January 23, 2022

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What does State Farm car insurance cover?

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MarketWatch has highlighted these products and services because we think readers will find them useful. This content is independent of the MarketWatch newsroom and we may receive a commission if you buy products through links in this article.

State Farm has been around for almost a century, and in this guide, we’ll dive into its auto insurance coverage offerings, discount opportunities like Drive Safe & SaveTM and more to help you decide if this insurance provider might be the right option for you.

No matter what auto insurance provider you select, or whether you’re looking for usage-based insurance or classic car insurance, it’s smart to compare quotes from multiple companies to get the best rates. Use the tool below to get free quotes from leading providers in your area.

In this article:

  • About State Farm
  • State Farm car insurance coverage
  • State Farm pricing and discounts
  • State Farm insurance reviews
  • Bottom line
  • Frequently asked questions
  • Our methodology
About State Farm

The largest auto insurer in the U.S. has been in business since 1922. According to the National Association of Insurance Commissioners, State Farm wrote $40.4 billion in private passenger auto insurance premiums in 2020, with a total of 16.2% of the market share. That’s about $6.5 billion more than the second-largest provider, Geico.

Many drivers prefer working with local insurance agents, and State Farm has over 19,000 local agents spread across the U.S. in every state except Massachusetts and Rhode Island. That means there’s a good chance you can find a State Farm agent in your area.

The provider is not rated by the Better Business Bureau (BBB), and State Farm insurance reviews from customers on the BBB give the company a 1.3 out of 5-star rating overall. (Our team reached out to State Farm for a comment on these scores but did not receive a response.) However, State Farm has an A++ financial strength rating from AM Best, which means it can easily handle claims obligations.

How we rate State Farm

Overall Rating 8.6
Reputation 9.5
Availability 9.5
Coverage 8.5
Cost 8.0
Customer Experience 7.5

*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.

State Farm car insurance coverage

State Farm offers the following standards types of coverage:

State Farm also offers a few add-on policies: 

  • Roadside assistance: This option covers towing to the nearest repair shop, fuel delivery, spare tire changes, lockout service, battery jump-starts and up to one hour of mechanical labor at the breakdown site.
  • Rental car coverage: This option covers rental vehicle costs for qualifying events up to a limit in your policy. You can choose to have State Farm reimburse you for the cost or schedule and pay for a rental.
  • Travel expense: This option covers up to $500 for food and lodging if you’re 50 miles away from home or more and need your car repaired. It only applies if your damages are covered by a collision or comprehensive insurance policy.
  • Rideshare insurance: This option ensures you have coverage at all times when you drive for a company like Uber or Lyft.

Drive Safe & Save program

Like a number of leading providers, State Farm offers a usage-based insurance option in addition to standard insurance. Drive Safe & Save gives drivers a discount just for signing up. Then upon policy renewal, drivers can save up to 30% if they’ve practiced safe driving habits.

When you first sign up for the program, you’ll receive a small bluetooth beacon to mount inside your car. This beacon communicates with the Drive Safe & Save app on your phone, which then assigns you a driving score and relays the information to State Farm. Here’s what it tracks: 

  • Acceleration
  • Braking
  • Cornering
  • Speed
  • Time of day
  • Phone use

Quick acceleration or braking, taking corners too fast, speeding and late-night trips and phone use while driving will decrease your score. The good news is that if you use the Drive Safe & Save app and get a poor score, State Farm won’t raise your rates. You might see that initial discount disappear on your policy renewal, though. Also, if you had been receiving a low-mileage discount, you can lose that discount if the app determines you are not a low-mileage driver.

Lastly, be aware that the Drive Safe & Save app uses cellular data to send trip information to State Farm while you’re driving. This could affect your phone bill depending on your plan and how much you drive.

State Farm pricing and discounts

After a cost analysis, we’ve determined that State Farm has some of the lowest rates for students and teens. The auto insurance provider offers one of the most generous student discounts in the industry — up to 25% — and the discount can last until the driver turns 25, even if they’ve already graduated college. Drivers under 25 can also participate in the Steer Clear program, which uses an educational app to reward safe drivers with a discount of up to 20%.

Here’s a full list of State Farm car insurance discounts

  • Multi-policy discount
  • Multi-car discount
  • Accident-free discount
  • Good driving discount
  • Defensive driving course discount
  • Good student discount
  • Driver training discount
  • Student away at school discount
  • Vehicle safety discount
  • Passive restraint discount
  • Anti-theft discount

The number of available discounts is comparable to what you will find with other top insurers.

State Farm insurance reviews

State Farm earned 872 out of a possible 1,000 points in J.D. Power’s 2021 U.S. Insurance Shopping StudySM, which polled customers to determine satisfaction with each stage of the shopping experience. That put the provider in first place for large insurers — tied with Liberty Mutual.

The insurance provider received a higher rating in J.D. Power’s 2020 US. Auto Claims Satisfaction StudySM with 881 out of a possible 1,000 points (the average was 872). The study considered responses from 11,055 auto insurance customers who had settled claims in the past six months.

State Farm makes it easy to manage your policy with its highly rated mobile app. The app has a customer review score of 4.7 out of 5.0 stars on Google Play based on nearly 58,000 State Farm insurance reviews. With the app, you can pay your bill, view ID cards, file a claim, request roadside assistance and more.

Bottom line

We rate State Farm at 8.6 out of 10.0 and note that it may be a more affordable option for students in 2021 thanks to the variety of programs that help young drivers save money. By market share, it’s the largest auto insurance provider in the U.S., and it has the financial strength to back that up.

State Farm Pros State Farm Cons
A++ financial strength rating from AM Best Not rated by the BBB
Good discount opportunities for students and teens Not available in Massachusetts or Rhode Island
Usage-based insurance discount Mixed State Farm insurance reviews
Many local insurance agents across the U.S. 

State Farm also offers a wide range of insurance products besides car insurance. That means drivers can take advantage of discounts for bundling their auto coverage with products like:

  • Home insurance
  • Renters insurance
  • Condo insurance
  • Motorcycle insurance
  • All-terrain vehicle insurance
  • Boat insurance
  • Life insurance
  • Pet insurance
  • Health insurance
Other options for car insurance

State Farm isn’t your only choice for auto insurance. The best way to find cheap auto insurance is by comparing multiple providers. You can use the tool below to get free car insurance quotes from top providers in your area.

USAA: If you’re in the military or have an immediate family member who is, consider getting a quote from USAA. According to our cost research, this provider offers some of the lowest prices around and a wide range of discounts. It also consistently performs well on industry surveys by J.D. Power and has an A rating from the BBB and an A++ financial strength rating from AM Best.

Progressive: Progressive is known for its affordable rates for drivers who have a recent accident or even a DUI on record. To help drivers save even more, the insurer offers a usage-based program called Snapshot®. If you enroll, your rate will be influenced by your current driving habits rather than just your past driving record.

Frequently asked questions

Where does State Farm rank among insurance companies?

According to the NAIC, State Farm is the largest private passenger car insurance provider in the U.S. The company wrote over $40.4 billion in auto premiums in 2020. After State Farm, Geico is the second-largest company followed closely by Progressive.

Which is better, State Farm or Allstate?

The best insurance provider for you is going to depend on your unique needs. Do you homework when picking an insurance provider.

Our methodology

We created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. Here are the factors our ratings take into account:

  • Reputation: Our research team considered market share, ratings from industry experts and years in business when giving this score.
  • Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
  • Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
  • Cost: Average auto insurance rates and discount opportunities were both taken into consideration.
  • Customer Experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.

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