Average State Farm Car Insurance Rating: Get the Facts

The most recent State Farm car insurance rating shows the company in a good light. State Farm has been providing automobile insurance coverage since 1922 and is now America’s largest insurer. However, do you know if it provides the best policies and satisfies its customers? Is it financially stable? In order to learn more about a company’s performance, check out ratings conducted by prominent agencies. They will give a fair idea of what the company is all about.

Overall Rating

In their 2009 National Auto Insurance Study, leading consumer products rating firm J.D. Powers and Associates rated insurance companies on a scale of 1 to 5. State Farm’s score was as follows:

• Overall Satisfaction: 4 out of 5.
• Policy Offerings: 4 out of 5.
• Pricing: 3 out of 5.
• Billing and Payment: 4 out of 5.
• Contacting The Insurer: 5 out of 5

The lowest score put State Farm in the above average category. The study was released in August 2009.

Customer Satisfaction

The same study mentioned above gave State Farm a second ranking when it came to keeping their customers happy. They were judged on five factors: interaction, policy offerings, billing and payment, price and claims. The study took into consideration the responses of 22,930 policyholders. State Farm’s policy of reaching out to the maximum number of people at a lower price than the other insurers seems to be working with its vast client base. Customers were happy with the deductible options and coverage offered by State Farm’s car insurance policy.

Financial Strength

AM Best and Standard & Poor's are agencies that publish financial strength ratings for all insurance companies. Based on extensive research, they measure if a company is able enough to pay out a claim or not. While AM Best gave State Farm a rating of A++ (Superior) and a stable outlook, Standard & Poor's Ratings Services gave it an 'AA ratings, but changed the outlook status from stable to negative. S&P said the revision took place because State Farm's capital adequacy saw a 16 percent decline in 2008, thus making their capital position weaker than expected. However, these ratings claim that State Farm is still extremely strong and the largest insurer in the United States.  

User Ratings

Other than official State Farm car insurance ratings, others websites also provide user ratings and reviews. According to Epinions.com, State Farm got a 3 for overall rating, 3 for customer service, 4 for response to claims, and 4 for price confidence. Although official ratings have given State Farm car insurance a good result, opinion sites still have reviews of people unhappy with the company and the way it handles claims. Of course, this could be true for any insurance company.

If you are interested in buying a policy from State Farm, scan their offers, read customers’ reviews and talk to people you know are clients of the company. This will help you make your choice.