Made famous by Aaron Rodgers, the Green Bay Packers’ quarterback, the Discount Double Check is one of the phrases typically associated with State Farm. It is a successful marketing campaign more than anything else. The Discount Double Check refers to State Farm’s review of a vehicle’s insurance policy to see if insureds qualify for auto insurance discounts. See below for the discounts State Farm offers.

Drive Safe & Save

Similar to Progressive’s Snapshot program, State Farm offers policyholders the option of saving more based on their good driving behavior. Drivers simply connect their indoor communications system – OnStar, In-Drive, and SYNC – and the insurer collects some basic characteristics of your driving. State Farm explains they will only use the the driving information to calculate consumers’ discounts and cannot increase your auto premiums. The exception is drivers who already receive a discount for low annual mileage can see their premiums increase if they drive more than 7,500 miles in the year.

Claims Settlement

Because it is primarily a business that allows customers to meet with agents face-to-face, State Farm is able to provide a personal touch on claims service that other auto insurers simply cannot match. That being said, because claims aren’t centrally processed there can be variability in the quality of customer service when submitting a claim. A customer’s experience will ultimately come down to how competent, helpful, and knowledgeable their local State Farm agent turns out to be.

Insurer Ratings

Metrics Rating
AM Best Financial Strength Rating (2013) A++
Better Business Bureau Rating (2013) C+
NAIC Complaint Index (2012) 0.43 (Better than Average)
Complaint Ratio per Vehicles (NJ, 2012) 13 / 504,614
JD Power & Associates Overall Rating 4 out of 5 (Better than most)

In a 2012 report by the New Jersey Department of Banking & Insurance, State Farm had a below average complaint index of 1.073 in the Garden State for complaints received by policyholders of its insured cars. As a proxy measure of customer satisfaction, this index indicates a 7% higher complaint rate than the average number received by insurers in New Jersey.

Insurance Discounts with State Farm

Here are some examples of State Farm’s discounts. Note that the discounts available to you may differ based on your state and driver situation.

Discount Types Discount Amount
Good Student 25%
“Steer Clear” 25%
Multiple Cars on Policy 20%
“Multiple Lines” (bundling with other insurance) 17%
“Drive Safe & Save” (good road citizens / good driving) Depends on state
Defensive Driving course completion Depends on state

How to File a Claim with State Farm

Phone Number: 800-782-8332

  • Press 2 to indicate you’re an existing policyholder
  • Press 2 for Claims
  • Press 1 for New Claims

State Farm’s Claims line is staffed with agents 24 hours a day, and 7 days a week.

About State Farm Auto Insurance

State Farm Insurance provides over 81 million auto insurance policies in the United States and Canada. This auto insurer is a mutual company owned by its policyholders, seen to by 65,000 employees, and marketed by more than 18,000 agents nationwide.

For more information, visit their website or call their national telephone line at 855-733-7333.