Yes, State Farm is considered an excellent and highly reliable insurance provider. It is the largest auto insurer in the U.S. and is highly regarded for its extensive network of local agents, strong financial stability, and excellent mobile experience.
State Farm is the #1 insurance company in the U.S. overall by market share and direct premiums written. However, the top ranking depends on the specific category of insurance you are looking for.
Whether Allstate or State Farm is better depends entirely on your personal profile, as neither is universally superior. State Farm tends to win on price and overall customer satisfaction, while Allstate offers better customization and premium discount options.
State Farm’s reputation largely suffers from the systemic "deny, delay, and defend" tactics common among major insurance companies. Policyholders frequently cite aggressive claims handling, lowball settlements, and soaring premium costs.
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Our rating of the best car insurance companies found that Travelers is best overall. Geico, Progressive and USAA are also among the top-rated companies. Our rankings, ratings, and product reviews are unbiased.
Here are some ways to save on car insurance1
State Farm: customer experience comparison. In terms of claims satisfaction, State Farm has a better ranking than Progressive. In the 2024 J.D. Power's U.S. Auto Claims Satisfaction Study, State Farm earned a score of 710 out of 1,000 for overall claims satisfaction, which is above average.
Warren Buffett frequently uses State Farm as a benchmark for insurance industry dominance, expressing awe at its size and how a mutual company can thrive so massively without traditional capitalist incentives (like public stock or equity).
The insurance company that denies the most claims depends heavily on the type of insurance you are referring to:
Key takeaways
GEICO offers the widest range of discounts of all the car insurers we analyzed. Progressive offers the most coverage options out of these four companies. State Farm is great for drivers who prioritize mobile apps and customer satisfaction.
Only New Hampshire and Virginia do not require you to carry traditional auto insurance, though both come with significant caveats.
The "Big 3" insurance companies in the US, particularly in the Property and Casualty (P&C) sector, are generally considered to be State Farm, Progressive, and Berkshire Hathaway (GEICO). These companies hold the largest market share in personal lines like auto and home insurance.
The "best" car insurance varies entirely by your specific needs, driving record, and location. However, national leaders consistently stand out for balancing affordability, reliable claims handling, and strong customer satisfaction.
Nationally, USAA consistently receives the highest customer satisfaction ratings. However, because USAA policies are exclusively available to military members and their families, Amica Mutual and Erie Insurance are the top-rated national providers open to the general public.
The "richest" insurance company depends on how wealth is measured: Berkshire Hathaway is the wealthiest by overall net assets and market capitalization, while UnitedHealth Group generates the most revenue and collects the highest premiums globally.
State Farm is issuing a historic $5 billion dividend to its auto insurance policyholders because of strong underwriting profits and decreasing accident rates. As a mutual insurance company, State Farm passes excess earnings directly back to its members rather than to outside shareholders.
Warren Buffett, the billionaire CEO of Berkshire Hathaway, eats a McDonald's breakfast every morning. He chooses between three different meals priced at $2.61, $2.95, or $3.17 depending on how the stock market is performing that day, paying with exact change.
State Farm’s biggest overall competitor is Progressive, its closest rival in total market share for the U.S. auto insurance industry. However, depending on the specific insurance line, State Farm’s primary rivals vary:
Bad Faith Insurance Practices By State Farm
There is no single "most expensive" insurance company, as rates depend entirely on your location, driving history, and vehicle. However, among major national carriers, Allstate is frequently cited as the most expensive major provider for standard drivers. Regional or high-risk insurers like United Automobile Insurance Company (UAIC) and Chubb also rank among the highest priced.
When dealing with an insurance company, avoid over-explaining or volunteering unprompted details, as adjusters look for statements to minimize or deny payouts. Stick strictly to the facts, and never admit fault, guess about events, or downplay injuries, especially immediately after an accident.
A $1,000 deductible is generally better for your wallet if you have a solid emergency fund and a clean driving record. It saves you on your monthly premium. However, a $500 deductible is safer if your savings are limited or you commute heavily in high-traffic areas.
Yes, $300 a month for car insurance is expensive. The average cost of car insurance ranges from about $56 per month for state-minimum coverage to $176 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.