State Farm home insurance review and ratings 2024

State Farm is the No. 4 home insurance company in the 2024 Insure.com Best Insurance Companies ranking, with a rating of 4.3 stars out of 5 and below-average rates.

Reviewed by: Leslie Kasperowiczquality verified
Leslie Kasperowicz
Leslie Kasperowicz

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at Insurance.com.

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Our take

State Farm, the nation’s largest home insurance company, consistently ranks among the best home insurers, and the 2024 Best home Insurance Companies survey is no different. For 2024, State Farm ranked at No.4 on the list.

State Farm is a top pick for home insurance thanks to satisfied customers, ease of service and various policy offerings. Our survey respondents rated it highly for customer satisfaction, with 85% of customers saying they’re satisfied with State Farm overall. It comes highly recommended by current customers; 88% would recommend it. 

State Farm has a long history of financial stability and a solid reputation. It has an AM Best rating of A++, which measures financial strength. A++ is the best possible rating.

State Farm isn’t the cheapest home insurance company but has the biggest auto-home discount of all companies surveyed at 30%, which can mean big savings for those who bundle. However, there aren’t many other home discounts available.

State Farm
State Farm Ratings
Overall Rating: 4.3
Average Premium: 4.6
NAIC: 0.95
Customer Satisfaction: 4.2
AM Best Rating: A++

Pros and Cons

Pros:
  • High rating for customer satisfaction
  • Large variety of policy offerings
  • Big company with many available agents across the nation
Cons:
  • Limited discounts aside from home and auto bundle
  • Could improve the digital experience for customers
  • Rates aren’t the lowest

Below is Insure.com’s review of the company. It’s based on third-party metrics, including two J.D. Power studies (Home Insurance Study and Property Claims Satisfaction Study) and an in-depth survey of insurance customers. Find the full methodology here.

How much State Farm costs

State Farm’s rates aren’t the cheapest compared to other major insurance companies, but they’re on the lower side, below the average rate of $2,604. The average rate from State Farm is about a hundred dollars more than Allstate’s rate but below American Family’s. 

CompanyAverage annual rate
Amica$2,000
Allstate$2,098
Auto-Owners$2,160
State Farm$2,169
Erie$2,183
American Family$2,504
Nationwide$2,746
Progressive$3,193
Farmers$3,194
Travelers$3,701

How State Farm scores for customer satisfaction

Our survey found that 85% of State Farm customers rate it highly for customer satisfaction. It was outscored by a few companies but not by many. Erie won this category at 89%.

State Farm also performed well in J.D. Power’s 2023 Home Insurance Study, which rates companies for overall customer satisfaction.

CompanyPercent of customers that are satisfiedJ.D. Power overall satisfaction score (out of 1,000)
State Farm85%829
Allstate83%809
Farmers 70%800

How State Farm scores for policy offerings

Our survey found that 82% of respondents are happy with the policy offerings from State Farm, one of highest satisfaction ratings. State Farm scored very well among the companies surveyed, just ahead of major competitor Allstate, but didn’t land the first place slot, which Erie won.

CompanyPercent of customers satisfied with the company’s policy offerings
State Farm82%
Allstate81%
Farmers71%

How State Farm scores on ease of service

State Farm rated well for ease of service, with 87% of current customers saying they are satisfied or highly satisfied. It was the second-highest score in this category; only American Family ranked higher at 89%.

CompanyPercent of customers satisfied with the company’s ease of service
State Farm87%
Allstate82%
Progressive79%

Would current customers recommend State Farm to others?

According to our survey, yes. 88% of respondents said they’d recommend State Farm to others. A handful of companies, including category winner Erie and American Family, ranked higher here.

CompanyPercent of customers who would recommend the company to others
State Farm88%
Allstate84%
American Family91%

How trustworthy is State Farm?

State Farm has earned the trust of its customers. In our survey, 83% of State Farm’s customers who responded said they trust their insurance company, putting it in second place among the companies in Insure.com’s ranking. American Family took first place at 89%.

CompanyPercent of customers who say they trust the company
State Farm83%
Travelers69%
Allstate74%

Do State Farm customers plan to renew?

According to our survey, 94% of State Farm customers plan to renew their home insurance with the company. That’s very high and beats most of State Farm’s top competitors. Among the companies ranked Erie led this category.

CompanyPercent of customers who plan to renew with the company
State Farm94%
Nationwide90%
Allstate89%

How State Farm scores for claims handling

Based on our survey results, State Farm’s customers are relatively satisfied with the way claims are handled. The company was among the leaders in this category, but fell short of competitor Erie, which led this category.

Another metric to consider: J.D. Power gives State Farm a rating of 880/1,000 for claims satisfaction, rating it just above average on the Property Claims Satisfaction survey for 2023.

Company Percent of customers who are satisfied with claims service J.D. Power claims satisfaction score (out of 1,000))
State Farm 78% 880
Travelers 68% 867
Allstate 83% 868

How State Farm scores on digital experience

State Farm’s digital experience, including the website and mobile app, didn’t score highly. But, none of the companies in our survey did particularly well here. No company had even 50% of its customers give it high marks in this category. At 44%, Allstate, Progressive and Travelers tied for first.

However, the State Farm app has a 4.7-star rating on the Google Play store and a 4.8-star rating with Apple users, making it one of the better-rated apps out there for both operating systems.

Company Percent of customers who say the company is best for digital experience
State Farm 40%
Amica 27%
Progressive 44%

How State Farm scores on auto and home bundling

State Farm offers an average auto and home bundling discount of 30%, the highest among companies for which Insure.com has data. When asked to rank State Farm’s top three best attributes, 47% chose auto and home bundling. At 73%, Erie led this category, but most companies rated closer to State Farm’s score.

Company Percent of customers who say the company is best for bundling Average bundling discount
State Farm 47% 30%
Progressive 48% 5%
Allstate 39% 16%

How State Farm scores on discounts

State Farm offers a good range of discounts but doesn’t have as many discount options as other companies surveyed. The highest score in this category was 54% for American Family.

Company Percent of customers who say the company is best for discounts
State Farm 46%
Progressive 46%
Allstate 45%

State Farm home insurance coverage types

  • Standard homeowners
  • Renters
  • Condo
  • Rental property
  • Manufactured home
  • Farm and ranch
  • Personal articles
  • Identity restoration

State Farm home insurance discounts

  • Bundling 
  • Home security
  • Roofing 
  • Wind mitigation

Other policies offered

  • Auto
  • Motorcycle
  • Boat
  • ATV & off-road
  • RV
  • Health
  • Life
  • Small business
  • Disability
  • Pet medical

States where State Farm offers coverage

Graph
Table
States where State Farm offers coverage
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin
Wyoming
AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY
Available
Not available

Note: *State Farm is not currently writing new home insurance policies in California.

Company background

State Farm

State Farm was founded in 1922 in Bloomington, Illinois, as a policyholder-owned mutual auto insurance company. Today, it offers a wide variety of insurance products and services and has 18,000 agents across the nation selling policies. It is the largest home insurance company by market share in the U.S

State Farm continues to operate as a mutual company, which means it’s owned by its customers and not shareholders and has no stock.

Sources:

State Farm. “Open the door to home insurance.” Accessed January 2024.

State Farm. “How to lower your rates with homeowners discounts.” Accessed January 2024.

J.D. Power. “2023 U.S. Property Claims Satisfaction Study.” Accessed January 2024.

J.D. Power. “2023 U.S. Home Insurance Study.” Accessed January 2024.

Methodology

Insure.com in the fall of 2023 surveyed more than 1,750 insurance consumers (1,151 people with home insurance). The survey was conducted by online market research company Slice MR.

Respondents were asked to name their home insurer and then grade it in the following categories: customer satisfaction, ease of service, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Respondents were then asked to pick their insurer’s top three attributes out of more than a dozen presented – including digital experience, discounts best for auto/home bundling and best for discounts. The number of responses for each attribute were totaled before dividing by the number of each company’s customers who responded to that survey question to create a percentage. 

Respondents were then asked if they would recommend their home insurer to someone else and if they planned to renew their policies. The percentage who said yes is presented in the results.

Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.

They then collected AM Best data, which measure financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC company code or codes that were the primary underwriting companies for each carrier and line of business using total annual premiums. The associated NAIC complaint index score was used in the calculations. If more than one underwriting company was identified for a line, the editors used a weighted average of the NAIC complaint index scores.

They also collected insurance rate data from Quadrant Information Services.

With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For home insurers, we took the following and gave each a weight.

  • Survey: 40% of the total score (10% customer satisfaction, 10% recommended, 10% renewal rate and 10% claims handling)
  • AM Best: 25% of total score
  • Annual premium: 20% of total score
  • NAIC: 15% of total score

Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.

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