State Farm Insurance: An Overview

Is State Farm Insurance the right company for you?

A man and woman look at a laptop to review insurance options
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State Farm is one of the most recognized names in insurance in the United States. The company, founded in 1922, offers insurance products and financial services in all 50 U.S. states and Canada. The founder, George Jacob “G.J.” Mecherle, originally founded the insurance company with a single product offering—auto insurance. It has since grown to be one of the largest insurance companies in the U.S.

Is State Farm Insurance Right for You?

State Farm Insurance may be right for you if you’re hoping to bundle all your insurance needs with one insurer. From start-up business insurance and medical coverage to renters insurance and term life insurance plans, and even coverage for your car, too, you can get it all through State Farm. State Farm also offers investment and banking services, with many online and app-based tools.

In all, State Farm offers about 100 products. 

Where Is State Farm Insurance Offered?

Coverage is offered in all 50 U.S. states, so no matter where you live in the U.S. you can find insurance coverage through State Farm. However, insurance policies, coverage, and limitations may vary by state.

For example, State Farm health insurance is only available in California, Colorado, Georgia, Idaho, Illinois, Michigan, Missouri, Montana, New Mexico, Ohio, New York, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington. 

Pros and Cons of State Farm Insurance

Pros
  • Diversity of products and services

  • Various online resources

  • No-exam life insurance available

Cons
  • Middling customer service

State Farm Insurance Pros Explained

  • Diversity of products and services: Beyond insurance options for home, auto, life, health, and business, State Farm offers banking and investment services, including estates, trusts, annuities, retirement funds, and more.
  • Online resources: State Farm offers many 21st-century resources. You can use State Farm mobile apps to file or check claims, get roadside assistance, or check up on banking and insurance accounts. Many online tools are available, too—you can even change coverage, pay bills, or change your agent online.
  • No-exam life insurance available: Instant Answer Term Insurance is a $50,000 life insurance policy that does not require an exam. It’s offered to new enrollees between the ages of 16 and 45. All you have to do is answer some health questions. 

State Farm Insurance Cons Explained

  • Middling customer service rankings: State Farm is not the top performer in customer service/claims rankings with J.D. Power & Associates, despite being the third-largest insurer in the U.S. in written insurance premiums as of 2018. Customer ratings at the Better Business Bureau are also low, and State Farm has been the subject of legal action in California. 

State Farm Insurance Products

State Farm Insurance offers several types of insurance policies for personal and business needs.

  • Property insurance: Coverage for homes, condos, rental property, personal items, manufactured homes, farms, and ranches is available, along with renters insurance. Flood insurance is offered to communities in the National Flood Insurance Program.
  • Vehicle insurance: Cars, motorcycles, boats, off-road vehicles, and motorhomes can be covered by State Farm. Personal insurance: Life insurance plan options include term, whole life, and universal life insurance. Health plans include supplemental health, Medicare supplements, individual medical plans, long-term disability, short-term disability, and individual credits. Personal liability protection and identity restoration are available as well.
  • Business insurance: Business and professional liability insurances are available, along with a wide variety of small business insurance options tailored to your field, including condo associations, restaurants, wholesalers, and specialty schools. State Farm also has commercial auto and workers’ compensation insurance, among other options.

What Discounts Does State Farm Insurance Offer?

Drivers under age 25 could save up to 15% if they’ve had a clean driving record for the past three years, 25% if they get good grades, and a discount for going away to school.

For all ages, additional discounts are offered for taking defensive driving courses, having multiple vehicles covered by State Farm, or signing up for the Drive Safe & Save app, which uses information from your smartphone or OnStar to supply a discount to safe drivers.

There are also discounts for vehicles with airbags or anti-theft devices, and for those made in 1994 or later. 

Homeowners may receive discounts for having alarm systems, updating home utilities with qualified contractors, and installing impact-resistant roofing, primarily roof materials made of metal. Condo owners may save if automatic sprinklers are installed, too. 

Other Notable Offerings 

  • Community Offers: This app-driven program gives members discounts to restaurants, gyms, travel, and more.  
  • Neighborhood of Good: This initiative connects State Farm members with opportunities to volunteer for registered nonprofits and causes.  
  • Rideshare insurance: Not available with all insurance companies, State Farm offers rideshare insurance for Uber and Lyft drivers. 
  • Personal articles policy: This policy offers coverage worldwide, even while traveling, and covers a variety of valuables, including racing bicycles, jewelry, fine art, wedding presents, medical and prosthetic devices, stamp collections, and other collectibles. 
  • Farm and ranch insurance: As the name might suggest, State Farm offers insurance for livestock and crop farms, along with farm structures and assets such as machinery. 

State Farm Ratings and Reviews

State Farm has an A.M. Best rating of “A++ (Superior),” which is the highest financial strength rating available from A.M. Best. It also has a rating of AA from S&P Global Ratings, which is also very high.

With J.D. Power, State Farm ranked sixth in the 2019 U.S. Auto Claims Satisfaction Study, with an “about average” rating. In the J.D. Power 2019 study on homeowners and renters insurance, State Farm ranked fifth and third, respectively. For J.D Power’s 2019 life insurance study, State Farm ranked second place for overall satisfaction. 

With the Better Business Bureau, State Farm has an A+ rating, but average customer reviews are just over one star. State Farm is not BBB accredited and has been the subject of state legal action in California concerning its homeowner policies. 

The State Farm app has a 4-star rating in the Google Play Store and 4.8 out of 5 stars in the Apple App Store. 

The Bottom Line on State Farm Insurance

State Farm is a well-known insurer that offers many options, whether you’re a farmer, Lyft driver, or college student away from home. In most cases, you can get quotes online to find out whether it’s a good fit for you. Consider all of your options before deciding if this one-stop shop is best for your lifestyle and budget.

Article Sources

  1. State Farm. "Health Insurance Plans to Meet Your Needs." Accessed Feb. 27, 2020. 

  2. State Farm. "Get Instant Answer Term Insurance In Minutes." Accessed Feb. 27, 2020.

  3. National Association of Insurance Commissioners. "NAIC Report Card." Accessed February 27, 2020

  4. State Farm. "Take Control of Your Auto Insurance Discounts From State Farm," Accessed Feb. 27, 2020.

  5. J.D. Power. "U.S. Auto Claims Satisfaction Study (2019)." Accessed Feb. 27, 2020.

  6. Better Business Bureau. "Alert: Government Action CA Ins v State Farm." Accessed Feb. 27, 2020.

  7. App Store. "State Farm." Accessed Feb. 27, 2020.

  8. Google Play. State Farm. Accessed Feb. 27, 2020.