Choosing the right car insurance company can be a daunting task. With so many options to choose from, it’s tough to know which provider truly offers the best rates and coverage for your needs. Two popular auto insurance companies are Shelter Insurance and State Farm. But how do they compare when it comes to cost, customer satisfaction, financial strength and more?
This comprehensive Shelter Insurance vs State Farm comparison will examine the key factors you need to evaluate when selecting an car insurance provider. Let’s dive in!
Shelter Insurance Overview
Shelter Insurance was founded in 1946 in Columbia, Missouri. The company focuses on providing auto, home, life, business and farm insurance policies across 18 states, mainly in the Midwest and South.
Some key facts about Shelter Insurance:
- Offers insurance in 18 states: Alabama, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Oklahoma, South Carolina, Tennessee, Texas and Virginia
- Employs over 4,000 insurance agents
- Provided over $14 million in donations to local charities and communities in 2021
- Earned an A+ (Superior) financial strength rating from AM Best
State Farm Overview
Founded in 1922, State Farm is the largest property and casualty insurance provider in the United States. It offers auto, home, renters, life, health and business insurance.
Some key facts about State Farm:
- Does business in all 50 U.S. states
- Employs approximately 19,000 agents nationwide
- Services over 84 million auto, home and life insurance policies
- Earned an A++ (Superior) financial strength rating from AM Best, the highest available
Now let’s compare these two insurance giants across several important factors:
Shelter Insurance vs State Farm: Cost of Coverage
For most consumers, insurance rates are one of the top considerations when choosing a provider. So how do Shelter and State Farm compare when it comes to average premium costs?
Nationwide average annual premiums:
- Shelter Insurance: $1,610
- State Farm: $1,483
State Farm’s average premiums are about 8% lower compared to Shelter Insurance. However, costs can vary significantly depending on your location.
Here’s how the companies compare for average yearly premiums in a sampling of states where they both operate:
| State | Shelter | State Farm |
|---|---|---|
| Oklahoma | $1,548 | $1,458 |
| Missouri | $1,479 | $1,342 |
| Nebraska | $1,458 | $1,560 |
| Kentucky | $2,142 | $1,356 |
While State Farm offers lower nationwide rates, Shelter appears more affordable in certain states like Nebraska.
The best way to find the lower cost option is to get quotes tailored to your driver profile, vehicle, coverage needs and location. Prices can differ drastically between insurers based on these factors.
Discounts Offered
Another way to lower your car insurance costs is by qualifying for discounts. Here are some of the common discounts offered by Shelter and State Farm:
Shelter Insurance Discounts
- Multi-vehicle
- Multi-policy
- Safe driver
- Advance quote
- Good student
- Driver training
- Anti-theft devices
- Farm discounts
State Farm Discounts
- Safe driver
- Accident-free
- Good student
- Anti-theft
- Defensive driver training
- Multiple vehicles
- Multiple policies
- New vehicle
- Anti-lock brakes
- Farm vehicle
State Farm offers a few more discounts compared to Shelter, including reductions for anti-lock brakes and maintaining an accident-free record.
Customer Satisfaction Ratings
How satisfied are customers with the service provided by these auto insurance companies? Here are the ratings:
-
J.D. Power auto claims satisfaction: State Farm scored 898/1,000 points, placing it 2nd overall. Shelter scored 864/1,000 points, placing 11th.
-
NAIC customer complaint index: State Farm had a complaint index of 1.00 (average), while Shelter scored 0.93 (better than average).
-
BBB rating: Both companies have an A+ rating on the Better Business Bureau.
While both companies score well, State Farm edged out Shelter slightly when it comes to customer service reviews and claims satisfaction data. But Shelter still performs better than the industry average.
Financial Strength
You want an insurance company that’s financially stable and able to pay out claims. Shelter Insurance and State Farm both have excellent financial strength ratings:
- Shelter: A+ (Superior) rating from A.M. Best
- State Farm: A++ (Superior) rating from A.M. Best
State Farm again has a slight edge, with the highest possible rating. But Shelter also earns top marks for financial stability.
Coverage Options Compared
Shelter and State Farm offer standard auto insurance coverages like:
- Liability (bodily injury and property damage)
- Comprehensive
- Collision
- Uninsured/underinsured motorist
- Medical payments
But they also offer additional options to customize your policy:
Unique Shelter options:
- Mexico physical damage
- Custom equipment
- Loan/lease payoff
- Pet injury coverage
Unique State Farm options:
- Rideshare coverage
- Roadside assistance
- Rental reimbursement
- New car replacement
- Classic car insurance
Both allow plenty of choices to tailor coverage, but State Farm has more offerings like rideshare coverage for Uber/Lyft drivers.
Availability in Different States
One important consideration is that Shelter only operates in 18 states, mainly concentrated in the Midwest and South regions. State Farm provides insurance in all 50 states.
So if you live outside of Shelter’s territory or frequently travel/move to different states, State Farm may be more convenient coverage to have.
Bundling Insurance Policies
You can often save money by bundling multiple insurance policies with the same provider, known as a multi-policy discount.
Shelter offers auto, home, renters, life, farm and business insurance. State Farm provides those options too, along with health insurance, annuities and financial service products.
State Farm gives you more bundling opportunities to potentially qualify for discounts.
Which Provider is Best for You?
Here are some key considerations when deciding between Shelter vs State Farm for your auto insurance:
Shelter may be a better choice if:
- You want an insurance agent who lives in your community
- You qualify for Shelter’s many member dividends
- You want to bundle home/farm/business insurance
- You live in the Midwest or South
State Farm may be a better choice if:
- You want the lowest base rates
- You need additional coverage like rideshare insurance
- You want nationwide access and convenience
- You value high claims satisfaction scores
To determine the right auto insurer for your situation, it’s best to get personalized Shelter and State Farm quotes to compare rates. Be sure to factor in all the discounts you may qualify for. Also consider the company’s financial strength, customer service reputation and coverage options.
Weighing these key factors will help you decide if Shelter or State Farm is the superior provider for protecting your vehicle. And remember—there are many excellent insurance companies out there, so don’t limit your quote search to just these two options. Shop around to find the best rates and service for your needs.
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