Farmers vs State Farm Homeowners Insurance: How Do They Compare in 2023?

When it comes to home insurance, Farmers and State Farm are two of the biggest names in the game. As major national carriers with nearly a century of experience between them, both companies offer comprehensive coverage and strong financial backing.

But that doesn’t mean they’re identical. Farmers and State Farm have key differences in areas like cost, discounts, and claims satisfaction that could make one a better fit for you than the other.

To help you make an informed decision, in this guide we’ll compare Farmers and State Farm homeowners insurance on:

  • Cost and discounts
  • Coverage options
  • Customer service and claims
  • Financial strength
  • And more

By the end, you’ll have the details you need to determine if Farmers or State Farm is the right home insurer for your situation. Let’s dive in!

Farmers Home Insurance Overview

Farmers Insurance dates back to 1928 when it began selling auto insurance to rural farmers. Today, Farmers provides all types of insurance as one of the country’s largest carriers.

Key stats:

  • A.M. Best rating: A
  • J.D. Power claims satisfaction ranking: 873 out of 1,000
  • 4.1 out of 5 stars from customers on Google reviews

Coverage Options

Farmers offers three “tiers” of homeowners insurance:

  • Essential: Basic HO-3 policy
  • Preferred: Additional coverages like replacement cost on personal property
  • Premier: Extras like identity theft expense coverage and water backup

Available endorsements include guaranteed replacement cost, ordinance or law, personal property replacement cost, identity theft expense, and more.


Farmers homeowners insurance costs an average of $1,675 per year nationally, which is $258 above the national average. Premiums vary by state.


  • Multi-policy
  • Claims-free
  • Home security system
  • New home
  • Professional association membership
  • Paperless billing
  • Good payer

State Farm Home Insurance Overview

Founded in 1922, State Farm is the #1 home insurer in the U.S. with nearly 19% market share. It’s best known for auto insurance but also provides quality homeowners coverage.

Key stats:

  • A.M. Best rating: A++
  • J.D. Power claims satisfaction ranking: 880 out of 1,000
  • 4.1 out of 5 stars from customers on Google reviews

Coverage Options

While State Farm has just standard HO-3 policies, you can add extras like:

  • Guaranteed replacement cost
  • Water backup
  • Extended personal liability
  • Personal property replacement cost
  • Earthquake


State Farm’s average home insurance premium is $1,350 per year nationally, which is $67 below the national average. Again, your rate will depend on your specific location and home.


  • Multi-policy
  • Home security devices
  • Claims-free history
  • Impact-resistant roofing materials

Cost Comparison: Farmers vs. State Farm

When it comes to home insurance rates, State Farm is more affordable on average:

  • State Farm: $1,350 per year
  • Farmers: $1,675 per year

However, you’ll find variation state by state. For example, Farmers is cheaper on average in California while State Farm has lower premiums in Texas.

Getting quotes tailored to your home’s details will give you the most accurate premium estimates. But you can expect State Farm to offer more bang for your buck in most areas.


While Farmers technically offers more discount opportunities, the multi-policy discount you get for bundling home and auto insurance policies is typically larger from State Farm.

State Farm provides up to 25% off for bundling, while Farmers offers up to 15% off. This can make a significant difference in your premium.

Customer Service and Claims: How Do They Compare?

Both Farmers and State Farm receive decent marks for customer satisfaction, though State Farm tends to edge out its competition.

  • Availability: 24/7 online and by phone
  • Complaint index: NAIC’s complaint index shows State Farm with 0.53 to Farmers’ 0.30 (lower is better)
  • Claims handling: State Farm scored higher with J.D. Power for claims satisfaction
  • Digital experience: State Farm and Farmers both offer helpful online account management

So when it comes to providing quality service, you can expect a good experience with either insurer. But feedback indicates State Farm goes above and beyond more often.

Financial Strength: Are They Equally Reliable?

As two of the largest homeowners insurance companies in the U.S., Farmers and State Farm are both financially secure choices to protect your home.

Each holds an “A” rating or better from A.M. Best, an organization that evaluates insurer financial strength:

  • State Farm: A++ (superior)
  • Farmers: A (excellent)

State Farm holds the highest possible rating, indicating it has superior ability to pay out claims. But again, both companies are secure options with stellar financial backing.

Which Is a Better Fit for You?

While Farmers and State Farm have a lot of similarities, weighing the differences in cost, service, and more can help you determine which is a better match for your home insurance needs.

Consider State Farm if you want:

  • Lower premiums
  • Larger discounts for bundling insurance policies
  • Slightly better claims satisfaction

Choose Farmers if you prefer:

  • Additional tiers of coverage
  • More discount opportunities beyond bundling
  • Guaranteed replacement cost coverage automatically included

For most homeowners, we find State Farm provides strong protection at a more affordable cost for similar quality. But Farmers can also be a great choice if you value customizable coverage options over finding the lowest rate.

To find your best match, compare personalized quotes from both providers. Evaluate not just premium estimates but also how coverage details align with your needs. This ensures you secure adequate protection for your home without overspending.

State Farm VS Farmers insurance, Which is better


Why are farmers insurance rates so high?

Farmers is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,044 per year, the average Farmers car insurance policy is a lot more more expensive than the national average of $671 per year for a policy with minimum coverage.

What is the best home insurance?

Insurance Company
Best for
Bankrate Score
Best overall
3.7 Rating: 3.7 stars out of 5
Best overall
3.5 Rating: 3.5 stars out of 5
Best for digital experience
4.1 Rating: 4.1 stars out of 5
Best for high-value home coverage
3.5 Rating: 3.5 stars out of 5

Is State Farm different from farmers?

Farmers offers more coverage options, while State Farm typically has lower rates. We at the MarketWatch Guides Team will give you an in-depth look at both providers to help you determine which is best for your needs. We’ll also offer two more recommendations for the best car insurance companies on the market.

How does farmers insurance compare to others?

Across every driver profile we analyzed, Farmers car insurance rates are more expensive than the national average. Whether you’re a good driver, a driver with a history of accidents or tickets or a driver with poor credit, you can expect to pay high prices for full coverage auto insurance from Farmers.

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