State Farm auto insurance review: Range of discount opportunities for safe drivers

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In a Nutshell

State Farm auto insurance may be a good fit for safe drivers in search of discounts. It could also work for you if you like the idea of personalized service from a State Farm agent. But the company doesn’t offer options beyond standard auto insurance coverage, and overall customer claims satisfaction is rated about average.
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Several opportunities for rate discounts based on your driving

Overall claims satisfaction is about average

Robust car rental and travel expenses coverage

Only offers standard car insurance coverage

Claims servicing ranked better than most auto insurers

What you need to know about State Farm auto insurance

Based in Bloomington, Illinois, State Farm is the largest auto insurer in the U.S., with thousands of insurance agents across the country. In addition to auto insurance, State Farm offers homeowners, renters, property, health, disability, personal liability and life insurance products.

Potential savings with safety discounts

State Farm offers a range of safe-driving discounts. Here are its two featured discount programs.

  • Drive Safe & Save — Using your smartphone, State Farm will track different aspects of your driving, including acceleration, braking, cornering, speeding and distracted driving. You’ll receive a discount just for enrolling in this usage-based insurance program — and generally up to 30% off your premium, depending on where you live. State Farm notes on its website that some people could see discounts of up to 50%, depending on factors including their driving and where they live. The discount is recalculated each time you renew your policy, which is typically every six months — and could be reduced depending on the results of your Driver Safety Assessment.
  • Steer Clear — This discount is designed for drivers under 25 years old. To qualify, you need a valid driver’s license and no at-fault accidents or moving violations in the last three years. You’ll also need to complete the program’s requirements, which include course training and driving practice. But take note that this program isn’t available in California, Hawaii, Massachusetts, North Carolina or Rhode Island.

State Farm also offers these safe-driver discounts.

  • Accident-free discount if your car has been insured by State Farm for at least three consecutive years and you haven’t been in an accident
  • Defensive driving course discount for those who take a driver safety course
  • Good-driving discount for new State Farm customers who have gone at least three years without a moving violation or at-fault accident
  • Driver training discount for people under age 21 who complete an approved driver education course

Generous rental car coverage

If you need to rent a car while yours is in the shop due to a covered accident, State Farm will reimburse you for a rental car (which is pretty standard for rental car reimbursement coverage). But State Farm also offers travel expense coverage if you’re more than 50 miles away from home when the accident occurs. This coverage includes up to $500 for meals, lodging and transportation home or to your destination. And if you get in an accident in a rental car, State Farm will pay up to $500 of the deductible.

Claims servicing is about average

State Farm was rated about average for overall customer satisfaction in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study.

Overall, the insurer received far fewer complaints for private passenger insurance than the national median in 2019, according to the National Association of Insurance Commissioners.

A closer look at State Farm auto insurance

If you’re trying to decide if State Farm car insurance is a good fit for you, here are some other details to consider.

  • State Farm auto insurance is available nationwide.
  • The company also offers insurance coverage for sports cars, antique and classic cars, and commercial vehicles, along with rideshare insurance for rideshare company drivers.
  • State Farm boasts high financial strength ratings, which are based in part on the company’s ability to pay claims.
  • The company also offers auto loans through State Farm Bank.
  • You can file and track your claims or request roadside assistance through your online account or State Farm’s mobile app.

Is a State Farm auto insurance policy the right fit for you?

There’s no single best auto insurance company out there for everyone, but State Farm may be a good fit if you’re an incredibly careful driver. The insurer’s Drive Safe & Save program could reward you for your good driving habits, resulting in lower premiums.

State Farm could also be worth considering if you enjoy road trips. The travel expenses coverage that’s included with its rental car coverage could potentially save you some cash if you get into an accident while far from home.

Just keep in mind that overall satisfaction with its claims process is about average. If other factors are important to you — like the rental experience or repair and settlement process — shop around and compare.

How to compare car insurance rates

How to get an auto insurance quote from State Farm

You can get a rate quote from State Farm at or by calling 800-STATEFARM to find a local agent. If you’re requesting a quote online, you’ll start by providing your zip code. Then you’ll enter information about your vehicle, drivers you want insured and your driving history.

It’s important to note that there are several factors that can affect your insurance rate, including your age, credit scores, desired coverage, location, driving history, vehicle and more. Once you get your insurance quote, make sure you understand the terms so that you can easily compare them with quotes from other insurers before making a decision.

Not sure if an auto insurance policy from State Farm is right for you? Consider these alternatives.

If you aren’t sure whether State Farm auto insurance is right for you, here are some other car insurance companies to consider.

  • Geico: Geico could be a good choice if you’re looking for discounts based on your employment or affiliations.
  • Allstate: Consider Allstate if you want to earn rewards for your safe driving in addition to discounts.

About the author: Ben Luthi is a personal finance freelance writer and credit cards expert. He holds a bachelor’s degree in business management and finance from Brigham Young University. In addition to Credit Karma, you can find his wo… Read more.