State Farm has cornered the largest chunk of the car insurance market, and because of that, it can accommodate a large range of customers -- often including those with spotty driving records. Though rates may be slightly higher than competitors', customers say helpful, personable agents make the price worth it. State Farm's army of local agents can be a double-edged sword, however -- a bad one can mean a bad overall experience.
High satisfaction with agents. State Farm receives fair or good marks in customer surveys of satisfaction with claims. Customers report satisfactory interaction with agents and generally smooth repair and settlement processes, but average experiences with appraisals and the rental-car process. Though State Farm maintains a list of approved repair shops that meet certain performance standards, customers may also select their own. State Farm does not require the use of parts manufactured by the original vehicle manufacturer during repairs; that cuts costs of repairs, but some claim that third-party parts are sometimes inferior. Coverage for rental-car reimbursement is available.
Rates tend to the high side. Customers report average satisfaction with State Farm's premiums. Rates tend to be higher than those of some of the other largest auto insurers, some reviewers say, but many insist the prices are warranted by prompt, personable customer service. Others say quality of service can vary depending on local agents. The company gets high marks for a smooth shopping experience, plan flexibility and a wide range of discounts, which include lower rates for good students, safe drivers and multiple policies. Policyholders may report claims 24 hours a day.
State Farm Reviews
These car insurance ratings from ConsumerReports.org are based upon surveys of subscribers to ConsumerReports.org. They are based upon claims, price and customer service satisfaction.
Review: Car Insurance Ratings, Editors of ConsumerReports.org, Not dated
State Farm receives 4.5 out of 5 stars overall in Insure.com's customer satisfaction ratings, with 5 stars for Value for Price. Eighty-one percent of customers say they would recommend State Farm to a friend, while 90 percent say they will renew their policies.
Review: State Farm Car Insurance Ratings, Editors of Insure.com, June 10, 2016
Alex Glenn says that, while State Farm only ranks second for pricing, customers also have "ample opportunity to trim their costs, especially if they have a clean driving record." Glenn also notes State Farm's market share makes it the leading car insurance provider in the U.S.
Review: Find the Best Cheap Car Insurance, Alex Glenn, May 3, 2016
Alan Seeley, who is he Chief Actuary at the New Mexico Office of the Superintendent of Insurance, gives State Farm insurance his nod for "Best Customer Service & Interaction," placing it number two overall behind Amica Mutual. Highlights include its streamlined quote process.
Review: The Best Auto Insurance, Alan Seeley, Nov. 24, 2015
5. J.D. Power & Associates
State Farm receives 3 circles out of 5 for overall customer satisfaction in all other categories. That includes service interaction, the rental car experience, first notice of loss, the repair and settlement processes and the appraisal process. This rating is down somewhat from 2014.
Review: U.S. Auto Insurance Claims Satisfaction Study (2015), Editors of J.D. Power and Associates, Oct. 26, 2015
6. J.D. Power & Associates
State Farm earns a very good overall score of 839 out of a possible 1,000, and a 4-circle rating for overall purchase experience in J.D. Power and Associates' auto insurance shopping study. This ranking puts State Farm well above the industry average of 826.
Review: Insurance Shopping Study (2016), Editors of J.D. Power and Associates, April 29, 2016
State Farm earns 3.9 stars out of 5 in more than 1,120 reviews. Ratings also include home and life insurance. Most reviewers praise the company for its service and response time; others say they had poor experiences getting claims paid, or low valuations after accidents.
Review: State Farm Reviews, Contributors to Viewpoints.com, As of July 2016