State Farm auto insurance review and ratings 2023

State Farm is No. 1 in Insure.com’s ranking of the Best Car Insurance Companies for 2023 with 4.6 stars out of 5. State Farm has a high score for trustworthiness and 93% of its customers say they plan to renew.

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Our take

State Farm ranked No. 1 in Insure.com’s ranking of the Best Car Insurance Companies of 2023 with 4.6 stars out of 5. 

State Farm customers report being highly satisfied with the company, possibly because of its commitment to excellent in-person service. It also received one of the highest scores for trustworthiness and 93% of its customers said they would sign up again with the company.

State Farm also received an A++ credit rating for financial stability from AM Best and a J.D. Power score of 842 for customer service out of a possible 1,000. It had the highest average J.D. Power number of all the auto insurance companies we ranked.

Below is Insure.com’s review of the company. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.

state farm
State Farm Ratings
Overall Rating: 4.6
Average Premium: 4.2
NAIC: 0.52
Customer Satisfaction: 4.5
AM Best Rating: A++

Pros and Cons

Pros:
  • It offers some of the lowest premiums available
  • Customers say they are very satisfied
  • The company is renowned for having a variety of policy options
Cons:
  • Median score for bundling home and auto insurance
  • Lower score for claims handling

How much State Farm costs

State Farm had the second lowest monthly rates among the companies in our survey and its average rates were noticeably lower than some competitors like Allstate.

Company Monthly rate/premium
State Farm $120
Nationwide $99
Allstate $174

How State Farm scores on customer satisfaction

When you ask State Farm customers about their satisfaction, the vast majority said they were satisfied with the company, which places it above many competitors like Progressive, Geico, and Allstate, which all scored 85% or lower. 

Company Percent of customers that are satisfied
State Farm 91%
Progressive 85%
Geico 85%

How State Farm scores on ease of service

State Farm scored highly in customer satisfaction, and it also scored well when customers were asked about its ease of service. Of the companies we ranked, State Farm and American Family tied for the third highest score. Allstate was first, and a group of companies that includes Progressive tied for second. Ease of service comprises access to policy documents and the ability to make changes to a policy easily.

Company Percent of customers satisfied with the company’s ease of service
State Farm 86%
Allstate 88%
Progressive 87%

How State Farm scores on policy offerings

When we asked customers to score insurance companies based on policy offerings, State Farm scored highly and scored higher than many competitors. 

Company Percent of customers satisfied with the company’s policy offerings
State Farm 87%
Geico 84%
Progressive 84%

Would current customers recommend State Farm to others?

State Farm comes very highly recommended by survey respondents. Of the companies ranked on Insure.com’s list, it ranks second after a two-way tie for first between Travelers and Erie when customers were asked if they would recommend the company to others.

Company Percent of customers who would recommend the company to others
State Farm 94%
Travelers 96%
Erie 96%

How trustworthy is State Farm?

When customers were asked to rate insurance companies for trustworthiness, State Farm came out on top of all the companies we ranked. In addition, in our survey, which included more insurers than just the ones we ranked, it came out almost as high as USAA, which received the highest score in this category. USAA, however, was not included in the overall ranking because it only provides services to members of the military community.

Company Percent of customers who say they trust the company
State Farm 84%
USAA 85%
Allstate 81%

Do State Farm customers plan to renew?

Most State Farm customers who responded to the survey said they planned to renew, which was similar to major competitors Geico and Allstate. 

Company Percent of customers who plan to renew with the company
State Farm 93%
Geico 92%
Allstate 90%

How State Farm scores on claims handling

When it comes to claims handling, State Farm ranked in the middle of the top 10 companies on our list. Its 66% survey score was lower than Geico’s and Allstate’s. However, looking at an outside metric, State Farm scored above average on J.D. Power’s claims satisfaction survey at 882/1,000. The average was 873.

Company Survey score for claims handling
State Farm 66%
Allstate 87%
Geico 76%

How State Farm scores on digital experience

For digital experience – including both website and apps – State Farm was ranked toward the very bottom, and customers clearly preferred the online experience offered by most of its major competitors. It should be noted that most insurers didn’t do well in this category. Despite the survey results, State Farm’s app has a 4.8-star score in the Apple app store with 619K ratings.

Company Survey score for digital experience
State Farm 16%
Geico 35%
Progressive 23%

How State Farm scores for discounts

State Farm was ranked near the top of the heap when customers were asked about discounts. It bested most of its national competitors. With an average discount of 15%, State Farm is a great company for discounts.

Company Average discount Survey score for discounts
State Farm 15% 77%
Farmers 6% 67%
Nationwide 12% 55%

How State Farm scores for bundling home and auto policies

State Farm did not rank very highly when customers were asked about bundling home and auto policies, and many competitors offer steeper bundling discounts. However, State Farm did land in the top five for the size of the discount for bundling auto and home.

Company Discount for bundling home and auto Survey score for bundling home and auto
State Farm 16% 75%
American Family 18% 81%
Geico 10% 25%

State Farm car insurance coverages

  • Motorhome
  • Travel trailer
  • Pay-as-you-drive plan: Safe & Save with In-Drive
  • Antique auto
  • Motorcycle
  • Boat
  • Off-road vehicle
  • Rideshare (in certain states)

State Farm additional insurance policies

  • Homeowners
  • Condominium
  • Renters
  • Umbrella liability
  • Personal property & articles
  • Manufactured home
  • Farm and ranch
  • Small business
  • Umbrella
  • Health
  • Long-term care
  • Disability

State Farm car insurance coverage options

  • Usage-based/Telematics: Rates can be based on your mileage and how you drive.
  • Mobile app: The insurer offers an app for smartphones.

State Farm car insurance discounts

  • Multi-policy: Discount for more than one type of policy with the same insurance provider.
  • Multi-vehicle: Discount for two or more vehicles on the same car insurance policy.
  • Driver training/defensive driving: Discount for an approved defensive driving or driver improvement class.
  • Academic achievement: Discount for full-time students who meet certain academic criteria.
  • Passive-restraint (air bag): Discount for factory-installed safety devices such as an air bag.
  • Safe driver/clean driving record/good driver: Discount for no accidents or traffic violations, usually for three or five years.

States where State Farm offers coverage

Graph
Table
States where State Farm offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
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Company background

state farm

Like a good neighbor, State Farm has been a supportive insurer across the United States for many years. Founded in 1922, it now holds the title of the largest car insurance company in the country with more than 19,000 agents in the U.S. and Canada.

State Farm is a mutual company that has been handling insurance claims since 1922. During that time, it has grown to offer a myriad of additional financial products, such as loans, banking and retirement accounts, investment accounts and estate planning. State Farm is also the largest home insurance company in the U.S.

Resources & Methodology

Methodology

Insure.com in the fall of 2022 surveyed more than 1,500 people with auto, home, life and health insurance (1,080 people with auto insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best Auto Insurance Companies ranking. Insure.com needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses.

Respondents were first asked to grade their insurer in the following categories – customer satisfaction, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Survey score calculation: Respondents were then asked to rank their insurer’s top three attributes out of more than a dozen presented – including customer satisfaction and policy offerings. For a number one choice, five points were given; for a second choice, three points; and for a third choice, a single point. The total points for each choice – first, second and third – were then divided by the number of each company’s customers who responded to that survey question to create a percentage. Those percentages are presented in the results as scores. 

Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.

They also were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives, and AM Best data, which measures financial strength. 

They also collected insurance rate data from Quadrant Information Services (for auto and home insurance), Compulife (for life insurance) and the public health marketplace (for health insurance).

With the help of Prof. David Marlett, Ph.D., managing director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For auto and home insurers, we used the following weights to calculate the overall score for each company: 

  • AM Best: 25% of total score
  • NAIC: 15% of total score
  • Annual premium: 20% of total score
  • Survey: 40% of total score (10% customer satisfaction, 10% recommended and 10% renewal rate, 10% claims handling)

In our rankings, no company received less than 1 star and no company received more than 5.

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Barry Eitel
Contributing Researcher

 
  

Barry Eitel is a content writer and journalist focused on insurance, small business and finance. He has researched and written about personal finance since 2012, with a special focus on entrepreneurship, freelancing and other small business operations. His writing on insurance and small business has been featured in 7x7, Brit + Co, Intuit Quickbooks, Bankrate, Policygenius and Lendio.

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