State Farm has stated that they saw fewer accidents and less expensive losses during the pandemic, but today, they’re seeing increases in car accidents and injuries, causing car insurance rates to rise.
They also blame:
- High inflation affects prices of goods, cars and insurance rates.
- Car repair costs increased due to supply chain issues and new technology.
- Increasing electric vehicle sales contributing to higher insurance rates.
- Distracted driving, especially texting, raises accident risks.
- 2023 weather catastrophes led to $1 billion in losses, impacting premiums moving forward.
Why does my State Farm bill fluctuate?
State Farm calculates your insurance bill according to the factors below. Changes in any of them will affect your rate.
Some factors are passive; for example, you might grow out of the “teen driver” age group. Other factors are more within your control, such as what vehicle you buy.
Your vehicle
Higher priced, powerful, risk-prone and newer cars increase insurance rates. Safety features and anti-theft devices can lower them.
Your coverage amounts
Your state’s minimum required coverage will be cheaper than full coverage, which usually includes comprehensive, collision and uninsured/underinsured motorist (UIM) coverage.
Frequency and mileage
Higher annual mileage and business use will increase rates. Leisure use and low mileage drivers will see decreased rates.
Your driving record
Drivers with clean driving records will get lower car insurance rates. Risky behaviors behind the wheel, citations and other infractions will increase rates.
Your location
Urban drivers usually pay more due to higher risks of vandalism, theft and accidents.
Your background
Age, sex and marital status affect rates, with younger males and single individuals generally paying more.
Your credit history
Where applicable, higher credit scores lower rates, while lower credit scores increase rates.
How to lower your State Farm car insurance rate
Notice your State Farm insurance rate went up recently? Don’t worry, there are a few things you can do to help lower your premiums.
Review and remove things from your policy
Remove unnecessary coverages like comprehensive, rental and roadside assistance, and increase deductibles if your accident risk is low.
Choose the right car
Research theft rates, safety ratings and insurance prices before buying to find cheaper, safer vehicles.
Maintain a clean driving record
Avoid at-fault accidents to benefit from State Farm’s accident-free savings for three years.
Drive Safe & Save by State Farm
State Farm’s telematics tracking program uses your smartphone and a mobile beacon to judge your driving style. These app track behaviors such as quick acceleration, hard braking, fast cornering, speeding and distracted driving.
Discounts
State Farm offers a number of discounts to their customers, including the following:
- Accident-free discount.
- Student away discount (for students under 25 years old).
- Defensive driving course discount.
- Steer Clear discount (for people under 25 years old).
- Anti-theft equipment discount.
- Multi-car discount.
- Multi-policy discount.
Shop around
If all else fails or if you’re simply interested in a better deal, go ahead and shop around to compare quotes from different insurers. Your best bet is to call three to five providers or use the Jerry app that compare coverages and pricing all at once.
Xuyun Zeng is a writer and editor with a wide-ranging content background including tech, journalism, cars and health care. After graduating with highest honors in journalism, Xuyun led a newspaper to win eight awards, helped start an award-winning film industry podcast and has written over a hundred articles about cars repair, state laws and insurance. Prior to joining Jerry, Xuyun worked as a freelance SEO consultant with a mission to create the best content that will help readers and grow organic traffic.
Kevin Berry is the Senior Director of Content at Jerry and has been working in the digital content space since 2011 across the car insurance/repair, personal finance, travel and sports industries. Prior to Jerry, Kevin was a content team lead at NerdWallet overseeing the Multimedia Production and Travel Rewards teams. Previously, he worked for NBC Sports, Comcast Cable and Nike. He has a Master`s Degree from Arkansas State and a Bachelor`s from Oregon State University.
