State Farm Car Insurance Reviews

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It’s obviously an exaggeration to say that State Farm has been selling car insurance since before there were enough cars to make getting in a collision even possible—but it’s not much of an exaggeration.

The company was founded by G.J. Mecherle, in Bloomington, IL on June 7, 1922—which just happened to be George Jacob’s birthday.  That same day, he sold the company’s first car insurancepolicy.  The policy cost $22.34/year and covered a 1919 Hudson owned by a local farmer named Henry Stubblefield.  From that auspicious beginning, the company grew quickly, and by 1940 it was the number one provider of auto insurance in the United States—a position it has never since relinquished.

There are a lot of reasons for State Farm’s success and they go far beyond the company’s catchy theme song—“…and like a good neighbor, State Farm is there”—which was composed in 1971 by a then little known song-writer by the name of Barry Manilow.  At root, however, the company owes its success to two simple facts.  First, they’ve always stayed true to G.J. Mecherle’s slogan: “Honesty isn’t just the best policy, it’s the only policy.”  And second, while staying true to their core values, they’ve also kept up with the times.  For example, State Farm introduced 24/7 customer support and created a robust online presence well before most other U.S. insurance companies.

Best Features of State Farm Car Insurance

When a company has been number one in its industry for 70 years, it’s obviously doing a lot of things right and has found a way to offer generation after generation of customers a lot of attractive features.  But if we had to specify a single feature of State Farm that sets it apart, we would have to say that it is their attentiveness to their customers and responsiveness to their needs.  The leadership of the company has always known that the company could not rest on its laurels—and it never has.

The most recent innovation that State Farm introduced in response to the needs and desires of its customers was to launch  This user-friendly interface allows prospective clients to quickly and easily get a rate quote or to find an agent in their area, and it gives existing policy holders the ability to manage many aspects of their policies online.  For example, as a State Farm customer, you can change your coverage levels, add or remove a driver from a policy, file and track a claim, and even pay your bill—all from the convenience of your home computer.

In fact, about the only thing that you can’t do at is actually set up and order a policy.  For that, you’ll need to speak directly with an agent.  This might seem inconvenient, but it is actually to your benefit.  By speaking with an agent you’ll be assured that you have all of the coverage that you need (and that is required by law in your individual State) and you can also be sure that you have received each and every discount or benefit for which you are eligible.

What the Experts Say

As its 70 years at number one make clear, customers love State Farm.  But so do industry experts.  Two of the leading independent insurance rating agencies—Best Insurance and A.M. Best—both give State Farm an overall rating of A++ or “Superior.”  And the company is also in very strong fiscal health.  State Farm’s assets and premiums are valued at over 98 billion dollars, and, here too, the independent rating agencies all give the company extremely high marks for its financial management and stability.  Standard & Poor’s gives State Farm a rating of AA, Moody’s rates the company at Aa1, and Fitch provides a rating of AA+.

In a world in which many of the leading insurance companies have been involved in all manner of shady business dealings and have taken major financial hits, it’s comforting to know that so many independent auditing agencies all agree that State Farm is in a very strong position.

Benefits and Discounts

When we’re talking about the benefits of purchasing your car insurance through State Farm, we’re really talking about two different categories of things.

First, there are multiple benefits for which you might qualify depending on your coverage levels and your driving history.  For example, if you maintain a clean driving record for a period of years, you could qualify for State Farm’s accident forgiveness benefit so that your premiums will not change if you are in an accident.  Or you might qualify for a reduction in your collision deductible for every year that you go without an accident, or you might even qualify to have your deductible waived if you are in an accident but it is not your fault.

But there are also benefits that are enjoyed by all State Farm customers—regardless of coverage level or driving history.  These are benefits like multiple payment plans, automatic payment options, online policy management, and the ability to talk with a State Farm representative 24/7/365.  Benefits like these simply make it convenient, easy, and even enjoyable to do business with State Farm.

And don’t think that these kinds of benefits mean that insurance with State Farm is prohibitively expensive.  It’s not.  State Farm’s basic rates are highly competitive, and they also offer a lot of discounts.  Some of the discounts for which you may be eligible include: discounts for insuring multiple vehicles, for maintaining a safe driving record, for parking your car in a garage, or for installing a security system on your car.  And these discounts can add up to significant savings.  But you can save even more if you also purchase another type of insurance—such as life, homeowner’s,renter’s, or disability—with State Farm.

The Bottom Line

State Farm has been offering car insurance for nearly a century and has been the leader in the industry for most of that time.  There are good reasons for their success.  They provide an excellent range of benefits at reasonable prices, and they are constantly listening to the needs of their customers and innovating to stay ahead of the competition.  If you’re shopping for car insurance, State Farm certainly deserves serious attention.

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