Is State Farm a good car insurance company for teens?

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Melanie Musson
Recognized Insurance Expert

UPDATED: Mar 19, 2020

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Car insurance costs more for teenagers than for any other group of drivers. Because driving is a learned skill, it requires years of practice, and new drivers get into more accidents than other people. Teenagers are also at a higher risk of driving while intoxicated, texting or otherwise not giving their full attention to the road. Car accidents are the leading cause of death for people between 16 and 24.

All of this means that people can expect to pay high insurance premiums until they’re at least 25. While a teenager may never pay the same rates as a more experienced driver, there are some ways to reduce the cost of insurance. Some insurers even offer programs that can help lower insurance rates for young drivers, making these companies an excellent choice for a person’s first auto policy.

Is State Farm a Good Insurance Company for Teen Drivers?

State Farm car insurance offers attractive discounts to young drivers. Whether you’re adding a teen to your policy or you’re a young person looking for your first insurance company, State Farm is worth investigating as an insurance option.

Traditionally, State Farm has always been viewed as a somewhat old-fashioned company. Its reliance on agency support rather than direct sales makes it stand out from competitors but also leads some consumers to assume that the company is not as progressive as other insurers. In order to evade this stigma and secure younger patronage, State Farm has begun actively targeting a younger demographic of drivers.

The newest advertisements for State Farm show that the company is targeting a younger, more technologically-savvy audience than ever before. Commercials often feature young, college-aged drivers and their hip, personable agents. Although State Farm continues to be brokered through insurance agents, it must compete against direct sales companies like GEICO and Progressive that market directly to young people.

Advertisements aren’t the only way that State Farm has begun catering to younger drivers. The company has multiple discounts aimed directly at college-age drivers, and young people can take advantage of these discount programs to secure the lowest rates possible.

What Makes State Farm Stand Out

Most car insurance companies offer discounts for certain categories, but not all of them weight those discounts the same way. For example, most insurance companies will offer a discount to drivers who take a defensive driving course, but some insurers offer much higher discounts for that than others. In an effort to appeal to young drivers, State Farm has three exciting discount offers that beat the competition:

— The good student discount can save up to 25% off the cost of premiums

Most insurance companies offer student discounts of 10% or less, so the 25% discount is very competitive. Additionally, college graduates can continue using this discount up until age 25, which is something most insurance companies do not offer. In order to qualify, a student must send transcripts showing a 3.0 GPA or higher to State Farm each term.

— State Farm’s exclusive “Steer Clear and Save” program is targeted at drivers under the age of 25

This is a specialized driver’s education program offered by State Farm and distributed through local agents. It can be taken online or through an app on most mobile devices. Drivers simply need to watch an informational video and complete some course work. After completing the program, drivers can save as much as 15% on their premiums.

— 5% discount for drivers who complete an approved defensive driving course

These courses are generally available through the local DMV, schools and libraries. You can check with State Farm to see what’s available in your area.

How much money can you save with State Farm as a teen driver?

By using all three of these discounts, drivers could cut their premiums nearly in half. Of course, not all teens will be eligible for all discounts, and there’s no guarantee that the savings will be identical from one person to the next. Some programs are unavailable in certain states, and each driver’s premiums are counted individually.

Nevertheless, State Farm does offer many attractive discounts to teen drivers. Depending on your situation, other insurers may offer better prices or different discounts that can make a greater impact on policies. Even if State Farm offers excellent discounts, it’s a good idea to shop around among multiple insurers before making your final decision. No matter what insurer you choose, you can also save money on premiums by driving a safe, affordable vehicle and engaging in safe driving practices.

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