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State Farm Auto Insurance Review

By: Kelly Burgess on June 26, 2017

Bottom Line

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. Although your rates may be slightly higher than if your record isn't perfect.

Pros

  • Wide variety of plans, discounts
  • Thousands of local agents
  • May insure higher-risk drivers
  • Strong financial ratings

Cons

  • Slightly higher rates
  • Quality of agents can vary
Our Analysis
Specs

Breaking it down

Claims

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.

Policies

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 can report claims 24 hours a day.

Our Sources

Editors of ConsumerReports.org, Not dated

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.

Editors of Insure.com, June 2016

State Farm receives 4.5 out of 5 stars overall in Insure.com's customer satisfaction ratings, with 4.25 stars for Value for Price. Eighty-eight percent of customers say they would recommend State Farm to a friend, while 98 percent say they will renew their policies.

Alex Glenn, May 1, 2017

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.

Editors of J.D. Power and Associates, Oct. 25, 2016

State Farm receives 3 circles out of 5 for overall customer satisfaction, with a total score of 853, below the industry average of 860. However, this is for claims satisfaction and does not necessarily reflect policy accessibility.

Editors of J.D. Power and Associates, May 1, 2017

State Farm earns a very good overall score of 846 out of a possible 1,000, and a 3-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.

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