- Largest auto insurer in the U.S. with unmatched agent network.
- Above-average claims satisfaction (JD Power).
- Strong Drive Safe & Save telematics program.
- Wide range of coverage options including rideshare.
- Bundles auto with home, life, and other products.
- Rates above the national average for full coverage.
- Poor credit significantly increases premiums.
- AM Best downgraded from A++ to A+ in November 2025.
- Does not file SR-22s in all states.
- Rate increases reported even among long-term, claims-free customers.
State Farm car insurance: Jerry’s verdict
State Farm built its reputation on something most large insurers have moved away from: the local agent. For tens of millions of drivers, that’s still worth paying a little more for.
Founded in 1922 in Bloomington, Illinois, State Farm is the largest personal lines insurer in the United States, with over 80 million policies and accounts in force. Its distribution model is built around a nationwide network of exclusive agents (roughly 19,000 of them) who provide in-person guidance that direct-to-consumer carriers simply can’t replicate. That personal relationship is the core of State Farm’s value proposition. And for many drivers, particularly those with complex needs or who’ve had to navigate a serious claim, it makes a real difference.
State Farm’s claims experience is one of its clearest strengths. The insurer ranked 8th out of 20 companies in JD Power’s 2025 Auto Claims Satisfaction Study — well above Progressive and GEICO — and customer reviews consistently cite reliable, fair claim handling and agent support through difficult situations. The Drive Safe & Save telematics program is also among the better-designed in the industry, offering an initial discount at enrollment and up to 30% savings at renewal for safe drivers.
Thats said, State Farm’s rates run above the national average for full coverage, and its pricing is heavily influenced by credit score; drivers with poor credit can face premiums dramatically higher than competitors. The insurer also received a notable financial downgrade: in November 2025, AM Best lowered State Farm’s Financial Strength Rating from A++ to A+, citing five consecutive years of underwriting losses. An A+ is still a strong rating, but it’s worth noting for drivers who’ve long viewed State Farm as the gold standard of financial stability. Rate increases have also been a common complaint, with some long-tenured, claims-free customers reporting meaningful premium hikes at renewal.
State Farm remains one of the best options for drivers who want a trusted local agent, solid claims support and the convenience of bundling multiple policies under one roof. For pure price shoppers, other carriers will often win, which is why comparing multiple carriers through Jerry is so important.
Who State Farm is best and worst for
A driver who wants a local agent. State Farm’s network of roughly 19,000 exclusive agents is unmatched among national carriers. For drivers who want someone who knows their policy and can walk them through a claim in person, State Farm is the clear leader.
Someone bundling multiple policies. State Farm offers auto, home, renters, life and small business coverage, and bundling can save drivers hundreds per year. The convenience of managing everything with one carrier (and agent) is a genuine differentiator.
Drivers with a clean record and good credit. State Farm’s pricing algorithm rewards these profiles, and its rates for drivers with good credit and no violations are competitive with major national carriers.
Budget-conscious drivers. State Farm’s full coverage rates run above the national average, and its pricing structure means even safe, long-tenured customers can see meaningful rate increases at renewal.
Drivers with poor credit. State Farm weighs credit heavily in its pricing. Drivers with poor credit scores can face premiums dramatically above the national average… in some cases among the highest of any major carrier.
A high-risk driver needing SR-22 filing. State Farm does not file SR-22 forms in all states, and in some cases will decline or non-renew high-risk drivers.
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Learn more: Full coverage vs. liability-only insurance
How much does State Farm car insurance cost?
Pricing for State Farm coverage varies significantly by certain factors like your state, credit score, driving history and coverage level. Drivers with poor credit or a history of at-fault accidents can pay substantially more.
State Farm tends to run near the national average for full coverage, making it one of the more moderate major carriers for many driver profiles. That said, your actual premium is shaped by a specific combination of factors, and some drivers will find State Farm competitive while others won’t.
The factors that matter most:
- Your driving record is the biggest lever. A clean record gets you the best rates while violations push them up significantly. Even a single at-fault accident will raise your premium by 61% on average, while a DUI conviction can mean an even bigger increase.
- Credit score plays a more significant role at State Farm than it does with other major insurers, like Allstate. State Farm uses a credit-based insurance score in most states, and drivers with poor credit will pay more for coverage. (Note that California, Hawaii, Massachusetts and Michigan prohibit the use of credit in insurance pricing.)
- Location matters more than many drivers expect. State regulations, local accident rates, weather exposure and litigation costs all affect what State Farm charges in your area. Rates vary substantially from state to state and even between zip codes.
- Coverage level determines the floor. Minimum liability coverage is significantly cheaper than full coverage, but leaves your own vehicle unprotected. The right coverage level depends on your car’s value, your risk tolerance and whether you’re financing or leasing.
Key takeaway: To figure out the right coverage for you, start with your comfort level around risk and what your car is worth. Then let Jerry show you what each option costs in real time.
Learn more: Best car insurance companies
Industry ratings of State Farm car insurance
State Farm performs well in claims satisfaction and earns strong financial marks, though its November 2025 AM Best downgrade and above-average complaint volume are worth noting.
| Rating | State Farm’s score |
| NAIC consumer complaint index (2025) | Better than average (0.59). |
| CRASH Network report card (2026) | D+. |
| JD Power auto insurance shopping study (2025) | No. 3 of 18. |
| JD Power auto insurance claims study (2025) | No. 8 of 20. |
| AM Best (2025) | A+ (Superior). |
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NAIC details
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CRASH Network details
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JD Power details
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AM Best details
Jerry pulls up to 20 quotes from top rated carriers.
State Farm car insurance coverage options
Like most insurers, State Farm offers collision, comprehensive, bodily injury liability, property damage liability, medical expense, personal injury protection (PIP) and uninsured/underinsured motorist coverage.
State Farm also offers the following optional add-ons:
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Rental car reimbursement covers rental costs and can also cover meals and lodging if your vehicle is in the shop after a covered accident. State Farm’s rental car coverage includes up to $500 toward your deductible.
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State Farm roadside assistance covers towing, battery jump-starts, tire changes, locksmith services and fuel delivery.
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Rideshare driver coverage fills coverage gaps for drivers working for rideshare platforms like Uber and Lyft, covering periods when a standard personal policy typically wouldn’t apply.
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Coverage Definitions
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Who it pays: The other person, for injuries when you’re at fault in a crash.
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What it covers: Medical bills, lost wages and legal costs for people injured in an accident you cause.
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How it pays: Up to your policy limits, shown as two numbers. For example, 50/100 means $50K per person and $100K per accident.*
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Do you need it? Required by law in every state except New Hampshire. Your state sets a minimum, but Jerry recommends considering limits of at least 100/300.
Property damage liability (PD)
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Who it pays: The other person, for property you damage in a crash.
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What it covers: Costs to repair or replace another person’s car, fence, mailbox or other property you hit.
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How it pays: Up to your policy’s limit. For example, $50K.*
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Do you need it? Required by law in every state except New Hampshire. Your state sets a minimum, but Jerry recommends considering limits of at least $100K.
*Bodily injury liability and property damage liability are typically shown as three numbers on your policy, like 100/300/100. The first two numbers represent your bodily injury limits per person and per accident, while the third number represents your property damage limit.
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Who it pays: You, for damage to your own car.
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What it covers: Costs to repair or replace your own car after a crash with another car or object, like a guardrail or pole.
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How it pays: You pay a deductible first, then insurance covers the rest, typically up to your car’s current market value.
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Do you need it? Required if you’re financing or leasing your car. Optional otherwise, but recommended if your car is worth more than $5,000. May not be worthwhile for older, lower-value cars.
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Who it pays: You, for damage to your own car.
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What it covers: Damage from non-crash events like theft, vandalism, hail, flooding, falling trees, fire or hitting an animal.
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How it pays: You pay a deductible first, then insurance covers the rest, typically up to your car’s current market value.
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Do you need it? Required if you’re financing or leasing your car. Optional otherwise, but recommended if your car is worth more than $5,000. May not be worthwhile for older, lower-value cars.
Uninsured/underinsured motorist (UM/UIM)
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Who it pays: You and your passengers, for injuries and property damage.
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What it covers: Your own injuries and property damage when the at-fault driver has no insurance or not enough to cover your costs, including hit-and-runs in many states.
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How it pays: Up to your chosen limits, which often match your BI limits. There’s usually no deductible for UM, but UIM may have one.
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Do you need it? Required in some states, but Jerry recommends every driver get it, since about 1 in 8 drivers does not have car insurance.
Personal injury protection (PIP)
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Who it pays: You and your passengers, for medical bills and lost income, no matter who caused the accident.
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What it covers: Medical bills, lost wages, childcare, funeral costs and other expenses after an accident, regardless of fault.
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How it pays: Up to your policy limit. There’s usually no deductible, though this varies by state.
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Do you need it? Required in no-fault states. If available in your state, it’s worth considering.
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Who it pays: You and your passengers, for medical bills.
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What it covers: Medical expenses after an accident, regardless of fault.
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How it pays: No deductible. Pays up to your policy’s limit.
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Do you need it? Optional in most states, but can be valuable if you don’t have health insurance or have a high-deductible health plan.
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State Farm car insurance discounts
State Farm offers a range of discounts that vary by state. Common ones include:
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Multiple cars on one policy
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Multi-policy bundles combining auto with home, renters or life
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Vehicle safety features like passive restraints and anti-theft systems
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Vehicles equipped with qualifying anti-theft devices
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Staying accident-free for 3+ years with State Farm
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Owning a home, even if it’s insured elsewhere
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Completion of an approved defensive driving safety course
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Students (under 25) living away at school without the car
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Good students with a B average or better
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New vehicles (three years old or newer)
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Enrolling in the Drive Safe & Save telematics program
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Completing State Farm’s Steer Clear safe driver program (under 25)
Does State Farm offer usage-based insurance?
State Farm’s Drive Safe & Save program rewards safe driving with a discount of up to 30% at renewal. Drivers receive an initial discount simply for enrolling, then earn additional savings based on driving behavior tracked via the State Farm mobile app or a connected device. The program monitors factors like speed, braking and time of day.
State Farm also offers Steer Clear, a training and discount program specifically for drivers under 25. Participants complete video-based courses and supervised driving logs through the Steer Clear app, then receive a discount certificate upon completion.
Jerry helps you bundle home and auto for less in just minutes.
Filing a claim with State Farm
State Farm offers several ways to manage and file a claim.
File through your agent, the app, online or by phone
You can report a claim directly through your local State Farm agent, via the State Farm mobile app, at statefarm.com or by calling 800-782-8332. Filing through your agent is a differentiator, as having a known contact who can guide the process is something few national carriers offer.
Get assigned an adjuster
After filing, State Farm will assign an adjuster to assess the damage. Simple claims are often resolved quickly, while more complex claims involving injuries or disputed liability can take considerably longer. State Farm’s above-average JD Power claims scores suggest this process is generally smoother than at many competitors.
Repair authorization
State Farm will provide a repair estimate. You may use any licensed shop you choose, though State Farm has a Select Service network of preferred shops that carry additional guarantees.
Repair and rental
If you have rental car reimbursement coverage, State Farm will authorize a rental during repairs. Notably, State Farm’s rental coverage can also apply toward your deductible (up to $500) which is uncommon among major carriers.
Settlement or payout
For total losses, State Farm offers a settlement based on your car’s actual cash value (ACV). If you disagree with the valuation, you can negotiate, particularly with supporting comparable market data.
Customer reviews of State Farm
State Farm’s industry ratings tell one story while Jerry customer reviews tell a more nuanced one. With thousands of reviews from real Jerry customers, State Farm earns a solid score, but one that’s below the scores of several competitors. Customer praise for agent relationships and claims handling is tempered by recurring frustration over rate increases.
Is State Farm a good insurance company?
State Farm is a strong choice for drivers who value agent relationships, reliable claims handling and the ability to bundle multiple policies under one roof. Its claims satisfaction scores rank well above the industry average, and its agent network is genuinely unmatched. For drivers with good credit and clean records, its rates are competitive. For pure price shoppers, drivers with poor credit or those who need SR-22 filing, other carriers will often serve them better.
The November 2025 AM Best downgrade is worth monitoring but shouldn’t be a dealbreaker, as A+ is still a superior financial rating. State Farm remains one of the most trusted names in the industry for good reason.
See coverage options for your car.
How to contact State Farm
State Farm customers can reach their insurer through a local agent (find one at statefarm.com), through the State Farm mobile app, online at statefarm.com, or by calling 1-800-782-8332.
Related guides
FAQ
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What are the pros and cons of State Farm auto insurance?
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Is State Farm the cheapest car insurance?
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Does State Farm offer rideshare insurance?
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Does State Farm file SR-22s?
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How do I file a claim with State Farm?
Drivers who switch with Jerry save an average of $54/mo on car insurance.
Methodology
We looked at over 400,000 actual policies quotes from real Jerry customers during 2024 across 24 different insurance companies. The pricing data included both those with clean driving records as well as those with a violation.
How we rate car insurance companies
Jerry’s team of car insurance expert writers and editors analyze real customer ratings and industry reports to get a holistic view of an insurer’s performance. Our rubric emphasizes the shopping and claims experiences, customer complaints and reviews, repair shops’ evaluations of insurers, policy and quote pricing, and state availability.
We regularly reassess insurers’ star ratings and fact-check these reviews to ensure they’re accurate and up-to-date.
These individual factors roll up into one weighting system as follows:
20% Financial strength.
20% Complaints.
20% Industry ratings.
20% Customer ratings.
20% Cost and discounts.
Stephanie Colestock is a professional writer, CFEI®, and licensed insurance agent specializing in personal finance. With over 14 years of experience, she crafts insightful and accessible content on a wide range of financial topics, including insurance, loans, credit/debt, investing, retirement planning, and banking.
Her bylines appear in top-tier publications such as TIME, Fortune, MSN, Business Insider, USA Today, Money, Fox Business, and CBS. Stephanie’s deep understanding of complex financial concepts and her ability to communicate them clearly have made her a trusted voice in the industry.
When she’s not writing, Stephanie enjoys SCUBA diving, reading a good book, and traveling the world with her family.
