State Farm is the No. 1 home insurance company in the 2023 Insure.com Best Insurance Companies survey, with a rating of 4.6 stars out of 5 and the biggest auto-home discount.
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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State Farm, the nation’s largest home insurance company, consistently ranks among the best home insurers, and the 2023 Best Home Insurance Companies survey is no different. State Farm earned the top spot; it’s No. 1 overall.
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 at the top for customer satisfaction, with 93% of customers saying they’re satisfied with State Farm overall. It’s the company most likely to be recommended to others by current customers; 97% would recommend it.
State Farm has a long history of financial stability and a solid reputation. It has an AM Best rating of A++, 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.
AM Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.
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, including an explanation of our survey scores.
State Farm’s rates aren’t the cheapest compared to other major insurance companies. The average rate from State Farm is several hundred dollars more than Allstate’s rate and a little higher than American Family’s as well. State Farm, however, has rates below the national average of $2,433.
Our survey found that 93% of State Farm customers rate it highly for customer satisfaction. It was the highest rated of all the companies surveyed, including other major players like Farmers and Allstate.
State Farm also performed well in J.D. Power’s 2022 Home Insurance Study, which rates companies for overall customer satisfaction.
Our survey found that 88% 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 was won by Travelers.
State Farm rated well for ease of service, with 88% of current customers saying they are satisfied or highly satisfied. It was one of the higher scores in this category. Travelers led in this area among the companies Insure.com ranked.
According to our survey, yes. 97% of respondents said they’d recommend State Farm to others, making it the most recommended company in the survey. Major competitors Allstate and Farmers both scored lower.
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 at the top of the companies in Insure.com’s ranking.
According to our survey, 96% 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, Travelers led this category.
Based on our survey results, State Farm’s customers are relatively satisfied with the way claims are handled. The company wasn’t top-rated in the survey and fell short of competitor Liberty Mutual, which led this category.
Another metric to consider: J.D. Power gives State Farm a rating of 876/1,000 for claims satisfaction, rating it just above average on the Property Claims Satisfaction survey for 2022.
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. USAA, which was not ranked in the top companies list, had one of the higher scores in this category.
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.
State Farm offers an average auto and home bundling discount of 30%, the highest among companies for which Insure.com has data. Despite the high bundling discount, State Farm didn’t win the auto and home bundling category on our survey, although it scored fairly well. That honor went to Progressive despite a much smaller discount.
State Farm offers a good range of discounts but doesn’t have as many discount options as other companies surveyed, which may explain why competitors scored higher.
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.
State Farm. “Open the door to home insurance.” Accessed December 2022.
State Farm. “How to lower your rates with homeowners discounts.” Accessed December 2022.
J.D. Power. “2022 U.S. Property Claims Satisfaction Study.” Accessed December 2022.
J.D. Power. “2022 U.S. Home Insurance Study.” Accessed December 2022.
Insure.com in the fall of 2022 surveyed more than 1,500 people with auto, home, life and health insurance (805 with home insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best home Insurance Companies ranking. Insure.com needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses.
Respondents were first asked to grade their insurer in the following categories – customer satisfaction, 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.
Survey score calculation. Respondents were then asked to rank their insurer’s top three attributes out of more than a dozen presented – including customer satisfaction and policy offerings. For a number one choice, five points were given; for a second choice, three points; and for a third choice, a single point. The total points for each choice – first, second and third – were then divided by the number of each company’s customers who responded to that survey question to create a percentage. Those percentages are presented in the results as scores.
Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.
They also 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 collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives, and AM Best data, which measures financial strength.
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 used the following weights to calculate the overall score for each company:
No company in the ranking received less than 1 star in any category and 5 stars was the most any insurer could receive.