State Farm is the largest insurer in the nation by market share and offers attractive rates and discounts to a variety of customers, but that doesn’t mean it’s the best choice for you. Whether you’ve been unhappy with the service or your premium, there are plenty of alternative insurance providers to explore. In fact, we suggest shopping around every six months, even if you’re happy with your current State Farm policy. You never know when you might be able to save some hard-earned cash.
While comparing insurance providers used to be a painstaking process, those days are gone. You can now use Insurify to compare premiums from multiple insurance companies in one place, and you’ll only need to enter your information once to access personalized quotes. You’ll even be able to toggle between coverage types and limits until you find a policy that fits your budget.
The Pros and Cons of State Farm Car Insurance (And Why You Might Want to Switch Insurers)
There’s a lot to love about State Farm, including a great reputation for financial strength and claims satisfaction, low premiums for a variety of drivers, and a catchy jingle. But it may not be the best company for all drivers. Certain high-risk drivers, like those with bad credit and multiple violations, may find lower premiums with another insurance company.
Low-risk drivers may find that State Farm offers some of the lowest rates. For example, a 42-year-old woman driving a 2010 Honda Civic 4DX in Illinois would pay just $116 per month for car insurance, and a married 42-year-old woman driving the same car in Texas with children on her policy would pay an estimated $193 per month.
But high-risk drivers may find better luck elsewhere. Since Insurify offers personalized quotes based on your credit score and driving history, you can use it to find out whether you could get a lower rate from another company.
Best State Farm Car Insurance Alternatives and Competitors: Find Car Insurance Cheaper Than State Farm
State Farm is a good choice for most drivers, but it’s not the only option when it comes to auto insurers, nor will it provide the cheapest premiums to all drivers. If you’re considering switching insurance companies, you may want to get quotes from the following State Farm top competitors:
1. Nationwide: Best for Accident Forgiveness
Nationwide offers accident forgiveness as an add-on, so policyholders can avoid a rate hike after their first at-fault accident. You can also add special coverages like roadside assistance and gap coverage. Nationwide offers all the standard auto insurance discounts, including multi-policy discounts for motorists who also have homeowners insurance or life insurance with Nationwide, in addition to two telematics programs. SmartRide can save you up to 40 percent for safe driving behavior, while SmartMiles adjusts your monthly rate based on how many miles you drive.
Nationwide has a great reputation as well. The company has an A+ financial strength rating from A.M. Best and an above-average ranking for claims satisfaction from J.D. Power. However, customer service reviews are mixed, and the company has a slightly higher-than-average number of complaints with the NAIC for an insurance provider of its size. Considering factors such as financial strength and customer satisfaction, Nationwide earned an Insurify composite score of 89, making it one of our top-rated car insurance companies.
According to Insurify data, Nationwide’s average monthly insurance rates are higher than those of other auto insurance companies. The average monthly premium was $227, putting its pricing higher than both Clearcover and Safeco. Still, it’s worth checking to see if Nationwide can offer you an affordable premium, especially with the discount programs available.
2. Clearcover: Best for Flexible and Convenient Payments
Clearcover is only available in select states, but it earned an Insurify composite score of 97, thanks to its great reputation for customer service. Clearcover has a top-rated mobile app and offers easy mobile policy management and flexible payments. This makes it one of the more convenient insurance companies, especially for motorists comfortable with online transactions. And with an A- financial strength rating from A.M. Best and zero complaints with the NAIC, this insurer can be counted on to pay claims.
Clearcover doesn’t offer other insurance products like home insurance, so bundling discounts aren’t available. The company operates by building discounts into the standard price of their policies, so you won’t need to ask about your eligibility for discounts. This results in a low monthly premium when compared to Clearcover’s competitors—the average monthly cost is just $127.
3. Safeco: Best for Safe Driving Discounts
Safeco’s RightTrack program uses telematics to monitor your driving behavior, snagging you a discount of up to $513 annually that you’ll keep for the life of your policy. And you’ll get a guaranteed discount just for signing up. Plus, Safeco offers both claims-free cash back and diminishing deductibles, so you’ll save more the longer you’re accident-free.
While you won’t be able to get an online quote, it’s easy to manage your Safeco policy online or via the mobile app. The company also has an A financial strength rating from A.M. Best. However, Safeco has a higher-than-average number of complaints with the NAIC for a company of its size and scored below average in J.D. Power’s 2020 U.S. Auto Insurance Claims Satisfaction Study. Customer service reviews are generally favorable, but the insurer is not as well rated as some competitors. The company earned an Insurify composite score of 86.
The average monthly premium is $200 for Safeco policies, which is higher than Clearcover but still more affordable than some other insurers.
|Insurer||Best For||Financial Strength Rating (A.M. Best)||Claims Satisfaction (J.D. Power)||Average Monthly Premium||Insurify Composite Score|
|Nationwide||Accident Forgiveness||A++||Above average||$227||89|
|Clearcover||Flexible and Convenient Payments||A-||N/A||$127||97|
|Safeco||Safe Driving Discounts||A||Below average||$200||86|
Other notable companies in the car insurance industry include:
GEICO is the second-largest auto insurer in the country after State Farm. While the beloved gecko suggests you can save money by switching, that all depends on individual factors affecting your premium. Still, GEICO is known to offer low rates to a variety of drivers. The company has an A++ financial strength rating with A.M. Best, but its J.D. Power ranking for claims satisfaction is slightly below average. GEICO offers a variety of discounts, including a 25 percent multi-vehicle discount, but does not have a program for safe driving.
Insurify Composite Score: 87
Progressive has a low J.D. Power ranking for claims satisfaction, but the number of consumer complaints to the NAIC is lower than average. The insurer has an A+ financial strength rating with A.M. Best. Customer service reviews are mixed. Still, some drivers might find low rates with Progressive, and the company provides several attractive optional coverages as well as discounts. The Snapshot program can save you an average of $145 for safe driving.
Insurify Composite Score: 80
Allstate ranked well for claims satisfaction in J.D. Power’s 2020 study, and the company has an A+ financial strength rating with A.M. Best. Progressive has a well-rated mobile app, but customer service reviews on other platforms are mixed. Still, some drivers may find that Allstate offers them the lowest rates, and the company also has two telematics programs that can result in significant premium discounts. Milewise offers pay-as-you-go premiums based on your actual mileage, and Drivewise rewards you with discounts of up to 40 percent for safe driving.
Insurify Composite Score: 85
How to Cancel Your State Farm Insurance Plan
When you’re ready to cancel State Farm, you’ll find that the process is easy and doesn’t require any cancellation fees. Follow these steps:
- Find your renewal date and decide if you’d like to wait until then to cancel. State Farm will issue a refund if you cancel early, but it’s still easier to cancel just before your renewal date.
- Find a new policy by using Insurify to compare car insurance quotes from multiple providers. You’ll need to have a new policy in place before you cancel with State Farm.
- Cancel with State Farm by calling your local agent, dialing 1 (800) STATEFARM, visiting your local agent’s office, or sending a written request by mail. Unfortunately, you won’t be able to cancel your policy online at Statefarm.com.
- Wait for your refund to arrive, and set a reminder to follow up if you don’t receive it.
Conclusion: Tips to Save on Your New Car Insurance Policy with Insurify
Most insurance companies offer several ways to save on your policy, including:
- Taking a defensive driving course or driver’s education course
- Bundling your auto insurance with other insurance products
- Maintaining a clean record
- Maintaining a B average if you’re a student
- Choosing prepayment or automatic payments
- Taking advantage of telematics programs for safe driving or low mileage
However, the best way to save money on car insurance is to compare personalized quotes from different insurers. You can save hundreds on your annual premium just by using Insurify to find the provider offering you the lowest rate. Once you select the insurers providing the lowest premiums for the coverage you need, you can explore any additional discounts they offer before choosing the right company for you.
Quick Questions: Top State Farm Competitors in 2021
What are the top alternatives to State Farm car insurance?
In terms of market share, the top alternatives to State Farm are: GEICO, Progressive, Allstate, USAA, and Liberty Mutual.Insurify has also ranked the top insurance companies based on factors like customer service reputation, mobile app reviews, and financial strength. From this perspective, the top alternatives to State Farm are: Country Financial, Clearcover, Amica Mutual, Esurance, and The Hartford. The best State Farm alternative for you will depend on your insurance needs as well as the factors affecting your premium.
How can I find car insurance cheaper than State Farm?
It’s possible for other insurance companies to provide you with lower rates than State Farm, but you won’t know until you check. To find car insurance cheaper than State Farm, compare personalized quotes from at least a handful of different insurance providers. Just make sure you’re comparing the same coverage levels across companies, and be sure to take into account any discounts you may be eligible for. You can get quotes from individual insurance company websites, or you can use a comparison tool like Insurify to simplify the process.
What’s the best way to compare car insurance quotes?
In the old days of car insurance, shopping without the help of a broker required endless paperwork and spreadsheets to compare options. Thanks to artificial intelligence, the process has gotten a lot more efficient. You just have to know the right tools to use. With Insurify, you’ll only need to enter your information once, and you’ll be able to compare quotes from up to 20 different insurance providers side by side. It’s the easiest way to ensure you get the best deal on car insurance.