State Farm is a major home and auto insurer with big name recognition, heavy advertising and catchy jingles. But can they save you money with their various discount programs?
Here’s what you need to know about State Farm auto and home insurance
State Farm is the nation’s largest insurer with more lines of home and auto insurance written than any competitor, according to the company’s website.
With a network of nearly 19,000 “captive” agents who only write State Farm policies, chances are there’s an office staffed by local agents somewhere near you.
But do you really know all the money-saving offerings from the company with the famous Barry Manilow-penned jingle (“Like a good neighbor, State Farm is there”)?
Things to know about State Farm: Table of contents
- Reputation and customer satisfaction scores
- Homeowner’s insurance
- Auto insurance
- Other types of insurance
- How do I cancel State Farm insurance?
1. What is State Farm’s reputation in customer satisfaction surveys?
The Bloomington, Illinois-based insurer scores mixed marks on a couple of major consumer satisfaction surveys.
When it comes to auto insurance, Consumer Reports lists the company as being among the 10 lowest-rated insurers in the country.
J.D. Power has a wholly different take. The ratings and reviews aggregator says State Farm really excels in certain regions of the country:
- New England
- North Central
Overall, J.D. Power places the company at #9 on its tally of the 10 best auto insurers on the national level.
Meanwhile, when it comes to home insurance, Consumer Reports and J.D. Power again show a big difference of opinion.
The best advice when you’re trying to decide whether or not to get insured by State Farm may be this: Contact the insurance commissioner’s office in your state. Then ask them how many consumer complaints have been filed against State Farm where you live.
Since all insurance is regulated locally, they’re certain to have this info readily available to help you make a judgment.
2. State Farm homeowner’s insurance
With more than 28 million home insurance policies on the books, State Farm insures more homes than any other company in the country.
What does State Farm homeowner’s insurance cover?
Like most homeowners policies, State Farm says its home insurance policies will cover the following events:
You’ll get coverage for personal liability, medical payments to others and accidental direct physical loss to your dwelling.
In addition to your dwelling, State Farm says the following structures on your property will be covered at 10% of your dwelling coverage with a basic home insurance policy:
- Detached garages
- Equipment sheds
- Guest cottages
Of course, we should point out that there’s one thing that’s never covered under a basic home policy, be it from State Farm or another insurer — flooding.
For this reason, Clark Howard recommends you buy a separate flood insurance policy through the national exchange.
Premier Service Program
Speaking of water damage, State Farm sets itself apart when it comes to home insurance by offering the Premier Service Program.
This is basically a concierge program where homeowners get expedited service for water mitigation and flooring service after a water incident.
There are actually two parts to the program — one side that deals exclusively with water mitigation and flooring and another that deals with general contracting (Contractor Services Program).
Both parts of this program promise that you’ll get a response to your emergency in a very timely manner.
|Program||Provider establishes initial contact||Arrives on site to begin work|
|Water mitigation only||Within 1 hour of reporting damage*||Within 4 hours of reporting damage*|
|Flooring installation||Within 3 hours of reporting damage||N/A|
|Contractor Services Program||Within 1 hour of reporting damage||Inspection begins within 2 hours of reporting damage|
*Wait times may be longer during periods of high volume.
Best of all, the workmanship you get through this program is warranted for five years.
However, we should note that Premier Service is not available everywhere. So check with your local agent before trying to sign up.
3. State Farm auto insurance
Auto insurance is where State Farm does the bulk of its business. At last check, the insurer had more than 44 million active policies on automobiles in the United States.
Auto insurance customers get access to a couple of notable discounts…
Drive Safe & Save discount
The Drive Safe & Save program is the insurer’s version of pay-per-mile insurance, but it takes into account not only how much you drive, but how you drive.
It’s easy to get started with Drive Safe & Save. That’s especially true if your vehicle already is equipped with OnStar, which will seamlessly send your driving data back to State Farm for analysis.
But don’t worry if you don’t have OnStar. You only have to download the Drive Safe & Save app and install a Bluetooth-enabled beacon provided by the insurance company to transmit your data.
In exchange for doing this, you may get ongoing discounts of 30% off your premiums. In fact, State Farm notes in the fine print that, “some customers could see a discount of up to 50%.”
So what type of motorist behavior is Drive Safe & Save looking at when you’re behind the wheel?
- Annual mileage*
- Time of day when you drive
* In California and New York, only quantitative info like your mileage — not the quality of your driving — is used to set your rate under the Drive Safe & Save program.
Steer Clear safe driver discount program
If you’ve got a driver who is under 25 in the household, they may qualify for the Steer Clear safe driver discount program.
Steer Clear is basically an ongoing driver’s education course that leverages technology to get young motorists to practice safe driving habits.
The “coursework” consists of five training modules with lessons, videos, driving scenarios and quizzes. You also have to spend a minimum of five hours behind the wheel during at least 10 trips. Parents can log in to the app and help mentor their kids, too.
When all the requirements are met, the young driver gets a program certification that can be shown to their insurance agent for a discount. The percent of the discount varies by state, so be sure to ask your local agent what you can expect.
4. Other kinds of insurance offered by State Farm
Between auto and home insurance, State Farm has more than 72 million policies in force. Their next largest line of insurance business is life insurance with eight million policies on the books. That’s followed by health insurance with 867,000 policies at last check.
When it comes to health insurance, there are supplemental health, Medicare supplement and individual medical policies for sale.
Here’s a look at the other kinds of insurance products the company offers in addition to home, auto, life and health:
- Condo insurance
- Identity theft insurance
- Renters insurance
- Boat insurance
- Farm and ranch insurance
- Off-road vehicle insurance
- Manufactured home insurance
- Commercial auto insurance
- Umbrella insurance
- Business insurance
Meanwhile, insurance isn’t all that State Farm does. The company also offers financial products, including a full spectrum of banking and investment products.
5. How do I cancel State Farm insurance?
As mentioned before, State Farm employs nearly 19,000 captive agents who only write and service the company’s own policies.
That means if you’re thinking about cancelling, you’ve got to go through your local agent.
Can’t remember who your local agent is? No worries, the company makes it easy to locate them with an online search tool.
State Farm is the nation’s largest auto and home insurer, making it the go-to choice for a lot of people.
Of course, it’s never wise to just go where the herd goes; you’ve got to do your own independent research and make sure that what an insurer offers meets your needs.