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Does State Farm Offer Commercial Truck Insurance? (12 Facts)

State Farm is the largest insurance provider in the US by market share. It is also one of the most reliable insurers in the nation, thanks to its customer service and low rates.

The company is a Bankrate Awardee for its top product lines such as auto, life, and home. If you are planning to invest in State Farm, read on before applying for a policy.

Here’s a short summary of whether State Farm offers commercial truck insurance:

State Farm is the largest commercial truck insurance provider in the US. It’s the company’s forte to provide all types of auto insurance at a lower rate. Their commercial truck coverage selections are liability, collision, bodily injury, comprehensive insurance, and more.

Who is State Farm, and How Long have they been in Business?

State Farm is an insurance company based in Illinois. They are one of the most successful insurance providers with a 16% overall market share.

They have been in the industry since 1922, providing financial services, life insurance, auto insurance, and home insurance. 

In 2019, State Farm had over 44 million active policyholders in the United States, with more than 19,000 agents across the nation’s 50 states. However, the availability of particular insurance coverage depends on location.

The company generally offers commercial truck insurance services for commercial vehicles, business and employees protection, and deliveries.

What Types of Commercial Trucks does State Farm Offer Insurance for?

State Farm is the biggest provider of commercial truck insurance. It offers various commercial truck insurance policies to all vehicles regardless of size. 

Some commercial trucks they insure are the following:

  • Semi-truck
  • Tractor-trailer
  • Box truck
  • Farm vehicle
  • Cement mixers
  • Tow truck
  • Single fleet
  • Pick-up truck
  • Bucket Truck
  • Dump Truck
  • Refrigerator Truck
  • Catering Truck

These are only a few examples of trucks that can be insured through State Farm. Many kinds of trucks can be subject to a policy. In general, the company offers a wide selection of auto insurance vehicles.

What Types of Coverage on your Commercial Truck does State Farm Offer?

State Farm offers basic coverage, business package, and coverage customization.

Here are the types of commercial truck policies they offer:

  • Proper damage liability. It covers the damage sustained to the property of other driver/s. 
  • Bodily Injury liability. Takes care of the personal damage done to other people in the event of an accident or fortuitous event that is your fault. 
  • Medical Payments and Personal Injury. Pay for the medical bills of other people and vehicular damages.
  • Collision. It covers costs should the truck collides with other vehicles or other objects.
  • Comprehensive. Includes coverage for other accidents not related to a collision.
  • Underinsured or uninsured motorists. Your current auto insurance won’t cover everything, especially with expensive commercial trucks and equipment. This policy will cover what is not covered in your existing policy.

What does State Farm Pay for on your Commercial Truck Insurance?

The policy will determine what does State Farm will insure for you.

 Should you obtain basic commercial coverage, the company will shoulder all liability expenses that you have to pay for the accident. 

But if you get special coverage, it depends on the covered incidents indicated in the policy. Most of the time, it’s a combination of property damage and bodily injuries.

However, once you have non-truck insurance coverage, the company will pay you for the damage cost not related to cargo transportation.

This coverage usually covers the insured for dismemberment or accidental death or drivers or employees of owner-operators.

How do State Farm Premiums Compare to other Commercial Truck Insurances?

State Farm is thriving in the commercial truck insurance industry because they offer cheaper premiums than other large insurance providers. The company has an average premium rate of $1,235 instead of the national premium average of $1,379. 

This estimate is the standard premium cost for the basic coverage, and it may vary depending on your choice of policy, claims history, driving record, and location.

Is State Farm Good at Paying Commercial Truck Insurance Claims? 

State Farm has a good-paying record in the US. According to a survey conducted by YouGov, at least 60% of Americans have positive feedback about State Farm. 

No wonder, though, as the company is already a household name in the insurance industry and is the second-largest insurance provider in the United States. State Farm also has a quick turnaround when processing insurance claims from their customers.

Typically, a genuine claim may take 35 to 45 days to settle. However, a slight downside of the company is the fact that customers can’t file their claims online. They need to talk to their agent to file a claim.

However, the good thing is that you can always track your claims through their website once you have successfully filed one.

What is State Farm’s Claim Settlement Ratio?

State Farm has a low settlement ratio of 41.32%. Out of many large insurance providers like Progressive, All-Star, Nationwide, and Geico, State Farm has the lowest settlement ratio.

However, all of these companies have suffered such losses since the pandemic, But it’s State Farm who has suffered such a significant loss.

How Long does State Farm Take to Settle a Claim?

Typically, it may only take 30 days to settle a mid-size case and approximately 45 days for a medical-related liability case. 

However, this turnaround time is only applicable for genuine claims. Should the company feel like something is off with the claim, it may take more time to settle it.

What Add ons does State Farm Offer for Commercial Truck Insurance?

State Farm doesn’t have many add-on choices. For instance, they don’t have add ons like accident forgiveness, gap coverage, and deductible, which are common in many insurance companies.

However, you can still choose some general add-ons, such as roadside assistance, rental reimbursement, and rideshare insurance. It’s reasonable, though. After all, they offer a fair commercial rate to their customers.

Are there Discounts or Cashback that State Farm Offers?

State Farms policyholders or would-be customers can save a lot on their premiums by making use of the company’s discount offers.

Most discounts are for students and accident-free drivers. However, truck owner-operators or drivers are not students anymore, so let’s focus on their accident-free driver discounts.

The most notable discount selections of State Farm are the following:

  • Multi-vehicle. Suitable for owner-operators who want to insurance many vehicles. It provides a discount for several vehicles under one policy.
  • Good Drive or Clean Driving Record. The discount would be available after the lapse of three years when the driver has no accident record.
  • New Car/Anti-Theft/ Safety/Equipment. Offer discounts to late and new vehicles and those with safety feature equipment.
  • Track Device Program. Discount offer for those who utilize State Farm’s Steer Clear and Drive Safe & Safe apps.
  • Low Mileage: discount for vehicles that are not used a lot or for drivers who don’t drive regularly.

Do State Farm Premiums Change with Driving Habits?

The State Farm Premium will change for any driver insured’s driving excellent or bad habits. 

Policyholders will save a lot from their premium cost through good driving discounts programs offered by the company, such as Good Drive and Clean Driving and Track Device Program.

Moreover, they may offer hefty premiums on drivers or owner-operators with accidents and bad driving records. Charging a significant premium for bad driving records is the company’s way to minimize risk.

They can also choose not to give you a policy if they think you have a bad driving record.

What do Customer Reviews say on State Farm Insurance?

The JD Power gives State Farm an average survey regarding customer satisfaction. Most policyholders are not very satisfied, but at least they are middle-of-the-line.

Moreover, Consumer Affairs also reveals that State Farm obtain a 3.9 out of 5 rating from their 2019 survey with 1200 participants. However, while Better Business Burau does not accredit the company, it has given them an A+ in customer handling. 

State Farm also receives A+++ or superior rating from A.M. Best, indicating that the insurance company has a solid financial standing and overall satisfaction.

That said, State Farm is genuinely worth the investment. Not only are they the most successful commercial truck insurance provider, but they have been in the business for exactly a century.

The company is easily accessible because they are available in all states of America. Most of all, their auto insurance premiums are the cheapest compared to other large companies in the same industry.