When it comes to choosing your auto insurance, reviews In fact matter. If you’re shopping for car insurance, prioritize high customer satisfaction as one of the main qualifiers. Indeed, a good rating can make filing a claim a much smoother and hassle-free process.
In fact, we’ve already done the legwork for you. State Farm – the largest auto insurance company in the United States by market share – ranked among the “Best for Customer Satisfaction” on CNBC Select’s list of Best Auto Insurance Companies for several Reasons: State Farm has one of the highest average JD Power scores, its full coverage premiums are among the lowest, and it has an A++ rating from AM Best, indicating superior financial health. (Learn more about our methodology for selecting the best car insurance companies.)
Below, we review State Farm to give you all the details on its offerings, features, and fees so you can decide if it’s the right insurance choice when you hit the road.
State Farm Auto Insurance Review
State Farm Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy Highlights
State Farm is one of the largest auto insurers by market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including those for safe driving and young drivers.
Benefits
- High customer satisfaction
- The largest automobile insurance company in the United States
- Accident forgiveness for good drivers
The inconvenients
- High NAIC Complaint Index score
- Does not offer gap insurance
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Presentation of the State Farm
As mentioned above, State Farm has one of the highest average JD Power scores, a ranking compiled by the market intelligence firm that analyzes consumer data. In other words, State Farm customers are quite satisfied with their service. According to the National Association of Insurance Commissioners (NAIC) Complaint Index, State Farm also receives significantly fewer complaints than other companies of its size.
As with all car insurance companies, the rates and overall cost of the policy depends on their driving history, credit score, type of coverage, deductibles and discounts. CNBC Select calculated State Farm’s average annual premiums with data based on a 40-year-old driver with a clean driving record and good credit (more on that calculation in our methodology below). We found that State Farm’s average annual premium for minimum coverage is $464, while the average annual premium for maximum coverage is $1,480.
Features
And State Farm’s mobile app (available on the App Store and Google Play) makes it easy to file a claim or get roadside assistance for towing, starting, or a locksmith while you’re on the go. The app also allows users to access their IDs, view all of their insurance policies in one place, pay bills, and connect directly with a State Farm agent.
Simple previews® from State Farm also contains car-specific advice on car insurance, driving tips and maintenance. For example, there are articles on safe driving, tips for buying or selling a car, and tips for driving in bad weather.
Discounts
State Farm offers many discount options, which vary by state and can help reduce insurance premiums:
- Good drivers can save up to 30% with Drive Safe & SaveMT application
- Drivers under 25 who have not had an at-fault accident or travel violation in the past three years can save up to 15% with the Steer Clear® application
- Teen drivers (up to 25) with good ratings can save up to 25%
- Pupils who are not in school can save if they only drive home during school holidays
- Safe Vehicle Discounts including: up to 40% discount on Passive Restraint Devices on Medical Coverage for 1993 and earlier vehicles equipped with factory-installed airbag or other systems passive restraint; an anti-theft discount if your vehicle is equipped with an alarm or other approved anti-theft device
- Families with multiple household vehicles can save up to 20% when they insure more than one family car with State Farm
- 1994 and newer model year vehicles are eligible for a Vehicle Safety Discount
- Bulk discount
Other insurance offered
Other State Farm insurance products include homeowners, renters, condos, life insurance, pet medical insurance and more. Adding one of these policies to your car insurance policy can save you up to 17%. When you bundle auto and home insurance together, the State Farm website claims you can save an average of up to $1,127 per year.
How it compares
State Farm’s car insurance offers are quite competitive compared to other companies in the market. You can find lower cost policies from a car insurer like GEICO, which seems to have the lowest average premiums for minimum and full coverage. And Farmers Insurance takes the cake with potential savings, offering 22 types of car insurance discounts, which is the most of any company we reviewed for our “best car insurance company” ranking.
Geico Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy Highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement, and mechanical breakdown insurance.
Farmers Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy Highlights
Farmers sells auto insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, DC and Virginia -Western, and offers 22 reductions.
At the end of the line
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Our methodology
To determine the best car insurance companies, CNBC Select has analyzed dozens of U.S. insurance companies offering policies to suit a range of needs.
When selecting and ranking the best auto insurance companies, we focused on average cost, coverage, availability, ease of use, and customer satisfaction using data from the National Association of insurance commissioners, AM Best rankings, JD Power and Bankrate car insurance premium data. .com.
Average annual premium data is based on a 40-year-old driver with a clean driving record and good credit. The driver insures a 2020 Toyota Camry, commutes five days a week and drives 12,000 miles per year, with the following comprehensive coverage limits:
- Civil liability of $100,000 in bodily injury per person
- Civil liability of $300,000 in bodily injury per accident
- Civil liability of $50,000 in property damage per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 aggregate deductible
After looking at the features above, we’ve sorted our recommendations by best overall, best for wide coverage, best for customer satisfaction, best for discounts, and best for military and the veterans.
Note that advertised premiums and policy structures for auto insurance companies are subject to fluctuate according to company policies.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff alone and have not been reviewed, endorsed or otherwise endorsed by any third party.
