State Farm Car Insurance Rates vs. Competitors

State Farm’s rates are mediocre for most drivers and are fairly high for those with a DUI on their records. Here’s how its rates overall compare with insurers that made our best car insurance companies list.

State Farm Car Insurance Cost Comparison for Good Drivers

State Farm’s car insurance costs for good drivers are on par with the national average of $2,026 per year but are higher than those of many top competitors we evaluated.

Company National average annual cost for good drivers
USAA* $1,364
Nationwide $1,436
Travelers $1,521
Geico $1,597
Erie $1,642
Progressive $1,826
State Farm $2,025
Allstate $2,896
Farmers $3,093
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Drivers With a Speeding Ticket

State Farm’s rates are competitive for drivers with a speeding ticket on their records, coming in a bit below the national average of $2,533 per year. It’s smart to shop around for car insurance quotes if you have a ticket on your driving record because of the wide variation in rates among companies.

Company National average annual cost for drivers with a speeding ticket
USAA* $1,661
Nationwide $1,878
Erie $1,899
Travelers $2,062
Geico $2,150
State Farm $2,270
Progressive $2,350
Allstate $3,312
Farmers $3,951
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Drivers Who Caused an Accident With an Injury

State Farm auto insurance rates are good for drivers who caused an accident with an injury to someone else. Prices with State Farm are around $580 below the national average of $3,009 per year.

Company National average annual cost for drivers causing an accident with injury
USAA* $1,958
Erie $2,224
Travelers $2,293
Nationwide $2,337
State Farm $2,428
Geico $2,748
Progressive $2,770
Farmers $4,412
Allstate $4,545
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Drivers With a DUI

The national average car insurance cost for drivers with a DUI is $3,363 a year and State Farm’s auto insurance rates come in well below that.

Company National average annual cost for drivers with a DUI conviction
Progressive $2,307
USAA* $2,604
Travelers $2,610
Erie $2,665
State Farm $2,716
Nationwide $3,083
Geico $3,723
Farmers $4,272
Allstate $4,315
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Drivers With Poor Credit

Average State Farm auto insurance rates are very high for drivers with poor credit compared to competitors. Its car insurance costs for drivers with bad credit are over $4,000 above the national average of $3,847.

All states except California, Hawaii, Massachusetts and Michigan allow car insurance companies to use a credit history when determining rates. Insurers say that a person’s credit correlates with the chances someone will make an insurance claim in the future. This correlation leads to higher rates.

Company National average annual cost for drivers with poor credit
Nationwide $2,051
USAA* $2,450
Geico $2,482
Travelers $2,699
Progressive $3,221
Erie $3,701
Allstate $4,531
Farmers $4,889
State Farm $7,961
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Adding a Teen Driver

State Farm’s average car insurance cost to add a teen driver is about $260 above the average, at $2,622 a year.

Adding a teen can cause your car insurance rates to skyrocket. You can easily pay more than $2,000 a year to add a 16-year-old driver to a parent’s policy. Our analysis found that the national average cost is $2,359 a year, among the companies we analyzed.

Company Increase per year for adding a 16-year-old driver
Nationwide $893
Erie $1,606
Farmers $1,900
Geico $1,982
Progressive $2,062
USAA* $2,466
State Farm $2,622
Allstate $2,643
Travelers $2,728
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Young Drivers Ages 18 to 25

State Farm car insurance rates are only so-so for drivers between 18 and 25. Its cost is right around the national average of $3,704 a year, among the insurers we analyzed.

The costs below are for young drivers on their own auto insurance policies. You can usually reduce costs by keeping a young driver on a parent’s policy as long as possible.

Company National average annual cost for young drivers
USAA* $2,368
Erie $2,575
Travelers $2,638
Geico $2,781
Nationwide $2,881
State Farm $3,643
Progressive $3,704
Allstate $4,764
Farmers $5,225
*USAA is available only to the military, veterans and their families.

State Farm Car Insurance Cost Comparison for Senior Drivers Ages 65 to 80

State Farm auto insurance costs for drivers age 65 to 80 are slightly better than average compared to top competitors. The national average is $2,150 a year, based on our analysis of large insurers. State Farm comes in about $140 below the average.

Company National average annual cost for senior drivers
Nationwide $1,402
USAA* $1,455
Travelers $1,668
Geico $1,793
Erie $1,831
Progressive $1,937
State Farm $2,009
Allstate $2,996
Farmers $3,199
*USAA is available only to the military, veterans and their families.

Auto Insurance Complaints Against State Farm

State Farm has a lower level of auto insurance complaints than some of its competitors, based on complaints made to state insurance departments across the country. State Farm complaints are also decently below the industry average.

State Farm’s top auto insurance complaints are related to claim delays, unsatisfactory claim settlement offers and adjusters’ handling of claims.

State Farm has a low level of auto insurance complaints compared to Geico and USAA.


State Farm’s Grade from Collision Repair Professionals: C

In a survey of collision repair professionals by the CRASH Network, State Farm earned a C grade.

The opinions of auto body professionals are valuable because they see how insurers compare in the use of lower-quality repair parts, whether insurers encourage the use of repair procedures recommended by car makers and whether insurers have claims processes that lead to fast and satisfactory claims for customers.


Does State Farm Offer Accident Forgiveness?

No, State Farm doesn’t provide accident forgiveness insurance. Some insurers offer this type of protection, which means your rates won’t increase because of one at-fault accident. Even though State Farm doesn’t offer accident forgiveness, Forbes Advisor found that the company still has decent rates for drivers who caused an accident.


Does State Farm Offer New Car Replacement?

No, State Farm doesn’t offer new car replacement coverage. New car replacement coverage from other insurance companies replaces the vehicle with a new vehicle of the same make and model if the car is totaled in an accident covered by the policy. One caveat is that the vehicle typically must be two model years old or less.


Does State Farm Offer Gap Insurance?

No, State Farm doesn’t have gap insurance. Gap insurance is useful if you total your car and you owe more on your lease or loan than what the car insurance policy pays out for the loss.

This coverage may be worthwhile if you have a large car loan or lease.


Does State Farm Offer a Diminishing Deductible?

No, State Farm doesn’t have a diminishing deductible option. Insurers with this option let drivers enroll in a program that reduces their deductible for every year in which they don’t file a collision or comprehensive coverage claim.


Does State Farm Offer SR-22s?

Yes, State Farm offers SR-22 insurance. SR-22s are sometimes required by states for risky drivers, such as those with DUI convictions or who caused multiple accidents. An SR-22 proves to the state that you have purchased car insurance coverage. SR-22 rules vary by state, but most states demand the driver retain the certificate for about three years.


Does State Farm Offer Usage-Based Insurance?

Yes, State Farm has an optional usage-based insurance program called Drive Safe & Save.
Drive Safe & Save can get you a discount on a State Farm car insurance policy of up to 30% based on how you drive.

You can either install the Drive Safe & Save app on your smartphone or use OnStar. The program collects miles driven and gauges your “basic driving characteristics” to develop a score and calculate a discount, if any.


Does State Farm Offer Pay-Per-Mile Insurance?

No, State Farm doesn’t provide pay-per-mile car insurance. Pay-per-mile programs can lead to lower car insurance rates, depending on how much you drive.

Pay-per-mile insurance programs typically have a base rate and then a per-mile rate. These types of programs are best for drivers who don’t log a lot of miles. For instance, drivers who commute to work via public transportation or those who work from home might benefit from a per-mile insurance program.


Does State Farm Offer Rideshare Insurance?

Yes, State Farm offers rideshare insurance. Do you drive for Lyft or Uber? You’ll likely need more insurance coverage than the insurance the rideshare company offers to be fully protected.

State Farm has rideshare insurance that fills the gap between where personal auto insurance ends and where the rideshare company’s liability coverage begins.


State Farm Reportedly Denying Coverage for Hyundai and Kia Models

State Farm has stopped selling new car insurance policies in some cities for certain models Hyundais and Kias, according to the St. Louis Post-Dispatch. The reason is that the theft rate of certain Hyundai and Kia models has soared after a viral TikTok video showed an easy method to steal 2011-2021 models due to their lack of engine immobilizers.

Both State Farm and Progressive are reportedly declining new insurance on these Hyundai and Kia models in certain cities across the country.

Comprehensive insurance covers the theft of your vehicle, and a flood of stolen vehicle claims would be costly to State Farm. Those who already have State Farm insurance on a Hyundai or Kia should have their coverage still in place but may see a rate increase at their next renewal period, especially for comprehensive coverage.


State Farm Car Insurance Discounts

When shopping for car insurance, it’s important to ask about car insurance discounts. There may be ways to lower car insurance premiums with a discount or two or even more. (Not all discounts are available in every state.)

Here are some discounts you are likely to see from State Farm.

  • Accident-free discount: If you drive without having an accident for three years in a row, you can qualify for an accident-free discount from State Farm.
  • Anti-theft discount: If your car has an alarm or other anti-theft device, you may qualify for a discount.
  • Defensive driving course discount: Take a defensive driving class and you may be eligible for a discount of 10% to 15%.
  • Driver training discount: If young drivers under age 21 complete driver training, you’ll get a discount.
  • Good driving discount: Keep a good driving record for three years with no at-fault accidents or moving violations and you’ll qualify for a discount.
  • Good student discount: If a student is age 16 to 25, is going full-time to high school or college, and has a B average, 3.0 grade point average or other qualifications, you can save up to 25% discount on car insurance from State Farm.
  • Loyal customer discount: Insure more than one car with State Farm and you could save as much as 20%. Insure a home or a condo or sign up for life insurance or renters insurance with State Farm alongside your auto insurance policy and you can save up to 17% with a multi-policy discount.
  • Multi-vehicle discount: You’ll get this price break if you insure more than one vehicle with State Farm.
  • Student away at school discount: If one of the drivers of your vehicle is a student under age 25 who moves away to go to school, you may be eligible for a discount.

State Farm’s Steer Clear Program

Looking for ways to save money on car insurance for a young driver? The State Farm Steer Clear app allows you to do just that.

To sign up for the State Farm Steer Clear app, drivers must be under 25 and have no at-fault accident or violations in the past three years. The app provides five training modules that consist of lessons, driving scenarios and quizzes. If you complete all modules within six months of starting, you might be eligible for discounts.


More Insurance from State Farm

State Farm also sells:

  • Life Insurance
  • Supplemental health insurance
  • Medicare supplement
  • Disability insurance
  • Farm and ranch insurance
  • Business insurance such as commercial liability umbrella, commercial auto and workers compensation

State Farm’s Mobile App

The State Farm mobile app enables customers to manage insurance policies, roadside problems and State Farm banking accounts from their smartphones. Functionality includes:

  • Access insurance ID cards
  • Pay your insurance bill
  • Start a roadside assistance request
  • Upload photos and documents for claims
  • File a claim
  • Connect with your agent

A Brief History of State Farm

State Farm was founded in 1922 by a retired farmer and insurance salesman George Jacob “G.J.” Mecherle. Although it began as a single-line auto insurance company, State Farm now offers more than 100 different products and services across five different industries.

State Farm is the largest auto insurance company in the U.S. with a market share of about 16% for private passenger auto insurance.

What States Does State Farm Car Insurance Operate In?

State Farm car insurance is available in all 50 states and Washington, D.C.


Methodology

To identify the best car insurance we evaluated each company on its auto insurance rates, the coverage options offered, complaints against the company and its collision repair process.

Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.

Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:

  • $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
  • Uninsured motorist coverage of 100/300.
  • Collision and comprehensive insurance with a $500 deductible.

Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.

Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials. The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.

Collision repair (5% of score): We incorporated grades of insurance companies from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,000 collision repair professionals to gauge auto insurers on the quality of their collision claims service.