The Smart Investors

When people talk about insurance in the U.S., the name State Farm almost always pops up. If you’ve ever seen the red logo or the “Jake from State Farm” commercials, you know how big they are. But the big question is: in 2025, are they still giving good value, or are rising rates making people look elsewhere? I’ll walk you through my findings, plus share some real stories from people who’ve used them.

What State Farm Covers

State Farm isn’t just about car insurance (though that’s their main product). They also cover:

• Auto insurance – from basic liability to full coverage with add-ons like roadside assistance.
• Homeowners & renters insurance – coverage for your house, apartment, or condo.
• Life insurance – term, whole, and universal life options.
• Extras – like banking products, mutual funds, and even small business coverage.

A friend of mine bundled her auto and renters insurance in 2024 when she moved into her first apartment. She told me the bundle knocked about $35 off her monthly bill. Not life-changing money, but in this economy, every bit helps.

Have you ever bundled your policies with State Farm? Did you feel the savings were worth it?

Discounts & Programs: Do They Really Help?

The most talked-about program is Drive Safe & Save. Basically, you download their app, and it tracks how you drive — things like your speed, braking, and mileage.

• Some users save up to 30% if they’re cautious drivers.
• Others complain the app can be strict, docking points for things like hard braking even if someone cuts you off.
• Young drivers and people with long commutes tend to save less.

I tested it myself last year. For the first three months, I was getting a “B” score, and my discount was about 8%. Once I adjusted and stopped late-braking, my score went up, and the discount doubled. It taught me to drive smoother — which honestly made me safer too.

Would you let an insurance company track your driving if it meant saving $20–$40 a month?

The Rising Rates Problem

Here’s where things get tricky. In 2025, a lot of State Farm customers in California and other high-risk areas (like wildfire zones) are seeing sharp increases. Some homeowners reported 20–30% hikes.

For example, a family in Northern California told the local news they were paying around $2,200 a year for homeowners insurance in 2023. By mid-2025, that jumped to nearly $3,000. That’s a serious strain, and it’s not just State Farm — most big insurers are pulling back in risky states.

If you live in a lower-risk area, though, your rates may still be very competitive, especially with discounts applied.

Have your premiums gone up recently? How did you handle it — switch insurers or stay put?

Pros & Cons Summed Up

• Pros: Big network of agents, solid app for managing policies, lots of discount options, financial stability (less risk they’ll vanish on you).
• Cons: Rates are climbing fast in disaster-prone states, the Drive Safe app can feel “too strict,” and not all discounts apply in every state.

A neighbor of mine switched from GEICO to State Farm because she wanted a local agent she could call instead of just an app. She doesn’t mind paying $15 more a month for the peace of mind. For her, the personal service was worth it.

What matters more to you: a lower bill, or having an agent you can talk to face-to-face?

Final Thoughts: Is State Farm Right for You in 2025?

If you’re a safe driver, live in a medium-risk area, and like having the option of a real agent plus a strong app, State Farm is still a top pick. But if you’re in California, Florida, or other disaster-prone states, be prepared for higher rates or stricter rules.

Join the discussion: Have you had any recent experiences with State Farm — good or bad? Your story might help someone else make a decision.

Rating – ★★★★☆ (4/5)

I’ve been with State Farm for like 4 years now. They helped me when my bumper got wrecked and I didn’t stress too much. Not the cheapest, but at least I know they’ll pick up the phone.

My rating; ☆ 4/5

State Farm was okay for me. Prices just kept going up every renewal and I got tired of it. Some of my friends still sing praises of them. I don't know if it’s just me having this feeling

My rating is : ☆☆ 3/5