State Farm is No. 3 in Insure.com’s ranking of the Best Car Insurance Companies for 2024, with 4.27 stars out of 5. State Farm has high scores for customer satisfaction, trustworthiness and ease of service.
Barry Eitel is a content writer and journalist focused on insurance, small business and finance. He has researched and written about personal finance since 2012, with a special focus on entrepreneurship, freelancing and other small business operations. His writing on insurance and small business has been featured in 7x7, Brit + Co, Intuit Quickbooks, Bankrate, Policygenius and Lendio.
Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.
Why you can trust Insure.com
Quality Verified
State Farm is No. 3 among national carriers in Insure.com’s ranking of the Best car insurance companies for 2024 with 4.27 stars out of 5 stars.
State Farm customers report being highly satisfied with the company because of its ease of service and 92% of its customers said they would sign up again with the company. Customers also report they like the company’s commitment to excellent in-person service.
State Farm also received an A++ credit rating for financial stability from AM Best.
Below is Insure.com’s review of the company. It’s based on third-party metrics and an in-depth survey of insurance customers. Find the full methodology here, including an explanation of our survey scores.
AM Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.
State Farm’s monthly rates of $165 are between Erie’s $123 at the low end and CSAA Insurance Group’s $217 at the high end.
When you ask State Farm customers about their satisfaction, the vast majority said they were happy with the company. The insurer tied with Farmers for having the third-highest score in this category, which was led by Erie.
State Farm scored highly in customer satisfaction and scored well when customers were asked about its ease of service – it got the second-highest score after Erie. Ease of service gauges the ease with which customers can access policy documents and change a policy.
When we asked customers to rate insurance companies based on policy offerings, State Farm ranked high. In this category, which Erie led, only a handful of companies had higher scores.
Survey respondents highly recommend State Farm. Of the dozen companies ranked on Insure.com’s list, it ranks second behind only Erie when customers were asked if they would recommend the company to others.
When customers were asked to rank insurance companies for trustworthiness, State Farm was again one of the top companies in our survey. Customers ranked it almost as high as Erie, which received the highest score in this category at 86%.
Most State Farm customers – 92% – who responded to the survey said they planned to renew, right behind Erie (100%), Auto Club of Southern California and Mercury (95%).
When it comes to claims handling, State Farm ranked second on our list – just behind Allstate’s 86% and above competitors such as Erie, Geico, Farmers, Travelers and Progressive.
For digital experience – including both websites and apps – State Farm scored among the top five companies. However, most insurers didn’t score highly in this category – average scores were in the 40th-to-60th percentile range. Geico led this category.
When customers were asked about discounts, State Farm was ranked near the middle, scoring 64%. The top score in this category was 70% (Auto Club of Southern California earned it). Most scores were in the 50th and 60th percentile.
State Farm landed in the top 5 regarding the size of the discount for bundling auto and home. Other top insurers in this category were Erie at 69%, American Family at 66%, Travelers at 62% and then State Farm at 61%.
Discounts vary by state.
Like a good neighbor, State Farm has been a supportive insurer across the United States for many years. Founded in 1922, it is now the country’s largest private car insurance company, with more than 19,400 agents in the U.S. and Canada.
Since it began, it has grown to offer a myriad of additional financial products, such as loans, banking and retirement accounts, investment accounts and estate planning.
Sources:
State Farm. “Car insurance coverage options.” Accessed February 2024.
State Farm. “Insurance.” Accessed February 2024.
Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,459 people with auto insurance). Online market research company Slice MR conducted the survey. Respondents were asked to name their auto insurer and then grade it in the following categories – customer satisfaction, ease of service and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.
Respondents were then asked to pick their insurer’s top three attributes out of more than a dozen presented – trustworthiness, claims satisfaction, digital experience, discounts and best for auto/home bundling. The responses for each attribute were totaled and then divided by the number of each company’s customers who responded to that survey question to create a percentage.
Respondents were then asked if they would recommend their auto insurer to someone else and whether they would renew with their company. The percentage who said yes is presented in the results.
Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.
The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.
They then collected AM Best data, which measures financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in the calculations. If more than one underwriting company was identified for a line, the editors used a weighted average of the NAIC complaint index scores.
In addition, we also created star rankings for each company. Respondents were asked to pick their insurer’s top three attributes out of the more than the dozen presented, again including customer satisfaction and policy offerings. The number of responses for each attribute was totaled and then divided by the number of each company’s customers who responded to that survey question to create the star ranking.
The editors also collected insurance rate data from Quadrant Information Services.
With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For auto insurers, we took the following and gave each a weight.
Each insurer was awarded from half a star to 5 stars. No insurer in our star ranking received less than half a star and 5 stars was the most any insurer could receive.