State Farm auto insurance review and ratings 2024

Our take: If you’re looking for a good all-around insurer with a robust local agent presence in all 50 states, State Farm is a very strong choice. State Farm has the second-lowest average premium among the top auto insurers, including Allstate, Geico, and Progressive. According to a consumer survey by research firm J.D. Power, it has the best reputation among these competitors for claims satisfaction. State Farm backs that up with a wide range of insurance policies and a rock-solid AM Best financial strength rating.

Randy Humphreys, an insurance broker with Reliable Risk Management, a full-service agency in Phoenix, advises insurance shoppers to carefully check out the companies they’re considering. “Things I tell my customers to ask when shopping for insurance: Is the company A-plus rated with AM Best? Does the company operate in all states?” he says.

State Farm has offices in all 50 states and offers a wide range of personal insurance, banking, and investment products.
 

How we compared

To perform our review of State Farm, we looked at a series of industry benchmarks, including the annual J.D. Power customer satisfaction and digital shopping experience studies, the AM Best ratings for financial stability, the CRASH Network’s annual review of insurers by body shops, and the National Association of Insurance Commissioners Complaint Index.

We then looked at what often matters most to consumers: car insurance premiums. Here’s how it fared compared to its three most significant competitors: Allstate, Progressive, and State Farm.

State Farm versus other top auto insurers

Who are the biggest auto insurers?

The U.S. auto insurance sector is massive on any scale, but the four largest companies claim an outsized percentage of the market. Together, State Farm, Allstate, Progressive and Geico control about 56% of the market.

State Farm is the biggest auto insurer, with approximately $58 billion in premiums written in 2023. Next is Progressive, which has $48 billion in auto insurance premiums, according to the National Association of Insurance Commissioners (NAIC).

How do State Farm’s rates compare to other top insurers?

Based on our rate data analysis, State Farm has the second-lowest average annual premiums among the four largest insurance companies. Its sample premium is about $100 more than Geico, which has the lowest average yearly rate.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for the following: state minimum liability insurance, standard liability with coverage limits of 50/100/500, and full coverage with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

How does State Farm rate in claims satisfaction?

State Farm scored best among the four largest insurers in the annual J.D. Power U.S. Auto Claims Satisfaction Study. Its score of 710 was higher than the industry average of 697, though still well behind NJM Insurance Co., which finished No. 1 overall with a score of 782.

While policyholders rate it highly, it didn’t have a particularly strong reputation among body shops. The CRASH Network performs an annual survey of national body shop professionals to rate their experiences working with auto insurers on claims. Specifically, it asks body shops, “How well do this company’s claims handling policies, attitude, and payment practices ensure quality repairs and customer service for motorists?”

In its 2024 rating, body shops gave State Farm a C-minus. It should be noted, however, that none of the largest auto insurers managed to crack the top 10 rankings (the North Carolina Farm Bureau received the highest grade, an A+). The best any top insurers could do was Progressive, which earned a C.

What is financial stability?

Insurance is all about peace of mind and for that reason, you want to know your insurance provider is financially stable and will be there for you when you need it.

Credit rating agency AM Best provides research reports and credit ratings on some 16,000 insurance companies worldwide. It grades them on their ability to pay claims, debts and meet other financial obligations.

All the major insurers have high grades with AM Best. State Farm, along with Geico, received the agency’s highest A++ grade, while Allstate and Progressive have solid A+ ratings.

Does State Farm receive a lot of complaints?

Based on customer complaints filed with the NAIC, State Farm has a much better-than-average track record.

The NAIC rates companies based on how many complaints are filed with the commission. A score of less than 1.0 means it received fewer complaints than the industry benchmark, while a score higher than 1.0 means it received a higher-than-average number of complaints.

State Farm had a score of 0.7, meaning it is much better than the industry average. For comparison, Allstate and Progressive both had scores of 0.65, while Geico was 0.91.

What is State Farm’s digital shopping experience like?

J.D. Power’s annual U.S. Insurance Digital Experience Survey asks consumers to assess insurers’ online shopping and service offerings. In the shopping subcategory, State Farm scored 513, just below the segment average of 516 and lower than its largest competitors. In the service segment, State Farm’s score of 703 was just above the average of 698.

The State Farm mobile app does get a 4.8 out of 5 stars rating on the Apple App store and a 4.6 rating on Google Play. The app allows customers to upload photos and documents to assist with the claims process, create a digital insurance ID, pay bills, get roadside assistance and connect directly with an agent.

How is State Farm for shopping in general?

J.D. Power says consumers are increasingly interacting with their insurers online, but some consumers still prefer to do their shopping the old-fashioned way – by talking to people.

State Farm has one of the biggest agency networks in the industry and consumers rate the service they get from the agent network, along with the choice of policies available, quite highly. Its rating of 695 was best among the big four carriers in the annual U.S. Insurance Shopping Study and above the industry average of 676.

Is State Farm good at offering usage-based insurance?

Usage-based insurance programs offer drivers the ability to get lower premiums, if they can demonstrate good driving behaviors.

Some insurers offer discounts as high as 30% if drivers are willing to use a mobile app or put a device in their car to track their driving. On the flip side, if you’re prone to speeding, hard and sudden braking or other forms of aggressive driving, you could see an increase in your rates.

State Farm’s Drive Safe and Save usage-based insurance program monitors your driving via either a mobile app on your phone or a telematics device installed in your vehicle. Several behaviors are tracked by the program, including accelerating and braking, how the driver corners, the number of miles driven and the time of day the vehicle is driven and phone usage. The software penalizes you if you’re prone to using your phone while driving.

In the J.D. Power auto insurance survey, drivers gave State Farm better-than-average marks for its usage-based insurance program.

Key offerings by State Farm

State Farm isn’t just a big auto insurer. It also offers a wide range of other insurance products, including homeowners, renters, term life, as well as financial services like banking.

It offers a full slate of auto insurance policies as well as policies to cover your motorcycle, boat, trailer, or ATV. Coverage options include:

• Liability
• Collision
• Comprehensive
• Medical payments
• Uninsured motor vehicle coverage
• Car rental and travel expenses coverage
• Rideshare (in certain states)

The company doesn’t offer gap insurance, which covers the difference between a vehicle’s current worth and the amount you owe on it should the vehicle be totaled or badly damaged in an accident. It does, however, offer an equivalent product called Payoff Protector, which is included with every vehicle loan originated with State Farm Bank.

Making the choice: Why go with State Farm?

State Farm may not offer the cheapest rates, but its premiums are very competitive, and it offers all the advantages of dealing with a large, financially secure insurer with different insurance lines.

It also gets strong ratings from customers for its track record of handling insurance claims as well as policy choices.

Before you sign up: Things to consider

State Farm offers a wide range of discounts that can help drivers lower their premiums, including discounts for bundling, taking a defensive driver course, being a good student, having safety features in your car or an anti-theft device.

It can pay to go through a checklist of possible discounts before you meet or speak with an agent, so you can be sure you’re getting the best deal possible.

State Farm insurance: Our expert verdict

State Farm didn’t become the largest car insurer in the country by accident. It got there by offering competitive rates, developing a strong reputation for handling claims with clients, and offering personalized service through its large agent network. You might be able to get a better deal elsewhere, but State Farm offers a very strong combo of products, price and service.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com 

The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market. 

J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.

CRASH Network’s Insurer Report Card is an annual survey of more than 1,100 collision repair professionals nationwide. Participants awarded each company a grade from A+ to F based on this question: “How well does this insurer's claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” Those polled also indicated whether or not they participate in that insurer's direct repair program.