State Farm is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $718 per year, the average State Farm car insurance policy is actually cheaper than coverage from most competitors. In fact, State Farm is one of the cheapest car insurance companies nationally.
Even though State Farm offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $1,803 per year for State Farm insurance, compared to $718 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $1,140 per year for State Farm coverage, which is 59% more than drivers with a clean record.
Factors That Can Make State Farm Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your State Farm insurance, there are ways for you to lower your premium. For example, you can take advantage of State Farm discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if State Farmis charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's State Farm insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
