State Farm Insurance offers just about every basic type of insurance, from motorcycle insurance to whole life insurance. It made it to the top 3 in the 2014 U.S. Insurance Shopping Survey by J.D. Power. This company has a history of working through agents to provide a more personal service, and that may be the reason why it doesn't provide an easy option for online quotes. That would be a nice time-saving feature to see on its site, but if you don't mind contacting an agent, you will find that the insurance coverage and pricing are competitive and reliable.
Features We Like
Online claims. State Farm customers can submit a claim online at any time of the day or week. Shortly after you submit a claim, one of their representatives will contact you to discuss it.
Drive Safe & Save™ offers a number of devices that collect information on your driving habits, such as how fast you drive and how much you drive. If the device indicates that you are a good driver or that you drive your car very little, you can get a discount of as much as 5% off your premium.
Flexible care benefit allows you to receive part of your universal life benefit in the form of monthly payments if you become disabled.
Car insurance. State farm is one of the most popular car insurance providers in the US. One of the most interesting additional coverage options is car rental and travel expense coverage, which covers your transportation costs while your car is being repaired. Since you will probably still have to get to work or school and back after an accident, this coverage could save your neck. Another optional benefit is emergency roadside assistance coverage, which can save you a lot of money if your car lets you down. Just be aware that making a claim for roadside assistance may affect your C.L.U.E. score, just like making any other claim would. So if you are the type of person who locks the keys in your car or runs out of gas regularly, you may be better off joining an auto club. Here are a few ways you can save on State Farm car insurance:
- Up to 25% off for good grade students under 25 years old.
- Up to 17% off if you have another insurance policy (life, homeowners, etc) with them.
- Up to 20% off if you insure more than one car with them.
- Up to 10% off if you've had no at-fault accidents and traffic violations for 3 years.
- Up to 15% off if you complete a Steer Clear® safe driving course, are under 25 years old, and haven't had an at-fault accident or moving violation in 3 years.
- Up to 5% off if you take a defensive driving course.
- Up to 5% discounts if you install a communications device from OnStar®, In-Drive®, or SYNC® that's approved by State Farm's Drive Safe & Save™ program. If the information it collects shows that you are a good driver, or that your mileage is lower than average, you may be entitled to discounts.
Motorcycle insurance offered by State Farm provides coverage for most motorcycles, including custom built motorbikes. It covers liability for bodily injury and property damage to others by you. You can also get coverage for damages to your bike by an uninsured motorist, protection for custom work and attached sidecars, and comprehensive coverage against fire, theft or vandalism. I would have liked to see trip interruption coverage available as an optional add-on, as expecting the unexpected is part of the motorcycle experience. On the whole, State Farm provides a good insurance option for your motorcycle.
Classic car insurance from State Farm gives you the cover you need for your classic (exceptional car 10 years or older) or antique (any car 25 years or older) automobile. You get up to $500 coverage for your car's spare parts. If anything happens to your car the benefit will be paid out based on agreed value, meaning the amount that you and this insurer agree on as the car's value. To qualify for this insurance, your antique or classic car should only be used on a limited basis, primarily for exhibition at auto shows, clubs or rallies. If you haven't restored, maintained, or preserved your antique or classic car, it won't be eligible (that rules out cheap insurance for the 30 year old rattletrap). It offers a 24 hour call service, and exceptional coverage such as loss of sight coverage and loss of earnings coverage. This last option covers losses to your income if you are unable to work after an accident. You can also get all of the benefits that are typical of car liability, collision and comprehensive insurance coverage.
Boat insurance. This boat insurance is pretty standard, covering medical expenses, damage to your boat, and liability. However, you can also purchase additional coverage. The most useful additional coverage is probably emergency service coverage, which pays up to $500 of emergency service costs if, for example, your boat is left stranded with a broken engine. Another handy add-on is reasonable repairs coverage. This offers a benefit towards repairing your boat to protect it from further damage, like repairing a leak for example.
Homeowner's insurance. This insurance covers damages to your home and some of your possessions caused by fire, lightning, theft, pipes freezing, hail and windstorms. The amount of coverage you get is chosen by you when you take out the policy. There are quite a few ways you can save on home insurance, but I would not recommend raising your deductible above what you actually can afford to pay. Here are some better ways to get discounts:
- Install an impact-resistant roof. If you're building your home from scratch, you should consider using special impact resistant roofing materials. This may cost more initially, but could entitle you to insurance discounts in many states.
- Get your car insured with them as well. If you get more than one policy with State Farm, you can get a lower premium for each of them.
- Install a fire alarm. This will not only help protect your home from fire, it will also help you get a discount.
- Install a burglar alarm and other anti-theft devices and you'll may get a discount.
Renter's insurance. One of the best ways to save money on this insurance is by installing monitoring devices in your home. State Farm has partnered with ADT® and Lowe's® to provide discounts on equipment and services to protect your goods from fire and water damage, as well as theft.
- Get 10% off installation, plus 10% off monthly service fees when you sign up with ADT. You get a discount of up to 15% on your renters insurance when you sign up for this service.
- Enjoy $25 off Iris Smart Kit or $10 off Iris Safe & Secure Kit available at Lowe's®. You get a discount of up to 7% off your premium if you install this system.
Personal property insurance from State Farm provides additional coverage for items that are not covered, or are only partially covered by your homeowner's or renter's policy.
Term life insurance from this provider can be taken out in 5, 10, 20 or 30 year policies. You can apply for a 10 year term insurance policy until the age of 75, and a 20 year policy until you are 65. Both of these can cover you until you are 85. A 30 year policy is only provided to those who are 45 years old or younger, so it will only cover you until you are 75. After your policy expires you can renew it every year, but you will pay a higher premium each year that you renew it. The best thing about this insurance is that your initial premium is guaranteed until the policy period expires. Some insurance providers increase the premiums as you get older. Premium payments can be made either monthly or once a year. Benefits paid out range from up to $50,000 for a 5 year term, to a minimum of $100,000 for a 10, 20 or 30 year term. Other more specialized term life offers from them include:
- Mortgage life insurance. This covers your mortgage payments in the event of your death (up to $100,000). Policies are available in 15 and 30 year terms, with a 15 year term premium starting at $248.00 per year, and the 30 year term costing upwards of $258.00 annually. Note that the benefit paid out will decrease every year, since they assume your mortgage is slowly being paid off, but it will never be less than 20% of the $100,000 face value.
- Return of premium term insurance. If you only need life insurance for a specific amount of time, maybe to protect your assets in the case of your death while you pay off your mortgage, this insurance can be a good option. In the likely event that you don't pass away, you can collect a large part of the premiums that you pay in at the end of the insurance term, and the best part is that this returned income shouldn't be taxable. The term is either 20 or 30 years. Premiums start at $457.50 annually for a 20 year term and $462.50 per year for a 30 year term. Just in case you do kick the bucket before your coverage runs out, there is a benefit of up to $250,000 that will be paid out to your beneficiaries. Although this term insurance may be more expensive, I would highly recommend it as it lets you get back most of what you spend on it when you no longer need the coverage.
Whole life. Here again, State Farm offers quite a lineup of insurance options such as:
- Whole life insurance. You pay a fixed premium for life (or till you're 100 years old) and may earn interest on the equity in your life insurance, although this isn't guaranteed like it is with some other insurance providers. You can borrow from the cash value of your policy, meaning the amount you have actually paid in premiums plus any interest earned, without paying taxes on loans in most cases. Premiums start at around $78.13 a month for $100,000 in coverage.
- Limited pay life. You pay much larger premiums, but only for a limited amount of time, after which, your life insurance is covered. You can select a period of 10, 15, or 20 years to pay off your life insurance. Premiums start at around $1,148 per year (over 30 years) or $1,648 annually for 10 years. All policies offer $100,000 in coverage. It doesn't take a genius to realize that you get the basic coverage much cheaper with the 10 year payment period. However, you can earn tax-deferred dividends on the cash value of your policy, so the more premiums you pay may mean extra money added to your benefit.
- Single premium. This covers you for life when you make a single, large one-off payment that starts at $17,239 for $100,000 coverage. Although this provides a great opportunity to get your life insurance coverage settled immediately, be sure you understand that this is a modified endowment contract so you will have to pay tax if you borrow from your cash value before you die.
- Final expense insurance covers part of the cost of your burial and related expenses, up to a total of $10,000. This coverage is almost identical to a funeral policy.
Universal life. You get to pay into your life insurance as you choose to, just as long as you meet a set policy minimum. You earn tax-deferred interest on the cash value of your policy. As with all universal life policies, you need to make sure to keep enough money in your life insurance to cover the insurance charges. Here I list some of the best optional features and policies:
- Flexible care is an optional benefit that allows you to receive part of your benefit before you die, to help cover the costs of care needed due to becoming partially disabled. You can choose how much you would want to receive monthly (up to 2% of your death benefit) towards the cost of extra care, and this will be taken off the benefit you receive when you die. For example, if you receive $3,000 monthly for two and a half years to cover household maintenance or nursing care after becoming disabled, and your death benefit is $200,000, your family will receive $110,000 when you die ($200,000 minus $90,000). This is a great optional benefit, as it can protect your assets in a worst case scenario. Note that you will pay an added premium for this optional benefit.
- Survivorship universal life insurance covers you and your spouse or business partner. Once both of you have died, the benefit is paid out to the beneficiary (i.e. your child, dog, mortgage holder).
- Joint universal life insurance covers you and a second person. When just one of you dies, the benefit is paid out to the beneficiary. This is a cheap way to cover two people, for example you and your spouse. Of course you will only receive one benefit, but you will have the option of purchasing a different single life insurance policy after your partner has passed on.
State Farm is an established insurance provider with good no-frill car insurance offers, and interesting life insurance policies. It offers a wide range of term life and whole life insurance policies. So if you need life insurance, this may be where you will find the policy that suits your pocket and goals.