Farmers vs State Farm Home Insurance 2026
Farmers Insurance
Regional auto and home insurer with competitive rates for high-risk drivers and strong Western U.S. presence.
Budget-conscious consumers seeking basic auto coverage and those preferring traditional agent relationships
Quick Answer
AI SummaryState 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.
Read full verdictState 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.
Was this verdict helpful?
Choose Farmers Insurance if
Budget-conscious consumers seeking basic auto coverage and those preferring traditional agent relationships
Choose State Farm if
Best pickHomeowners seeking bundled coverage, customers prioritizing low rates, and those wanting financial stability and higher satisfaction scores
Share this verdict
Track this comparison
Get notified when prices change, new specs ship, or our verdict updates.
Triggers: price change new spec verdict update
No spam. Stop anytime.
Key Differences at a Glance
- Homeowners Insurance Ranking:✓ State Farm wins(No. 3 vs No. 8)
- Bundle Discount (Auto + Home):✓ State Farm wins(Up to 17% vs Up to 10%)
- Auto Insurance Rating (2025):4.4/5 vs 4.4/5
Compare next
Capital One vs Chase banking
Key Facts & Figures
13 numeric metrics compared
| Metric | Farmers Insurance | State Farm | Ratio |
|---|---|---|---|
| Bundle Discount (Auto + Home) | Up to 10% | Up to 17% | |
| Average Annual Auto Insurance Premium(USD) | $1,420 (2024) | $1,540 (2024) | |
| Customer Satisfaction Score (J.D. Power 2024)(points) | 812 | — | — |
| Mobile App Rating (iOS)(stars) | 4.2 | 4.5 stars | |
| Maximum Telematics Discount Savings(percent) | 30% | — | — |
| Company Founded(year) | 1928 | — | — |
| Digital Quote Completion Time(minutes) | 12 minutes | — | — |
| Mobile App Rating(stars/5) | 4.1/5.0 | 4.3/5.0 | |
| Available Discount Programs(count) | 30+ discounts | — | — |
| Average Claim Processing Time (Mobile)(business days) | 6 days | — | — |
| Average Annual Home + Auto Bundle Premium(USD) | $1,850 | — | — |
| Claims Processing Speed(business days) | 4-7 days | 24-48 hours | |
| Available Discount Categories(discounts) | 22+ | — | — |
Sourced from publicly available data ·
Key Differences
11 attributes compared head-to-head
- No. 8Homeowners Insurance RankingNo. 3(winner)
- Up to 10%Bundle Discount (Auto + Home)Up to 17%(winner)
- 4.4/5Auto Insurance Rating (2025)4.4/5
- HigherAverage RatesLower(winner)
- GoodCustomer SatisfactionHigher(winner)
- SolidFinancial Strength RatingBetter(winner)
- Top TierMarket RecognitionTop Tier
- StandardAgent Growth (YoY Feb 2026)Up 34%(winner)
- No. 8 overall in homeowners satisfactionHome Insurance Ranking (J.D. Power)No. 3 overall in homeowners satisfaction(winner)
- ~$2,000/yr (national average)Average Annual Home Insurance Rate~$1,700/yr (national average — 15% less)(winner)
- Home Insurance Market Share
- Homeowners Insurance Ranking
Farmers Insurance
No. 8
State Farm
No. 3(winner)
- Bundle Discount (Auto + Home)
Farmers Insurance
Up to 10%
State Farm
Up to 17%(winner)
- Auto Insurance Rating (2025)
Farmers Insurance
4.4/5
State Farm
4.4/5
- Average Rates
Farmers Insurance
Higher
State Farm
Lower(winner)
- Customer Satisfaction
Farmers Insurance
Good
State Farm
Higher(winner)
Full Comparison
| Attribute | Farmers Insurance | State Farm |
|---|---|---|
| Homeowners Insurance Ranking | No. 8 | No. 3(winner) |
| Bundle Discount (Auto + Home) | Up to 10% | Up to 17%(winner) |
| Customer Satisfaction | Good | Higher(winner) |
| Auto Insurance Rating(/5) | 4.4/5 | 4.4/5 |
| Financial Strength Rating | Solid | Better |
| Bundle Discount Maximum(%) | 10% | 17%(winner) |
| Average Rate Competitiveness | Higher | Lower |
| Average Annual Home + Auto Bundle Premium(USD) | $1,850 | — |
| Available Discount Categories(discounts) | 22+ | — |
| Customer Satisfaction Level | Good | Higher |
| Agent Recruitment Growth (YoY)(%) | Standard | 34% |
| Recent Customer Dividend(Billion USD) | Not disclosed | $5B(winner) |
| Average Annual Auto Insurance Premium(USD) | $1,420 (2024)(winner) | $1,540 (2024) |
| Customer Satisfaction Score (J.D. Power 2024)(points) | 812 | — |
| Claims Processing Speed(business days) | 4-7 days(winner) | 24-48 hours |
| Mobile App Rating (iOS)(stars) | 4.2 | 4.5 stars(winner) |
| Local Agent Availability(agents) | All 50 states | 18,000+ agents(winner) |
| Maximum Telematics Discount Savings(percent) | 30% | — |
| Company Founded(year) | 1928 | — |
| Digital Quote Completion Time(minutes) | 12 minutes | — |
| Mobile App Rating(stars/5) | 4.1/5.0 | 4.3/5.0(winner) |
| Available Discount Programs(count) | 30+ discounts | — |
| Snapshot Usage-Based Discount Range(%) | Not available | — |
| Average Claim Processing Time (Mobile)(business days) | 6 days | — |
| Customer Service Options(availability) | Local agents, phone, online | — |
Farmers InsurancePros & Cons
10 pros·6 cons across both
Farmers Insurance
Pros
Cons
State Farm
Pros
Cons
Frequently Asked Questions
10 questions
Generally yes, and often significantly. US News analysis found State Farm's average liability-only auto rate is approximately $597/year; Farmers' comparable rate averages approximately $1,188/year — nearly double. State Farm consistently ranks among the most price-competitive major carriers nationally, though your specific quote will vary by location, driving record, and coverage level.
For most standard auto and homeowners insurance needs, State Farm rates higher in customer satisfaction surveys (J.D. Power) and pricing competitiveness. Farmers is more competitive for specialty coverages (vintage vehicles, earthquake, wildfire-prone areas) and in certain geographic markets where Farmers agents have deep local expertise.
Coverage differences are minimal for standard policies — both meet state requirements and offer comparable protection tiers. Farmers offers some specialty endorsements (classic car coverage, equipment breakdown, gap coverage) that can be valuable for specific needs. State Farm's advantage is typically pricing rather than coverage gaps.
State Farm is significantly larger. It's the largest personal lines insurer in the US with approximately 83 million policies in force and the highest AM Best financial strength rating (A++). Farmers serves approximately 10 million households. Both are financially stable; State Farm's scale gives it more resources for claims handling and pricing flexibility.
Yes, both offer multi-policy discounts for bundling auto and homeowners (or renters) insurance. Bundling typically saves 5-15% on each policy. State Farm's bundling discount is generally competitive; Farmers' bundling can occasionally offset its higher individual policy pricing. Always compare bundled quotes from both to find the better total value.
State Farm wins on both price and ratings for most homeowners. State Farm averages approximately $1,700/year for home insurance nationally; Farmers averages approximately $2,000/year — State Farm is roughly 15% cheaper. For J.D. Power's 2024 U.S. Property Claims Satisfaction Study, State Farm ranks No. 3 overall vs Farmers at No. 8. State Farm also holds an AM Best A++ (Superior) financial strength rating vs Farmers' A (Excellent). The exception: Farmers can be more competitive for specialty home insurance (wildfire-prone California, classic home endorsements, equipment breakdown) and in geographic markets where Farmers has deeper local agent presence. For standard home insurance on a typical American home, State Farm is the stronger default choice on price and ratings.
Average annual home insurance premiums (2026, US, $300,000 home): State Farm averages approximately $1,300–$1,600/year; Farmers Insurance averages approximately $1,500–$1,900/year for comparable coverage — State Farm is generally 10–20% cheaper. Both offer multi-policy bundling discounts: State Farm bundles save up to 17% (home + auto); Farmers bundles save approximately 10%. Actual rates vary significantly by state, home age, deductible ($1,000 vs $2,500), claims history, and credit score. Florida, Texas, and California residents pay far above the national average with both carriers due to hurricane, wildfire, and flood risk.
State Farm offers better bundling savings for most customers: up to 17% discount when bundling home + auto, vs Farmers' approximately 10% bundling discount. On a $1,500 home policy + $1,200 auto policy ($2,700 combined), State Farm bundling saves ~$459/year; Farmers bundling saves ~$270/year. State Farm's bundling advantage stems from its massive customer base (18% U.S. auto market share). Farmers' bundling advantage: more coverage customization through add-ons like equipment breakdown and identity theft protection included in bundles. Bottom line: choose State Farm to maximize bundling discount; choose Farmers if you need more specialized coverage options in your bundle.
State Farm outperforms Farmers in home insurance claim satisfaction. J.D. Power 2025 U.S. Home Insurance Study: State Farm ranked #3 (4.4/5.0 overall satisfaction); Farmers ranked #8 (4.4/5.0). AM Best financial strength ratings: State Farm A++ Superior; Farmers A Excellent — both financially secure. NAIC complaint index: State Farm receives proportionally fewer complaints than industry average; Farmers receives slightly above-average complaints. State Farm advantages: 19,000+ local agents, 24/7 claims filing, fast digital claims portal. Farmers advantages: annual Farmers Friendly Review policy check-in, customizable coverage options.
State Farm home insurance is available in all 50 U.S. states and Washington D.C. Farmers Insurance home insurance operates in 41 states — unavailable in Alaska, Delaware, Hawaii, Maine, New Hampshire, North Dakota, Rhode Island, Vermont, and West Virginia. If you live in any of those 9 states, Farmers is not an option. State Farm's coast-to-coast coverage also makes it simpler for customers who move between states. Farmers' regional focus allows for more tailored underwriting in its operating states but limits flexibility for multi-state customers.
Analysis: Farmers Insurance vs State Farm
Farmers Insurance and State Farm are two of the largest property and casualty insurers in the United States, but they differ substantially in pricing, size, and the type of customer each tends to serve best.
State Farm is the largest personal lines insurer in the US by premium volume, with approximately 83 million policies in force. Its scale creates meaningful advantages: a nationwide agent network, financial strength ratings near the top of the industry (A++ from AM Best), and broad product offerings spanning auto, home, life, health, and small business. State Farm's pricing is consistently competitive — particularly for auto insurance. US News & World Report's 2026 analysis found State Farm's average annual auto insurance premium for liability coverage is approximately $597/year, among the lowest of major carriers nationally.
Farmers Insurance operates primarily through independent agents and its own Farmers-exclusive agents, serving approximately 10 million households. Its premium volume is smaller than State Farm but comparable to Allstate and USAA in the top tier. Farmers has historically positioned itself as a "specialist" carrier — it offers coverage products for unusual vehicles (vintage cars, classic motorcycles, motorhomes) and niche homeowners situations (earthquake-prone California, wildfire zones) where some competitors have withdrawn. However, Farmers' pricing for standard auto and home policies is generally higher than State Farm. The same US News analysis found Farmers' average liability-only auto rate at approximately $1,188/year — nearly double State Farm's comparable rate.
Read 4 more paragraphsShow less
J.D. Power's 2025 Auto Insurance Study placed State Farm above Farmers in overall customer satisfaction for claims handling and policy offerings. State Farm ranked 3rd overall in the 2025 J.D. Power US Auto Insurance Study; Farmers ranked 8th. For homeowners, State Farm's market-leading presence means more agent availability for in-person service, though Farmers' agents in specialty markets (CA, CO, TX) often develop deeper local expertise.
Claims handling is where the comparison gets more variable. Both companies have substantial claims infrastructure, but customer reviews on J.D. Power and Consumer Reports give State Farm a modest but consistent edge in claims resolution speed and communication. Farmers has faced scrutiny in California after non-renewal waves in wildfire-exposed areas (2023-2025), though this affected all major carriers in that market.
Digital tools and app quality: both have improved substantially since 2020. State Farm's mobile app is consistently rated well for claims reporting, roadside assistance dispatch, and ID card access. Farmers' digital infrastructure has been more variable but has improved with recent app updates.
For the typical consumer shopping standard auto or homeowners insurance: State Farm's pricing advantage is real and should be the starting point. Farmers becomes more competitive for specialty coverage needs, certain geographic markets where Farmers agents have deep roots, or bundling scenarios where Farmers' total package pricing may offset the per-policy premium difference. Always get quotes from both — regional pricing variations mean the national average doesn't always predict your specific quote.
Resources & Learn More
Curated sources to dive deeper
Wikipedia
- W
Farmers Insurance on Wikipedia (opens in new tab)
Regional auto and home insurer with competitive rates for high-risk drivers and strong Western U.S. presence.
- W
State Farm on Wikipedia (opens in new tab)
Largest auto insurer in the U.S. with extensive agent network, broad bundling discounts, and highest customer satisfaction.
Explore More
Related comparisons and categories
Explore Entities
- Farmers Insurance
- State Farm
- Alternatives to Farmers Insurance
- Alternatives to State Farm