Provider review
State Farm Car Insurance Review
State Farm's evidence points to top-of-market scale and a long-tenure exclusive-agent network, tempered by a November 2025 AM Best downgrade and a telematics program that adjusts premium in either direction.
State Farm at a glance
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State Farm's evidence points to top-of-market scale and a long-tenure exclusive-agent network, tempered by a November 2025 AM Best downgrade and a telematics program that adjusts premium in either direction.
Strong at
Scale and agent-first distribution
State Farm led U.S. private-passenger auto by NAIC 2025 full-year direct premiums earned. It operates as a mutual company through roughly 19,000 exclusive agents. Third nationally in the 2025 J.D. Power Insurance Shopping Study behind Erie and Auto Club Group, per publisher secondary reporting.
Watch for
The November 2025 AM Best downgrade and regional score slippage
AM Best downgraded State Farm's FSR to A+ (Superior) from A++ on November 14, 2025, citing adverse underwriting in personal auto and homeowners. State Farm's average across 11 regions in the 2025 J.D. Power U.S. Auto Insurance Study fell to 650 from 657, with scores down in seven of eleven regions. State Farm does not offer gap coverage.
Worth comparing if
Agent-first shoppers and telematics-curious drivers
State Farm tends to be worth a quote if you prefer a named local agent for policy servicing and claims handoff, want Drive Safe & Save with a published maximum discount of up to 30% and clear eyes about its rate-adjustment mechanics, or prioritize a discount menu that includes a Good Student savings of up to 25%.
Quote-dependent
State rules, Drive Safe & Save geography, and entity mix
Your premium, whether Drive Safe & Save is available where you live (not offered in California, Massachusetts, or Rhode Island; conditional in North Carolina; capped at 30% in New York), exact discount amounts (many are "up to" averages), and which State Farm underwriting entity writes your policy in your state.
Key facts
Parent
State Farm Mutual Automobile Insurance Company; mutual (policyholder-owned)5
Availability
Personal auto sold across the United States through State Farm's national agent network
Distribution
Exclusive agent-first model; State Farm publishes roughly 19,000 agents5
AM Best FSR
A+ (Superior); downgraded from A++ on November 14, 2025; outlook stable1
AM Best Long-Term ICR
"aa" (Superior); downgraded from "aa+" on November 14, 20251
Modeled full-coverage premium
~$2,005/yr per NerdWallet September 2026; ~$192/mo, roughly 8% below national avg, per ValuePenguin; modeled rates, not personalized quotes6
NAIC complaint framing
Multiple separately rated underwriting subsidiaries; single national NAIC index does not cleanly summarise every state; see Complaints13
Telematics program
Drive Safe & Save (State Farm mobile app plus a mailed Bluetooth beacon); premium may increase or decrease at renewal; not available in CA, MA, or RI4
Notable
Founded 1922; headquartered Bloomington, Illinois. State Farm's auto page states gap insurance is not offered.2
Strengths & considerations
Strengths
- Scale. Largest U.S. private-passenger auto insurer by NAIC 2025 full-year direct-premiums-earned data.8
- Exclusive agent network. Approximately 19,000 agents across the country provide a named local point of contact for policy servicing and claims.5
- Regional J.D. Power leadership pockets. State Farm ranked No. 1 in the Northwest region and remains in the top 10 in every region of the 2025 U.S. Auto Insurance Study, per publisher secondary reporting.11
- Discount breadth. Published maximums include Drive Safe & Save up to 30%, Good Student up to 25%, and Passive Restraint up to 40% on medical-related coverage.4
- Mutual structure. Policyholder-owned rather than shareholder-owned; State Farm is not required to balance policyholder outcomes against equity-market pressure.5
Considerations
- Recent AM Best downgrade. AM Best downgraded State Farm's FSR from A++ (Superior) to A+ (Superior) on November 14, 2025; adverse underwriting in personal auto and homeowners was named in the rating action.1
- Regional score slippage. State Farm's average across 11 regions in the 2025 J.D. Power U.S. Auto Insurance Study fell to 650 from 657, with scores down in seven of eleven regions.11
- No gap coverage. State Farm's auto page states that gap insurance is typically offered by the auto loan provider and is not part of the State Farm coverage menu.2
- Drive Safe & Save can raise your premium. State Farm re-adjusts premium at each renewal using up to the prior 12 months of data; the adjustment can be a discount or a surcharge. If annual mileage exceeds 7,500 miles, premium may increase.4
- Underwriting-entity complexity. State Farm writes personal auto through several separately rated underwriting subsidiaries; NAIC complaint indices are reported per company per state.13
Coverage options
State Farm writes standard personal auto coverages plus carrier-specific products listed below. State availability and endorsement limits vary; confirm at quote time.
- Bodily injury and property damage liability: State minimum limits vary; higher limits generally available.2
- Comprehensive: Non-collision damage (theft, vandalism, weather, animal strikes).2
- Collision: Damage to your vehicle from an impact with another vehicle or object.2
- Uninsured / underinsured motorist: Required or optional depending on state.2
- Gap coverage: NOT offered by State Farm on the main auto page. State Farm suggests the reader's auto loan provider is the usual source for this coverage. If you finance or lease a vehicle and expect the lender to require gap-style coverage, verify with your lender that a third-party gap product is acceptable.2
- Emergency road service / car rental & travel expenses coverage / rideshare driver (select states): Commonly-bundled endorsements. Availability, limits, and state-specific rules vary; confirm with a State Farm agent.2
Discounts
- Drive Safe & Save: Initial discount for enrolling; up to 30% based on how you drive; not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts; New York capped at 30%. (up to 30%)4
- Steer Clear: Program aimed at drivers under 25 or new drivers, structured around learning safer driving habits.3
- Bundle and save: Additional savings when multiple State Farm products are on the household's account.3
- Defensive driving course: Available where state allows.3
- Good driver: Three or more years without moving violations or at-fault accidents; applies to new State Farm Mutual customers.3
- Good Student: Full-time high school or college students with 3.0+ GPA, top 20% of class, or Dean's List; may last until the teen turns 25. (up to 25%)3
- Driver Training: For operators under 21 who complete an approved driver-education course.3
- Student Away at School: Students under 25 attending school and using the insured vehicle only during vacations/holidays.3
- Vehicle safety savings: For vehicles with the latest safety features and driver-assist technology.3
- Passive restraint: For factory-installed air bag or other passive restraint systems; applied to medical-related coverage. (up to 40% on medical-related coverage)3
- Anti-theft: For vehicles with an approved alarm or anti-theft device.3
Drive Safe & Save (telematics)
Drive Safe & Save is State Farm's smartphone-based telematics program. The app tracks hard acceleration, hard braking, hard cornering, phone use while driving, speed, total mileage State Farm re-adjusts premium at each policy renewal (typically every six months) using up to the prior 12 months of data. The adjustment CAN be a discount OR a surcharge. State Farm specifically notes that if mileage exceeds 7,500 miles annually, premium may increase. That is a meaningful difference from telematics programs that only offer a discount. Not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts. Enrollment uses the State Farm mobile app plus a mailed Bluetooth beacon paired with the app. Tracked behaviors include acceleration (described as starting fast off the line), braking (fast, hard stops), cornering (quick, sharp turns), phone distraction (defined as phone moving while vehicle moving and screen on), speed over posted limit by 8+ mph, and annual mileage.4
- Enrollment discount: Initial discount for enrolling4
- Max renewal discount: Up to 30% based on how you drive; some states permit above 30%; New York capped at 30%4
- Can it raise your rate? Yes. Risky driving at renewal can push the premium up, not just down. Read State Farm's Drive Safe & Save addendum for your state before enrolling.4
- Not available (or no discount offered) in: CA, MA, RI4
For the full State Farm auto-discount matrix including Steer Clear and the Multi-Line bundle, see our deep dive on State Farm discounts. For the mechanics of Drive Safe & Save, see our deep dive on State Farm Drive Safe & Save.
Pricing
Every State Farm quote is personal. What follows are modeled premiums for defined driver profiles from reputable publisher analyses — not personalized quotes. Use them to calibrate what to expect, not to replace a real quote in your state.
NerdWallet (September 2026): NerdWallet September 2026 modeled full-coverage analysis; publisher methodology. Modeled rate, not a quote. NerdWallet national modeled full-coverage average in same analysis ~$2,344/yr ($195/mo).6
- Full coverage (standard profile): $2,005 per year ($167/mo)
Publisher national benchmark: $2,344/yr · $195/mo
ValuePenguin (January 2026): ValuePenguin reports State Farm full-coverage average ~$192/mo, which publisher describes as roughly 8% below the national average per its methodology. Modeled rate, not a quote.7
- Full coverage (national average profile): $2,304 per year ($192/mo)
How to read these numbers. Different publishers model different profiles and may use different underlying data (Quadrant Information Services is the most common dataset). Your quote depends on your driving record, credit-based insurance score where allowed, vehicle, garaging ZIP, mileage, prior insurance history, age, household composition, telematics participation, and the coverages and deductibles you select.
Complaints and regulatory record
The National Association of Insurance Commissioners publishes a complaint index that normalizes complaint counts against a company's share of premium written. A value of 1.0 represents the baseline expected complaint volume for a company of that size; lower is generally better.
State Farm writes personal auto through several separately rated underwriting subsidiaries. NAIC complaint indices are reported per company per state. A given state may see very different indices from two different State Farm entities in the same year. Use NAIC's Consumer Information Source to look up the specific State Farm entity that would write your policy in your state.13
To look up the current complaint index for the specific State Farm underwriting entity that writes policies in your state, use the NAIC Consumer Information Source or your state Department of Insurance. The entities most commonly rated for State Farm are:
- State Farm Mutual Automobile Insurance Company
- State Farm Indemnity Company (NJ)
- State Farm Fire and Casualty Company
Complaint index measures regulator-filed complaints, not overall service quality; treat it as one input among several. Index values vary by underwriting entity and by state and can shift year over year, so pull the current number for your state before signing.
Financial strength
AM Best affirmed State Farm at Financial Strength Rating A+ (Superior) and Long-Term Issuer Credit Rating aa (Superior) on November 14, 2025 with a stable outlook1. MATERIAL RATING EVENT: On November 14, 2025, AM Best DOWNGRADED the Financial Strength Rating of State Farm Mutual Automobile Insurance Company and its affiliates to A+ (Superior) from A++ (Superior), and downgraded the Long-Term ICR to "aa" (Superior) from "aa+" (Superior). Outlook was revised to stable from negative. AM Best attributed the action to a revision in the group's operating performance assessment to adequate from strong, reflecting adverse underwriting experience in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; the direction of the change is the honest context to attach to it.
What these ratings mean and do not mean. A high financial-strength rating indicates the insurer has the resources to pay claims under a wide range of adverse scenarios. It is not a guarantee of any specific claim outcome, service quality, or price competitiveness in your quote. Ratings can change; check the affirmation date.
Material news (last 24 months)
- AM Best downgraded State Farm FSR to A+ (Superior) from A++; Long-Term ICR to "aa" from "aa+"; outlook revised to stable from negative (November 2025): Operating performance assessment revised to adequate from strong, reflecting adverse underwriting experience in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; direction of change is the honest context.1
For head-to-head positioning against the other national mass-market writers:
YesWeSure Fit Check
Is State Farm a fit worth quoting?
State Farm tends to fit if you
- You prefer a named local State Farm agent for policy servicing and claim handoff, and are willing to trade a direct-to-consumer purchase experience for that relationship.
- You are open to Drive Safe & Save, understand that it can raise your premium as well as lower it, and your state is not California, Massachusetts, or Rhode Island.
- You have a student in the household who could qualify for the up-to-25% Good Student discount, or a newer vehicle that could earn the Passive Restraint savings on medical-related coverage.
- You place weight on the mutual-company structure and are comfortable with a strong A+ (Superior) AM Best rating in the wake of the November 2025 downgrade.
Look carefully if you
- You want the highest possible AM Best rating tier. As of November 2025 State Farm carries A+ (Superior) rather than A++.
- You need gap coverage on your vehicle from your primary insurer. State Farm's auto page states gap is not offered.
- You want a direct-to-consumer purchase and self-service flow with no agent in the middle; State Farm's model routes many interactions through the agent.
- You are risk-averse about telematics rate impact; Drive Safe & Save can raise your premium at renewal, not only lower it.
This is decision-support reasoning, not personalized advice. Your real decision depends on your quote in your state, current regulator data, and how much of your total budget an incident could disrupt.
Ready to compare State Farm against alternatives?
Compare car insurance quotesCommon questions
Is State Farm the biggest auto insurer in the U.S.?
By NAIC 2025 full-year direct-premiums-earned data, State Farm was the largest U.S. private-passenger auto insurer with a market share of 18.64%, narrowly ahead of Progressive at 18.60%. On a trailing-twelve-month basis ending March 31, 2026, S&P Global Market Intelligence estimated Progressive briefly passed State Farm for the first time. The two are essentially at the top of the market together.
Why did AM Best downgrade State Farm?
On November 14, 2025, AM Best downgraded State Farm's Financial Strength Rating from A++ (Superior) to A+ (Superior). AM Best cited a revision in the group's operating performance assessment to adequate from strong, driven by adverse underwriting in private-passenger auto and homeowners, a challenging regulatory environment, and elevated weather-related losses. A+ (Superior) remains a strong rating in absolute terms; the direction of the change is the honest context.
Does Drive Safe & Save raise rates?
State Farm states that premium is re-adjusted at each policy renewal (typically every six months) using up to the prior 12 months of driving data, and that the adjustment can be a discount or a surcharge. State Farm specifically notes that if annual mileage exceeds 7,500 miles, premium may increase. Drive Safe & Save is therefore not a discount-only program.
Does State Farm offer gap insurance?
State Farm's auto insurance page states that gap insurance is not part of the State Farm coverage menu and is typically offered by the auto loan provider. If you finance or lease a vehicle and your lender requires gap-style coverage, ask the lender whether a third-party gap product satisfies the requirement.
Is Drive Safe & Save available in every state?
No. State Farm states that Drive Safe & Save is not available in California, Massachusetts, or Rhode Island; a discount may not be available in North Carolina depending on individual facts and circumstances; and New York is capped at 30%.
How should I read State Farm's NAIC complaint numbers?
State Farm writes personal auto through several separately rated underwriting subsidiaries. NAIC complaint indices are reported per company per year. A single national State Farm index papers over meaningful variation between subsidiaries and between states. The most honest read is to look up the specific State Farm entity that would write your policy in your state at NAIC's Consumer Information Source directly.
How we make money. If you request a quote through a partner link on this page we may be compensated by the carrier or an aggregator. Our editorial judgment, ratings and the facts on this page are determined independently of any commercial relationship. See How we make money and Editorial standards.
Methodology: How YesWeSure reviews insurance providers. Last reviewed September 28, 2026.
- Head to headGEICO vs State Farm
- Head to headProgressive vs State Farm
- Head to headAllstate vs State Farm
- Head to headState Farm vs USAA
- Head to headFarmers vs State Farm
- Head to headErie vs State Farm
Sources & methodology
- AM Best via Business Wire: Downgrades Credit Ratings of State Farm Mutual Automobile Insurance Company and Affiliates (November 14, 2025) (AM Best via Business Wire)
- State Farm: Car insurance overview (coverage types; statement that gap insurance is not offered) (State Farm)
- State Farm: Car insurance discounts page (Drive Safe & Save, Steer Clear, Good Student, Passive Restraint, others) (State Farm)
- State Farm: Drive Safe & Save page (enrollment mechanics, tracked behaviors, discount and surcharge mechanics, state carve-outs) (State Farm)
- State Farm: About Us (mutual company structure; ~19,000 agents) (State Farm)
- NerdWallet: State Farm Car Insurance Review (September 2026 modeled rates) (NerdWallet)
- ValuePenguin: State Farm Insurance Review (modeled full-coverage rate) (ValuePenguin)
- Agency Checklists: NAIC 2025 Market Share, Top 25 Private Passenger Auto Insurers (secondary reporting of NAIC 2025 direct-premiums-earned data) (Agency Checklists)
- S&P Global Market Intelligence: Progressive now No. 1 US private auto insurer for full 12 months, estimates show (May 2026, trailing 12 months ending March 31 2026) (S&P Global Market Intelligence)
- J.D. Power: 2025 U.S. Auto Insurance Study (regional press release) (J.D. Power)
- Insurance.com: J.D. Power's best and worst auto insurance companies for 2025 (secondary reporting of the 2025 Auto Insurance Study regional scores) (Insurance.com)
- J.D. Power: 2025 U.S. Auto Claims Satisfaction Study (press release) (J.D. Power)
- National Association of Insurance Commissioners: Consumer Information Source (complaint index methodology and lookup by insurer) (NAIC)
Every material claim on this page traces to a source listed above. Modeled rate figures are premiums produced from Quadrant Information Services or publisher proprietary data for defined driver profiles; they are not personalized quotes. Last reviewed .