NAIC Complaint Index
0.79
Better than average
AM Best Rating
A++
Superior
Avg. Full Coverage
$2,167
per year
J.D. Power Claims
Above Avg
Mixed reviews
Agents
19,000+
Nationwide
📋 Our Verdict
✓ What State Farm Does Well
- • Massive agent network—personal service available
- • A++ financial strength—they'll pay claims
- • Low complaint ratio (0.79 NAIC index)
- • Strong bundling discounts
- • Available in all 50 states
✗ Where State Farm Falls Short
- • Rarely the cheapest option
- • BBB reviews are terrible (1.24/5 stars)
- • Rate increases have been aggressive
- • Online experience lags behind GEICO/Progressive
- • Agent quality varies dramatically
🤔 The State Farm Contradiction
State Farm presents a puzzling contradiction in the data:
✓ Formal Metrics Look Good
- • 92% customer satisfaction
- • 93% trust the company
- • 92% plan to renew
- • NAIC complaints below average
✗ User Reviews Are Brutal
- • BBB rating: 1.24/5 stars
- • Claims payout complaints
- • Unexpected rate increases
- • "Late fee" frustrations
What this means: Most State Farm customers are satisfied. But when things go wrong—especially during claims—a significant minority has a terrible experience. The quality of your local agent matters enormously.
💰 Pricing Reality
State Farm is not a budget insurer. Here's how they compare:
| Company | Avg. Annual (Full) | vs National Avg. |
|---|---|---|
| State Farm | $2,167 | +5% |
| GEICO | $1,731 | -16% |
| Progressive | $1,960 | -5% |
| National Average | $2,065 | — |
Reality check: You're paying ~$400-500 more per year than GEICO for the agent network. Whether that's worth it depends on how much you value personal service.
👔 The Agent Network: State Farm's Moat
With 19,000+ agents, State Farm's agent network is their true differentiator:
What a Good Agent Does:
- • Reviews your coverage annually
- • Helps navigate claims process
- • Finds discounts you didn't know existed
- • Advocates for you during disputes
What a Bad Agent Does:
- • Disappears after the sale
- • Never mentions missed discounts
- • Passes you to a call center for claims
- • Lets your coverage become outdated
Pro tip: If your State Farm agent doesn't reach out at least once a year to review your policies, you have a bad agent. Find a new one or switch companies.
🎯 Who Should Use State Farm?
✓ Good Fit If You...
- • Want a local agent you can visit in person
- • Plan to bundle home + auto + life
- • Value stability over lowest price
- • Have complex insurance needs
- • Prefer phone calls over apps
✗ Bad Fit If You...
- • Want the absolute cheapest rate
- • Prefer 100% digital experience
- • Don't need an agent's help
- • Only have auto insurance
- • Shop insurance every year
The Bottom Line
State Farm is the Toyota Camry of insurance—reliable, not exciting, rarely the cheapest, but unlikely to leave you stranded. Their A++ rating and 0.79 NAIC complaint index are genuinely impressive. But you're paying for that agent network whether you use it or not. If you have a great agent who proactively manages your coverage, State Farm can be worth it. If your agent is MIA, you're overpaying for nothing. Always get competing quotes from GEICO and Progressive before renewing.