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