State Farm Insurance: How Does It Rank Among Insurers?

Auto insurance is one of those requirements that need to be met on a regular basis. It covers not just the damage caused to the vehicle, but also to a driver during vehicular activity. Generally, auto insurance cost estimates rely on full coverage of drivers based on some requirements like age, location, record, etc. In the last few years, car insurance rates went up high in 33 states, whereas 18 states saw a decline in rates.

State Farm Insurance is a renowned insurance and financial services firm in the United States. It is impossible not to mention State Farm when talking about car insurance trends. With that in mind, here’s a breakdown of this auto insurance policy, including who’s behind the company, what plans are available, and how you can take advantage.

Who started State Farm?

 George Jacob (G.J) was the founder of State Farm Insurance. He retired as a farmer and became an insurance salesman. Dissatisfied with the features and conditions of insurance companies, G.J took the initiative to make his own insurance company in 1922. G. J’s motto was simple: operate in a fair way and do the right thing for clients. That vision still holds true for State Farm and all their offerings.

Michael L. Tipsord is the current Chairman, President and CEO of the State Farm Mutual Automobile Insurance Company. What started as an auto insurance company aimed at farmers of that time is now split into 100 different products and services. For a complete history of the company, check out our blog post titled History of State Farm Insurance.

Being a good neighbor

 People know State Farm by their good neighbor slogan. This catchphrase has been around since 1971. It was written in a song by Barry Manillow for State Farm’s official jingle that chimed “Like a good neighbor, State Farm is there.” Like a ‘good neighbor’, State Farm promises to be there for when you are met with unwanted car and other property troubles. State Farm offers the following types of insurance:

  • Property insurance
  • Cash insurance
  • Annuities
  • Mutual Funds
  • Banking products

For the purpose of this post, we’re only going to focus on the auto insurance policy of State Farm.

State Farm Auto Insurance

 Trends in the auto industry show a positive growth for State Farm. The firm got $81.7 billion in revenue and adopted a modernistic approach to work by using technology and automation. State Farm is the top and most reliable auto insurer in the United States. It offers a curated, personalized experience out of all US-based auto insurers.

Rental and Travel Expenses State Farm pays for a rental car if your car is in the service after a collision. It pays for meals, accommodation and transport if you are 50 miles away from your home. Coverage limits vary by each state.
Safe Driving Benefits The safe driving calculator counts discount based on your mileage and precautions like speed, smooth accelerator and brakes. You can get up to 50% discount for driving safe.
Steer Clear Driver Program The popular driver training course sets State Farm apart from its competitors. Drivers under 25 get savings offer if they drive safe and have no on-fault violations for three years.
Riseshare Insurance This option covers Uber or Lyft drivers, who can choose a policy that covers both ride-sharing and personal use. This option is not open to all states.
Auto Insurance Discounts offered by State Farm
  • Accident-free
  • Driver safety course
  • Student away at school
  • Good driving
  • Discount if all operators of your vehicle under 21 complete an approved driver education course.
  • Good student
  • Vehicle safety
  • Passive restraint
  • Discount for having an anti-theft device.
  • Multiple auto
  • Multiple line

State Farm vs other insurers

 State Farm, AllState, Geico and Progressive are the top insurance companies in the US. All four firms offer unique products and services. With so much information available, it is hard to differentiate State Farm from the rest.

We have made things easy for you by looking at price, consumer complaints, satisfaction rate, coverage and other options.

Customer complaints

 State Farm had the fewest customer complaints submitted to state regulators, as surveyed by NerdWallet. However, State Farm was not the only winner here. Other insurers also had fewer complaints than their median according to company size.


 For many customers, price is the first and foremost concern. Many people make decisions solely on the basis of price. Price wise, State Farm must be your first choice as it is cheapest out of all four companies ($1,337). State Farm recently lowered prices in many states, even cut them in half in some states so you should check it out. When it comes to drivers with poor credit score, Geico turned out as the cheapest option ($1,627), followed by Progressive ($1,828) and AllState ($1,964).

Customer satisfaction

 Satisfaction surveys based on pricing, claims and customer service points out Geico as the top option. State Farm comes out as a close second in customer satisfaction survey reports. Rest of the two are a little far behind.

Other features

 Progressive and AllState are tied for the top position when it comes to insurance coverage options. This includes gap insurance, accident forgiveness, new car replacement, sound system coverage, deductible rewards, reward for accident avoidance and other categories. All insurers are rated highly for their tech services like mobile application, in-app assistant and property monitors. All four are highly compatible with Alexa and voice-based services.


 Constantly being in the top auto insurer list in the US is not easy. State Farm donates to noticeable charities and gives back to the community however it can. It also finances students looking to get technical certifications and promotes the usage of technology to pave way for the future. In terms of auto insurance, State Farm’s policies are the most suitable for drivers around the US. The company actively promotes safe driving, and seatbelt safety, especially for teen drivers. Not only this, but State Farm also makes owning a vehicle easy for individuals.