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.
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
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
| 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.
