At a Glance
- 🏆 Bankrate Award Winner: Best Term and Universal Life Insurance Company
- ⭐ Overall Rating: 4.4/5
- 🚗 Auto Insurance Rating: 4.3/5
- 🏡 Home Insurance Rating: 4.1/5
- 💰 Life Insurance Rating: 4.9/5
- 📱 Highly-Rated Mobile Tools
- 📍 Available in Most States
Bankrate’s Take
State Farm Insurance is one of the most well-known insurers in the U.S., offering auto, home, and life insurance. It stands out for strong customer service, local agent support, and competitive pricing on life insurance policies. However, recent rate hikes in some states have made their auto insurance less competitive for certain demographics.
What’s New with State Farm in 2025?
📢 February 2025: Requested a 22% rate hike for California policies due to wildfire-related claims.
🔥 Over 8,700 wildfire claims filed in California alone.
🏡 September 2024: Reduced wildfire mitigation discounts from 7% to 6.3% for California homeowners.
🚫 May 2023: Ceased issuing new home insurance policies in California, citing rising construction costs and catastrophe risks.
State Farm Car Insurance Review
Rating: ⭐ 4.3/5
State Farm auto insurance covers every state except Massachusetts and Rhode Island. It offers basic coverage options with a few add-ons, including rideshare insurance, roadside assistance, and travel expense coverage.
Pros & Cons of State Farm Auto Insurance
✅ Pros:
✔️ Plenty of discounts for safe drivers
✔️ Top-rated mobile app for policy management
✔️ Local agent network for personalized service
❌ Cons:
✖️ No gap insurance available
✖️ No accident forgiveness
✖️ No live chat support
How Much Does State Farm Auto Insurance Cost?
State Farm’s average rates are slightly above the national average for full coverage policies:
| Driver Profile | State Farm (Full Coverage) | National Average |
|---|---|---|
| Good Driver, Good Credit | $2,883 | $2,670 |
| Good Driver, Poor Credit | $10,447 | $4,717 |
| Speeding Ticket | $3,309 | $3,255 |
| At-Fault Accident | $3,652 | $3,842 |
| DUI Conviction | 🚫 Not Offered | $5,185 |
📌 Note: If you have a DUI, State Farm will not issue you a new policy.
🔗 Check out our guide on how to find cheap car insurance.
State Farm Car Insurance for Teen Drivers
Teen drivers are notoriously expensive to insure, but State Farm offers discounts like the Steer Clear program to help offset costs.
| Age | State Farm (Full Coverage) | National Average |
|---|---|---|
| 16 | $5,847 | $5,743 |
| 18 | $5,075 | $4,954 |
| 20 | $5,531 | $5,429 |
| 25 | $3,385 | $3,299 |
State Farm Home Insurance Review
Rating: ⭐ 4.1/5
State Farm dominates the home insurance market, covering every state except California, Massachusetts, and Rhode Island. It consistently earns high marks for customer satisfaction, particularly in claims handling.
Pros & Cons of State Farm Home Insurance
✅ Pros:
✔️ Free fire hazard monitoring device (Ting partnership)
✔️ Discounts for impact-resistant roofing (in certain states)
✔️ High customer satisfaction ratings
❌ Cons:
✖️ Fewer discounts than some competitors
✖️ Policy details require speaking with an agent
How Much Does State Farm Home Insurance Cost?
| Dwelling Coverage | State Farm Average | National Average |
|---|---|---|
| $150K | $1,329 | $1,388 |
| $300K | $2,002 | $2,258 |
| $450K | $2,617 | $3,039 |
| $750K | $3,762 | $4,333 |
📢 State Farm is typically more affordable than the national average—except in high-risk disaster areas.
State Farm Life Insurance Review
Rating: ⭐ 4.9/5
State Farm excels in life insurance, earning the 2025 Bankrate Award for Best Term Life Insurer.
Pros & Cons of State Farm Life Insurance
✅ Pros:
✔️ High customer satisfaction
✔️ No medical exam for Instant Answer Term Life
✔️ Strong financial strength (A++ AM Best rating)
❌ Cons:
✖️ Whole life policy quotes not available online
✖️ No longer offers variable universal life insurance
How Does State Farm Compare to Competitors?
| Company | Full Coverage Auto (Avg.) | Home Insurance (Avg.) | J.D. Power Rating | AM Best Rating |
|---|---|---|---|---|
| State Farm | $2,883 | $2,002 | ⭐ 710/1000 | A++ (Superior) |
| Allstate | $3,309 | $2,574 | ⭐ 691/1000 | A+ (Superior) |
| USAA | $1,960 | $1,232 | ⭐ 882/1000 | A++ (Superior) |
| Progressive | $2,379 | N/A | ⭐ 764/1000 | A+ (Superior) |
Real Customer Reviews on State Farm
We dug into Reddit and Bogleheads.org forums for unfiltered customer feedback.
💬 Reddit User: “State Farm’s customer service is amazing! My local agent made filing a claim super easy.”
😡 Another Reddit User: “If you ever need to file a claim, get ready for a fight. Their adjusters are slow and unhelpful.”
💰 Bogleheads User: “Been with State Farm for years. Their bundling discounts make them the cheapest option for me.”
Final Thoughts: Is State Farm Worth It?
State Farm shines in customer satisfaction, especially for home and life insurance. However, recent auto insurance rate hikes may price out some drivers.
✅ Best for: Safe drivers, homeowners looking for affordable coverage, and anyone needing strong life insurance.
🚫 Not ideal for: People looking for gap insurance, accident forgiveness, or the absolute cheapest rates.
FAQs
❓ Does State Farm offer accident forgiveness?
🚫 No. If you have an at-fault accident, expect higher premiums for at least three years.
❓ Can I buy a policy online?
🏢 Only some policies. You may need to speak with an agent for certain coverage options.
❓ Does State Farm offer good discounts?
💰 Yes! Discounts for safe driving, bundling policies, and young drivers are available.