Farm Bureau Insurance vs. State Farm: Which Is Better?

Farm Bureau Insurance and State Farm are two of the largest auto insurance providers in the United States. Both companies have been around for decades and offer policies in multiple states.

But how exactly do Farm Bureau and State Farm compare when it comes to coverage options, pricing, discounts, and customer satisfaction? Read on for a detailed comparison of Farm Bureau Insurance and State Farm to help you determine which provider is a better fit for your needs.

Overview of Farm Bureau Insurance and State Farm

Farm Bureau Insurance

• Founded in 1939
• Offers auto, home, life, business, and specialty insurance
• Available in 15 states, primarily in the Midwest and South
• Uses an agency-based distribution model with exclusive agents

State Farm

• Founded in 1922
• Offers auto, home, life, health, business, and specialty insurance
• Available in all 50 states and DC
• Uses an agency-based distribution model with captive agents

Both Farm Bureau and State Farm have strong financial strength ratings from AM Best, indicating they have sufficient funds to pay out claims. State Farm is the larger insurer overall.

Coverage Options Comparison

Auto Insurance

• Both Farm Bureau and State Farm offer standard auto insurance coverages like liability, collision, comprehensive, medical payments, and uninsured/underinsured motorist.

• State Farm has a few additional options not offered by Farm Bureau:

  • Rideshare coverage
  • Custom parts/equipment value coverage
  • Roadside assistance
  • Rental reimbursement

• Farm Bureau has an auto equipment option to cover things like stereos or toolboxes.

Home Insurance

• Farm Bureau and State Farm provide standard homeowners insurance coverages including dwelling, other structures, personal property, loss of use, personal liability, and medical payments.

• Additional home insurance options from State Farm include:

  • Landlord protection
  • Sewer back up
  • Identity theft and credit monitoring
  • Electronics protection
  • Increased limits on valuables

• Farm Bureau offers coverage for identity theft, water backup, and equipment breakdown.

Bottom Line: State Farm generally offers more optional coverages and endorsements for both auto and home insurance. Farm Bureau still provides plenty of coverage customization but State Farm is more robust.

Cost Comparison: Farm Bureau vs. State Farm

Auto and home insurance rates can vary drastically by state, so it’s impossible to declare one company the cheapest nationwide. Here’s how Farm Bureau and State Farm stack up in terms of average rates:

Auto Insurance

• Farm Bureau: Average annual premium of $1,470
• State Farm: Average annual premium of $1,564

Home Insurance

• Farm Bureau: Average annual premium of $1,249
• State Farm: Average annual premium of $1,132

State Farm appears to have a pricing advantage for home insurance while Farm Bureau is cheaper for auto insurance on average. But remember these are just national averages. Your personal rates will depend on your location, age, driving history, credit, and other factors.

I recommend getting quotes from both insurers before making a decision. Plug in your details to see actual pricing options where you live.

Discounts

Both companies offer a range of auto and home insurance discounts to help lower your premiums:

Farm Bureau Discounts

• Multi-policy
• Good student
• Young driver
• Safety features
• Anti-theft devices
• Low mileage
• Renewal
• Auto-pay billing

State Farm Discounts

• Multi-policy
• Steer clear driving program
• Student away at school
• Anti-theft
• Defensive driving course
• Good student
• Anti-lock brakes
• Passive restraint
• Multiple autos

Farm Bureau and State Farm have very similar lists of discounts. The main unique discount from Farm Bureau is for low mileage drivers, while State Farm is the only one with defensive driving and passive restraint discounts.

Customer Satisfaction

Both insurers score well for customer satisfaction, according to third-party ratings:

• J.D. Power auto claims satisfaction: State Farm ranked 3rd out of 18 companies. Farm Bureau was not included.

• J.D. Power homeowners claims satisfaction: State Farm ranked 4th out of 19 companies. Farm Bureau ranked 9th.

• AM Best financial strength rating: State Farm (A++) and Farm Bureau (A) both received high ratings, indicating excellent ability to pay claims.

When it comes to mobile apps, State Farm also appears to have an advantage:

• State Farm: 4.8 out of 5 stars on Google Play; 4.7 on the App Store
• Farm Bureau: 2.9 out of 5 stars on Google Play; 3.6 on the App Store

However, since Farm Bureau operates regionally, satisfaction can vary greatly by local office. I recommend checking reviews specific to your state’s Farm Bureau before making a judgment.

How to Choose: Farm Bureau or State Farm?

When choosing between Farm Bureau and State Farm, here are a few key considerations:

• Availability: State Farm is nationwide while Farm Bureau is regional. Verify availability in your state.

• Price: Get quotes from both and compare pricing. Rates can vary wildly by location.

• Discounts: Review each company’s discount offerings and see which savings opportunities apply to you.

• Coverage options: State Farm has more available endorsements for additional premiums if you want to customize your policy.

• Customer service: Check reviews and complaints at the local level to get a sense of each insurer’s customer satisfaction.

• Bundling: You may get the best deal by bundling multiple policies with one company.

Overall, State Farm is the better option if you want lots of coverage customization possibilities or need to insure homes/autos across the country. Farm Bureau can provide competitive pricing and good service but availability is limited. Evaluate your specific insurance priorities and get personalized quotes to find the best fit.