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State Farm Commercial Auto Insurance Review 2022

Business owners that use their vehicles in the execution of their business should invest in commercial automobile insurance. Some of the businesses that should have commercial policies rather than relying on their private auto insurance include catering services, florists, and landscaping crews. Those are just a few of the industries that can benefit from commercial automotive coverage. 

State Farm Insurance offers commercial coverages to their customers. Commercial coverage requirements vary by state, and some insurance companies don’t provide commercial coverage. Let’s take a look at the offerings State Farm has and how the company rates in financial stability and customer service. 

What is State Farm commercial auto insurance?

Commercial auto insurance provides coverage for vehicles used in your business’s operation. State Farm offers commercial auto insurance policies for several kinds of commercial vehicles, including cars, trucks, vans, pickups, and farm vehicles. These are only a sampling of the vehicles that could be considered for commercial policies with State Farm. 

Commercial automobile insurance can help to pay for repairs, medical bills, and legal fees if you or one of your employees is involved in an accident in a company vehicle. Businesses could be held liable for these costs if they don’t have proper insurance coverage. The cost of an accident could be detrimental to your business, particularly a small business, if the insurance coverage isn’t enough to cover the results of an accident. 

What does State Farm commercial auto insurance cover?

State Farm offers standard commercial automobile policy coverages for their business coverage customers. The following coverages are available for commercial automotive policies. 

  1. Liability—covers both bodily injury and property damage claims
  2. Personal injury/ medical payments—this coverage helps to pay eligible medical claims for people involved in an accident with your vehicle.
  3. Collision—helps to pay for a vehicle involved in a collision with another object minus your out-of-pocket deductible costs
  4. Comprehensive—pays for damage caused to a vehicle by something other than a collision or rollover. This is also minus any applicable deductible.
  5. Uninsured/underinsured motorist—this coverage pays for injuries and sometimes property damage when you’re involved in an accident with someone who doesn’t have adequate liability coverage. 

These are the basic coverages available. There is a wide range of options available to State Farm customers, and they attempt to customize policies to the business they are insuring. 

Pros and cons of State Farm commercial auto insurance

Like any other company in the insurance industry, State Farm has some pros and cons with its commercial auto insurance coverage.

Here are some of the pros: 

  • State Farm has agents in all 50 states and Washington, DC.
  • They offer many kinds of business insurance policies and attempt to tailor their packages to the industry by providing specialized coverage. 
  • Offer bundling of commercial auto insurance with other business policies that you may need

Some of the cons:

  • They have limited online capabilities for their policy holders.
  • They do not offer online quotes. 
  • The only way to purchase insurance with State Farm is to talk to an agent.

These pros and cons apply to both their commercial auto insurance policies and their standard business insurance policies. If you want a quote from State Farm, you can fill out a request form online and wait for an agent to follow up with either a phone call or an email. Otherwise, you can search via zip code for agents in your local area and call them directly for a quote. 

State Farm commercial auto insurance ratings and praises

State Farm was founded in 1922 and has its headquarters in Bloomington, Illinois. The company began by selling single line automobile insurance policies. Now, State Farm offers approximately 100 different products and services, including small business insurance and banking and investment services. Currently, State Farm insures an estimated 80 million people in the United States. 

AM Best gives State Farm an A++ rating for financial stability, and the Better Business Bureau gives the company an A+ rating. 

State Farm is known as a company that is involved in community leadership. The company supports various safety organizations and programs. They have been instrumental in helping seat belt laws get passed in several neighborhoods. They also help with neighborhood safety programs. 

State Farm commercial auto insurance cost

State Farm doesn’t offer quotes online, so it is difficult to know how their commercial auto insurance cost compares with other companies. Commercial auto insurance cost is more expensive than personal auto insurance. Our research suggests that the average monthly cost of commercial auto insurance is $175 a month. Here is our guide to the average monthly cost of commercial auto insurance and how to lower your commercial auto insurance rates.

Shopping around to compare several quotes is a practical way to make sure you get the cheapest rate. Working with a broker or an agency is a good way to get several quotes more easily. We recommend the following brokers and agencies if you consider working with one: SimplyBusiness, commercialinsurance.net, CoverWallet, and Smart Financial.

How do I get commercial auto insurance from State Farm?

State Farm offers coverage in all 50 states and Washington, DC. The coverage available varies by state, however. To check the availability of specific coverages, you’ll have to speak to a local State Farm agent. 

State Farm doesn’t estimate costs for insurance coverage without speaking to you. They want your insurance coverages to be customized to fit your business needs. Their agents help guide you with your coverage selections. 

Here is our guide to get commercial auto insurance quotes online.

Final thoughts

Commercial auto insurance is necessary for those who use their vehicles in the execution of their business. While this insurance is similar to private automotive insurance, not every insurance company offers commercial policies. State Farm is a company that provides both personal automotive policies and commercial automotive policies. 

State Farm is known for community leadership and safety programs in the neighborhoods where they do business. State Farm professes to tailor their commercial policies to the needs of their business customers. The company has received an A+ rating from the Better Business Bureau as well as an A++ rating from AM Best. 

State Farm doesn’t provide quotes for their insurance offerings online. You may request a quote from them through their website; however, they will either email or telephone you with the quote. The alternative to having them call you is to find a local agent and contact them requesting a quote. 

State Farm doesn’t currently offer a method to get a quote without actually speaking to an agent. This is partly because they believe they can better serve their customers with customized policies. The only way to customize the policy is to discuss the insurance needs with the customer.

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