Farmers Insurance vs State Farm
Farmers Insurance
Major U.S. insurer offering auto, home, and bundled coverage options.
Budget-conscious consumers seeking basic auto coverage and those preferring traditional agent relationships
State Farm
Large mutual insurance company with 15,000+ local agents and strong customer satisfaction.
Homeowners seeking bundled coverage, customers prioritizing low rates, and those wanting financial stability and higher satisfaction scores
Short Answer
State Farm ranks higher in homeowners insurance (No. 3 vs No. 8) and offers better bundling discounts (17% vs 10%), with lower average rates and stronger financial performance. Both insurers score 4.4/5 in auto insurance and are among America's most recognized providers, though State Farm edges out Farmers in overall customer satisfaction and pricing.
Our Verdict
AI-assistedState Farm emerges as the stronger choice for most customers, offering superior homeowners coverage rankings, better bundling discounts, and lower rates with higher customer satisfaction. While both companies maintain comparable auto insurance ratings (4.4/5), State Farm's better financial strength, rate competitiveness, and recent business expansion make it the more attractive option for bundled insurance needs.
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Choose Farmers Insurance if
Budget-conscious consumers seeking basic auto coverage and those preferring traditional agent relationships
Choose State Farm if
Homeowners seeking bundled coverage, customers prioritizing low rates, and those wanting financial stability and higher satisfaction scores
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Key Differences at a Glance
Key Facts & Figures
| Metric | Farmers Insurance | State Farm | Diff |
|---|---|---|---|
| Customer Base(millions) | 18M+ | 18M+ | — |
| 2026 Revenue Projection(billion USD) | $20B+ | $20B+ | — |
| Year Founded | 1922 | 1922 | — |
| Customer Dividend/Returns (2026)(billion USD) | $5B dividend | $5B dividend | — |
| Auto Insurance Market Share(percent) | 16.5% | 16.5% | — |
| Average Annual Auto Premium(USD) | $1,420 | $1,420 | — |
| Customer Service J.D. Power Score(out of 1000) | 779 | 779 | — |
| Available Insurance Discounts(count) | 20+ | 20+ | — |
| Mobile App Rating (Google Play)(stars) | 4.3 | 4.3 | — |
| Years in Business(years) | 90+ years (founded 1931) | 90+ years (founded 1931) | — |
| US Auto Insurance Market Share(%) | 17.1% | 17.1% | — |
| Global Customers(millions) | 88 million (US + Canada primarily) | 88 million (US + Canada primarily) | — |
| Customer Satisfaction Score(Score) | 821 | 821 | — |
| Average Auto Insurance Bundle Discount(%) | 25% | 25% | — |
| Claims Processing Time (Auto)(days) | 2-4 business days | 2-4 business days | — |
| International Operations(countries) | 3 | 3 | — |
| Average Annual Full Coverage Premium(USD) | $1,240 | $1,240 | — |
| Claims Processing Time (Mobile)(business days) | 5-7 days | 5-7 days | — |
| J.D. Power Customer Satisfaction Score(points (0-100)) | 82/100 | 82/100 | — |
| Online Quote Completion Time(minutes) | 12-15 minutes | 12-15 minutes | — |
| Number of Local Agents(agents nationwide) | 15,000+ | 15,000+ | — |
| Home & Auto Bundle Discount(percent) | Up to 25% | Up to 25% | — |
All figures sourced from publicly available data. Last updated Jun 2026.
Key Differences
Farmers Insurance
No. 8
State Farm
No. 3🏆
Farmers Insurance
Up to 10%
State Farm
Up to 17%🏆
Farmers Insurance
4.4/5
State Farm
4.4/5
Farmers Insurance
Higher
State Farm
Lower🏆
Farmers Insurance
Good
State Farm
Higher🏆
Farmers Insurance
Solid
State Farm
Better🏆
Farmers Insurance
Top Tier
State Farm
Top Tier
Farmers Insurance
Standard
State Farm
Up 34%🏆
Full Comparison
| Attribute |  Farmers Insurance | State Farm |
|---|---|---|
| Homeowners Insurance Ranking | No. 8 | No. 3 |
| Bundle Discount Maximum(%) | 10% | 17% |
| Average Rate Competitiveness | Higher | Lower |
| Average Annual Premium(relative to national average) | $380-$395 | — |
| Average Annual Auto Premium(USD) | $1,420 | — |
| Average Auto Insurance Bundle Discount(%) | 25% | — |
Show 1 more attributeAverage Annual Full Coverage Premium(USD) $1,240 — | ||
| Auto Insurance Rating(/5) | 4.4/5 | 4.4/5 |
| Customer Satisfaction Level | Good | Higher |
| Customer Satisfaction Rating(relative ranking) | Solid ratings | — |
| Claims Processing(null) | Full digital + agent options | — |
| Financial Strength Rating | Solid | Better |
| Financial Stability Rating(rating) | A++ (AM Best) | — |
| Agent Recruitment Growth (YoY)(%) | Standard | 34% |
| Recent Customer Dividend(Billion USD) | Not disclosed | $5B |
| 2025 Net Income(billion USD) | $12.9 billion | — |
| Rate Reductions Announced 2026(customers affected) | 700,000+ (Florida, April 2026) | — |
| Net Income (2025)($ Billion) | State Farm | — |
| Available Discounts(count) | Standard package | — |
| Accident/DUI Rate Premium Increase(percentage) | More competitive | — |
| Geographic Coverage(states) | All 50 states | — |
| Product Coverage Types | Auto, Home, Renters, Life | — |
| Service Model(null) | Agent + Digital | — |
| Claims Processing Speed | 3-7 days | — |
| Claims Processing Time (Auto)(days) | 2-4 business days | — |
| Claims Processing Time (Mobile)(business days) | 5-7 days | — |
| Average Premium Rates | Lower | — |
| Add-On Coverage Availability | Standard | — |
| Price Transparency Rating | High | — |
| Digital Platform Ease of Use | User-friendly | — |
| Customer Service J.D. Power Score(out of 1000) | 779 | — |
| Product Diversity | Comprehensive | — |
| Available Insurance Discounts(count) | 20+ | — |
| Discount Programs(Relative Offering) | Extensive | — |
| Dividend Payout Status (2026) | Record dividend | — |
| Customer Base(millions) | 18M+ | — |
| Global Customers(millions) | 88 million (US + Canada primarily) | — |
| 2026 Revenue Projection(billion USD) | $20B+ | — |
| Digital Availability | Hybrid | — |
| Year Founded | 1922 | — |
| Customer Dividend/Returns (2026)(billion USD) | $5B dividend | — |
| Auto Insurance Market Share(percent) | 16.5% | — |
| US Auto Insurance Market Share(%) | 17.1% | — |
| Mobile App Rating (Google Play)(stars) | 4.3 | — |
| Number of Local Agents(agents) | ~18,000+ nationwide | — |
| Years in Business(years) | 90+ years (founded 1931) | — |
| AM Best Financial Strength Rating(rating) | A+ (Superior) | — |
| Customer Satisfaction Score(Score) | 821 | — |
| Life Insurance Product Variety | Basic term and whole life options | — |
| Agent Network Availability | 20,000+ exclusive local agents | — |
| International Operations(countries) | 3 | — |
| J.D. Power Customer Satisfaction Score(points (0-100)) | 82/100 | — |
| Maximum Usage-Based Discount(percent) | Not offered | — |
| Home & Auto Bundle Discount(percent) | Up to 25% | — |
| Online Quote Completion Time(minutes) | 12-15 minutes | — |
| Number of Local Agents(agents nationwide) | 15,000+ | — |
Farmers InsuranceShow 1 more attribute
Visual Comparison
Side-by-side comparison of numeric attributes
Pros & Cons
Farmers Insurance
Pros
- Widely recognized and trusted brand
- Competitive auto insurance with 4.4/5 rating
- Established network of agents and support
- Bundle discounts available for multi-policy customers
Cons
- Lower homeowners insurance ranking (No. 8)
- Smaller bundle discounts compared to competitors (10% max)
- Higher average rates than State Farm
- Lower customer satisfaction scores
State Farm
Pros
- Top 3 ranking in homeowners insurance
- Excellent bundle discounts up to 17%
- Lower average rates and competitive pricing
- Higher customer satisfaction and financial strength
- Strong agent recruitment and growth (34% YoY increase)
- $5 billion customer dividend declared (2026)
Cons
- Limited differentiation in auto insurance (tied at 4.4/5)
- May have higher minimum requirements for some policies
Frequently Asked Questions
State Farm ranks significantly higher in homeowners insurance at No. 3 compared to Farmers' No. 8 ranking, making State Farm the better choice for homeowners seeking top-tier coverage and protection.
Resources & Learn More
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