What your State Farm (car insurance) contract says

In short

This is a personal automobile insurance policy with State Farm Mutual Automobile Insurance Company, the largest auto insurer in the United States. The policy covers liability for injuries and property damage you cause to others, plus optional coverage for damage to your own vehicle (comprehensive and collision). California requires minimum liability coverage of 15/30/5. State Farm policies in California run for 6-month terms and renew automatically. Under Proposition 103, the California Department of Insurance (CDI) must approve rate changes before they take effect. Your premium is based primarily on your driving record, years of experience, and annual mileage (California prohibits using credit scores as a rating factor for auto insurance).

What you agree to do

• You must pay your premium by the due date or your policy will be canceled after a grace period.
• You must report any accident or claim to State Farm promptly (delays can jeopardize your coverage).
• You must cooperate fully with State Farm's claims investigation, including providing statements under oath if requested.
• You must notify State Farm of changes to your household drivers, vehicles, address, or mileage.
• You must not intentionally misrepresent facts on your application or when filing a claim.

What you can ask for

• You can cancel your policy at any time and receive a prorated refund for the unused premium.
• You can choose any licensed repair shop for your vehicle (State Farm may recommend shops but cannot require you to use them).

Points worth knowing

• Premium increases after at-fault accidentsIf you cause an accident, State Farm will likely increase your premium at renewal. California's Proposition 103 requires CDI to approve rate formulas, but at-fault accidents are a permitted rating factor and can increase your premium by 20-40%.
• Policy non-renewal for excessive claimsWhile California law restricts mid-term cancellation, State Farm can choose not to renew your policy after the 6-month term if you have multiple claims or at-fault accidents.
• Coverage denial for material misrepresentationIf State Farm discovers you misrepresented information on your application (such as undisclosed drivers, incorrect mileage, or using the car for rideshare without proper coverage) they can deny claims retroactively.
• Diminished value not automatically coveredEven after a full repair, your car may be worth less because of its accident history. California does not require State Farm to pay diminished value on first-party claims, so you may absorb this loss.

Dates and deadlines

Policy term

6-month policy period: renews automatically unless canceled by you or State Farm

Premium payment due date

Due at the start of each term, or monthly if on a payment plan

Grace period for late payment

Typically 10 days after the due date before cancellation for non-payment