State Farm Detailed Review 2025

State Farm is the United States’ largest personal‑lines insurer and an industry fixture since 1922. With more than 19,000 licensed agents and over 94 million active policies, the Bloomington, Illinois‑based mutual company writes business in all 50 states and the District of Columbia. In this long‑form review we examine State Farm’s financial performance, market share, product line‑up, pricing, technology, customer‑service record, and overall suitability for today’s shoppers. Figures cited below are the most recent available and, unless noted, reflect calendar‑year 2024 results.

1 | Financial strength and market position

• Total revenue (2024): $123 billion — up 18 percent year‑over‑year, thanks to premium growth and equity‑portfolio gains.

• Net income (2024): $5.3 billion after two consecutive years of net losses.

• Direct written premium in private‑passenger auto (2024): $66.5 billion, equal to roughly 24 percent U.S. market share — the largest slice held by any carrier.

• AM Best rating: A++ (Superior) for the mutual parent; individual property‑and‑casualty subsidiaries retain A or better ratings despite catastrophic‑loss pressure.

The numbers confirm that State Farm has the capital depth to pay claims promptly and to absorb volatility in catastrophe‑prone lines such as homeowners.

2 | Product suite

Although best known for auto coverage, State Farm sells a full menu of personal‑lines and small‑business policies. The table summarises major offerings:

3 | Pricing and discounts

NerdWallet’s May 2025 rate study places State Farm’s average full‑coverage premium at $2,169 per year for a 35‑year‑old driver with clean credit — about 5 percent below the national average of $2,290. Minimum‑liability coverage averages $497 per year versus a nationwide mean of $623.

Major savings opportunities include:

• Multi‑line (“bundling”) — auto + home or life can reduce both premiums 17–25 percent.

• Drive Safe & Save™ telematics — mileage and behaviour tracking worth up to 30 percent off in most states.

• Good‑student and Steer Clear® programs for drivers under 25.

Drivers with poor credit or serious violations (DUI, at‑fault crash) should expect materially higher rates; NerdWallet pegs the average post‑DUI premium at $3,208, still roughly 25 percent lower than the national DUI average.

4 | Digital experience

Despite its agent‑centric heritage, State Farm invests heavily in self‑service technology:

• State Farm Mobile (iOS rating 4.8/5; Android 4.1/5) lets policyholders pay bills, access ID cards, enroll in Drive Safe & Save, request roadside help, and upload claim photos.

• A web‑based customer dashboard supports quote retrieval, policy changes, and secure document storage.

The carrier still leans on human agents for policy sales and complex endorsements, which some digital‑only shoppers may view as a drawback.

5 | Claims handling and customer satisfaction

The 2025 J.D. Power U.S. Auto‑Insurance Study shows regional performance variation: State Farm scored 648/1000 in the Northwest region (industry average ≈ 644) and placed third nationally (699/1000) in the separate Insurance Shopping Study.  Complaint ratios filed with the National Association of Insurance Commissioners remained below the market median (0.84–0.89) in 2024. Service quality, however, can hinge on the individual local agent overseeing the claim.

Average claim cycle times run 7–14 days for routine auto losses; catastrophe or injury claims take longer but are supported by catastrophe‑response teams that State Farm deploys after major weather events.

6 | Pros and cons

Pros

• Broad national footprint with the largest agent network.

• A++ financial strength and $145 billion net worth underpinning claims‑paying capacity.

• Pricing below the national mean for clean drivers and competitive bundling discounts.

• Highly rated mobile app plus optional telematics savings.

• Mutual company structure allows long‑term rate strategy rather than quarterly earnings pressure.

Cons

• Base premiums often higher than online‑only rivals such as GEICO for single‑policy shoppers.

• Rate hikes have been steep in catastrophe‑prone states, and State Farm has temporarily paused new homeowner business in parts of California.

• Limited add‑on features such as accident forgiveness or gap insurance compared with Allstate or Liberty Mutual.

• Customer experience can vary sharply by agent; fully digital claimants may find the process slower than Progressive’s photo‑estimate workflow.

7 | Key metrics at a glance

Sources: State Farm 2024 Annual Results; NerdWallet rate study May 2025; J.D. Power Insurance Shopping Study 2025.

8 | Who should consider State Farm?

State Farm is a strong match for U.S. households that value a long‑term relationship with a local agent, plan to bundle multiple policies, and maintain clean driving records. Families with teen drivers can benefit from Steer Clear while homeowners gain multi‑line savings. Digital‑only bargain hunters and high‑risk drivers might secure lower quotes elsewhere.

Conclusion

For 2025, State Farm remains a market titan with unrivalled distribution reach and proven balance‑sheet strength. Its premiums sit just below national norms for preferred risks, and its claims‑paying reputation is solid. Yet consumers should weigh service preferences, add‑on needs, and local catastrophe exposure before committing. As always, obtaining multiple quotes is the surest way to confirm whether State Farm is the winning policy for your personal situation.