State Farm
State Farm was founded in 1922 by a retired farmer and insurance salesman George Mecherle. It began as a single-line auto insurance company, they now offers more than 100 different products and services across five different industries.
State Farm launched State Farm Ventures, which focuses on investing in startups that develop technologies and products with a goal to improve customer satisfaction.
It is the largest auto insurance company in the U.S. with a market share of nearly 17%. The closest insurer in terms of size is Allstate with nearly 10% market share.
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Average annual rate for good drivers:
$1,402
Average annual rate for drivers with a speeding ticket:
$1,607
Complaint level:
Low
Pros
- Terrific rates for folks with an accident or speeding ticket on their records. (USAA is a tad cheaper but eligibility is restricted to military families and veterans.)
- Great average rates when adding a teen driver to a policy.
- Very competitive rates for senior drivers, who can see rate increases as they get older.
- Has decent rates for drivers with a DUI and will file SR-22 forms for those who must have them.
Cons
- Especially high rates for drivers with poor credit.
- Doesn’t offer gap insurance.
- If you want coverage options such as accident forgiveness, new car replacement or a vanishing deductible you’ll have to look elsewhere.
Details:
Grade from Collision Repair Professionals:
C
Accident Forgiveness:
No
New Car Replacement:
No
Gap Insurance:
No
Diminishing Deductible:
No
SR-22s:
Yes
Usage-Based Insurance:
Yes
Pay-Per-Mile Insurance:
No
Discounts:
- Accident-free discount. If you drive without having an accident for three years in a row, you can qualify for an accident-free discount from State Farm.
- Good student discount. If a student is age 16 to 25, is going full-time to high school or college, and has a B average, 3.0 grade point average or other qualifications, you can save up to 25% discount on car insurance from State Farm.
- Loyal customer discounts. Insure more than one car with State Farm and you could save as much as 20%. Insure a home or a condo or sign up for life insurance or renters insurance with State Farm alongside your auto insurance policy and you can save up to 17% with a multi-policy discount.
- Defensive driving course discount. Take a defensive driving class and you may be eligible for a discount of 10% to 15%.
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