As of 2022, State Farm holds the position as the largest provider of property and casualty insurance based on direct premiums written, commanding over 9% of the market share. Headquartered in Illinois, State Farm offers a diverse array of insurance products, encompassing both personal and commercial policies. While its pricing aligns with industry standards, recent developments have seen State Farm withdrawing its operations from certain states, thereby restricting coverage options for some consumers.
This review delves into State Farm’s insurance offerings, availability, rates, and reputation, with all pricing details accurate as of March 15, 2024.
Overview of State Farm
- Homeowners insurance: Priced at 157 monthly for a 300,000 home
- Small Business Insurance: Ranges from 40 to 66 per month for a business owners policy (BOP) featuring $1 million in liability coverage
- Vehicle Insurance: Costs 131 per month for a 30-year-old driver with coverage set at 50,000/100,000/50,000
Who Should Consider State Farm?
State Farm presents a viable option for individuals seeking insurance coverage for their homes, vehicles, or businesses. Catering to both commercial and personal insurance needs, State Farm offers auto, property, and liability coverage.
State Farm is particularly beneficial for those looking to bundle multiple insurance types, such as auto, home, renters, or life policies. The company asserts that bundling auto and homeowners insurance can yield savings of up to $1,073 annually.
Who Might Want to Explore Alternatives?
Despite being licensed to operate in all 50 states, State Farm has halted or ceased operations in specific regions. It no longer issues new policies in Massachusetts or Rhode Island, and in 2023, it announced discontinuation of personal insurance in certain states due to heightened disaster risks and escalating construction expenses. Residents in these areas will need to seek coverage from alternative providers.
State Farm distributes its policies exclusively through agents, necessitating direct contact for quotes and most coverage purchases. This limitation may prove frustrating for individuals preferring a streamlined digital purchasing experience.
ProsCons
- Strong customer satisfaction ratings for most products
- Multiple insurance discounts available
- Highest-possible financial strength rating
- Does not offer standalone jewelry insurance policies
- Ceased operations in certain states
State Farm’s Insurance Offerings and Rates
State Farm provides an extensive range of personal and commercial insurance policies designed to safeguard individuals, properties, businesses, and families.
State Farm Product Average Annual Rate
Home 1,887 for a 300,000 home
Business 636 for a basic BOP
Auto 1,572 for 50,000/100,000/50,000 coverage
Term Life 230 for $250,000 coverage with a 30-year term
State Farm Vehicle Insurance
State Farm offers personal insurance coverage for various vehicles like cars, motorcycles, boats, RVs, and ATVs. Unique products include rideshare insurance and boat rental liability insurance.
Coverage options include Auto Collision, Comprehensive, Emergency roadside assistance, Liability, Rental, Rideshare, and Uninsured/underinsured motorist.
State Farm Property Insurance
State Farm extends property insurance for homeowners and landlords. While its online quoting tool is limited to certain products and states, quotes from comparison sites indicate homeowners insurance premiums around 1,800 annually for a 300,000 home, slightly exceeding the national average of $1,754.
State Farm Property Insurance Options Average Annual Cost
Home 1,887 for a 300,000 home
Renters 300 per year
Condo 1,083 for a $300,000 condo
State Farm Small Business Insurance
Recognized for its small business insurance offerings, State Farm ranked second in J.D. Power’s U.S. Small Commercial Insurance Study, highlighting strong customer satisfaction. Products include BOPs averaging $636 per year, commercial auto, and workers’ compensation insurance.
State Farm Life Insurance
State Farm retails term, whole, and universal life insurance policies across all states except Massachusetts. While rates for whole or universal life insurance aren’t available online, term life insurance premiums for a 250,000, 30-year policy start at 230 annually, aligning with industry standards.
State Farm Personal Insurance Options
- Term Life: 10, 20, or 30-year terms
- Whole Life: Lifetime pay insurance, Single premium insurance, Guaranteed issue or final expense
- Universal Life: Universal, Joint universal, Survivorship universal
State Farm Platform and Customer Support
State Farm boasts a user-friendly website and mobile app, securing the top spot among larger insurers in the J.D. Power 2023 U.S. Insurance Shopping Study. Customers can conveniently file claims, access roadside assistance, and connect with agents for personalized guidance and support. Additionally, State Farm offers 24⁄7 customer service for prompt assistance with claims, bill payments, or emergency roadside aid.
State Farm’s Claims Reputation
State Farm garners positive reviews for its claims settlement reputation, ranking favorably in J.D. Power’s 2023 U.S. Auto and Property Claims Satisfaction Studies. However, The Crash Network’s 2024 Insurer Report Card awarded State Farm a “C-” grade, indicating room for improvement in claims handling efficiency compared to smaller insurers.
User Reviews and Comparisons
State Farm receives a mix of reviews, with the State Farm Fire & Casualty Company registering a complaint index of 1.64 with the NAIC, reflecting higher-than-expected complaint volumes. BBB ratings stand at 1.18 out of 5 based on approximately 1,500 reviews, highlighting concerns like slow claims processing and unclear information dissemination.
Is State Farm the Right Choice for You?
State Farm emerges as a leading insurer renowned for its diverse product portfolio, discount programs, and extensive agent network. For individuals seeking multiple coverage types, leveraging State Farm’s multi-policy discounts can result in substantial savings.
However, customer experiences may vary based on local agent service levels. State Farm’s limited online policy and rate details may deter those preferring self-service options, directing them towards insurers with more robust digital platforms like Geico or Lemonade.
Frequently Asked Questions
- Is State Farm exiting Florida?
- State Farm reaffirmed its commitment to serving Florida customers amidst industry shifts, distinguishing itself from other insurers halting operations in the state.
- Who qualifies for State Farm’s best rates?
- Eligibility for State Farm’s lowest rates typically hinges on meeting criteria for discount programs such as multi-policy, safe driver, or home security discounts.
- How many agents does State Farm employ?
- State Farm boasts a nationwide agent network comprising approximately 19,000 agents, facilitating personalized service and support for customers.