When it comes to choosing your auto insurance, reviews actually matter. If you’re shopping around for car insurance, prioritize high customer satisfaction as one of the top qualifiers. This is because a good rating can make filing a claim a much more smooth and hassle-free process.
In fact, we already did the legwork for you. State Farm — the largest car insurance company in the U.S. based on market share — made the ranking as the “best for customer satisfaction” on CNBC Select’s list of the top car insurance companies for a few reasons: State Farm has one of the highest average J.D. Power scores, its full-coverage premiums are some of the lowest around and it has an A++ rating from AM Best, indicating superior financial health. (Read more on our methodology of how we chose 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 for when you hit the road.
State Farm car 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 based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness for good drivers
Cons
- High NAIC complaint index score
- Doesn’t offer gap insurance
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State Farm overview
As mentioned above, State Farm has one of the highest average J.D. Power scores, a ranking by the market intelligence firm that analyzes consumer data. In other words, State Farm’s 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 when compared to other companies of its size.
Like with all car insurance companies, rates and one’s overall policy cost depend 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 this 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, jumpstarting or a locksmith when you’re out and about. The app also allows users to access their ID cards, view all their insurance policies in one place, pay bills and connect with a State Farm agent directly.
The Simple Insights® from State Farm section also has auto-specific advice on auto insurance, driving and maintenance tips. For example, there are articles covering how to stay safe while driving, tips for buying or selling a car, plus driving tips for bad weather.
Discounts
- Good drivers can save up to 30% with the Drive Safe & SaveTM app
- Drivers under age 25 without any at-fault accidents or moving violations within the past three years can save as much as 15% with the Steer Clear® app
- Teen drivers (up to age 25) with good grades can save up to 25%
- Students away at school can save if they only drive while home during school breaks
- Safe vehicle discounts, including: an up to 40% passive restraint discount on medical-related coverage for 1993 and older vehicles equipped with a factory-installed air bag or other passive restraint systems; an anti-theft discount if your vehicle has an alarm or some other approved anti-theft device
- Families with multiple household vehicles can save as much as 20% when they insure more than one family-owned car with State Farm
- 1994 and newer-model-year vehicles may receive a vehicle safety discount
- Bundling discount
Other insurance offered
Other State Farm insurance products include homeowners, renters, condo, life insurance, pet medical insurance and more — adding one of these policies to your auto insurance policy can save you up to 17%. When you bundle auto and home insurance, State Farm’s website claims you can save on average up to $1,127 per year.
How it compares
State Farm’s auto insurance offerings are pretty competitive with other companies in the market. You may find lower-cost policies with an auto insurer like GEICO, which seems to have the lowest average premiums for both minimum and comprehensive coverage. And Farmers Insurance takes the cake with potential savings, offering 22 types of discounts on car insurance, 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 car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 22 discounts.
Bottom line
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Our methodology
To determine the best car insurance companies, CNBC Select analyzed dozens of U.S. insurance companies that come with policies to suit an array of needs.
When narrowing down and ranking the best car 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, J.D. Power rankings and car insurance premium data from Bankrate.com.
The 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 annually, with the following full-coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing the above features, we sorted our recommendations by best overall, best for wide coverage, best for customer satisfaction, best for discounts and best for military members and veterans.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.