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State Farm Review

Written by Todd Clay. Posted in Our Reviews Last Updated: 12/14/2012

Former State Farm Agent shops around: When good service isn’t the only thing you should look for in a car insurance company.

FULL DISCLOSURE:
I worked as an employee, as an employee of an Agent, and as an Agent of State Farm Insurance.  My dad is still a State Farm Agent.
————-

“Like a good neighbor, State Farm is there.”

That may be one of the best taglines in the insurance business. It hearkens back to a time when your insurance agent was just down the street. A time when you might drop by his office on your walk to the post office. It reminds me of a quaint town that may not even exist anymore. That’s the image ‘good neighbor’ insurance conjures up in my mind.

And believe me, they know it.

That’s why they’re now spending millions of dollars trying to convince young consumers they’re not just your father’s insurance company. They’re constantly targeting younger drivers. At the time of this review, a quick look at their main homepage revealed 5 people under 35. I was under 35 when I initially wrote this review – does State Farm have my business? More on that below.

About the Company

State Farm Insurance is one of the oldest auto insurance companies in the United States. Founded by a farmer, G.J. Mecherle, they’ve grown to be the largest private insurance company in the country. Boasting over 75,000,000 policies, they insure more cars than any other company on the planet. AM Best rates most State Farm Companies with a AA rating (very strong).

According to their website, State Farm consists of 13 separate financial services companies. They sell fire, auto, life, and health policies. They also market bank products and investments though the majority of their revenue comes from auto and home policies. State Farm is first and foremost an insurance company.

My Experience as a State Farm Policyholder

I’ve been a State Farm policyholder for as long as I’ve bought car insurance. My dad is still a State Farm Agent. I’ve had accidents, tickets, one reckless and a few cracked windshields as a State Farm policyholder. Overall, I’ve paid more money to State Farm than they’ve ever paid out on me – so I guess that puts them ahead.

Overall, I’ve had a positive experience as a State Farm policyholder. Even though I know a bit about car insurance, State Farm people were very helpful before I started working for them and while I learned the business. Typically, State Farm Agents and their employees know their stuff.

State Farm Positive: Personal Service

State Farm sells and services their policies through their network of 17,000 Agents. Usually, each State Farm Agent has their own office and support staff. I’ve had my insurance with a couple of different agents (besides myself). Both offices in Texas & Washington had superb service. If I had a question on my monthly payments, any coverages, or claim issues, the staff was outstanding.

Not every State Farm policyholder has this good experience. If you’re sold on State Farm but you don’t like your current Agent or their staff, then change Agents. To me, good service is the main thing you’re paying for at State Farm. If you’re unhappy with your Agent, then you’re usually overpaying – big time.

State Farm Negative: Price

Which brings me to State Farm’s #1 weakness: price. I live in Texas. In Texas, my rates are relatively high: Out of 50+ auto insurance companies doing business in the state, State Farm is #25 for price in my age group: Texas Rates.  From my experience and research, this is normal. For whatever the reasons, State Farm car insurance rates are higher than their competition.

That’s one of the reasons State Farm’s advertising highlights their good service. Some people are willing to pay extra money so that the same Agent will pick up the phone anytime they have an insurance question. To them, it’s worth it.

Is State Farm Worth It To Me?

To me, it’s not worth the extra 38% for my monthly premiums. That’s compared to just one of the quotes I got from another reputable auto insurance company.

I’m not married to State Farm. They’ve been a good company, but I’m shopping around. Until they bring their rates in line with some of the other great car insurance companies out there, I’m bringing my business to somebody else.

State Farm might be great for you, but consider the alternatives. Even as a long-term policyholder, I’m glad I shopped my rates. I’ll be saving 38% every month – at least. I hope you can do the same.

Quote Process: 8
(Scale 1-10: 10=the best)

Price: 3
(Scale 1-10: 10=Cheapest)

Customer Service: 9
(Scale 1-10: 10=the best)

Claims: 9
(Scale 1-10: 10=the best)

Overall Rating: 6
(Scale 1-10: 10=the best)

Do you have something to add? Leave a comment or write your own State Farm review.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He’s worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook.

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  • Statefarmcar contest | Bestoptionsnewsletter

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    […] State Farm Review | Car Insurance GuidebookFormer State Farm Agent shops around: When good service isn’t the only thing you should look for in a car insurance company. FULL DISCLOSURE: I worked as an employee, as an employee of an Agent, and as an Agent of State Farm Insurance. … Posted on 10/31/2008 by Todd Clay | Last updated: … Former State Farm Agent shops around: […]

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