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State Farm Renters Insurance Review

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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

In business since:
1922
J.D. Power Score: J.D. Power scores are based on surveys for customer satisfaction and product quality.
836/1000
AM Best Financial Strength Rating: AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
A++
States served (availability):
50

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.

PROS

  • 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

CONS

  • 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

Pricing
Coverage
Customer Experience
Deals, discounts, and add-ons

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.

Methodology

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.

The Competition

CompanyReviews.com Score AM Best Financial Strength RatingJ.D. Power 2020 Score(On a  1,000-point scale)

NAIC Customer Complaints
State Farm Renters Insurance3.25/5A++836/1000Fewer than average complaints
Geico2.75/5A++Not RatedFewer than average complaints
Allstate3.5/5A+841/1000More complaints than average
USAA3.75/5A++888/1000Fewer than average complaints
American Family3.75/5A840/1000Fewer than average complaints
Nationwide3.75/5A+831/1000Fewer than average complaints
Farmers3.5/5A839/1000Fewer 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 

About the Authors

Erin Gobler is an insurance writer for Reviews.com. Over the past three years, she has covered personal finance topics such as insurance, banking, mortgages, and more. Her work has been featured in sites such as The Simple Dollar, Bankrate, and Coverage.com. She holds a bachelor’s degree in Journalism from the University of Wisconsin-Oskosh. Erin’s favorite Reviews.com article is the State Farm Renters Insurance Review.

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