As of 2022, State Farm is the largest writer of property and casualty insurance based on direct premiums written, taking up over 9% of the market. It’s based in Illinois, and it sells a variety of insurance products, including personal and commercial policies. Its rates are in line with industry averages, but recently, State Farm has made headlines for pulling its operations out of some states, so some consumers won’t be able to get coverage through the insurance giant.
In this State Farm insurance review, learn about the company’s availability, products, rates and reputation. All rates and fees listed are current as of March 15, 2024.
State Farm at a glance
- Homeowners insurance: $157 per month for a $300,000 home
- Small Business Insurance: $40 to $66 per month for a business owners policy (BOP) with $1 million in liability coverage
- Vehicle Insurance: $131 per month for a 30-year old driver and $50,000/$100,000/$50,000 coverage
Who is State Farm good for?
Whether you’re shopping for insurance for your home or car or are exploring coverage options for your business, State Farm could be a good choice. It sells both commercial and personal insurance products, including auto, property and liability coverage.
State Farm is best for those who need to purchase more than one type of insurance; bundling your home, auto, renters or life insurance policies together can help you save a substantial amount of money. According to the company, those who bundle auto and homeowners insurance save up to $1,073 per year.
Who shouldn’t use State Farm?
Although State Farm is licensed to sell insurance in all 50 states, it has paused or ceased operations in certain locations. It no longer issues new policies to residents of Massachusetts or Rhode Island, and in 2023, it announced it would no longer issue personal or business policies in California due to the increased risks of disasters and rising construction costs. If you live in one of those states, you’ll need to find another insurance provider.
State Farm sells its policies through its agents, and you have to contact an agent to get a quote and purchase most forms of coverage. For those who prefer a digital buying experience, that limitation can be frustrating.
| Pros | Cons |
| Strong customer satisfaction ratings for most products | No longer issuing policies in all states |
| Highest-possible financial strength rating | Online quotes not available for most products |
| Multiple insurance discounts available | Does not sell a separate jewelry insurance policy |
State Farm rates and products
State Farm sells multiple personal and commercial insurance policies to protect you, your property, your business and your family.
| State Farm product | Average annual rate |
| Home | $1,887 per year for a $300,000 home |
| Business | $636 per year for a basic BOP |
| Auto | $1,572 per year for $50,000/$100,000/$50,000 coverage |
| Term Life | $230 per year for $250,000 of coverage and a 30-year term |
State Farm Vehicle Insurance
State Farm sells personal passenger vehicle insurance for cars, motorcycles, boats, recreational vehicles (RVs) and ATV and off-road vehicles. It offers some products that aren’t commonly offered, such as rideshare insurance and boat rental liability insurance.
Depending on your needs, you can buy one or more of the following coverages:
| State Farm Vehicle Insurance options | |
| Auto | Collision Comprehensive Emergency roadside assistance Liability Rental Rideshare Uninsured/underinsured motorist |
| Boat | Boat rental liability Boat rental reimbursem*nt and liability Collision Fishing tournament fee reimbursem*nt Losses from theft or natural disaster Property coverage Uninsured/underinsured watercraft |
| RV | Collision Liability Property coverage Emergency road service |
| Motorcycle | Collision Comprehensive Emergency roadside assistance Liability Trip interruption |
| ATV and off-road vehicles | Collision Liability Losses front heft or natural disaster |
State Farm Property Insurance
State Farm sells property insurance for homeowners, renters and landlords. However, its online quote tool is only available for some products and consumers in certain states, so you’ll have to contact an agent to get an idea of cost for other locations or products.
According to quotes from several comparison sites, State Farm’s homeowners insurance premiums were about $1,800 per year for a $300,000 home, slightly higher than the national average of $1,754.
| State Farm Property Insurance Options | |
| Home | $1,887 per year for a $300,000 home |
| Renters | $300 per year |
| Condo | $1,083 per year for a $300,000 condo |
State Farm Small Business Insurance
State Farm is a leading provider of small business insurance. In fact, J.D. power ranked State Farm second
out of 13 insurers in its U.S. Small Commercial Insurance Study that evaluated insurers on customer satisfaction.
It sells a variety of small business insurance products, including business owners’ policies (BOPs) at $636 per year on average, commercial auto, professional liability and workers’ compensation insurance.
State Farm Life Insurance
State Farm sells term, whole and universal life insurance policies in all states except Massachusetts. Depending on your age, health and the amount of coverage you need, you may be able to get life insurance without a medical exam.
State Farm doesn’t provide information about its rates for whole or universal life insurance online, so you have to contact an agent for a quote. But for term life insurance, its premiums for a $250,000, 30-year policy start at $230 per year, which is typical for the industry.
| State Farm Personal Insurance Options | |
| Term Life | 10, 20 or 30-year terms |
| Whole Life | Lifetime pay insurance Single premium insurance Guaranteed issue or final expense |
| Universal Life | Universal Joint universal Survivorship universal |
The State Farm platform and customer support
Due to State Farm’s user-friendly website and mobile app, it was the top-ranked larger insurer in the J.D. Power 2023 U.S. Insurance Shopping Study. You can use its site and app to file claims or get roadside assistance, and it also has agents you can contact for personalized advice and support.
For those who prefer to handle issues over the phone, State Farm has 24/7 customer service available. You can call to file a claim, pay your bill or contact emergency roadside assistance.
[Note: Your customer satisfaction level may vary based on your State Farm agent. The author and editor of this article both have personal insurance through State Farm, and neither of them have had to wait longer than a few hours to hear back from their local agents about any policy questions or insurance products.]
What is State Farm’s reputation for paying claims?
In general, State Farm has a strong reputation for paying out claims to policyholders. It was ranked fifth out of 24 insurers in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study, and it was ranked sixth out of 17 insurers in the 2023 U.S. Property Claims Satisfaction Study. In both cases, State Farm scored higher than the industry average.
However, the company was poorly graded in The Crash Network’s 2024 Insurer Report Card. The study surveyed over 1,100 auto repair shops and graded 88 insurers based on how well those companies handle claims after an accident. The Crash Network gave State Farm a “C-” grade, and it was ranked 73rd out of 88 insurers.
Its low grade isn’t abnormal for a large insurer; The Crash Network said none of the 10 largest insurance companies scored better than a “C+.” But if you’re a policyholder, you may find that State Farm is slower to process claims or communicate with you as your car is being repaired than a smaller insurer would be.
State Farm user reviews
State Farm has more negative reviews than is typical for the industry. With the National Association of Insurance Commissioners (NAIC), the State Farm Fire & Casualty Company — which handles about $27 billion in annual premiums — had a complaint index of 1.64, meaning it received more complaints than the expected amount for a company of its size.
With the Better Business Bureau (BBB), it has a 1.18 out of five rating based on approximately 1,500 reviews. Some complaints mentioned slow claims processing times or confusing information, emphasizing how the customer experience can be impacted by the service provided by local agents.
Compare State Farm alternatives
| Insurance Companies | AM Best Rating | J.D. Power Shopping Study Ranking | Earthquake or Flood Coverage | Insurance Product offering |
|---|---|---|---|---|
| Current Selection State Farm | A++ (superior) | 1st out of 8 insurers | Not available | Commercial auto Homeowners Identity restoration Life Personal auto Renters |
| Nationwide | A (Excellent) | 3rd out of 8 insurers | Flood coverage available | Commercial auto Homeowners Dental Flood Identity restoration Life Personal auto Pet Renters Travel |
| Allstate | A+ (superior) | 5th out of 8 insurers | Not available | Commercial auto Event Homeowners Identity restoration Life Personal auto Pet Renters Travel |
| Chubb | A++ (superior) | Not ranked | Earthquake and flood coverages available | Commercial auto Cyber Earthquake Flood Homeowners Life Personal auto Travel Jewelry and valuables |
| Current Selection State Farm | Commercial auto Homeowners Identity restoration Life Personal auto Renters |
|---|---|
| AM Best Rating | A++ (superior) |
| J.D. Power Shopping Study Ranking | 1st out of 8 insurers |
| Earthquake or Flood Coverage | Not available |
| Nationwide | Commercial auto Homeowners Dental Flood Identity restoration Life Personal auto Pet Renters Travel |
| AM Best Rating | A (Excellent) |
| J.D. Power Shopping Study Ranking | 3rd out of 8 insurers |
| Earthquake or Flood Coverage | Flood coverage available |
| Allstate | Commercial auto Event Homeowners Identity restoration Life Personal auto Pet Renters Travel |
| AM Best Rating | A+ (superior) |
| J.D. Power Shopping Study Ranking | 5th out of 8 insurers |
| Earthquake or Flood Coverage | Not available |
| Chubb | Commercial auto Cyber Earthquake Flood Homeowners Life Personal auto Travel Jewelry and valuables |
| AM Best Rating | A++ (superior) |
| J.D. Power Shopping Study Ranking | Not ranked |
| Earthquake or Flood Coverage | Earthquake and flood coverages available |
Is State Farm right for you?
State Farm is a top insurer for its range of products, discount programs and the number of agents it has nationwide. If you are shopping for multiple types of coverage — such as needing a new homeowners and auto insurance policy — you may be able to save money by taking advantage of State Farm’s multi-policy discounts.
However, customer reviews are mixed, and your experience may be affected by the level of service your local agent provides. State Farm provides limited information about its policies and rates online, so those who like to get quotes and purchase coverage independently may prefer an insurer that has more digital options, such as Geico or Lemonade.
Frequently asked questions
Is State Farm leaving Florida?
Although other insurance companies— including Farmers — have stopped issuing homeowners policies in Florida, State Farm is not following their lead. In 2023, State Farm issued a statement reaffirming its commitment to serving customers in the Sunshine State.
Who gets State Farm’s best rates?
To qualify for the lowest rates, you likely need to be eligible for State Farm’s discount programs. Depending on your circ*mstances, you may be eligible for multi-policy, safe driver or home security discounts.
How many agents does State Farm have?
The insurance company says it has approximately 19,000 agents across the country.
