Is State Farm cheaper than other major insurers?

For most driver profiles, yes. Independent rate data puts State Farm's full coverage average near $2,030 a year against a national average closer to $2,320 — roughly 12% below. The gap widens after an incident: about 14% below average with one at-fault accident, and around 35% below average with a DUI, which is one of the most lenient DUI positions among large carriers. Regional mutuals like Erie and Amica still beat it on price for many profiles, so State Farm is best treated as a strong baseline quote rather than an automatic winner.

How does State Farm's Drive Safe & Save program work?

Drive Safe & Save uses a mobile app, paired with a Bluetooth beacon in the vehicle, to score acceleration, braking, cornering, speed, and phone handling, and it also counts your annual mileage. Enrolling earns an immediate discount, and the ongoing discount — commonly quoted at up to 30% — is recalculated at each renewal. Unlike a fixed test period, monitoring continues for as long as you stay in the program, so the discount can move down as well as up.

Is State Farm still the largest auto insurer in the U.S.?

It depends on whose data you read. NAIC figures for 2025 put State Farm first in private passenger auto with 18.64% market share, against 18.60% for Progressive — a margin of four hundredths of a point. S&P Global Market Intelligence analyzed the same period and concluded in May 2026 that Progressive had passed State Farm. The practical answer is that the two are effectively tied at the top, together writing roughly 37% of the U.S. auto market.

How do I compare State Farm against other carriers?

A State Farm agent can only quote State Farm, so comparing means going elsewhere for the other side of the market. Enter your ZIP above and we'll connect you with licensed agents in your area who can put State Farm's pricing next to national and regional alternatives for your exact profile — which is the only reliable way to know whether its below-average positioning actually holds for you.

How does State Farm compare to GEICO and Progressive?

All three are top-five national carriers available in all 50 states, and both State Farm and GEICO hold A++ from AM Best. GEICO is direct-to-consumer with no agent network and typically competes hardest on clean-record pricing, but surcharges DUIs well above average — the opposite of State Farm. Progressive is close to State Farm on overall market share and is usually stronger for high-risk drivers and non-standard profiles. State Farm's edge is the combination of low base rates, lenient incident pricing, teen-driver pricing, and a local agent; its weakness is that the agent cannot shop competitors for you.

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State Farm

Is State Farm Auto Insurance Right for You? An Independent Review (2026)

By ReliablePolicy Editorial Team

State Farm is the largest auto insurer in the United States by direct premiums written, selling through roughly 19,000 exclusive local agents rather than an online-only channel. It prices below the national average for most driver profiles and carries the highest financial strength rating AM Best issues — but its scale also brings an above-average complaint volume, and an agent who can only quote one company. Here is an honest, independent look at State Farm auto insurance in 2026.

Avg. annual premium

~$2,030

Full coverage; below ~$2,320 national avg.

AM Best rating

A++

Superior — highest possible

JD Power claims

710/1000

2026 ACS study; industry avg. 644

Market share

18.6%

#1 by NAIC 2025 auto premiums

Availability

All 50 states

Plus Washington, D.C.

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State Farm overview

State Farm was founded on June 7, 1922 in Bloomington, Illinois by George J. Mecherle, a farmer-turned-salesman who built the company to insure rural drivers the carriers of the day considered unprofitable. It is still a mutual company — owned by its policyholders rather than shareholders — and still sells exclusively through its own captive agents, the largest such network in the industry. NAIC data for 2025 put State Farm first in private passenger auto with 18.64% of the market, with Progressive a fraction of a point behind at 18.60%; S&P Global Market Intelligence read the same period differently and placed Progressive first in May 2026. Either way, roughly one in five insured American drivers is a State Farm customer, and the company holds A++ (Superior) from AM Best, the highest rating issued.

State Farm estimated rates by driver profile (2026)

Independent market estimates for drivers researching State Farm — not provided by or endorsed by the carrier. All figures are approximate national averages from public industry data.

Driver profile	Est. annual premium	vs. market avg.	Notes
Clean record, 30-45	~$2,030/yr	~12% below avg.	State Farm's strongest segment
Single accident (3 yrs)	~$2,830/yr	~14% below avg.	Milder surcharge than most nationals
DUI on record	~$3,180/yr	~35% below avg.	Unusually lenient DUI pricing
Young driver (18-24)	~$4,750/yr	Below avg.	Cheapest large carrier for most teens
Senior driver (65+)	~$1,710/yr	Below avg.	vs ~$1,940 at Progressive
Low credit score	~$3,050/yr	Near avg.	Credit not used in CA, HI, MA, MI

Estimates based on NAIC rate filings and state insurance department data. Not quotes from State Farm. Actual premiums are determined solely by the carrier based on your individual underwriting profile.

State Farm pros and cons

Where State Farm excels

✓Premiums below the national average across most driver profiles
✓A++ AM Best — the highest financial strength rating issued
✓Claims satisfaction of 710/1000 sits well above the 644 industry average
✓Largest captive agent network in the industry — local, in-person service
✓Consistently the cheapest large national carrier for teen and young drivers

Where State Farm falls short

✗NAIC complaint index of 1.35 — above the 1.00 industry baseline
✗No independent agents — a State Farm agent can only quote State Farm
✗Drive Safe & Save requires continuous telematics monitoring to hold the full discount
✗Discount list is narrower than GEICO's or Progressive's
✗High-risk and post-DUI availability varies by state and is agent-dependent

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A closer look at State Farm

State Farm's position is unusual among the national carriers: it is both the biggest and, for most ordinary driver profiles, one of the cheaper ones. Independent rate data puts it roughly 12% under the national average on full coverage for a clean-record driver, and its post-incident pricing is gentler than the market norm — about 14% below average after a single at-fault accident and roughly 35% below average after a DUI, which is the widest gap it holds anywhere. Teen and young-driver pricing is the other standout, where State Farm regularly comes in cheapest among the large carriers. The trade-offs are structural rather than financial. Its NAIC complaint index of 1.35 means it generates more complaints than its size alone would predict, and the captive agent model means the person quoting you has no ability to shop the market on your behalf. Drive Safe & Save can add meaningful savings but requires ongoing monitoring, not a one-time test period. Regional mutuals such as Erie and Amica still undercut State Farm on price for many profiles while scoring higher on satisfaction, so it should be a benchmark in a comparison rather than the end of one.

Bottom line

State Farm is the default benchmark for auto insurance in the U.S. — below-average pricing, the top AM Best rating, above-average claims satisfaction, and an agent in nearly every town. It is a genuinely strong quote for most drivers, and the best large-carrier option for teens. Just remember the agent in front of you cannot shop the market, so compare it against at least a few other carriers before binding.

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Frequently asked questions about State Farm

Disclaimer: ReliablePolicy is an independent lead generation and comparison service and is not affiliated with, authorized by, endorsed by, or in any way officially connected to State Farm. All carrier names and trademarks are the property of their respective owners and are used solely for informational and comparison purposes. Rate figures shown are independent market estimates based on publicly available data and are not quotes, representations, or guarantees of pricing by any carrier. By submitting your information, you may be connected with licensed insurance agents or carriers who will provide actual quotes based on your individual profile. Always verify coverage terms and pricing directly with the carrier or a licensed agent.

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