State Farm is one of America's oldest insurance providers. It was founded in 1922 by G.J. Mecherle, a former farmer who decided that he was going to start his own insurance company dedicated to providing fellow farmers with low-cost insurance for their homes , farm equipment , and automobiles .
Today, State Farm is the fourth-largest car insurance company in the United States in terms of overall market share and how many policyholders the company has enrolled. You've probably heard their slogans on television:
"We are farmers! Da, da, da, da, da! "
State Farm's primary selling point is its customer service and trustworthiness. The company markets itself as the insurance company that policyholders can rely on "like a good neighbor. "
However, how does State Farm stand up to the competition? How much is State Farm car insurance ? What does State Farm's full-coverage policy cover? How easy is it to cancel your existing policy?
In this article, we're going to take an in-depth look at State Farm auto insurance rates, customer reviews, and different factors that contribute to higher or lower premium costs. Let's dive in!
As you'll be able to see on our average car insurance cost per month research, State Farm full coverage cost is $104 per month or $1,250 per year on average.
State Farmcar insurance cost for minimum coverage is $52 per month or $625 per year, which makes State Farm car insurance rates the third most expensive on our shortlist.
| Coverage Type | Cost Per Month | Cost Per Year |
|---|---|---|
| Full coverage | $104 | $1,250 |
| Minimum coverage | $52 | $625 |
Although State Farm doesn't exactly market itself as a discount auto insurance company, their average car insurance policy prices are actually quite affordable, especially compared to some of the other top-rated insurers on the market.
According to our recently conducted car insurance quotes study , State Farm policyholders’ average national insurance premiums were between $1,098 and $1,468, with an average car insurance cost of $1,250 a year for full coverage and $625 per year for the minimum coverage. The wide margin of variance is typically attributed to age differences. The average senior driver (65 or older) paid closer to $1,100, while the average adult driver (25-years-old or older) paid a slightly higher rate due to lack of driving experience.
If you compare quotes offered by other insurance companies such as USAA or GEICO, you'll find that these rates are competitive and aren't too much higher than the industry standard. In fact, according to our research, the average annual cost for a full-coverage policy (across all insurance companies) was around $1,700 per year.Â
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| Coverage Type | Cost Per Month |
|---|---|
| Full coverage | $104 |
| Minimum coverage | $52 |
While State Farm gives new policyholders the option to pay off their entire policy upfront with one payment (and typically provides a discount for doing so), most drivers pay for their coverage monthly.
Depending on your individual needs, State Farm usually provides coverage on a six-month or a twelve-month basis. Twelve-month plans are typically a bit more affordable since the insurer benefits from having you locked into a contract, while six-month plans may be slightly more expensive (but they'll also give you more flexibility to negotiate your premium).
So, assuming that you're a 25-year-old with a typical $1,450 per year policy and a twelve-month coverage plan, then your monthly payments would be around $121 per month. When you first sign up, you'll likely put this amount as a down payment and then make recurring monthly payments every 30 days.
That being said, however, this is just an average rate . Your personal rate may differ considerably, depending on your age, credit score, driving record, the type of car you're driving, and the city and state you receive coverage in.
Full-coverage insurance is a broad term that's used to describe a policy that goes above and beyond the coverage limits of the minimum liability coverage options. A standard State Farm full coverage insurance policy would include all of the following coverage options:
Bodily Injury Liability Coverage (covers other driver's medical costs after an accident).
Property Damage Liability Coverage (covers damage to other driver's vehicle or surrounding personal property).
Collision Insurance Coverage (covers damage to your own vehicle in a car crash).
Comprehensive Insurance Coverage (covers damage to your vehicle from natural disasters or flying debris).
Medical Payments Coverage (covers your personal medical bills, funeral costs, or treatments after an accident).
Uninsured/Underinsured Motorist Coverage (covers you if you get in an accident with somebody who does not have auto insurance).
Emergency Roadside Assistance.
Car Rental Expenses (covers up to a certain amount so that you can rent a car if your car is damaged in an accident or getting repaired).
Within each of these coverage options, you'll be able to select exactly how much damage you want to be covered for. For example, suppose you have a $30,000 bodily injury liability coverage policy. In that case, your insurer will cover up to $30,000 worth of the medical bills for the other driver who was injured in the accident.
In general, the more expensive your car is, the higher the amount of coverage you should purchase to ensure that all of your costs are taken care of in the event of an accident.
Most states require all drivers to maintain basic liability coverage if they own a registered vehicle in the state. This basic coverage level is the most affordable, but it only covers bodily injury liability coverage and property damage liability. It's designed to cover other drivers, not you. > Essentially, it protects you from a lawsuit.
If you want to ensure that you're fully-protected and that your personal car repair costs and medical bills are covered by your car insurance, then you may want to select State Farm's full-coverage insurance policy.
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Most states give drivers a 30-day grace policy to add a newly purchased vehicle to their insurance policy. However, if you go beyond this period, then the state can issue you a fine for each day that your vehicle is uninsured.
Thankfully, State Farm's mobile app and online platform make it easy to add your new vehicle to your policy. Simply log into your account, look at your existing auto policies, and select the option to 'Add New Vehicle.' You'll have to enter some basic information about your vehicle, including safety features, the unique VIN number, color, engine size, trim, mileage, etc.
Once you enter all of the information, you'll be able to select the amount of coverage that you want for that particular vehicle, make your downpayment for the policy, and then you'll be billed monthly along with your other auto policies.
Like most major insurance providers, State Farm is actually pretty fair when it comes to cancelling your coverage. You can either cancel in person, by mail or by phone  - and tell them that you wish to cancel your policy. They'll usually ask for a reason, try to sell you on an extension, and will ultimately cancel your policy unless you say otherwise.
Cancellation is free, and State Farm does not charge any additional early cancellation fees.Â
Sources:
I just had an appalling experience trying to cancel my Mom's AAA insurance after she developed dementia and stopped driving. They threw up every barrier to what should have been a simple process, and even refused to accept my Power of Attorney documents electronically. The representative was extremely rude and copped an attitude. I think they refuse to close accounts so they can keep fraudulently charging non-driving seniors. This is a crooked company, and nobody should do business with them.
On May 10, 2023, I was involved in an accident with one of USAA's clients. Everything proceeded smoothly until they decided to give me the runaround in repairing my car or compensating me for its worth. The adjuster was nowhere to be found, and it took me a couple of months to receive any response from them. They informed me that my car was a total loss and provided a specific amount they were willing to pay for it via email, stating that I could dispute it if I could find a car in the same category with the same mileage within a 100-mile radius. Unfortunately, I couldn't find an exact match, but I did find a vehicle that was one year older and one year newer, so I disputed the price they were offering. They assured me they would get back to me in a couple of weeks, but I never heard from them again. Frustrated, I took the step of filing a complaint against them with the Texas Department of Insurance and the Office of the Attorney General. However, I received no assistance beyond the insurance company responding to me and denying my dispute without providing any tangible reasoning. This was after three months of back-and-forth since my car accident, with no access to a replacement vehicle or rental car. Now, it has been five months, and they are attempting to push the responsibility onto my own insurance. These actions indicate that these individuals are playing games with people's lives, and there seems to be no one holding them accountable. It is disheartening to realize that we live in a country that is supposed to protect average citizens from being taken advantage of by large companies like USAA, but this has proven to be far from the truth. I have lost trust in the entire system, and I am determined to stop paying insurance premiums to these corporate entities that seem only interested in taking our hard-earned money every day, without delivering the support they promise.
I was shopping for auto insurance on 11th September 2023. Liberty took$8614 out of my bank that same night without my permission. And now they will not return my hard earned money. Every time I call ,they give me sorry excuses. And now they tell me that ,yes we took your money by fraud. Go write your congressman. But we'll give it back to you in 15 days. Meanwhile my bills are piling. Liberty Mutual stole my money. Please avoid Liberty Mutual at every cost.
I have dealt with many auto insurance companies in my life time but none as deceitful as AAA!! I signed up with a AAA insurance agent back in March. The premium I was would be $138/month-(all good). The agent told me I had to pay 4 months in advance so I gave my credit card to pay for the 4 months including the current month. One month later I received my monthly invoice for payment. The amount due had jumped from $138 (monthly) to $276. I called AAA and they said this was because of an accident that occurred 5 months prior where the other driver was at fault, though the case was still had yet to be closed. AAA would not accept the quoted premium of $138/month. So I shopped for a new insurance policy. A division of Farmers Insurance (Toggle) sold me their auto policy which was superior to AAA at $118/month with only $500 deductible. I canceled AAA and jumped onto the Farmers policy. I contacted AAA to cancel the policy and requested the 3 months paid in advance be reimbursed to me. I was told that I would not be reimbursed and in fact I was still responsible for the premium payment of $276 - that this payment would not be forgiven. I have since filed a claim with the BBB (Better Business Bureau) and if this fails I will take AAA to small claims court. Prior to this experience I respected the AAA name. I've learned that this company is simply TOO BIG and feel they can take advantage of their customers at will. I have since canceled EVERYTHING AAA (roadside service and an insurance policy). This big business corporation is NOT TO BE TRUSTED!!!!
Total scam. Beware. They use drive easy app to bat and switch.
Not all those who wander are lost.
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