Auto Insurance Review: State Farm

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State Farm

State Farm is one of the most well known and popular of all auto insurance programs in the United States.  It is also one of the top 5 most used auto insurance companies in this nation.  State Farm insurance company also offers other insurance policies such as home, life, and health insurances.  For the purpose of this review, I’ll just be covering State Farm Auto Insurance Policies.

State Farm auto insurance pays for a rental car if yours is in the shop due to a covered collision.  It also pays for meals, lodging, and transportation if you’re stranded more than 50 miles from home. Coverage limits do apply and vary by state.

State Farm is a mutual company owned by policyholders.  They have 68,000 employees and more than 18,000 agents service 81 million policies and accounts throughout the U.S. and Canada.

Pros

  • Because State Farm is a big name company that has been around a long time, they offer a wide range of choices with auto insurance plans.  
  • They will pay for a rental car, meals, and lodging if your vehicle is in the shop due to covered collision.
  • Their website is easy to navigate. You can get a quote, and manage a claim online.
  • Pocket Agent Mobile App lets you view your insurance card and policy information, get a quote, submit a claim online, and view a claim status. It even has an ATM locator.
  • Their CarCapture Mobile App allows you to take a photo of a vehicle that you’re interested in purchasing. It will tell you the make and model, then show you where you can buy one.
  • You can pay your bill on their mobile app.

Cons

  • Ranked last in customer satisfaction in a study done by Nerd Wallet of the top 4 auto insurance companies.
  • Does not have accident forgiveness.  The other top 3 auto insurance carriers do have accident forgiveness.
  • Not good for drivers who are independent and want an online experience only.
  • Exclusive agents, so they only market State Farm Policies.
  • History of leaving a state because of regulations or catastrophes.
  • People that work with State Farm insurance won’t be able to choose live chat sessions.  Instead they will need to send and receive emails or schedule phone calls or appointments.  This is hard for some people’s schedules.

What Other People Are Saying

Ameriprise

I read what a lot of people were saying about State Farm and to be honest, the comments were all over the place.   From the good, the bad, to the ugly.  I will stay away from the ugly topics, because it’s hard to know the whole story. I’m including some direct quotes that I felt represented what a lot of people were saying. I hope that these help you to make a decision on whether to go with State Farm Auto Insurance or not.

Customer Service: “I think State Farm is an excellent company.  Their customer service is top notch.  Any questions or problems regarding my insurance or claims were handled with care and speed. I would recommend them to anyone. My State Farm is in Alexandria, Va. They are the best! Thank you!”

There were also a lot of quotes like the following, from long time customers who were dropped like this:  

“I have had State Farm home owners insurance for over 25 years. I got a call yesterday letting me know that my policy is being cancelled because I had 2 claims 4 1/2 years apart.  Apparently they cancel if there are 2 claims within 5 years.  Previously there had been no claim for over 20 years.  When I hit my 20th year with State Farm, I was told that since I was a long time customer, my insurance would never be cancelled.  I guess the policy has changed in the last 5-10 years. Such a disappointment after 25+ as a great customer!”

Nerd Wallet Results

Nerd Wallet analyzed the top 4 auto insurers in the United States based on the following criteria:

  • Price
  • Customer satisfaction and complaints
  • Range of products
  • Apps and technology

State Farm came out 2nd in ranking for best prices and 2nd in ranking for best prices. However, they came out last (4th) in customer satisfaction and in ranking for range of car insurance products.

Cost and Process to Join

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State Farm ranked 2nd in pricing out of the top 4 auto insurance companies according to a study done by NerdWallet.  Because each case is going to vary by what kind of deductible you want and if you want collision or just liability, etc, I can’t give you an actual price that it would cost you to sign up.  I can tell you that State Farm is considered one of the least expensive auto insurance policies to have.

You can get a quote on their website, however an agent will then have to call you to set you up with a policy.  State Farm is big on agents.  They employ over 18,000 Agents.  So with this company you will not get around talking to an agent.  This could be good or bad depending on how you like to do business.  Nowadays, a lot of people want to do things online without being on the phone.

Customer Support

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After reading as many reviews as I could find on State Farm Auto insurance, I did find that customer support and service were not one of State Farm’s positive attributes.   There were many happy customers, but the dissatisfied customers who shared about their negative customer service experiences greatly out weighed the positive.  Of course, you have to consider that many people only take the initiative to leave complaints when they have negative experiences.  Positive experiences are usually more unexpected, so happy customers may not leave as much feedback as the dissatisfied customers do.

My Conclusion 

State Farm is one of the top 4 auto insurance companies in the United States.  They do have some of the cheapest rates out there.  They also have some helpful apps and their website is easy to navigate.  However, State Farm is big on hiring agents, so customers who have dealt with them have shared that there is no way out of dealing with an agent with this policy holder.  In a study done by Nerd Wallet, they scored low on customer satisfaction.  I also noticed when reading reviews that the amount of complaints dealing with customer service and satisfaction were very high.  If you don’t have an auto issue or claim, it could be smooth sailing for you.  You may enjoy some of the lowest rates out there.  However, in the unfortunate chance of you having an accident, or turning in a claim, personally I’d be concerned. I hope my review of State Farm can help you as you look purchase auto insurance in the future. 

For more reviews and information, check out our list of the Top Auto Insurance Companies of 2018.

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