State Farm is one of the best known names in auto insurance in the United States. Though the company has not participated in an all-out advertising blitz over the last several years, it still remains among the most recognized brands in the industry. The major of State Farm’s auto insurance policies feature rather robust coverage, even though the company does offer limited coverage for some. The company’s reputation is both negative and positive – it is well known both for providing excellent coverage and for having relatively high rates. Both aspects of the company are important to understand for those wishing to purchase auto insurance.
The cost issue is more understandable when one looks at the overall structure of the company. State Farm has independent agents across the country, and enough insurance adjusters and other personnel that any claims are handled quite rapidly. At the same time, though, its prices are also a relic of the pre-“bargain insurance” age. As one of the older insurance companies in the United States, it still operates on a model that was much more common before online insurers got into the business. As such, it retains a reputation for being slower and significantly more expensive than its newer competitors.
At the same time, though, few complain about the actual level of service received when an accident does occur. State Farm’s coverage is top notch, with actual reimbursement rates being fairly high as compared to many competitors. While there are certainly many claims that are denied, State Farm’s insurance forms are far clearer than many in the industry – and the fact that most State Farm policies involve an agent working directly with a consumer means that more customers actually have an idea as to their own level of coverage than might be found elsewhere.
State Farm is a solid, if expensive, insurance company. It does provide customers with great coverage, but it does so at a high price. Whether or not your prices match your expectations will vary due to your driving and personal history.