State Farm is one of the most recognized names in insurance in the United States. The company, founded in 1922, offers insurance products and financial services in all 50 U.S. states and Canada. The founder, George Jacob “G.J.” Mecherle, originally founded the insurance company with a single product offering—auto insurance. It has since grown to be one of the largest insurance companies in the U.S.
Is State Farm Insurance Right for You?
State Farm Insurance may be right for you if you’re hoping to bundle all your insurance needs with one insurer. From start-up business insurance and medical coverage to renters insurance and term life insurance plans, and even coverage for your car, you can get it all through State Farm. State Farm also offers investment and banking services, with many online and app-based tools.
Note
In all, State Farm offers approximately 100 products.
Where Is State Farm Insurance Offered?
Coverage is offered in all 50 U.S. states, so no matter where you live in the U.S., you can find insurance coverage through State Farm. However, insurance policies, coverage, and limitations may vary by state.
For example, State Farm health insurance is only available in California, Colorado, Georgia, Idaho, Illinois, Michigan, Missouri, Montana, New Mexico, Ohio, New York, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington.
Pros and Cons of State Farm Insurance
Pros
Diversity of products and services
Various online resources
No-exam life insurance available
Cons
Middling customer service
State Farm Insurance Pros Explained
- Diversity of products and services: Beyond insurance options for home, auto, life, health, and business, State Farm offers banking and investment services, including estates, trusts, annuities, retirement funds, and more.
- Online resources: State Farm offers many 21st-century resources. You can use State Farm mobile apps to file or check claims, get roadside assistance, or check up on banking and insurance accounts. Many online tools are available, too—you can even change coverage, pay bills, or change your agent online.
- No-exam life insurance available: Instant Answer Term Insurance is a $50,000 life insurance policy that does not require an exam. It’s offered to new enrollees between the ages of 16 and 45. All you have to do is answer some health questions.
State Farm Insurance Cons Explained
- Middling customer service rankings: State Farm is not the top performer in customer service/claims rankings with , despite being the third-largest insurer in the U.S. in written insurance premiums as of 2018. Customer ratings at the Better Business Bureau are also low, and State Farm has been the subject of legal action in California.
State Farm Insurance Products
State Farm Insurance offers several types of insurance policies for personal and business needs.
- Property insurance: Coverage for homes, condos, rental property, personal items, manufactured homes, farms, and ranches is available, along with renters insurance. Flood insurance is offered to communities in the National Flood Insurance Program.
- Vehicle insurance: Cars, motorcycles, boats, off-road vehicles, and motorhomes can be covered by State Farm.
- Personal insurance: Life insurance plan options include term, whole life, and universal life insurance. Health plans include supplemental health, Medicare supplements, individual medical plans, long-term disability, short-term disability, and individual credits. Personal liability protection and identity restoration are available as well.
- Business insurance: Business and professional liability insurances are available, along with a wide variety of small business insurance options tailored to your field, including condo associations, restaurants, wholesalers, and specialty schools. State Farm also has commercial auto and workers’ compensation insurance, among other options.
What Discounts Does State Farm Insurance Offer?
Drivers under age 25 could save up to 15% if they’ve had a clean driving record for the past three years, 25% if they get good grades, and a discount for going away to school.
For all ages, additional discounts are offered for taking defensive driving courses, having multiple vehicles covered by State Farm, or signing up for the Drive Safe & Save app, which uses information from your smartphone or OnStar to supply a discount to safe drivers.
Note
There are also discounts for vehicles with airbags or anti-theft devices, and for those made in 1994 or later.
Homeowners may receive discounts for having alarm systems, updating home utilities with qualified contractors, and installing impact-resistant roofing, primarily roof materials made of metal. Condo owners may save if automatic sprinklers are installed, too.
Other Notable Offerings
- Community Offers: This app-driven program gives members discounts to restaurants, gyms, travel, and more.
- Neighborhood of Good: This initiative connects State Farm members with opportunities to volunteer for registered nonprofits and causes.
- Rideshare insurance: Not available with all insurance companies, State Farm offers rideshare insurance for Uber and Lyft drivers.
- Personal articles policy: This policy offers coverage worldwide, even while traveling, and covers a variety of valuables, including racing bicycles, jewelry, fine art, wedding presents, medical and prosthetic devices, stamp collections, and other collectibles.
- Farm and ranch insurance: As the name might suggest, State Farm offers insurance for livestock and crop farms, along with farm structures and assets such as machinery.
State Farm Ratings and Reviews
State Farm has an AM Best rating of “A++ (Superior),” which is the highest financial-strength rating available from AM Best. It also has a rating of AA from S&P Global Ratings, which is also very high.
With J.D. Power, State Farm ranked sixth in the 2019 U.S. Auto Claims Satisfaction Study, with an “about average” rating. In the J.D. Power 2019 study on homeowners and renters insurance, State Farm ranked fifth and third, respectively. For J.D Power’s 2019 life insurance study, State Farm ranked second place for overall satisfaction.
With the Better Business Bureau, State Farm has an A- rating, but average customer reviews are just over one star. State Farm is not BBB accredited and has been the subject of state legal action in California concerning its homeowner policies.
The State Farm app has a 4-star rating in the Google Play Store and 4.8 out of 5 stars in the Apple App Store.
The Bottom Line
State Farm is a well-known insurer that offers many options, whether you’re a farmer, Lyft driver, or college student away from home. In most cases, you can get quotes online to find out whether it’s a good fit for you. Consider all of your options before deciding if this one-stop-shop is best for your lifestyle and budget.
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State Farm Insurance Overview
State Farm is a well-known insurance company in the United States, offering a wide range of insurance products and financial services. It was founded in 1922 by George Jacob "G.J." Mecherle and initially focused on auto insurance. Over the years, State Farm has expanded its offerings and is now one of the largest insurance companies in the U.S..
Insurance Coverage and Services
State Farm provides coverage for various insurance needs, allowing customers to bundle their insurance policies with one insurer. They offer insurance products for auto, home, renters, condo, life, health, and business. Additionally, State Farm offers investment and banking services, including estates, trusts, annuities, retirement funds, and more. They have online and app-based tools to manage insurance and banking accounts, file claims, and access resources.
Availability of State Farm Insurance
State Farm offers insurance coverage in all 50 U.S. states and Canada. However, the availability of specific insurance policies, coverage, and limitations may vary by state. For example, State Farm health insurance is only available in select states, including California, Colorado, Georgia, Idaho, Illinois, Michigan, Missouri, Montana, New Mexico, Ohio, New York, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, and Washington.
Pros and Cons of State Farm Insurance
State Farm Insurance has several advantages and disadvantages to consider:
Pros:
- Diversity of products and services: State Farm offers a wide range of insurance options for home, auto, life, health, business, as well as banking and investment services.
- Various online resources: State Farm provides mobile apps and online tools for managing insurance and banking accounts, filing claims, and accessing resources.
- No-exam life insurance available: State Farm offers an instant answer term insurance policy that does not require a medical exam. It is available to new enrollees between the ages of 16 and 45, with some health questions to answer.
Cons:
- Middling customer service rankings: State Farm's customer service and claims rankings are not the highest compared to other insurers. Customer ratings at the Better Business Bureau are also low, and the company has faced legal action in California.
State Farm Insurance Products
State Farm offers a wide range of insurance policies for personal and business needs:
- Property insurance: Coverage for homes, condos, rental property, personal items, manufactured homes, farms, and ranches. They also offer renters insurance and flood insurance for communities in the National Flood Insurance Program.
- Vehicle insurance: Coverage for cars, motorcycles, boats, off-road vehicles, and motorhomes.
- Personal insurance: Life insurance options include term, whole life, and universal life insurance. Health plans include supplemental health, Medicare supplements, individual medical plans, long-term disability, short-term disability, and individual credits. Personal liability protection and identity restoration are also available.
- Business insurance: State Farm offers business and professional liability insurance, along with various small business insurance options tailored to specific fields. They also provide commercial auto and workers' compensation insurance, among other options.
Discounts and Other Offerings
State Farm provides various discounts and additional offerings to its customers:
- Driver discounts: Drivers under the age of 25 may be eligible for discounts if they have a clean driving record for the past three years or if they have good grades. Additional discounts are available for taking defensive driving courses, having multiple vehicles covered by State Farm, or using the Drive Safe & Save app.
- Homeowner discounts: Homeowners may receive discounts for having alarm systems, updating home utilities with qualified contractors, installing impact-resistant roofing, or automatic sprinklers for condo owners.
- Other notable offerings: State Farm offers community discounts through its app-driven program, connects members with volunteer opportunities through the Neighborhood of Good initiative, provides rideshare insurance for Uber and Lyft drivers, and offers personal articles policies for coverage of valuables. They also have insurance options for farms and ranches.
Ratings and Reviews
State Farm has received various ratings and reviews:
- Financial strength: State Farm has an "A++ (Superior)" rating from AM Best, which is the highest financial-strength rating available. It also has a rating of AA from S&P Global Ratings.
- Customer satisfaction: In the J.D. Power 2019 U.S. Auto Claims Satisfaction Study, State Farm ranked sixth with an "about average" rating. In the J.D. Power 2019 study on homeowners and renters insurance, State Farm ranked fifth and third, respectively. For J.D. Power's 2019 life insurance study, State Farm ranked second for overall satisfaction.
- Better Business Bureau (BBB) rating: State Farm has an A- rating with the BBB, but average customer reviews are low. It's important to note that State Farm is not BBB accredited and has faced legal action in California regarding homeowner policies.
- Mobile app ratings: The State Farm app has a 4-star rating in the Google Play Store and 4.8 out of 5 stars in the Apple App Store.
In conclusion, State Farm Insurance is a well-established insurance company in the United States, offering a wide range of insurance products and financial services. They have a diverse portfolio of insurance options, online resources, and discounts available. However, it's important to consider customer service rankings and reviews when making a decision.
