# Is State Farm or Farmers Cheaper for Home Insurance?
State Farm is generally cheaper. On average, State Farm home insurance costs $1,300–$1,500 per year for a standard $300,000 home, compared to $1,500–$1,800 per year for Farmers — a difference of roughly $200–$500 annually.
But "generally" does real work in that sentence. Rates are highly individualized, and Farmers can actually be cheaper in several states, for certain home types, and depending on your specific risk profile.
National Average Home Insurance Rates
| Insurer | Avg. Annual Premium (2025–2026) | Monthly Estimate |
|---|---|---|
| State Farm | ~$1,400/year | ~$117/month |
| Farmers | ~$1,650/year | ~$138/month |
| National average | ~$1,700/year | ~$142/month |
Based on $300,000 dwelling coverage, $100,000 liability, $1,000 deductible. Source: industry rate data 2025–2026.
State Farm beats the national average. Farmers is roughly at or slightly below the national average.
When State Farm Is Cheaper
State Farm tends to win on price in:
- Most Midwestern and Southeastern states where State Farm has deep market penetration and competitive base rates
- New construction homes (built after 2000) where State Farm's underwriting favors lower risk
- Bundled auto + home policies: State Farm's bundling discount (up to 17% on home) is consistently strong
- Claim-free homes: State Farm rewards long claim-free histories with loyalty discounts
States where State Farm is typically cheaper than Farmers:
Illinois, Indiana, Ohio, Georgia, Tennessee, North Carolina, Virginia, Pennsylvania, Arizona, Nevada
When Farmers Is Cheaper (or Competitive)
Farmers can beat State Farm in:
- California: Farmers has strong California roots and competitive rates, while State Farm has been reducing its California exposure due to wildfire risk (State Farm stopped writing new homeowners policies in California in 2023; Farmers remains active)
- Texas: Farmers is often more competitive in Texas, particularly for older homes
- High-value homes over $500K: Farmers' coverage tiers can be more favorable at higher dwelling values
- Specific professions: Farmers offers group discounts to certain professional associations that may not be available through State Farm
Key Factors That Move Your Rate More Than the Brand
Picking between State Farm and Farmers matters less than these individual factors:
| Factor | Impact on Premium |
|---|---|
| Home age | Older homes cost 20–40% more to insure |
| Roof age/material | Metal or impact-resistant shingles: 10–30% discount |
| Claims history | One claim in 5 years can raise rates 15–40% |
| Credit score | Good credit (750+) vs. fair (600–700): 20–50% rate difference in states that allow it |
| Location/ZIP | High-crime or high-risk ZIP codes: major rate driver |
| Deductible | $2,500 deductible vs. $500: saves 10–15% per year |
| Bundling | Auto + home bundle: typically 5–17% off home |
Beyond Price: What Else Differs
Price matters, but so does what you get for it:
Claims Satisfaction
- State Farm: J.D. Power 2024 Home Insurance Study ranked it #1 in claims satisfaction among large insurers
- Farmers: Ranked below average in J.D. Power claims satisfaction in recent years
Coverage Options
- Farmers: More a la carte customization — Eco Rebuild (green materials), Identity Shield, Guaranteed Replacement Cost
- State Farm: Simpler structure but solid inflation guard and high-value item endorsements
Financial Strength
Both are financially strong:
- State Farm: A++ (Superior) from AM Best
- Farmers: A (Excellent) from AM Best — State Farm's higher rating suggests slightly greater financial stability
Agent Access
- State Farm: ~19,000 agents nationwide — one of the largest agent networks
- Farmers: ~48,000 agents (includes exclusive and independent agents) — extremely wide access
How to Get the Best Rate
1. Get quotes from both — don't guess, rates vary too much by individual profile
2. Ask about every discount: new home, new roof, security system, non-smoker, loyalty, bundling
3. Raise your deductible if you have emergency savings — going from $500 to $2,500 often saves $150–$300/year
4. Check your credit: In most states, improving your credit score can cut your premium substantially
5. Compare annually: Rates shift, and your risk profile changes
FAQ
Is State Farm leaving some states?
State Farm paused new homeowners policy applications in California (2023) due to wildfire risk and reinsurance costs. They continue to renew existing policies and operate in all other states. Farmers remains active in California.
Can I bundle home and auto with State Farm or Farmers?
Yes, both offer multi-policy discounts. State Farm's bundling discount typically runs 5–17% on the home policy; Farmers' runs 6–20% depending on state. If you have both auto and home with one insurer, always compare the bundled price vs. shopping each separately.
Does State Farm cover flood damage?
No — neither State Farm nor Farmers includes flood damage in standard home insurance. Both offer separate flood insurance through the National Flood Insurance Program (NFIP) or private flood carriers.
What credit score do I need for good rates?
Both insurers use credit-based insurance scores where state law allows. A score above 740–750 typically earns the best tier. Note: a few states (California, Maryland, Massachusetts, Michigan) prohibit the use of credit scores in insurance rating.
Which has better online tools?
State Farm's app and online portal are generally rated higher for usability. Farmers has improved but tends to receive more mixed reviews on its digital experience.
Bottom Line
State Farm is cheaper than Farmers for most U.S. homeowners — by an average of $200–$500 per year. But if you're in California or Texas, have a high-value home, or qualify for Farmers' professional discounts, the math can flip. The only reliable way to know is to get quotes from both.
For a full comparison of both insurers — coverage options, claims satisfaction, discounts, and who wins for auto and life insurance too — see our Farmers Insurance vs State Farm comparison.
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