State Farm vs Farm Bureau
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State Farm Insurance was founded in 1922 and is the largest car insurance company in the U.S. based on market share. State Farm sells a variety of different insurance products, from health insurance to pet insurance. The company employs more than 19,000 agents, sells coverage in all 50 states and underwrites its own policies.
Farm Bureau Insurance is a smaller insurance company that was founded in 1939 as a way to protect the unique liability insurance needs of farmers and agricultural workers. Today, the company sells car insurance in select Western and Midwestern states. In addition to insurance, Farm Bureau also sells a handful of financial, investment and retirement products. Farm Bureau is not among the top ten insurance companies for market share.
|State Farm||Farm Bureau|
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
State Farm vs. Farm Bureau comparison
There are several useful ways to compare State Farm vs. Farm Bureau when considering a policy. Below we’ve compiled pros and cons, rate comparisons and more.
State Farm pros and cons
Extensive coverage area
Ranks well in the 2022 J.D. Power U.S. Auto Insurance Study for most regions
|May charge drivers with bad credit more than competitors do
Coverage options can vary by state
Does not offer gap insurance
Farm Bureau pros and cons
|Offers its Driveology usage-based insurance program
Offers multiple discounts
Has a superior financial strength rating from AM Best
|Not available in all states
May offer fewer endorsements than others
Requires membership for coverage
Is State Farm cheaper than Farm Bureau?
Using data from Quadrant Information Services, we’ve compiled and compared rates. Rates from Farm Bureau vary by state and bureau membership, and are less accessible for comparison. Instead, we’ve compared the average rates of State Farm to the average national rates for full and minimum coverage. Knowing average rates can help you to better identify what might be a good ballpark for the cost of your policy.
|Car insurance company||Average annual premium for full coverage||Average annual premium for minimum coverage|
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
State Farm is generally more expensive for drivers with poor credit
State Farm tends to have higher average rates than the national average for drivers with poor credit. Insurers use credit scores, where permitted, to help determine risk levels for policyholders. There are five states that don’t allow insurers to use credit scores in this way: California, Hawaii, Maryland, Massachusetts and Michigan. Because Farm Bureau rates vary by state and club membership, State Farm has been compared to the national average.
|Credit score||State Farm||National average|
Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
State Farm is generally cheaper for young drivers
Age is one of the more significant variables that goes into calculating car insurance rates. Younger drivers tend to be riskier to cover and face higher premiums. Rates from Farm Bureau vary by state and membership, so below, State Farm is compared to the national average based on age. Insurers in Hawaii and Massachusetts are not permitted to use age as a contributing factor to rates.
|Age||State Farm||National average|
The rates displayed reflect the total cost of a 16- through 20-year-old driver added to their parents’ policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
State Farm is generally cheaper for adult drivers
Rates generally decrease significantly after drivers pass the age of 18. Below, we’ve compared average rates for State Farm by age against the national average. State Farm offers average rates by age demographic that are lower than the national averages. Rates for Farm Bureau vary by state and membership, so they have been left off of the table below.
|Age||State Farm||National average|
Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
State Farm is generally cheaper for high-risk drivers
Drivers with incidents on their driving records face higher premiums than those with clean records, although the exact difference varies by infraction, insurer and more. Although rates are included for DUIs, companies may refuse coverage to a driver with a DUI on their record. Because Farm Bureau rates vary by state and club association, we’ve compared average rates between State Farm and the national average below, based on driving record.
|Driving record||State Farm||National average|
|Clean driving record||$1,480||$2,014|
|Speeding ticket conviction||$1,704||$2,427|
Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
State Farm vs. Farm Bureau: discounts
Taking advantage of car insurance discounts can help you save money on your premium for most drivers. State Farm and Farm Bureau both offer savings opportunities for drivers, but the specific discounts available and savings for these providers may vary. Here are some of most notable discounts from both companies:
State Farm unique discounts
- Vehicle safety discounts — With State Farm, you could save money on your policy if your vehicle has qualifying safety features, like air bags, newer seat belts or an anti-theft system.
- Good student discount — Students under 25 years old who maintain a 3.0 GPA, have a ‘B’ average, are in the top 20 percent of their class or have qualifying test scores could get a discount on their premium.
- Steer Clear program — State Farm’s Steer Clear program may reward drivers under 25 with a lower car insurance rate if they are claims-free for three years, complete a safe driver training program and demonstrate safe on-road skills.
Farm Bureau unique discounts
- Low mileage discount — Farm Bureau may give you a lower premium if you drive less than 7,500 miles per year.
- Customer loyalty discount — Loyal Farm Bureau customers could get a lower rate depending on the amount of time they have been insured.
- Safe young driver discount — Drivers under age 25 who complete Farm Bureau’s Young Driver Safety program could earn a discount on their car insurance premium.
Usage-based insurance comparison: State Farm vs. Farm Bureau
Many car insurance companies now offer usage-based insurance programs. These telematic programs use real-time data about your driving patterns to determine things like how safe and efficiently you drive. Both State Farm and Farm Bureau offer usage-based programs, called Drive Safe & Save and Driveology, respectively.
|State Farm Drive Safe & Save||Farm Bureau Driveology|
|Telematics device||App or connected car||App|
|Monitored driving factors||Miles driven, acceleration, braking, speed||Speed, distance, vehicle health, breaking, accelerating, environmental impact|
|Potential impact on rates||Discount||Discounts|
|Potential discount||Up to 30 percent||Up to 30 percent|
|Availability||Not available in CA, MA, RI||Varies by state|
State Farm vs. Farm Bureau: customer experience comparison
Customer experience is a key metric when considering an insurance company. J.D. Power evaluates customer satisfaction in different insurance companies, compiling survey results in a report to show those that score the highest. Farm Bureau did not rank in the 2022 J.D. Power U.S. Auto Claims Satisfaction Study, but State Farm did and fared well above average. While Farm Bureau was included in the 2022 J.D. Power U.S. Auto Insurance Study, it only ranked in the Southeast region and Texas with varying scores depending on the bureau.
Both companies offer apps for iPhone and Android. However, when comparing Farm Bureau vs. State Farm, the Farm Bureau app scores significantly lower based on customer ratings.
|Customer satisfaction||State Farm||Farm Bureau|
|Apple store||4.8 out of 5||2.3 out of 5|
|Google play||4.7 out of 5||2.8 out of 5|
|J.D. Power||882 / 1,000||Not rated|
Frequently asked questions
Both State Farm and Farm Bureau offer home insurance policies. State Farm has broader coverage areas since it is in more states, but policy options from both may vary by location.
In the United States, the average cost of car insurance is $2,014 per year for a full coverage policy. However, you might pay more or less than the national average based on factors like your state, driving record, claims history and the amount of coverage you need.
The best car insurance company is unique to each driver, because providers vary in many aspects. Before you choose a car insurance carrier, spend some time shopping around and get multiple quotes to find the lowest rate.
Yes, you can switch car insurance carriers. Most insurance companies do not charge a cancellation fee, and doing so may allow you to take advantage of lower rates, more discounts or better customer service. Switching car insurance companies can also be a good way to get a lower rate or take advantage of discounts you did not previously qualify for. However, you may want to check whether your current insurance company charges a cancellation fee or whether you have any balances due before making the switch. Before switching, check whether your current insurer requires notice in writing, not just as a courtesy, but to establish a firm cancellation date for your policy.