State Farm Auto Insurance Review

Read about the history, services, and ratings of State Farm with this State Farm Auto Insurance Review. The creator of State Farm felt the early insurance company policies of charging everyone the same rates were not fair. He believed that since farmers were less prone to mishaps than non-farmers, their insurance rates should reflect this. On June 8, 1922 George J. Mercherle created a new auto insurance company in Bloomington by the name of State Farm Insurance with this concept in mind. See if State Farm has the best auto insurance with our FREE ZIP code search! Enter your ZIP and begin searching!

State Farm is owned by its policy holders, meaning it’s a mutual insurance company. The company introduced a lot of new innovative concepts like low risk rates, auto insurance discounts for safe drivers and semi-annual payment plans. The company initially started as an insurance provider for farmers with cars, its main target being the farming community. However, it quickly expanded into other areas of insurance. Compare State Farm auto insurance by entering your ZIP code into our comparison tool!

The company has been consistently ranked as one of the top insurance companies since 1942. It offers all types of auto insurance products to customers throughout the United States and Canada. State Farm is one of the top 25 Fortune 500 corporations employing 68,000 people and 17,000 agents. Currently, it services more than 81 million policies including fire, car, home and life.

State Farm Auto Insurance

In most states, in order to be able to drive one’s own vehicle, the driver must be insured. Car insurance helps to financially cover car related damages, loss or injuries. It protects the passengers, pedestrians, and other drivers in case of an accident. It can also provide protection in cases of vehicle related lawsuits. Compare auto insurance rates by state with our ZIP code search! We will help you find the best rates according to your state!

State Farm provides comprehensive, as well as basic, car insurance to their customers. They also offer a number of discounts to help customers save money.

• They have a ‘good driver discount’ for not getting tickets or having an accident in three years.
• There’s a discount for driving a safe car with a high government safety rating.
• Having safety equipment, like trackers, installed also earns a discount.

Financial Standing of State Farm

State Farm is rated as one of the best car insurance companies. They have earned these high ratings based on their financial strength and the ability to pay claims quickly. Three different independent rating companies have given State Farm their outstanding ratings.

• A.M Best has given State Farm A++ for superior financial standing and performance.
• Fitch Ratings also gave an AA+. This is based on research of insurance and insurance related companies throughout the world.
• Standard & Poor’s AA rating is earned on the basis of strong claims paying ability.

Benefits and Drawbacks of State Farm Car Insurance

There are several plus points of having a car insured with State Farm. First and foremost is the fact that the company has a reputation for building strong ties with their clients. It is a very large company with employees spread throughout the U.S. and Canada. Their educated agents are trained to handle accounts and they’re always ready to assist their customers. 70% of State Farm business is from auto insurance, so the company is very well versed in the industry. Also, they have been in business for nearly 90 years, so they have a lot of experience.

They are easily accessible through their very well rated online customer account management corner. They also have an iPhone State Farm app for added convenience. Over the years the company has managed to build a lot of trust with their customers and the customers feel secure that the company will be there if they need to make a claim. They also have some great options for cheap auto insurance, depending on the driver’s driving record.

There are also some issues with insuring a car with State Farm. The biggest negative is that they are very strict when it comes to accidents or poor driving records. They do not give their own policy holders any benefits when they are not at fault. Regardless of who is at fault, if there is an accident, the premiums will be reviewed. They also drop coverage if a plan holder’s license is suspended without taking the cause of suspension into consideration. Read over our Auto Insurance Guide before you begin to compare quotes!

Cheap Auto Insurance Rates

It is possible to get good discounts from State Farm if one is over 25 years of age. Individuals over 50 get even better rates, because they tend to be more cautious while driving. Combining different policies, like home and car insurance, also lowers premiums and makes managing accounts easier.

Before before buying a car insurance policy it is important to compare auto insurance from a number of different insurance providers. Only then can one have the true picture of what State Farm can offer. Comparing quotes online is easy, fast and best of all, it is free. Now that you know everything about State Farm, you can now compare online auto insurance and look for the best ways to save!