We go looking for a good neighbor in a few states to see the difference in State Farm car insurance prices
State Farm is the nation’s leading car insurance provider with just over 18 percent of the total market share. (To compare, its second closest competitor, Allstate, has cornered about 10.5 percent of the nation’s car insurance market.) With that much clout, you’ll easily find a good neighbor on just about any corner of any town in the country. You’ll also find that there can be a substantial difference in what you pay for car insurance with State Farm, depending on a number of circumstances – especially where you live. To give you a sense of these differences, we’ve created a typical driver profile and with it, we go shopping for a reasonable package of car insurance protection in three different cities/states. Thanks to the advances in online comparison options, you can get a pretty good snapshot of what you might be paying (or even what you’re currently paying) and whether it would make sense to shop around.
Our driver profile
To start our car insurance shopping spree, we’ve created a pretty typical driver profile. Our mystery car insurance shopper we’ll call Eric. He turns 40 this year. He’s divorced and owns his home. He drives a 2012 Toyota Tacoma (mostly to his jobsites as a construction superintendent.) He’s put just over 28,000 miles on this truck, which he owns free and clear. He’s the only one driving the car and he’ll be the only one covered on the packages we shop for. He has never been in an accident and he has no moving violations or point-assessing infractions on his record in the past 11 years.
Our insurance markets
To get a clear understanding of how insurance rates can vary, we’re going to take Eric looking for a good neighbor in three separate cities in three different states: Ann Arbor, Michigan; Lawrence, Kansas; and Eagle, Idaho (a suburb just outside of Boise.) These cities give us a broad cross-section as they are in states that – according to a number of annual surveys – represent expensive, mid-range and inexpensive states for purchasing car insurance (respectively.) These states also have a nice variety of what is required for licensed drivers as far as car insurance coverage options and limits are concerned.
(The rates displayed in all the following examples were drawn from online quotes collected in January of 2014.)
Michigan
Michigan has an extensive no fault set of car insurance requirements in addition to some fairly standard liability limits it requires of licensed drivers. It’s one reason why it routinely ranks as one of the most expensive states to insure a car. The minimum car insurance requirements for a licensed driver in Michigan include:
- $20,000 bodily injury liability for a single person (per accident)
- $40,000 in total bodily injury (per accident)
- $10,000 in property damage liability (per accident)
- $1 million in property protection coverage (a policy separate from the property damage liability that pays for any damage you cause to property other than a car in an accident.)
- $50,000 in personal injury protection (though the policy must also have a minimum of lost wages and service replacement coverage up to $20-day for three years)
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Our hypothetical driver, Eric, is a conscientious guy and as such, routinely puts coverage limits in place that exceed the state minimum requirements where he lives and drives. In keeping with this character trait, here’s the package of coverage options and levels we’re putting in place for Eric’s State Farm Michigan package:
- $100/$300/$50 in liability coverage
- $100,000 in personal injury protection
- $50/$100 in uninsured/underinsured motorist coverage
- Comprehensive with a $500 deductible
- Collision with a $500 deductible
- $1 million in personal property protection (with a $300 deductible)
- Roadside assistance included
In Michigan, State Farm can offer Eric a number of discounts on his premium including a safety belt discount, a good driver discount, a safe vehicle discount and a discount when he elects to enroll in the Drive Safe and Save program State Farm offers. Even with these discounts, Michigan earns its reputation for steep car insurance prices as his monthly premium for this package will be between $150-$160.
(Use this guide to see more about the car insurance discounts you can earn from State Farm)
Kansas
Licensed drivers in the state of Kansas are required to carry, at a minimum, the following car insurance coverage options and limits:
- $25,000 in bodily injury for a single person (per accident)
- $50,000 in total bodily injury coverage (per accident)
- $10,000 in property damage liability (per accident)
- $25,000/$50,000 in uninsured/underinsured motorist coverage
- Personal injury protection of $4,500 medical/$900 work loss
In keeping with his policy of extending coverage beyond what is required by the state, here’s the package of coverage options and limits we fed into the good neighbor quote machine to get Eric State Farm car insurance in Kansas:
- $100/$300/$50 in liability coverage
- $5,000 in PIP coverage (with a work loss/disability limit of $1,500)
- $100/$300 in uninsured/underinsured motorist coverage
- Comprehensive with a $500 deductible
- Collision with a $500 deductible
- Roadside assistance included
In Kansas, Eric is eligible for several premium discounts from State Farm including a good driver discount, a safe vehicle discount and when he enrolls in State Farm’s Drive Safe and Save program (available to him in Kansas) his premium is quoted at an impressive $60-$70 monthly.
Idaho
If you drive and own a car in Idaho, you will be required to have the following car insurance coverage options and limits in place:
- $25,000 in bodily injury for a single person (per accident)
- $50,000 in total bodily injury (per accident)
- $15,000 in property damage liability (per accident)
While Idaho presents the least complex insurance requirements, we’re still going to load Eric up on a good package that exceeds even these mid-range requirements. For Eric’s State Farm car insurance package in Idaho, we’re putting in place:
- $100/$300/$50 liability coverage
- $100/$300 in uninsured/underinsured motorist coverage
- $5,000 in medical payment coverage
- Comprehensive with a $500 deductible
- Collision with a $500 deductible
- Roadside assistance included
In Idaho, State Farm can offer Eric some nice premium discounts, including a safe vehicle discount, taking advantage of the Drive Safe and Save program, and he gets additional savings in Idaho for bundling his homeowner coverage with his auto policy and as a result, Idaho proves its standing as an inexpensive state for car insurance. This policy is going to cost Eric between $55-$65 monthly.
(Use this guide to see all your car insurance coverage options from State Farm.)
While these examples can give you a general idea of what you may be paying for State Farm car insurance in a variety of settings, you will be better served if you take the time to speak directly with a car insurance professional. An agent can answer any of your questions, run additional comparisons for you and let you know about additional discounts you may be eligible for. Reply can help by putting you in touch with car insurance professionals near you who can help you and your family get just the right car insurance plan for your unique needs.