State Farm has stated that they saw fewer accidents and less expensive losses during the pandemic, but today, they’re seeing increases in car accidents and injuries, causing car insurance rates to rise.
They also blame:
- High inflation affects prices of goods, cars and insurance rates.
- Car repair costs increased due to supply chain issues and new technology.
- Increasing electric vehicle sales contributing to higher insurance rates.
- Distracted driving, especially texting, raises accident risks.
- 2023 weather catastrophes led to $1 billion in losses, impacting premiums moving forward.
Why does my State Farm bill fluctuate?
State Farm calculates your insurance bill according to the factors below. Any changes in one of them will affect your rate.
Some factors are passive, for example, you might grow out of the “teen driver” age group. Other factors are more within your control such as what vehicle you buy.
Your vehicle
Higher priced, powerful, risk-prone and newer cars increase insurance rates; safety features and anti-theft devices lower them.
Your coverage amounts
Minimum state-required coverage is cheaper than full coverage, which includes comprehensive, collision and uninsured motorist coverage.
Frequency and mileage
Higher annual mileage and business use increase rates; leisure use and low mileage decrease rates.
Your driving record
Clean driving records maintain low rates; risky behavior and infractions increase rates.
Your location
Urban drivers pay more due to higher risks of vandalism, theft and accidents.
Your background
Age, sex, and marital status affect rates, with younger males and single individuals generally paying more.
Your credit history
If applicable, higher credit scores lower rates; lower credit scores increase rates.
How to lower your State Farm car insurance rate
Notice your State Farm insurance rate went up? Don’t worry — there are a few things that can help lower your premiums.
Review and remove things from your policy
Remove unnecessary coverages like comprehensive, rental and roadside assistance, and increase deductibles if accident risk is low.
Choose the right car
Research theft rates, safety ratings, and insurance prices before buying to find cheaper, safer vehicles.
Maintain a clean driving record
Avoid accidents to benefit from State Farm’s accident-free savings for three years.
Drive Safe & Save by State Farm
State Farm’s telematics tracking program uses your smartphone and a mobile beacon to judge your driving style such as quick acceleration, hard braking, fast cornering, speeding and distracted driving.
Discounts
State Farm offers a number of discounts to their customers, including the following:
- Accident-free discount.
- Student away discount (for students under 25 years old).
- Defensive driving course discount.
- Steer Clear discount (for people under 25 years old).
- Anti-theft equipment discount.
- Multi-car discount.
- Multi-policy discount.
Shop around
If all else fails or if you’re simply interested in a better deal, go ahead and shop around for quotes from different providers. Your best bet is to call three to five providers or you can use the Jerry app that aggregates all this data for you.
Xuyun Zeng is a writer and editor with a wide-ranging content background including tech, journalism, cars and health care. After graduating with highest honors in journalism, Xuyun led a newspaper to win eight awards, helped start an award-winning film industry podcast and has written over a hundred articles about cars repair, state laws and insurance. Prior to joining Jerry, Xuyun worked as a freelance SEO consultant with a mission to create the best content that will help readers and grow organic traffic.
Kevin Berry is the Senior Director of Content at Jerry and has been working in the digital content space since 2011 across the car insurance/repair, personal finance, travel and sports industries. Prior to Jerry, Kevin was a content team lead at NerdWallet overseeing the Multimedia Production and Travel Rewards teams. Previously, he worked for NBC Sports, Comcast Cable and Nike. He has a Master`s Degree from Arkansas State and a Bachelor`s from Oregon State University.
