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State Farm Review: Coverage, Cost & Claims Analysis

State Farm is the largest U.S. auto insurer, averaging $1,985 a year for full coverage in NerdWallet's October 2026 data. AM Best cut its rating to A+ in 2025, and in 2026 it paid a $5 billion dividend to auto customers.

By Diogo Almeida, Contributor. See their work.Published May 14, 2026Updated October 16, 2026This page was compiled from primary sources: company disclosures and terms, the BBB and regulators. Our ratings method is described on the methodology page.
State Farm Coverage, Cost & Claims Analysis BestGuide rating
4.6/5 BestGuide rating: 4.6 out of 5. Set by our editors from reputation, services, transparency, customer satisfaction and scale. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.

State Farm sells through its own local agents and placed 8th of 20 in J.D.

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On this page13 sections
  1. Ratings and complaints
  2. State Farm vs. competitors
  3. Pricing
  4. Step by step
  5. State Farm as a insurance company
  6. How much State Farm car insurance costs
  7. Coverage options and discounts
  8. Claims and complaints
  9. Canceling a State Farm auto policy
  10. Who should look elsewhere
  11. What customers say
  12. Alternatives
  13. FAQ
Our verdict

State Farm sells through its own local agents and placed 8th of 20 in J.D. Power's 2025 claims study. It is a legitimate, policyholder-owned insurer and one of the cheaper big brands for drivers with good credit: NerdWallet's October 2026 averages put it at $1,985 a year for full coverage against a $2,361 national average, and it stays below average after an accident or DUI. The weak spots are poor credit, where its average jumps to $7,791, a D- BBB rating driven by complaint volume, and no new auto policies in Massachusetts or Rhode Island. Get a quote and compare it with GEICO and Progressive using the same coverage.

Company
State Farm Mutual Automobile Insurance Company, Bloomington, Illinois; a mutual company owned by its policyholders7
Average price
$1,985 a year for full coverage and $561 for minimum coverage, NerdWallet October 2026 averages for a 35-year-old good driver1
Market share
18.7% of 2025 U.S. private auto premiums ($69.2 billion), the largest of any insurer4
Financial strength
AM Best A+ (Superior), lowered from A++ in November 20255
2026 dividend
$5 billion one-time dividend to customers with a State Farm Mutual auto policy active in 2025, averaging $100 per vehicle7
Availability
No new auto sales in Massachusetts (products planned for early 2027) or Rhode Island (affiliate HiRoad sells there)11
Claims satisfaction
716 of 1,000 in J.D. Power's 2025 U.S. Auto Claims Satisfaction Study, tied for 8th of 20; study average 7003
BBB
State Farm Insurance Company: D-, not accredited; 4,342 complaints in the last 3 years6

State Farm ratings and complaint records

  • AM Best A+ (Superior) Financial strength rating lowered from A++ in November 2025 with a stable outlook View source
  • J.D. Power 716 of 1,000 2025 U.S. Auto Claims Satisfaction Study, tied 8th of 20; 3rd of 18 in the 2025 shopping study View source
  • NAIC complaints About as expected Auto complaints to state regulators close to the expected number for State Farm's size over three years, per NerdWallet's read of NAIC data View source
  • BBB D- State Farm Insurance Company, Bloomington, IL; not accredited; 4,342 complaints in 3 years View source
  • Trustpilot 1.5 out of 5 1,325 reviews, 83% one star; most are about claims and rate increases View source
  • Apple App Store 4.8 out of 5 State Farm app, about 1.25 million ratings View source

State Farm vs. competitors

State Farm compared with competitors
CompanyFull coverage averageMinimum coverage averageJ.D. Power 2025 claimsAM BestNext step
State Farm $1,985 a year$561 a year716, tied 8th of 20A+
GEICO $2,020 a year$492 a year697, tied 13th of 20A++ Read review
Progressive $2,277 a year$645 a year673, 18th of 20A+ Read review
USAA $1,587 a year (military families only)$352 a yearSecond-highest score, not rank eligibleA++ Read review

Auto insurance companies we reviewed

  1. State Farm This review BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.
  2. Allstate BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Drivers and homeowners who want a local agent, plan to bundle several policies and are willing to pay more for that service.
    Read review
  3. USAA BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Service members, veterans and their families who want insurance and fee-free banking from one company built around military life.
    Read review
  4. Farmers BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Households that want a local agent and plan to bundle home and auto coverage with add-ons like new car replacement or rideshare coverage.
    Visit site Read review
  5. The General BestGuide rating: 4.2 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Drivers with a DUI, SR-22 requirement, recent accidents or a lapse in coverage who need a policy quickly with a low down payment.
    Read review
  6. GEICO BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Good drivers, drivers with poor credit, and military or federal employees who are comfortable buying and managing a policy online.
    Read review
  7. Progressive BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Drivers with a DUI or other mark on their record, and shoppers who want to compare several prices online or buy through an independent agent.
    Read review
See all auto insurance companies, ranked

State Farm pricing at a glance

State Farm average annual auto rates by driver profile, NerdWallet October 20261

Driver profile State Farm National average
Good driver, full coverage $1,985 $2,361
Good driver, minimum coverage $561 $648
After an at-fault accident, full coverage $2,565 Not published
After a DUI, full coverage $3,147 Not published
Poor credit, full coverage $7,791 Not published
20-year-old driver, full coverage $4,378 Not published

NerdWallet's averages use a 35-year-old driver (except the 20-year-old row) with a 2023 Toyota Camry LE, 12,000 miles a year, 100/300/50 liability limits and $1,000 deductibles. Your quote depends on your state, ZIP code, car and record.

State Farm, step by step

  1. Get a quote

    Quote online, in the app or through a local State Farm agent. Have your driver's license, vehicle VINs and current policy handy.

  2. Ask about discounts

    Common ones include Drive Safe & Save (10% to enroll, up to 30% at renewal), good student (up to 25%) and bundling auto with home or renters.

  3. Buy and manage the policy

    Your agent's office handles changes and questions, and you can also pay, get ID cards and make changes in the app.

  4. File a claim

    Report a claim online, in the app, by phone or through your agent. A claim representative is assigned to handle it.

  5. Cancel if you switch

    Give State Farm or your agent advance notice of the date you want coverage to end, once your new policy is in place. Unused premium is refunded on a pro rata basis.

State Farm as a insurance company

State Farm is a legitimate, Bloomington, Illinois insurer founded in 1922 and owned by its policyholders as a mutual company. It wrote 18.7% of U.S. private auto premiums in 2025, more than any other insurer, and sells through more than 19,000 local agents. In 2025 it reported $132.3 billion in revenue and $12.9 billion in net income.

AM Best lowered State Farm Mutual’s financial strength rating from A++ to A+ (Superior) in November 2025, which still means a strong ability to pay claims. Complaints to state regulators are about what you’d expect for its size, per NerdWallet’s read of NAIC data. The BBB gives the corporate profile a D- with 4,342 complaints in three years, a grade that reflects complaint handling on the BBB site rather than claim payouts.

How much State Farm car insurance costs

NerdWallet’s October 2026 averages put State Farm at $1,985 a year for full coverage and $561 for minimum coverage, below the national averages of $2,361 and $648. It stays relatively cheap after an at-fault accident ($2,565) or a DUI ($3,147).

Credit is the exception. With poor credit, State Farm’s full coverage average rises to $7,791, among the highest in NerdWallet’s data, so drivers with weak credit should compare GEICO and others carefully. Credit can’t be used to set auto rates in some states, including California, Hawaii, Massachusetts and Michigan.

State Farm cut auto rates in 40 states in the year to early 2026, which it says saves customers $4.6 billion a year, and it paid a one-time $5 billion dividend to customers with a policy active in 2025, averaging $100 per vehicle (4% to 10% of 2025 premium depending on the state).

Alternative: FarmersVisit siteCompare all

Coverage options and discounts

Beyond liability, collision and comprehensive, State Farm sells rental car reimbursement, emergency road service, medical payments coverage and rideshare driver coverage. It doesn’t publish an accident forgiveness add-on, so ask your agent what applies in your state.

Drive Safe & Save, its app and beacon program, gives 10% for enrolling and up to 30% at renewal, but your rate can also rise based on how and how much you drive. It isn’t offered in California, Massachusetts or Rhode Island. Students with good grades can save up to 25%, and bundling auto with home or renters usually lowers the total.

What customers say about State Farm

Recurring themes across the review sites and complaint records listed above, not individual quotes.

Common praise

  • Local agents who know customers by name
  • Lower prices than many big brands for clean drivers
  • A highly rated mobile app
  • Straightforward claims for some total loss and minor claims

Common complaints

  • Slow claims, denials and payouts below repair costs
  • Rate increases at renewal for long-time customers
  • Hard to reach claim handlers for updates
  • Delays processing cancellations and documents

Claims and complaints

J.D. Power’s 2025 claims study scored State Farm 716 out of 1,000, tied for 8th of 20 and above the 700 average. Online reviews are harsher: Trustpilot shows 1.5 out of 5 from 1,325 reviews, mostly about slow claims, low payouts and renewal increases. Many praise individual agents.

To avoid problems, document damage with photos, get a written repair estimate, keep notes of every call, and ask for the adjuster’s name and direct contact. If a claim stalls or you think it was underpaid, ask for a written explanation, then file a complaint with your state insurance department, which is free.

Canceling a State Farm auto policy

You can cancel by telling State Farm or your agent the date you want coverage to end. State Farm’s Illinois policy booklet, for example, says you cancel by giving advance notice of the cancellation date, premium is earned on a pro rata basis, and unearned premium is returned within 30 days of your request. It doesn’t list a cancellation fee. Terms vary by state, so check your own policy booklet.

Start your new policy before the State Farm one ends. A gap in coverage can raise future rates and, if you have a car loan, break your lender’s insurance requirement.

Who should look elsewhere

Drivers in Massachusetts or Rhode Island can’t buy a new State Farm auto policy today. Drivers with poor credit in states that allow credit-based pricing often pay less elsewhere. Military families should get a USAA quote first. And if you’d rather shop online without an agent, GEICO and Progressive sell direct.

Alternative: FarmersVisit siteCompare all

Alternatives to State Farm

  • GEICO BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.

    Often close on price, cheaper for minimum coverage and with poor credit, and sold direct online if you don't want an agent.

    Read review
  • USAA BestGuide rating: 4.6 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.

    Usually cheaper still if you're in the military, a veteran or a member's spouse or child.

    Read review
  • Progressive BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.

    Sold nationwide, including Massachusetts and Rhode Island, and its quote tool shows other insurers' rates.

    Read review
  • An independent insurance agent

    Free to use and can quote several companies at once, though not State Farm, which sells only through its own agents.

See all auto insurance companies, ranked

State Farm reviews

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Frequently asked questions

Is State Farm car insurance expensive?

Not for most drivers with good credit. NerdWallet's October 2026 average is $1,985 a year for full coverage, below the $2,361 national average. With poor credit, State Farm's average rises to $7,791.

Is State Farm cheaper than GEICO?

For full coverage they're close: $1,985 at State Farm and $2,020 at GEICO in NerdWallet's averages. GEICO is cheaper for minimum coverage, $492 versus $561. Quote both with the same limits.

What is State Farm's AM Best rating?

A+ (Superior). AM Best lowered it from A++ in November 2025, but A+ still indicates a strong ability to pay claims.

Why does State Farm have a D- BBB rating?

The BBB grades how a business handles complaints filed on its site, and State Farm's profile shows 4,342 complaints in three years and no accreditation. It isn't a measure of claim payouts; NAIC data shows a normal complaint level for its size.

Who qualifies for the State Farm dividend?

Customers with a State Farm Mutual personal auto policy active at any time in 2025 whose dividend is $10 or more. Payments are 4% to 10% of 2025 premium depending on the state and average $100 per vehicle.

Does State Farm have accident forgiveness?

State Farm doesn't publish an accident forgiveness add-on in the materials we checked. Ask your agent, since rules vary by state.

How does Drive Safe & Save work?

You use the State Farm app and a Bluetooth beacon in your car. You get 10% for enrolling and up to 30% at renewal, but risky or heavy driving can raise your rate.

Can I get State Farm car insurance in Massachusetts?

Not as a new customer today. State Farm plans to offer products in Massachusetts in early 2027. In Rhode Island, its affiliate HiRoad sells auto coverage.

How do I cancel State Farm car insurance?

Contact your agent or State Farm with the date you want coverage to end, ideally the day your new policy starts. Unused premium is refunded on a pro rata basis.

How good is State Farm at paying claims?

Above average in J.D. Power's 2025 claims study, where it scored 716 against a 700 average, tied for 8th of 20. Trustpilot reviews are mostly negative and focus on slow claims and low payouts.

Sources (14)

Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards

  1. NerdWallet: Average car insurance cost, October 2026 analysis (accessed October 12, 2026)
  2. NerdWallet: State Farm auto insurance review (updated September 30, 2026) (accessed October 12, 2026)
  3. J.D. Power: 2025 U.S. Auto Claims Satisfaction Study (October 28, 2025) (accessed October 12, 2026)
  4. Insurance Information Institute: Top writers of private passenger auto insurance, 2025 (NAIC data) (accessed October 12, 2026)
  5. AM Best via Yahoo Finance: AM Best downgrades credit ratings of State Farm Mutual Automobile Insurance Company (November 14, 2025) (accessed October 12, 2026)
  6. BBB: State Farm Insurance Company profile (accessed October 12, 2026)
  7. State Farm Newsroom: State Farm Mutual begins issuing dividend payments (accessed October 12, 2026)
  8. WEEK 25 News: State Farm pays record dividend, reports 2025 earnings (March 2, 2026) (accessed October 12, 2026)
  9. State Farm: Drive Safe & Save (accessed October 12, 2026)
  10. State Farm: Personal Car Policy booklet, Illinois policy form 9813C (cancellation and premium refund) (accessed October 12, 2026)
  11. State Farm: Massachusetts insurance agents (availability note) (accessed October 12, 2026)
  12. Trustpilot: State Farm reviews (accessed October 12, 2026)
  13. Apple App Store: State Farm (accessed October 12, 2026)
  14. State Farm Newsroom: State Farm Mutual saves customers $4.6 billion in auto rate reductions (accessed October 12, 2026)
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