State Farm Insurance is the largest property and casualty insurer in the United States, serving over 96 million policies and accounts through a network of more than 19,000 local agents. Founded in 1922 by George J. Mecherle in Bloomington, Illinois, State Farm operates as a mutual company—meaning its policyholders are the owners, not Wall Street shareholders. In February 2026, the company announced a historic $5 billion dividend to auto policyholders, averaging $100 per insured vehicle across 49 million cars. With an AM Best financial strength rating of A+ (Superior), 2025 net income of $12.9 billion, and a net worth of $170 billion, State Farm remains a dominant force in American insurance. But is it the right fit for you? This review breaks down everything you need to know.
What Does State Farm Insurance Cover?
State Farm provides one of the broadest product lineups in the insurance industry. Whether you need coverage for your car, your home, or your family's financial future, State Farm likely has a policy for it.
Auto Insurance
State Farm auto insurance is the company's flagship product, representing 63% of its property and casualty business. According to U.S. News, the average annual State Farm insurance quote for full coverage is approximately $2,449—slightly below the national average of $2,552. Minimum coverage starts around $704 per year.
Standard auto coverage includes:
- Liability coverage: Pays for injuries and property damage you cause to others
- Collision coverage: Covers damage to your car from an accident, regardless of fault
- Comprehensive coverage: Protects against theft, vandalism, weather damage, and animal collisions
- Uninsured/underinsured motorist: Covers you when the other driver has no insurance or not enough
- Medical payments: Pays medical bills for you and your passengers after an accident
State Farm also offers rental car coverage, rideshare insurance, and SR22 insurance (in most states) for drivers who need to file proof of financial responsibility.
Homeowners, Renters, and Condo Insurance
State Farm is the largest homeowners insurer in the U.S. Average annual premiums for homeowners insurance sit around $2,448—just below the national average of $2,543. The company earned an 85% customer satisfaction score for homeowners coverage in the 2026 Insure.com survey, the highest among national carriers.
Life Insurance
State Farm offers term life, whole life, and universal life policies. Term life rates start as low as $15.02 per month for a 10-year policy (based on a 25-year-old female in excellent health). The company carries an A+ rating from AM Best for its life insurance operations, placing it among the strongest-capitalized life insurers in the country.
Other Products
Beyond its core lines, State Farm provides pet insurance (through Trupanion), motorcycle insurance, boat and RV coverage, umbrella liability policies, and even a State Farm credit card. The company exited traditional banking in 2020–2021 but still offers financial products through partnerships.
How Much Does State Farm Insurance Cost in 2026?
Pricing is the question every insurance shopper starts with. Here's how State Farm's rates break down across key categories:
| Coverage Type | State Farm Average | National Average |
|---|---|---|
| Full Coverage Auto (Annual) | $2,449 | $2,552 |
| Minimum Coverage Auto (Annual) | $704 | $887 |
| Auto – Monthly Average | $239 | $288 |
| Homeowners (Annual) | $2,448 | $2,543 |
| Term Life (10-Year, Monthly) | From $15.02 | Varies by carrier |
Several factors affect your rate: age, driving record, credit score, location, and coverage level. One critical note—drivers with poor credit can see dramatically higher premiums with State Farm. U.S. News reports that State Farm's average annual premium for poor-credit drivers jumps to $10,007, compared to the national average of $4,868.
State Farm Discounts That Can Save You Real Money
State Farm offers a solid roster of discounts. Here are the most impactful ones:
- Drive Safe & Save™: Enroll and get an initial discount; safe drivers can earn up to 30% off at renewal
- Multi-auto discount: Up to 20% off when you insure multiple vehicles
- Good student discount: Up to 25% for students with strong grades
- Steer Clear®: Up to 15% for young drivers who complete a safe driving course
- Bundle discount: Average savings of $1,273 when bundling auto with homeowners insurance
The Drive Safe & Save telematics program is one of the better-designed usage-based insurance options in the industry. Unlike competitors that cap savings early, State Farm's program rewards consistently safe driving over time.
State Farm Pros and Cons: An Honest Assessment
| Pros ✅ | Cons ❌ |
|---|---|
| Largest agent network (19,000+ agents nationwide) | Rates above average for drivers with poor credit |
| Below-average auto insurance rates for most drivers | AM Best downgraded from A++ to A+ in Nov 2025 |
| $5 billion policyholder dividend in 2026 | CRASH Network gave State Farm a D+ for collision repair practices |
| Strong claims satisfaction (JD Power ranked 8th of 20) | NAIC complaint ratio of 1.35 for auto (above average) |
| Broad product lineup (auto, home, life, pet, umbrella) | No fully digital end-to-end purchase option |
| Drive Safe & Save offers up to 30% discount | Rate increases reported even for long-term, claims-free customers |
How to Get a State Farm Insurance Quote
Getting a quote from State Farm is straightforward. You have three options:
- Online: Visit statefarm.com and use the instant quote tool for auto, home, or life insurance
- By phone: Call the State Farm phone number at 1-800-782-8332 to speak with a representative
- Through a local agent: Search for a State Farm agent near me on the company website or app to find an office in your area
One thing to note: while you can start a quote online, State Farm generally requires you to complete the purchase through a licensed agent. There's no fully self-service online buying path for most products. If you prefer doing everything digitally with zero human interaction, competitors like GEICO or Progressive may be more your speed.
Filing a Claim With State Farm
State Farm's claims process is one of its genuine strengths. The company ranked 8th out of 20 insurers in JD Power's 2025 Auto Claims Satisfaction Study, outperforming both Progressive and GEICO.
You can file a claim through multiple channels:
- The State Farm mobile app
- Online at statefarm.com
- By calling the State Farm insurance claims line
- Through your local agent
For minor external damage, State Farm offers a Photo Estimate tool. You take guided photos of the damage, submit them through the app, and can receive an initial estimate and payout within 48 hours. That's faster than most competitors.
However, consumer reviews are mixed. Some policyholders praise the company's responsiveness, while others report frustration with claim denials or slow processing on more complex claims. The CRASH Network's 2026 Insurer Report Card gave State Farm a D+ rating based on input from over 1,100 collision repair professionals—a score that measures how well the insurer's practices support quality repairs.
The $5 Billion Dividend: What It Means for Policyholders
In February 2026, State Farm declared the largest policyholder dividend in company history—$5 billion in cash back distributed across more than 49 million insured vehicles. The average payment is $100 per vehicle, though amounts vary by state and premium paid.
This was possible because State Farm ended 2025 with net income of $12.9 billion, more than double its 2024 figure of $5.3 billion. The company's net worth grew to $170 billion, up from $145 billion the year before.
As a mutual company, State Farm doesn't have shareholders demanding profits. CEO Jon Farney put it simply: "As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future."
This dividend came on top of auto rate reductions in 40 states, amounting to roughly $4.6 billion annually in lower premiums. If you're a State Farm auto customer, that's real money back in your pocket.
Frequently Asked Questions About State Farm
What Is State Farm Most Known For?
State Farm is most known for being the largest auto and homeowners insurer in the United States. The company insures more cars and homes than any other single provider in America, with over 49 million auto vehicles and millions of home policies on its books. Its iconic tagline—"Like a good neighbor, State Farm is there"—is one of the most recognized slogans in advertising history. The company is also known for its massive agent network, its mutual ownership structure (policyholders own the company), and its long-running sponsorship of sports and entertainment through memorable State Farm commercials.
Is State Farm Insurance Still in Canada?
No. State Farm sold its Canadian operations to Desjardins Group in a deal announced in January 2014 and completed on January 1, 2015. The transaction covered State Farm Canada's property and casualty insurance, life insurance, mutual funds, and loan businesses. Desjardins paid approximately CA$1.6 billion for the acquisition. Former State Farm Canada customers in Ontario, Alberta, and New Brunswick were transitioned to Desjardins, which continued operating under the State Farm brand for a licensing period before fully rebranding. Today, State Farm operates exclusively in the United States.
Who Owns State Farm Insurance in the USA?
State Farm insurance company is a mutual company, which means it is owned by its policyholders—not by shareholders or private investors. When you buy a State Farm policy, you become a part-owner of the company. This structure has been in place since founder George J. Mecherle established the company in 1922. Unlike publicly traded competitors like Progressive or Allstate, State Farm has no stock, no external shareholders, and no pressure to maximize quarterly earnings. Profits are either reinvested into the business or returned directly to policyholders, as demonstrated by the 2026 $5 billion dividend.
Who Has Cheaper Auto Insurance Than State Farm?
Several auto insurance companies may offer lower rates than State Farm depending on your profile. USAA consistently offers the cheapest rates in the industry, but membership is limited to military-connected individuals. GEICO and Progressive frequently beat State Farm on price for drivers with clean records and good credit. Erie Insurance is another strong option in the states where it operates. However, State Farm's rates are competitive—its average annual full-coverage premium of $2,449 is about $100 below the national average. The best approach is to compare quotes from at least three carriers, because pricing varies dramatically based on your age, location, credit score, and driving history.
Who Are the Top 5 Insurers in the United States?
The five largest auto insurers in the U.S. by market share are:
- State Farm – the clear market leader
- Progressive – known for its online-first model and competitive pricing
- GEICO – a Berkshire Hathaway subsidiary with aggressive advertising
- Allstate – strong agent network and broad product range
- USAA – exclusively serves military members and families, consistently top-rated
Together, the top 10 auto insurers collect about 76% of all auto insurance premiums in the United States, according to ValuePenguin's May 2026 analysis.
Which Insurance Is Cheaper, AAA or State Farm?
This depends heavily on your specific situation. AAA (Auto Club Exchange) ranks as the 9th largest auto insurer in the U.S. and tends to offer competitive rates, particularly for members who already use AAA's roadside assistance and travel services. State Farm's average rates are typically below the national average, and the company offers strong multi-policy and telematics discounts. For most drivers, the price difference between the two will come down to your state, credit score, driving record, and whether you bundle policies. The best move: get a State Farm auto insurance quote alongside an AAA quote and compare them side by side.
Who Is the #1 Insurance Company in the USA?
It depends on how you define "#1." By market share and total premiums written, State Farm is the largest property and casualty insurer in the United States—a position it's held for decades. By total assets, Berkshire Hathaway is the largest insurance conglomerate in the U.S. at over $1.15 trillion. By revenue, UnitedHealth Group leads the entire insurance industry (including health) with projected 2026 revenues between $450–455 billion. For consumer satisfaction rankings, Travelers took the top spot for car insurance in Insure.com's 2026 study, while Amica leads for homeowners. State Farm consistently ranks in the top tier across most categories.
Who Is State Farm's Biggest Competitor?
State Farm's biggest competitor is Progressive. Progressive has been aggressively gaining market share in auto insurance and is now the second-largest auto insurer in the country. In 2025, Progressive paid $1 billion in dividends to Florida customers alone. Other major competitors include GEICO, Allstate, and USAA. For homeowners insurance, Allstate and Travelers are State Farm's closest rivals. The comparison of Progressive vs State Farm is one of the most common matchups consumers research when shopping for coverage.
Who Are the Top 5 Car Insurance Companies?
Based on the 2026 rankings from Insure.com, the top-rated car insurance companies by overall quality (not just size) are:
- Travelers (4.55/5 – #1 for the third consecutive year)
- GEICO (moved up to #2 in 2026)
- Nationwide (#3, swapped with GEICO from 2025)
- Progressive (#4, consistent top-5 performer)
- Amica (#5, known for low complaint ratios)
State Farm ranked 6th overall in Insure.com's study with 3.91 stars, and earned a 4.0/5 from U.S. News. While not the absolute top-rated, State Farm's combination of size, agent access, and competitive pricing keeps it in the conversation for most shoppers.
State Farm Contact Information and Customer Service
Need to reach State Farm? Here are the key contact details:
| Contact Method | Details |
|---|---|
| Main Customer Service | 1-800-732-5246 |
| Claims Phone Number | 1-800-782-8332 |
| State Farm 1800 Number (General) | 1-800-782-8332 |
| Online | statefarm.com |
| Mobile App | Available on iOS and Android |
| Find a Local Agent | statefarm.com/agent |
| Customer Service Hours | Vary by department; agents typically available weekdays |
You can also pay your State Farm bill online without logging in through the company's quick pay portal, or through the mobile app, by phone, or by mail.
How State Farm Compares to Major Competitors
| Feature | State Farm | Progressive | GEICO | Allstate |
|---|---|---|---|---|
| Avg. Annual Full Coverage | $2,449 | Varies widely | Below average | $3,000+ |
| Agent Network | 19,000+ local agents | Limited agents | No local agents | Local agents |
| AM Best Rating | A+ (Superior) | A+ (Superior) | A++ (Superior) | A+ (Superior) |
| Claims Satisfaction (JD Power) | 8th of 20 | Below average | Below average | Average |
| Telematics Program | Drive Safe & Save (up to 30%) | Snapshot (varies) | DriveEasy (up to 25%) | Drivewise (up to 40%) |
| Mutual/Public | Mutual (policyholder-owned) | Publicly traded | Berkshire subsidiary | Publicly traded |
| 2026 Dividend/Refund | $5 billion | $1B (FL only) | None announced | None announced |
Who Is State Farm Best For?
State Farm is an excellent choice for certain types of insurance shoppers:
- People who value in-person service: With 19,000+ agents, you can walk into a local office, sit down, and talk through your coverage face-to-face
- Bundlers: If you need auto, home, life, and umbrella coverage from one carrier, State Farm's average bundle savings of $1,273 make it compelling
- Safe drivers: The Drive Safe & Save program rewards careful driving with meaningful discounts
- Families: Good student discounts, Steer Clear for teens, and broad coverage options make it family-friendly
State Farm may not be the best fit if you have poor credit (premiums jump significantly), prefer a fully digital experience, or want the absolute cheapest rate available.
Real-World Example: How State Farm Works in Practice
Let's say you're a 35-year-old driver in Ohio with a clean record, good credit, and a 2022 Honda Accord. You also own a home and have a family.
Here's what a typical State Farm package might look like:
- Full coverage auto insurance: approximately $2,000–$2,400 per year
- Homeowners insurance: approximately $2,000–$2,500 per year (depending on coverage level)
- Bundle discount: saves roughly $1,200+ per year
- Drive Safe & Save enrollment: additional 5–30% off auto
- Good student discount for your teen: up to 25% off their portion
Add it all up, and a bundled State Farm customer with safe driving habits could realistically pay $3,500–$4,500 per year for comprehensive auto and home coverage. That's competitive by any measure.
FAQ: Quick Answers About State Farm Insurance
Q: Does State Farm cover rental cars? Yes. If you have comprehensive and collision coverage on your policy, State Farm rental car coverage typically extends to rental vehicles. You can also add specific rental reimbursement coverage to help pay for a rental while your car is being repaired after a covered claim.
Q: Does State Farm offer gap insurance? Yes. State Farm gap insurance (called Payoff Protector) is available in most states and covers the difference between what you owe on your car loan and what your car is actually worth if it's totaled.
Q: How do I find a State Farm office near me? Visit statefarm.com and use the agent locator tool, or search "State Farm insurance near me" on Google to find local agents in your area.
Q: Can I pay my State Farm bill without logging in? Yes. State Farm offers a pay bill no login option on its website where you can make a one-time payment using your policy number and billing zip code.
Q: What is State Farm's customer service phone number? The main State Farm customer service number is 1-800-782-8332. State Farm customer service hours vary by department, but agents are typically available during standard business hours.
Q: Is State Farm available in all 50 states? Yes. State Farm offers coverage in all 50 states and the District of Columbia through its network of State Farm agents near me locations.
External Authority Sources
- National Association of Insurance Commissioners (NAIC): naic.org – For complaint ratios, regulatory data, and industry standards
- AM Best Company: ambest.com – For financial strength ratings and insurer analysis
Sources: State Farm Newsroom (2026), U.S. News, Insure.com, The Zebra, ValuePenguin, WalletHub, JD Power, AM Best, NAIC, CNBC, Coverage Cat, Insurify. All data verified as of May 2026.
