State Farm Auto Insurance ReviewSunday, 05 January 2014 23:26
State Farm is the largest auto insurance provider in the United States and sells auto insurance in all 50 states. It is widely known due to its large advertising campaigns and its brand recognition. The company offers a wide range of auto and other personal insurance options to its customers, and is known for offering generous discounts and unique supplementary coverage options. State Farm is known for its industry leading financial stability and industry leading customer support, and the company has been recognized many times for both of these important business distinctions.
Company Background Information
State Farm, based out of Bloomington, Illinois, is the largest auto insurance company in the United States and is one of the most widely recognized auto insurance companies in the world. The company motto “Like a good neighbor, State Farm is there” is also widely recognized, and the company ranks number 44 in the Fortune 500 list of the largest 500 companies in the U.S. State Farm was founded in 1922 by George J. Mecherle as an auto insurance company for farmers. The company currently has over 17,000 agents with over 340 claims offices and serves both Canada and all 50 United States. State Farm was given an “A++” (Superior) rating with a credit rating of “aa+” from A.M. Best in the most recent financial strength survey, with stable outlooks for both ratings.
The company had a net income of over $800 million in 2011 and currently employs over 66,000 people throughout the United States. A March 2009 survey found that State Farm services over 70 million policies in the United States and over 40 million policies for automobiles. State Farm has over 20 subsidiary companies and the company is known for its creative and extension television and other advertising campaigns. State Farm has sponsored a few arenas including the State Farm Center at the University of Illinois Urbana-Champaign, State Farm Arena in Hidalgo, Texas, and several tournaments. State Farm is nationally renowned for its financial stability, excellent customer service, and excellence and leadership in the auto insurance industry, although the company has not been without its criticism from the media and some customers.
Pros of State Farm Auto Insurance
- The largest most financially stable auto insurance company in the United States
- Highly rated by J.D. Power for customer service quality in every region
- Several discount options and coverage options available
Cons of State Farm Auto Insurance
- May be more difficult for high risk drivers to get good rates
State Farm offers a wide range of discounts that may vary based on the state:
- Good student discount of up to 25% for drivers with good grades up to the age of 25
- Multiple vehicle discount of up to 20% for insuring at least two vehicles in the same household
- Multiple line discount of up to 17% for adding home and auto insurance
- Good driving discount of up to 10% for going three years without an accident
- Drive Safe & Save discount program of up to 5% for driving less annually
- Defensive driving course discount of up to 5% for taking a defensive driver course
Other discounts may be available and further discounts can be determined by speaking with a State Farm agent or getting a quote from the company site.
Drive Safe & Save Program
The Drive Safe & Save program is similar to the driving tracking programs from other major auto insurance companies. This program involves gathering information about a driver’s driving habits using SYNC, OnStar or In-Drive. The information is used to calculate the safe driver discount, which can result in up to 50% in premium savings on auto insurance. Most vehicles developed after 1996 are eligible for the program, and most customers who enroll in the program see reduced auto insurance premiums.
Types of Insurance Offered
State Farm sells many different types of insurance and auto coverage options. Outside of auto insurance the company sells life, motorcycle, health, home, disability, long term care, property, liability and more. For auto insurance the company sells all of the basic types of coverage including liability, medical payments, collision, comprehensive, and uninsured/underinsured motorist coverage.
In addition to these standard coverage options emergency road service and car rental/travel expense coverage is offered. Rental reimbursement covers the cost of a replacement vehicle while a car is being repaired, and emergency road service offers reimbursement for towing a vehicle, labor at the breakdown site, oil or gas delivery, locksmith services, jumpstart, or tire replacement. Coverage for the emergency road service varies based on the state.
The State Farm website is very well designed and one of the best websites in the insurance industry. There is extensive information on the basic types of auto insurance coverage options as well as detailed information on all of the other types of insurance that the company sells. Interested customers can get an auto quote easily from the website and find a local agent easily.
Claims can easily be filed online at the State Farm Claims Center online, and there are other helpful tools like the repair facility finder. Claims can be checked online and there is an extensive Customer Care center with learning resources, account management, mobile apps, and FAQs. The site is available in both English and Spanish and it is very easy to navigate with a nicely organized and clean layout. There are a number of high quality articles in the Learning Center about the factors used to determine premium costs, safety tips, tax incentives, teen driving and more. There is also a helpful informational video library in the Learning Center.
J.D. Power has rated State Farm with at least 4 out of 5 power circles and up to 5 out of 5 power circles for each region where it sells insurance in the United States. State Farm is routinely rated very highly by third party organizations for its customer service. On review websites where customers can independently post their experiences there are a wide range of different experiences posted, and like every other insurance company there are some customers who were unhappy with their experiences.
State Farm is an excellent choice to consider for anyone looking for high quality auto insurance, and you can get rates from State Farm and other insurance companies now by entering your zip code on this page.
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|Market Share||Ranked 1st|
|AM Best Score||A++|
|JD Power Rating||5 out of 5|
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