When you compare Farmers Insurance and State Farm auto coverage, each company has its pros and cons. Farmers offers more coverage options, while State Farm typically has lower rates. The MarketWatch Guides team will give you a full look at both providers to help you choose the best one for your needs.
We’ll also offer two more recommendations for the best car insurance companies on the market. Always compare car insurance quotes from multiple providers to find the best fit.
When it comes time to insure your home, you want the best coverage at the lowest cost. Two popular national insurance providers to consider are Farmers and State Farm. But how exactly do they compare when it comes to homeowners insurance?
In this in-depth guide, we’ll analyze the key differences between Farmers and State Farm policies, rates and customer service. We’ll highlight pros and cons of each company to help you determine which provider may be the better choice to protect your home.
Farmers Home Insurance Overview
Farmers Insurance offers a range of homeowners policy options through a network of local agents Some highlights of Farmers home insurance include
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Bundles: Farmers provides bundled packages that combine homeowners insurance with auto, life, business policies and more for discounted rates.
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Rewards: Long-time customers can earn homeowners insurance discounts through the Farmers rewards program.
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Options: Policyholders can select from different deductibles, reimbursement types and liability limits. Farmers also offers common add-ons like sewer/drain backup coverage.
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Discounts: Farmers offers homeowners discounts for being claims-free, installing protective devices, participating in associations, paying annually and more.
State Farm Home Insurance Overview
State Farm is the largest homeowners insurer in the U.S. Here’s an overview of their homeowners coverage:
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Local agents: Like Farmers, State Farm home insurance shoppers work with local agent representatives.
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Bundling: State Farm bundles home and auto insurance together for reduced premiums. Life insurance bundles are also available.
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Guaranteed replacement: State Farm’s full replacement guarantee agrees to rebuild your home as-is after a total covered loss.
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Deductible discounts: Choosing a higher deductible results in a policy discount from State Farm.
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Add-ons: Common endorsements like sewer backup, identity restoration and electronics coverage can be added.
Now that we’ve summarized the basics, let’s do a deeper dive into how Farmers and State Farm stack up.
Farmers vs. State Farm: Home Insurance Rates
One of the most important considerations when comparing insurance companies is the premium cost. Here’s an overview of how home insurance rates at Farmers and State Farm compare:
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Nationwide average rates: Based on national data estimates, State Farm offers slightly lower average homeowners insurance rates than Farmers overall. State Farm averages $1,249 per year, while Farmers is $1,285 annually.
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Value discounts: Farmers gives steeper rate discounts than State Farm for homes with higher replacement values. This can make Farmers cheaper for bigger, more expensive houses.
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Bundling discounts: State Farm offers greater bundling savings in many states when you combine home and auto policies.
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Age of home: Farmers may beat State Farm for newer, modern homes without maintenance issues or higher repair costs. State Farm tends to be more competitive for older homes.
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Credit discounts: State Farm has larger homeowners insurance discounts for good credit than Farmers in most states.
To determine actual rates, get quotes from both providing details on your home’s value, location, your claims history and more. But on average, State Farm tends to have slightly lower premiums for homeowners insurance.
Strength of Claims Servicing
How an insurer handles the claims process is another key comparison point. Here’s how Farmers and State Farm claims servicing stacks up:
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Claims simplicity: State Farm offers a simpler home insurance claims process with lower average customer complaints. State Farm mobile apps also allow easy claim filing.
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Response speed: Farmers gets slightly higher marks for fast response on home claims. Their claims reps tend to arrive quickly after a loss notification.
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Settlement satisfaction: State Farm scored significantly higher in J.D. Power’s settlement satisfaction rankings. Customers are more pleased with State Farm’s claim payout timeliness and fairness.
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Complaint ratios: State Farm has fewer complaints registered against them with insurance regulators than Farmers regarding claims handling.
Overall, State Farm provides a smoother home insurance claims experience with less policyholder dissatisfaction. Their streamlined process earns higher customer approval.
Availability of Discounts
Discounts are a great way to lower your home insurance costs. Here’s how Farmers and State Farm compare when it comes to available homeowners discounts in most states:
Common Discounts Offered by Both
- Multi-policy bundling
- New home
- Protective devices (alarms, sprinklers)
- Loyalty discounts
- Loss-free discounts
Farmers Unique Discounts
- Good student
- Common firewalls
- Green building upgrades
State Farm Unique Discounts
- Built-in discounts for higher deductibles
- Student away from home
- Mortgage-free home
- Fast quotes discounts
State Farm offers a longer list of unique homeowners discounts you can’t get with Farmers. However, Farmers does allow stacking multiple discounts to maximize savings.
Quality of Customer Service
You want an insurer that provides great service. Here’s how policyholders rate Farmers and State Farm customer service.
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Service satisfaction: State Farm consistently earns higher marks on surveys of customer service satisfaction. Policyholders favor their attentiveness and timeliness handling questions and requests.
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Contact options: Farmers and State Farm both offer website chat, mobile app messaging, call centers, and local agent offices to provide customer assistance. State Farm offers more extensive service hours.
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Complaints: State Farm has fewer complaints registered against them for service-related issues than Farmers. Their customers report fewer instances of poor responsiveness or misinformation from agents.
Based on various consumer surveys, State Farm maintains a better reputation for customer service experience and fewer policyholder complaints.
Proprietary Ratings in Home Protection
Insurers use different proprietary models to assess home risks and determine premiums. Here’s how Farmers and State Farm’s systems stack up:
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Farmers Proprietor: Uses Flex Point home rating system to assess risk based on roof, exterior walls, geography and other factors. Considers home specifics more than other companies.
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State Farm Proprietor: Relies on 360 Value Estimator to calculate precise home rebuilding cost and factor that into premiums. Also assesses geographic risks. Doesn’t weight home features as heavily.
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Accuracy: Farmers Flex Point system may allow them to make more accurate rate assessments for unique home risks like roof age or materials used. State Farm’s estimates are very broad.
Farmers has a more refined home rating system that may result in lower premiums for homes with updated features or favorable risks. State Farm takes a more generalized geographic-based approach.
AM Best Financial Strength Ratings
AM Best issues letter grade ratings assessing an insurer’s financial strength and ability to pay claims. Here are the ratings for each company:
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Farmers: Rated A, which means excellent ability to meet ongoing insurance obligations.
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State Farm: Rated A++, the highest available rating for superior financial strength.
State Farm maintains the stronger financial footing as the nation’s leading homeowners insurer. Farmers still demonstrates solid fiscal health.
J.D. Power Ratings
Another respected industry rating firm is J.D. Power, which measures customer satisfaction. Here are their ratings:
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Farmers homeowners satisfaction: Scored 799 points out of 1,000 in J.D. Power’s rankings, which is average.
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State Farm homeowners satisfaction: Earned a score of 824, considered among the better insurers according to consumers.
While both companies garner average-to-good reviews from policyholders, State Farm edged out Farmers slightly in overall satisfaction according to J.D. Power.
AM Best Ratings of Financial Strength
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Farmers: A (Excellent)
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State Farm: A++ (Superior)
J.D. Power Home Insurance Ratings
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Farmers: 799/1000 points
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State Farm: 824/1000 points
Pros and Cons of Farmers Home Insurance
Pros
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Unique home risk rating system may lead to discounts
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Often cheaper for higher-valued, newer homes
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Strong loss prevention guidance resources
Cons
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Slightly higher premiums on average
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Lower discounts for credit, bundling, loyalty
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More customer complaints than competitors
Pros and Cons of State Farm Home Insurance
Pros
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Lower average premium costs
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Streamlined claims process with faster payouts
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More discounts available, including for higher deductibles
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Higher financial strength and customer satisfaction ratings
Cons
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Uses basic proprietary home rating system
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Fewer unique policy add-on options
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Can be pricier for higher-end homes
The Bottom Line: Farmers vs. State Farm for Home Insurance
For many homeowners, State Farm offers better value through cheaper base rates, robust discounts and claim
Compare State Farm and Farmers Insurance
The table below lists each company’s years in business, industry ratings, J. D. Power rating and our award, if applicable.
| Farmers | State Farm | |
|---|---|---|
| Year Founded | 1928 | 1922 |
| AM Best financial strength rating | A | A++ |
| Better Business Bureau (BBB) Rating | D | C- |
| J.D. Power 2023 U.S. Auto Claims Satisfaction Study℠ Results | 878/1,000 | 891/1,000 |
| Our Award | N/A | Best Customer Experience |
Is Farmers Insurance Cheaper Than State Farm?
Our rate information for 2024 shows that Farmers full-coverage policies cost an average of $3,495 a year, while minimum coverage policies cost $1,296 a year. State Farm policies with full coverage cost about $2,544 a year, while policies with only minimum coverage cost $861 a year.
Full coverage costs $2,681 a year on average across the country, while minimum coverage costs $869 a year on average. These averages are based on a 35-year-old married driver with good credit and no accidents.
State Farm VS Farmers insurance, Which is better
FAQ
What insurance is better than farmers?
Is farmers the most expensive insurance?
Does State Farm have a good reputation for paying claims?
Why did State Farm cancel my homeowners policy?
What is the difference between state farm & farmers homeowners insurance?
While more expensive, Farmers homeowners policies provide more coverage options compared to State Farm. However, State Farm offers lower costs for similar coverage quality. Nationally, the average homeowners insurance policy costs $2,417 per year. State Farm home insurance comes in under that at $2,215, while Farmers exceeds the average at $2,670.
Is state Farm cheaper than farmers?
However, State Farm offers lower costs for similar coverage quality. Nationally, the average homeowners insurance policy costs $2,417 per year. State Farm home insurance comes in under that at $2,215, while Farmers exceeds the average at $2,670. However, when you break down average premiums by state, Farmers rates may be cheaper than State Farm.
How much does State Farm Home Insurance Cost?
The typical annual premium for State Farm’s $500K home insurance policy is $2,138, $89 less than Farmers’ $2,227 annual cost. State Farm also offers more optional coverages, making it a great choice for homeowners who want several protections. However, Farmers offers more ways to save on your premiums than State Farm.
Does state Farm offer a home insurance discount?
Despite higher average costs, Farmers offers significantly more homeowners insurance discounts, giving policyholders several options to save on premiums. Like many insurance companies, State Farm offers savings when you bundle your home and auto insurance — and savings can be as much as $1,000 per year.