State Farm is one of the largest providers of auto insurance in the United States. The company began in 1922 and has since largely dominated the top spots in the insurance marketplace. Along with auto insurance, State Farm offers a wide selection of insurance choices, including home, life, and health, as well as providing clients a wide range of other financial services.
There are several factors that might make an insurance company rank number one. Customer satisfaction can be based on service, good prices on car insurance, coverage options, and how easy it is to submit a claim.
In some cases, if an insurance company uses credit scoring, your credit score can play a role in determining which auto insurance company is best.
To help you understand whether State Farm is a good insurance company for you, there are several studies and collections of data on different factors used in determining top-ranking car insurance companies for you to review.
- State Farm is one of the oldest and largest insurance companies in the U.S.
- The company ranks above average in its customer service and is widely considered extremely financially stable.
- State Farm also has fewer than average regulatory complaints for a company its size.
- Customers may also enjoy State Farm's mobile app, online services, and safety discounts.
State Farm Customer Reviews
You can look at various sources of customer reviews on the internet, but the information is often misleading.
People are more likely to write about their negative experiences than to take the time to write about what a great experience they had. This makes it difficult to figure out how an insurance company rates overall based on random internet reviews.
State Farm Rankings for Claims Service
J.D. Power's 2020 U.S. Auto Claims Satisfaction Study is a good overview of customer satisfaction in claims, and in it State Farm ranked sixth. scoring 881 out of 1,000. Industry average score was 872, and more than 15 companies scored below State Farm.
State Farm Complaints and Rankings
According to NerdWallet, State Farm had "fewer than the median number of complaints to state regulators in 2018 relative to its size for auto, home, and life insurance." Based in part on complaints data from the National Association of Insurance Commissioners (NAIC), State Farm received four out of five stars on NerdWallet's best car insurance companies list.
Financial Stability and Rating for State Farm
Besides customer satisfaction, claims service, and other factors, an insurance company's ability to pay claims is important. Rankings are used to understand an insurance company's financial stability in the marketplace. A.M. Best rates State Farm's financial strength as A++ which is the highest-ranking possible.
S&P Global, also known as Standard & Poor's, rates State Farm as AA. So, although that doesn't speak to how you might feel about your specific interactions with the company, it provides an indication of how stable the company is financially.
Customer Satisfaction Rankings by Location
Other considerations for whether an insurance company is a good choice for you relates a great deal to the people at your local branch, as well as the local claims adjusters.
When you look at the list of best car insurance companies, you will notice that the top pick for customer satisfaction and claims may change depending on which state you are in.
Advantages of State Farm Insurance
You might also want to know what kinds of advantages the company can offer you as a customer. State Farm has several perks to make life easy and help you save money. Some of the advantages include:
- A mobile app to check your policy info, get roadside assistance and submit a claim
- Rideshare insurance offered in most states
- Steer Clear program for drivers under 25 and the Drive Safe & Save program to help good drivers save money on insurance premiums
- You can get quotes and buy insurance policies online through the State Farm website
When an insurance company makes life easier or comes out with products that the population needs, like rideshare, it can be a big advantage.