State Farm Insurance 2022: Review and Facts

Ranked 39th on the Fortune 500 list of the biggest American companies by revenue, State Farm is a humongous group of insurers covering all types of policies, including home, life, health, liability, and pet insurance.

But is buying an insurance plan from State Farm worth your time and money? Let’s find out whether this insurance provider is better than other prominent insurance companies, such as USAA,Allstate, and Progressive.

State Farm History

State Farm was founded by George J. Mecherle, a retired farmer, back in 1922 to serve farmers’ auto insurance needs. It wasn’t long before the insurance company expanded into homeowners and life insurance, and later to financial services and banking. As of now, led by CEO Michael L. Tipsord, State Farm unites over 19,000 agents and 70,000 employees, serving more than 80 million policyholders across the United States and Canada.

State Farm Insurance: Basic and Additional Policies

State Farm Auto Insurance 2022

Insurance Type* Coverage
Collision Collision of your car with another vehicle or object
Comprehensive Damage to your car caused by something other than a collision: theft, vandalism, fire, flood, wind, hitting an animal, falling objects, etc.
Liability Third-party’s property damage, vehicle repair, and medical expenses if you are at fault for the accident
Car rental and travel expenses The rent of a replacement vehicle while your car is being repaired
Uninsured motor vehicle Your medical expenses, lost wages, and pain & suffering if the at-fault third-party driver doesn’t have enough liability insurance
Medical payments Medical and funeral expenses if you are injured or killed
Emergency roadside service Towing of your car, delivery of gas/oil/batteries, mechanical labor at the site, etc.
Rideshare Liability, medical coverage, and damage to your car if you are a rideshare driver

*State Farm provides more types of coverage than the table shows. Complete information on auto coverage with State Farm can be found on this webpage.

State Farm Auto Insurance Rates

The average cost of State Farm auto insurance is $1,250, which is significantly cheaper than average. However, the real cost of auto insurance depends on:

State Farm Auto Insurance Discounts

Discount How to Qualify
Drive Safe & Save – up to 30% or even higher (depends on the state) For safe driving recorded by the Drive Safe & Save Mobile app or Drive Safe & Save Connected Car
Steer Clear – up to 15% (depends on the state) For drivers under 25 who’ve kept their record safe for 3 years
Teen Driver – up to 25% For college students under 25 with good grades
Anti-Theft For installing anti-theft devices and alarms
Vehicle Safety For cars with additional safety features
Passive Restraint – up to 40% on medical services For 1993 or older cars with restraint systems (for example, airbags)
Multiple Auto – up to 20% For including two or more vehicles in a single auto insurance policy
Multiple Line – the average annual saving on a bundled auto and home insurance policy is $1,127 For bundling auto insurance with homeowners, condo, renters, or life insurance

Last but not least, you can save on your auto insurance by switching to State Farm from your current policy. In 2021, switchers saved $597 on average.

State Farm Health and Disability Insurance 2022

Insurance Type Coverage
Supplemental Health Additional coverage for

  • Outpatient surgery
  • Private rooms and private nurses
  • Emergency room visits
  • Unexpected childcare
  • Extra lodging, transportation, and meals
Medicare Supplement Additional coverage for Medicare participants
Individual Major Medical Coverage with benefits required under the Affordable Care Act; designed for those who don’t have employer-based individual health insurance
Long-Term Disability (if you are disabled due to a covered case) Monthly benefits for 5 years, ranging from $500 to $20,000 based on your income and occupation
Short-Term Disability Monthly benefits for one or three years, ranging from $300 to $3,000 based on your income and occupation

State Farm Health Insurance Rates and Discounts

State Farm health insurance plans are supplemental, so there’s no public information about the average premium. However, you can get a quote from an agent on this webpage. As with any other insurance provider, the amount of your premium will depend on the policy itself, your health, age, gender, medical history, pre-existing conditions, and other factors.

State Farm insurance

State Farm Life Insurance 2022

Insurance Type Coverage
Term Life (10 years, 20 years, or 30 years) Relatively simple insurance that may be convertible and renewable but with no cash value
Whole Life More expensive lifetime coverage with accumulating value that can be used during your lifetime
Universal Life Flexible lifetime coverage for your loved ones, with the ability to build tax-deferred cash value and change premium and coverage. Typically covers family’s mortgage costs, loss of income, educational needs, and business planning. Divided into:

  • Universal life insurance
  • Survivorship Universal Life Insurance: covers two people, with the death benefit being paid when the last person dies
  • Joint Universal Life Insurance: covers two people, with the death benefit being paid when the first of the insureds dies
Optional coverages
  • Flexible Care Benefits: long-term care expenses
  • Family Coverage: term life insurance on your children and spouse
  • Disability Waiver of Monthly Deduction: the ability to waive the cost of life insurance, monthly expense charges, and optional coverages under certain circumstances specified in the policy
  • Guaranteed Insurability Option: the guaranteed right to increase your life insurance coverage by the amount specified in the policy

State Farm Life Insurance Rates

State Farm is a competitive life insurance provider, but unlikely to be the best option available. Good to excellent customer satisfaction ratings come at the price of more expensive policies.

The annual premiums for term life insurance worth $250,000 are as follows:

State Farm Homeowners Insurance 2022

Insurance Type Coverage
Homeowners
  • Keepsakes: pictures, collectibles, jewelry, etc.
  • Nature: wind, hail, lightning, snow, sleet, etc.
  • Hobbies: sports equipment, musical instruments, cameras, etc.
  • Random acts: theft, vandalism, fire, etc.
  • Home & Garden: furniture, appliances, tools, electronics, etc.
  • Other: tearing of heating/cooling system, water discharge from a plumbing system, etc.
Homeowners Liability Injuries or damage caused to a third party on the property of your home
Condo Unitowners
  • Weather damage: wind, hail, lightning, sleet, ice, snow, etc.
  • Non-weather damage: theft, riots, fire, smoke, etc.
  • Other: tearing of heating/cooling system, water discharge from a plumbing system, etc.
Renters
  • Coverage of personal property from theft, vandalism, fire, smoke, water, etc.
  • Coverage of personal property that is located in your car, deck, or storage closet.
  • Coverage of your identity from theft
Rental Property
  • Rental homes: property damage, liability claims, and injuries
  • Condo units: property and liability
  • Apartment owners: property and liability protection for landlords
Personal Articles
  • Keepsakes: collectibles, fine arts, furs, and jewelry
  • Equipment: computers, cameras, software, silverware, sports equipment, musical instruments, etc.
  • Health-related: personal mobility devices, prosthetic devices, hearing aids, etc.
Manufactured Home Dwelling, personal property, loss of use, additional living expenses, fair rental value, liability, and medical payments
Farm and Ranch Personal property, liability, and excess liability

State Farm Homeowners Insurance Rates

The average cost of homeowners insurance with State Farm is $1,850, which is competitive, but not the cheapest. At the same time, the customer satisfaction level is high. You can get an instant homeowners insurance quote on this webpage.

Discounts

Discount How to Qualify
Multiple Line – varies For purchasing two or more policies with State Farm: auto and home, condo and auto, or renters and auto
Home Security – varies For having smoke, fire, or burglar alarms or other alarm and safety systems
Roofing – on a replacement cost basis For having your roof declared a total loss

State Farm Pet Insurance 2022

State Farm provides pet insurance through Trupanion. It applies to all breeds for both cats and dogs and has no payout limits. The insurer pays 90% of eligible medical costs, minus your customizable deductible between $0 and $1,000.

State Farm pet insurance covers:

State Farm Pet Insurance Rates

The cost of State Farm pet insurance varies depending on the pet’s pedigree, health, age, the type and amount of coverage, and the amount of deductible. For example, the most popular plan for German shepherds costs $152.25 per month with no deductible.

State Farm Insurance Ratings: Moody’s, J.D. Power, Standard & Poor’s, BBB Reviews

Moody’s Aa1 insurance financial strength (financially sound)
J.D. Power 892 points out of 1,000 in the J.D. Power Auto Claims Satisfaction Study (6th place)
Standard & Poor’s AA insurer financial strength and issuer credit rating (a very strong insurance company)
BBB A (medium credit quality)

Pros and Cons of State Farm Insurance

Pros Cons
All popular insurance policies included Not available in some states (Rhode Island, Massachusetts)
Discounts for bundling auto insurance with homeowners, condo, renters, or life insurance Works through a close network of agents, which somewhat limits the number of insurance agents you can work with
Cheap auto insurance (about 40% cheaper than average) Most discounts apply to auto policies, whereas home, life, health, and other policies have few or no perks

State Farm Insurance Customer Service Review

The average customer satisfaction score would be around 3.5 to 4 out of 5 based on thousands of reviews on major review websites.

Working at State Farm Insurance

Indeed.com rates State Farm 3.7 out of 5 according to 13,100 reviews, with separate categories rates being:

The annual average salaries at State Farm are:

How to Become a Partner

To become an independent contractor agent with State Farm,

  1. Submit an application to the Agency Career Track Program. You will have to complete a questionnaire and undergo an assessment to pass the candidate review. Should you not pass the review, you will be able to try again in 12 months.
  2. Make sure you have appropriate insurance producer licenses, either in the state of your residence or the state in which you are going to operate.
  3. If you pass the candidate review and your license is confirmed, you will be able to compete for agent opportunities in the United States.

How to File a Claim with State Farm?

  1. Navigate to the claims webpage.
  2. Choose the type of claim you’d like to file:
    1. Auto and motorcycle
    2. Auto (glass only)
    3. Home, boat, and property
    4. Health
    5. Life
    6. Recreational vehicle
    7. Small business
  3. Get the required information and call the displayed number to file your claim.

Contact Info

Mailing addresses, phone numbers, and other contacts for different departments and services are listed on this webpage. For general inquiries, call 800-782-8332. If you have technical issues, call 888-559-1922.

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