State Farm is one of the top insurance companies in the market — it’s the third most popular in the nation. State Farm’s customer satisfaction has been somewhat inconsistent over the years. Its overall customer satisfaction has fallen, but it still has excellent reviews from most companies and fewer than average complaints. State Farm stands out because of its exceptional coverage options.
State Farm Renters Insurance Overview
State Farm was founded in 1922. Today, the company sells more car and home insurance policies than any other company in the United States. State Farm has solid financial ratings and is currently ranked #36 on Fortune 500’s list of the largest companies.
Overall, they have a good reputation among the general public. 51% of people have a positive opinion of the company, compared to 12% of people who have a negative view.
- State Farm’s monthly premiums are in keeping the industry average
- The company offers more coverage options than many other companies
- The company has fewer complaints on average than its competitors
- Customer satisfaction fell from second to seventh in customer satisfaction from 2019 to 2020
- State Farm offers fewer discounts than other companies
State Farm Highlights
The average State Farm renters insurance premium was $15 per month as of 2018 for a policy with $35,000 of coverage. This number is in line with the industry average, also $15 per month. The exact price of your policy will vary depending on a few factors. First, the more coverage you buy, the higher your rates will be. Additionally, living in a region with a higher crime rate or more inclement weather can also lead to higher rates.
State Farm offers good renters insurance coverage options. Their basic policies include coverage for personal property, liability, medical expenses, and loss-of-use.
If you have insurance from State Farm, they will automatically raise your personal property coverage if inflation increases the cost of living.
Its renters insurance policies have coverage limits for boats, coins, collections, checks, and other valuables.
In addition to the basic coverages, State Farm customers can also choose from a list of add-on coverages for even more protection. These policies, which come as an added fee, include additional liability coverage, identity restoration, earthquake coverage, additional business property, and incidental business liability coverage.
State Farm’s customer service ratings have declined in recent years. In 2019, J.D. Power rated the company 5/5 stars in customer satisfaction, the second-highest in the industry. By the time the 2020 ratings were released, the company ranked seventh. That being said, its NAIC complaint index is far below average.
In terms of customer experience, State Farm offers a number of helpful resources for people who are interested in buying renters insurance. They also have guides for non-insurance related topics, like tips for signing a rental lease. You can also use their rental insurance checklist to make sure you have the necessary information before getting a quote.
With the State Farm mobile app, customers can manage their policy, file a claim, make payments, get virtual ID cards, and more.
According to State Farm’s website, the average monthly premium for $35,000 in renters coverage is $15 per month. But despite their low premiums, the company does not offer many discounts.
The only ways to save more money on your renters insurance through State Farm are to bundle a renters and auto policy, install home safety devices, or raise your deductible. However, many people will claim the smoke detector deduction as part of the home safety discount.
For State Farm’s renters insurance review we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2020 Score(On a 1,000-point scale)||NAIC Customer Complaints|
|State Farm Renters Insurance||3.25/5||A++||836/1000||Fewer than average complaints|
|Geico||2.75/5||A++||Not Rated||Fewer than average complaints|
|Allstate||3.5/5||A+||841/1000||More complaints than average|
|USAA||3.75/5||A++||888/1000||Fewer than average complaints|
|American Family||3.75/5||A||840/1000||Fewer than average complaints|
|Nationwide||3.75/5||A+||831/1000||Fewer than average complaints|
|Farmers||3.5/5||A||839/1000||Fewer than average complaints|
*All information accurate as of October 14, 2020.
State Farm vs. Geico
State Farm and Geico both have a lot to offer in terms of rental insurance. Geico wasn’t rated in the J.D. Power 2019 or 2020 renters insurance studies. On the other hand, State Farm scored very well in 2019 but saw its ranking drop significantly in 2020. Both companies have fewer complaints than the industry average. When it comes to price, Geico has the ends. Its policies cost about $12 per month, while State Farm’s policies average $15 per month. Both companies are at or below the industry average.
State Farm vs. Allstate
State Farm and Allstate are two of the largest companies in the renters insurance market. Both have been around for more than 90 years. Allstate ranks better than State Farm in the J.D. Power customer satisfaction study. However, Allstate also has more complaints than average, while State Farm has fewer. In terms of price, the two are in line with one another. Both offer an average monthly premium of $15 per month, which is the industry average.
The Bottom Line
State Farm is a great renters insurance company across the board. They offer good coverage options and a variety of add-on coverages for even more protection.
We’re also impressed by its exceptional customer service ratings and affordable prices. The only negatives to State Farm are the lack of discounts and poor claims handling reviews.
Based on our research, State Farm would be a good option for nearly any type of renter. However, we recommend it for people trying to keep their costs low and don’t need extensive coverage above and beyond their policy limits. That’s when things start to get pricey, and the lack of discounts could cause your rate to increase significantly.
State Farm Renters Insurance FAQ
Besides to renters insurance, State Farm also includes insurance for home, condo, rental properties, personal articles, manufactured homes, and farms & ranches. On top of its property policies, the company offers coverage for a variety of vehicles, life insurance, health insurance, and more.
Renters insurance is intended to cover all of your possessions with your residence in case of theft, fire, and more. As a result, you probably want enough coverage to replace everything in your home. According to State Farm, the average person has over $35,000 worth of belongings, meaning they should have at least as much insurance coverage.
State Farm offers its renters insurance in all 50 states.
State Farm’s renters insurance policies are underwritten by the company and its affiliates, which include State Farm Fire and Casualty Company, State Farm General Insurance Company, State Farm Florida Insurance Company, and State Farm Lloyds.
State Farm has some of the best coverage options for their renters insurance. Policies come standard with personal property coverage, liability protection (which includes medical expenses), and loss of use coverage. State Farm also offers optional coverages, including additional liability, identity restoration, earthquake damage, additional business property, and incidental business liability.