State Farm auto insurance review: Cheap for teen drivers

The largest auto insurance company in the U.S., State Farm has high customer satisfaction and low car insurance rates, especially for teens and drivers with accidents on their records.

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By

Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Edited by

Anna SwartzAnna SwartzSenior Managing EditorAnna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

Updated|4 min read

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State Farm

State Farm logo

Policygenius rating

Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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The bottom line

The largest auto insurance company in the country, State Farm offers all the basic car insurance coverage most drivers need at an affordable rate. 

State Farm also has excellent customer satisfaction scores and some of the lowest car insurance rates in the industry for teens, young drivers, and drivers with an accident or moving violation on their record. State Farm also offers rideshare coverage for people who drive for services like Uber and Lyft, and policyholders praise the company’s suite of digital tools.

However, State Farm doesn’t offer as wide a range of car insurance coverage types as some competitors, with no gap coverage, custom parts coverage, or new car replacement coverage

Also, State Farm only sells policies through its own insurance agents, which makes it difficult for customers to compare State Farm quotes from multiple companies.

Pros

  • Available in almost every state

  • Low rates for teens and drivers with accidents

  • High customer satisfaction ratings

Cons

  • Limited coverage options

Basic coverages offered

  • Liability coverage: Required in most states, this covers medical expenses and property damage to the other party if you are at fault in an accident.

  • Personal injury protection: Also referred to as PIP, this covers medical expenses if you or your passengers are injured in a car accident and other related expenses, like lost wages. PIP is required in no-fault states.

  • Uninsured/underinsured motorist coverage: Also called UM/UIM, this covers your medical costs if you’re in an accident caused by a driver who either doesn’t have insurance or whose insurance doesn’t cover the full extent of the damage. UM/UIM is required in some states.

  • Collision coverage: Covers damage to your own vehicle after an accident, whether or not you were at fault.

  • Comprehensive coverage: Covers damage to your car that isn’t caused by a collision, like damage from weather, falling objects, flood, fire, vandalism, and theft.

  • Medical payments: Also known as MedPay, this covers expenses if you or your passengers are hurt or killed in an accident.

Additional coverages offered

  • Emergency road service coverage: Also called roadside assistance or towing and labor, this covers locksmith services, tire changes, towing costs, and fuel or fluid deliveries.

  • Car rental and travel expenses coverage: Pays for a rental car if yours is being repaired due to a covered accident. This also covers travel expenses like food and lodging if you’re in an accident more than 50 miles from home.

  • Rideshare coverage: Extends your regular car insurance coverage to cover you when your rideshare app is on but you don’t have a passenger.

State Farm also offers a variety of other types of insurance that can be bundled with your auto policy for savings on both, including:

Ratings methodology

Price

4.7/5

We compared the average cost of a full coverage policy from State Farm (50/100/50 coverage limits and a $500 deductible for comprehensive and collision coverage) to competitor rates for the same coverage with the same driver profile. Our sample rates were based on single drivers ages 30, 35, and 45, driving a 2017 Toyota Camry LE about 10,000 miles per year. We used rate data provided by Quadrant.

Customer experience

4.6/5

State Farm scored 882 out of 1,000 on J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, which is above average for the industry. State Farm also scored a 733 in J.D. Power’s 2022 U.S. Insurance Digital Experience Study, which looks at customer satisfaction with a company’s digital offerings. That was one of the highest scores of any major insurance provider. And according to the National Association of Insurance Commissioners (NAIC) National Complaint Index Report, State Farm also had a below-average number of customer complaints in 2021.

Coverage options

2.9/5

State Farm offers 13 different types of auto insurance coverage, giving it a good score when it comes to coverage options. State Farm offers basic car insurance coverages, like liability, comprehensive, and collision coverage, as well as add-ons like roadside assistance and rideshare coverage.

Financial strength

4.9/5

State Farm has some of the best financial strength ratings in the industry, scoring an A++ with AM Best and AA with S&P. This means State Farm is in a strong financial position to pay out claims.

A full coverage car insurance policy from State Farm costs an average of $95 a month, or $1,141 a year. State Farm is less expensive than competitors for a full-coverage policy with bodily injury liability limits of $50,000 per person and $100,000 per accident.

Coverage amount

Average annual rate for Progressive

Required state minimum

$475

Full coverage ($50,000/$100,000)

$1,141

Full coverage ($100,000/$300,000)

$1,333

You can work with your State Farm agent to make sure you are getting every possible discount, but keep in mind that rates will vary from person to person based on a number of factors, including your ZIP code and your driving history. 

State Farm and high-risk drivers

In addition to cheap rates for drivers with clean records, State Farm has lower rates for teens, young adults, and drivers with accidents and moving violations on their record than many other car insurance companies. 

State Farm even offers a Steer Clear discount, which offers lower rates for drivers under 25 who complete the company’s app-based driver training program in six months or less. And it’s one of the cheapest options for teens who need to get their own car insurance instead of joining a family’s policy.

Standalone rate for 16-year-old driver

Standalone rate for 18-year-old driver

State Farm

$318/month 

$252/month

National average

$565/month 

$411/month

And State Farm is also one of the cheapest car insurance companies for drivers with a DUI or accident. According to Policygenius analysis, a moving violation like speeding or an accident on your record will raise your car insurance rates by 50-75% with most companies, but State Farm’s rates typically only go up by 10-20% after an accident or moving violation.

After a DUI

After an at-fault accident

State Farm

$138/month 

$120/month 

National average

$263/month 

$213/month 

What discounts does State Farm offer?

  • Accident-free discount: Get a discount if you go three years or more without an accident. 

  • Anti-theft discount: If your car has an alarm or other approved anti-theft device, you could save.

  • Defensive driving course discount: Take a driver safety course and receive a discount on your coverage.

  • Driver training discount: Receive a discount if everyone under the age of 21 who drives your car completes a driver education course.

  • Good student discount: Students ages 16 to 25 can save money on their car insurance by keeping at least a B average or 3.0 GPA.

  • Multi-car discount: Earn a discount if two or more vehicles in your household are insured by State Farm.

  • Multiple policy discount: Save up to $1,127 per year if you bundle homeowners, renters, condo, or life insurance alongside auto insurance with State Farm.

  • Passive restraint discount: Cars made in 1993 or older that are equipped with airbags and seat belts can save up to 40% on their medical-related coverage.

  • Safety feature discount: Certain safety features can earn you a discount on your car insurance, though which safety features apply varies based on your car make and model.

  • Steer Clear program discount: Drivers under 25 who successfully complete the Steer Clear program, which includes training modules, mentoring, driving practice, and monitoring through an app, can get a discount on their car insurance.

  • Student away at school discount: Save if your household includes a student under age 25 who is away at school and only uses the car during vacations and holidays.

How does State Farm Drive Safe & Save work?

State Farm offers a usage-based discount program it calls Drive Safe & Save, which it claims can help you save up to 30% by using a tracking app to monitor your driving behavior. In fact, State Farm drivers can save 10% just by signing up for the program.

To sign up, State Farm customers can text SAVE to 424071 to download the Drive Safe & Save app in the App Store or Google Play. Once the app is downloaded, follow the step-by-step instructions and complete the setup with the Bluetooth beacon (a separate device that allows the company to track your driving behavior without requiring you to log in to the app).

While some car insurance companies use tracking apps to set your rate (which means your car insurance costs can go up or down, depending on your behavior behind the wheel) State Farm guarantees Drive Safe & Save is always a discount and does not increase your rates, even if it records poor driving. 

However, your discount will be based on your driving history, so drivers who exhibit high risk behaviors, like speeding or hard braking, will get much smaller discounts than safer drivers.

Also, privacy issues may be a concern for some drivers. While State Farm promises that it doesn't sell your personal information to third parties, there is a disclaimer on the website that your “anonymized” data (with your name or identifying details removed) may be shared with other companies. 

If you aren’t comfortable with being tracked while you’re driving, or your information being used in this way, you may want to skip the Drive Safe & Save discount.

State Farm auto insurance state availability

State Farm auto insurance is available in every state except Massachusetts and Rhode Island. 

What to expect with State Farm auto insurance

How to get a quote: You can get a State Farm quote online or by working directly with a State Farm agent in your area. 

Customer service options: Customers can use the State Farm mobile app to take care of some of their customer service needs, like accessing ID cards and filing a claim. Customers who would rather speak with a State Farm customer care representative can call 800-782-8332.

How to file a claim: Customers can file a claim with State Farm online, through the mobile app, or by calling 800-732-5246.

How to cancel your policy: State Farm customers can cancel their coverage over the phone by calling 800-782-8332, contacting their agent, or sending a letter with their name, address, phone number, policy number, and the date and time they want their policy to end to:

Corporate Headquarters

State Farm Insurance

One State Farm Plaza

Bloomington, IL 61710

If you are sending a letter to cancel your policy, remember to send it at least two weeks before you want your policy to end and to include the information for your new insurance policy or proof of sale for your vehicle.

State Farm vs other auto insurance companies

Company

Policygenius rating

AM Best rating

Cost

State Farm

4.8/5

A++

$

USAA

5.0/5

A++

$

Erie

4.9/5

A+

$

State Farm

4.8/5

A++

$$$$

State Farm

4.8/5

A++

$$$$

State Farm

4.8/5

A++

$$

Auto-Owners

4.7/5

A++

$

Auto-Owners

4.7/5

A++

$

COUNTRY Financial

4.7/5

A+

$$

Farm Bureau

4.7/5

A

$

GEICO

4.7/5

A++

$

NJM

4.7/5

A+

$

Travelers

4.7/5

A++

$$

Amica

4.6/5

A+

$$

Encompass

4.6/5

A+

NA

MAPFRE

4.6/5

A

$

MAPFRE

4.6/5

A

$

Acuity

4.5/5

A+

$$

Allstate

4.5/5

A+

$

American National

4.5/5

A

$

Texas Farm Bureau

4.4/5

A

$

American Family

4.3/5

A

$$

COUNTRY Financial

4.3/5

A+

$$

Costco (from CONNECT by AmFam)

4.3/5

A

$$

Nationwide

4.2/5

A+

$$

Germania

4.0/5

A-

$$

Wawanesa

3.8/5

B

$

Safeco

3.7/5

A

$$

Elephant

3.1/5

NA

$$

Root

3.1/5

NA

$

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Frequently asked questions

Are customers happy with State Farm?

State Farm has high customer satisfaction scores, which indicates customers are happy with their experience at State Farm, including claims service and available tools.

Does State Farm have a good reputation?

State Farm has a higher-than-average satisfaction rate on the J.D. Power Claims Satisfaction Survey and fewer customer complaints than average according to NAIC complaint index, which indicates that State Farm has an excellent reputation among its customers.

Is State Farm known for denying claims?

Like all car insurance companies, State Farm denies some claims. That said, State Farm has an 882 on the 2022 J.D. Power Claims Satisfaction Survey, which is higher than the average score of 871, indicating that customers are generally satisfied with their claims experience at State Farm.

Author

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

Anna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

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