What Is State Farm's Auto Insurance

State Farm is a mutual company that focuses on policyholders. With more than 58,000 employees and more than 19,000 independent contractor agents, 83 million State Farm policies and accounts are being serviced throughout the United States every day. But it all began as an auto insurance company. In 1922, G.J. Mecherle sold his first auto insurance policy for $11.17 and State Farm was born. Originally a single-line auto insurance company, State Farm now offers about 100 different products and services in five different lines of business. Let's take a closer look at the auto insurance products offered by State Farm and the discounts available to auto insurance customers.

Auto Insurance Coverage from State Farm Auto

Here are summaries of types of auto insurance offered by State Farm Auto.

• Collision Coverage. This insurance coverage pays to repair or replace your vehicle if it collides with another vehicle or object.

• Comprehensive Coverage. This type of car insurance helps pay to repair or replace your vehicle if it is damaged in something besides a collision such as theft, fire and vandalism.

• Liability Coverage. Liability insurance pays another party's medical expenses, vehicle repairs and property damage if you are responsible in an accident.

• Car Rental and Travel Expenses Coverage. Rental car reimbursement pays the cost of renting a replacement vehicle while a car is in the repair shop. And travel expenses coverage helps pay for meals, lodging and transportation if you're in an accident more than 50 miles from home.

• Uninsured Motor Vehicle Coverage. This insurance helps pay for medical expenses if you're injured in an accident caused by someone who doesn't have liability insurance.

• Underinsured Motor Vehicle Coverage. If someone injures you in an accident, their liability insurance should pay your medical expenses. But if the other person doesn't have enough liability insurance, underinsured motorist vehicle coverage can help pay for your medical expenses.

• Medical Payments Coverage. This insurance coverage helps pay medical and funeral expenses if an insured person is injured or killed in an accident.

• Emergency Road Service Coverage. With this type of emergency coverage, State Farm pays for towing, the delivery of gas, oil, battery, change of tire and locksmith service

• Rideshare Driver Coverage. State Farm offers special auto insurance coverage for drivers of Uber and Lyft.

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State Farm Auto Insurance Discounts

Here is a roundup of auto insurance discounts offered by State Farm Auto.

• Drive Safe & Save Discount. With this app for your smartphone, you'll save just for signing up and from there how you drive determines your discount, which can be as much as 30 percent. You'll get rewarded for things such as limiting excessive speeds and hard stops and driving at night.

• Steer Clear Discount. If you are under 25 years of age and without any at-fault accidents or moving violations within the past three years, you could save as much as 20 percent with a Steer Clear discount.

• Good Student Discount. Getting good grades could save you up to 25 percent on your auto insurance. This saving lasts after you graduate college until you turn 25. To receive a Good Student discount, the student must be 16 to 25-years-old and be enrolled full time in high school, college or home schooling. They must show proof of a "B" or 3.0 GPA or top 20 percent in class rank or have qualifying test scores if homeschooled.

• Multiple Lines Discount. You can save up to 17 percent if you have homeowners, renters, condo or life insurance in addition to a car insurance policy with State Farm Auto.

• Accident-Free Discount. You qualify for this discount if your car, or the one it has replaced, has been insured by State Farm Auto for three continuous years without an accident. This discount may increase over time if you keep your car insured with State Farm Auto and continue to have no accidents.

• Defensive Driving Course Discount. Depending on where you live, taking a driver safety course may help you get car insurance discounts. The classes teach skills like how to navigate weather and traffic situations to avoid accidents. Drivers who take driver safety courses may be eligible for discounts of 10 percent to 15 percent off their car insurance.

• Good Driving Discount. New State Farm customers get this discount when they've gone three years or more without moving violations or at-fault accidents.

• Driver Training Discount. You'll receive this discount if all the drivers of your cars who are under the age of 21 complete an approved driver education course.

• Student Away at School Discount. If one of the drivers of a car is a student under the age of 25 who moves away to school and only uses the car while at home during school vacations and holidays, you may be eligible for a discount on your car insurance. The distance from your home to the college may play a role in the discount. So reach out to a State Farm agent for details.

• Vehicle Safety Discount. If your car was made in 1994 or later and depending on the make and model, you could save 40 percent on your Medical Payments coverage with State Farm Auto.

• Passive Restraint Discount. For 1993 and older vehicles equipped with a factory-installed airbag or other passive restraint system, you can receive a discount of up to 40 percent on your Medical Payments coverage. Passive restraint equipment includes front airbags and seatbelts.

• Anti-Theft Discount. You may be eligible for this discount if your vehicle has a car alarm or other anti-theft device.

• Multiple Auto Discount. If two or more vehicles in your household are insured by State Farm Auto and owned by related individuals, you could save as much as 20 percent on your car insurance.

You'll want to compare rates to see if State Farm offers what you need at the best prices. SmartFinancial can see which insurer is the best match for you. Begin by entering your zip code below.