State Farm is one of the largest automotive insurance companies in the United States. It offers a range of financial and insurance products, sold by company agents to customers across the nation.
Some Facts about State Farm
State Farm was founded in 1922 and has been going from strength to strength since then. For instance, the company reported a consolidated net income of $6.35 billion in 2018. Its consolidated net premium earnings in the same year were $44.4 billion.
Further, State Farm employs 58,000 people and has a network of 19,000 agents who exclusively sell its products. Impressively, it was 36th on the 2018 Fortune 500 list of companies, as reported by Insurance Business Mag.
What Is the Drive Safe & Save Program?
Drive Safe & Save is a unique State Farm offering that focuses on usage, rather than other factors, when calculating costs. Value Penguin reports that drivers under this program can receive discounts based on safe driving measures, such as smooth braking and acceleration, as well as average mileage. Other factors that might affect discounts include the time of day you do most of your driving occurs and the speed at which you drive.
State Farm analyzes the driving behaviors and habits of those who want to sign up for the program and offer a discount of up to 30 percent off the regular premiums.
What Are the Standard Types of Car Insurance Offered by State Farm?
State Farm offers most standard policy and coverage options for automotive insurance, including:
- Liability
- Collision
- Comprehensive
- Personal injury protection (PIP)
- Uninsured and underinsured motorist coverage
- Medical payments
In most states, liability insurance is a requirement for all drivers. Some states also require uninsured and/or underinsured motorist coverage or medical coverage. No-fault states require drivers to carry PIP coverage, as this portion of the policy covers the driver regardless of who is deemed to be at fault.
Auto Insurance Discounts Offered by State Farm
State Farm offers a number of discounts to its policyholders, including:
- Accident-free discount. If you are not involved in an accident for three consecutive years and are covered by State Farm throughout that time, you can qualify for a discount.
- Defensive driving course. Taking an approved defensive driving course can qualify you for a 10–15 percent discount.
- Good-student discount. Students on the policy who maintain a GPA of 3.0 or higher or remain in the top 20 percent of their class can receive a discount of up to 25 percent.
- Student at school. Another student discount is available to parents of under-25 college students who move away to attend school and only use the vehicle while visiting home.
- Good driving. New State Farm customers can save if they have no at-fault accidents or moving violations for three years or more.
- Driver training. Drivers under the age of 21 can get a discount if they take an approved driver training course.
- Vehicle safety. If you drive a vehicle manufactured after 1994, you may be able to save up to 40 percent on the medical payment coverage option of your policy, depending on the make and model.
- Anti-theft device. If you insure a vehicle with an alarm or other anti-theft device approved by State Farm, you can save on premiums.
- Passive restraint. If you drive a vehicle with seatbelts, factory-installed airbags, and other passive safety features, and it was manufactured after 1993, you can qualify for up to 40 percent off the medical payment coverage option.
- Multi-auto. You can enjoy up to a 20 percent discount if your policy covers two or more cars from your household.
- Bundling. By bundling your auto insurance with another State Farm insurance policy or product, such as homeowners, condo, renters, or life insurance, you can save up to 17 percent.
What Is the Steer Clear Driver Program?
State Farm also provides a driver training course known as the Steer Clear Driver Program. The course is available online through a mobile app or State Farm agent. Drivers under the age of 25 can complete the program and receive a discount on their policy as long as they haven’t had any moving violations or at-fault accidents within the previous three years.
State Farm’s Pocket Agent Mobile App
Pocket Agent is a popular State Farm mobile app that provides access to policy information and insurance cards. You can also use the app to submit a claim, view the status of a filed claim, request a quote, and locate an ATM. State Farm also features two additional mobile apps:
- Drive Safe & Save. Download this on your mobile phone to track your driving behavior for discounts.
- Steer Clear. Use this to take the Steer Clear training course.
Does State Farm Offer Homeowners Insurance Online?
Yes, the company does. You can purchase State Farm’s policies or enquire about coverage options through its website or from any of the 19,000+ affiliated agents.
Benefits of State Farm Car Insurance
You’ll likely enjoy a variety of discounts if you buy your car insurance from State Farm, as reported by Consumer Affairs.
There are also incentivized programs for younger and safe drivers.
Disadvantage of Getting Car Insurance Through State Farm
Motor1.com reports that the company charges higher rates than some of its competitors.
Rental and Travel Expense Coverage
State Farm has introduced supplemental auto insurance policies, earning it positive reviews from customers:
- Rental and travel expense coverage. If you add this option to your policy, State Farm covers the cost of a rental car when your vehicle is being repaired under a covered claim. Travel expense coverage covers the cost of transportation, lodging, and meals (up to $500) if you are involved in an accident more than 50 miles from your home and are unable to get back. This option also covers a trip back to the location of the accident to pick up your vehicle.
- Rideshare coverage. Uber and Lyft drivers can add this option to cover their vehicle and themselves during the waiting period to accept a trip, which is a time when the ridesharing companies do not offer coverage for drivers.
NerdWallet’s Rating of State Farm’s Overall Performance in 2020
According to NerdWallet, State Farm received 4.5 out of 5 stars for overall performance. The rating system takes pricing, discounts, claim filing process, financial strength, website transparency, complaint data, and other factors into account.
Sources:
https://www.nerdwallet.com/blog/insurance/state-farm-insurance-auto-home-life/
https://www.insurancebusinessmag.com/us/companies/state-farm/67041/
https://www.motor1.com/reviews/391396/state-farm-auto-insurance/
https://www.valuepenguin.com/state-farm-insurance-review
https://www.consumeraffairs.com/insurance/statefarm_auto.html
https://www.caranddriver.com/car-insurance/a32714517/how-car-insurance-works/
https://www.caranddriver.com/car-insurance/a32732641/how-much-does-it-cost-to-insure-a-car/
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