Last reviewed: October 7, 2026.
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Get Free Quotes NowBy Alvaro Barbosa | Updated September 13, 2026
Farmers vs. State Farm: Which Home and Auto Bundle Is Better?
Farmers and State Farm are both long-established, direct-writing insurers that sell home and auto under one roof, unlike GEICO or Progressive, neither has to broker your home policy out to a third party. That makes this a more apples-to-apples comparison, with the real differences showing up in financial strength trend, claims satisfaction, and discount size.
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Farmers vs. State Farm: Quick Comparison
| Category | Farmers | State Farm |
|---|---|---|
| AM Best rating | A (Excellent), outlook Positive on Long-Term ICR, Sept. 2026 | A+ (Superior), stable, downgraded from A++ in Nov. 2025 |
| J.D. Power Auto Insurance Study 2025 | See J.D. Power (industry avg. 644) | See J.D. Power (industry avg. 644) |
| Reported avg. bundle discount | ~10–18% (sources vary) | ~23% (MoneyGeek, Oct. 2026) |
Financial Strength: Which Insurer Is More Stable?
AM Best rates Farmers Insurance Group at A (Excellent), and in September 2026 revised the outlook on its Long-Term Issuer Credit Rating from Stable to Positive, citing underwriting profitability and organic surplus growth, an improving trajectory. State Farm sits one full notch higher at A+ (Superior) but is moving the other direction: AM Best downgraded it from A++ in November 2025 after five straight years of underwriting losses. Both are solid, investment-grade insurers; the trend lines are simply pointed in opposite directions right now.
Customer Satisfaction: What J.D. Power Says
The J.D. Power 2025 U.S. Auto Insurance Study set overall industry satisfaction at 644 out of 1,000, and J.D. Power reports each brand’s scores by region. Neither carrier was named among J.D. Power’s top three for 2025 Auto Claims Satisfaction (Erie, NJM, and Liberty Mutual took those spots).
Bundle Discount: Which Saves You More?
Reported bundle discounts vary by source for both carriers. MoneyGeek’s bundle-comparison data puts State Farm at roughly 23% and Farmers noticeably lower at 18% in the same comparison set; other sources cite Farmers’ combined-policy savings more conservatively, around 10% or more on the home side. Either way, State Farm’s discount tends to come in higher across the sources that compare both directly.
| Provider | Bundle Options | Highlights | Best For | Action |
|---|---|---|---|---|
| State Farm | Home + Auto | Strong bundling discount | Families | View Quote |
| Allstate | Home + Auto + Renters | Flexible policy options | Multi-policy shoppers | See Rates |
| Progressive | Auto + Condo | Fast online quote flow | Digital-first buyers | Compare Now |
Other Differences Worth Knowing
Farmers’ Signal app (with CrashAssist crash detection) and State Farm’s Drive Safe & Save both offer usage-based discounts. Complaint data varies by state and by company entity, so check your state insurance department’s complaint index for the company that would issue your policy. Farmers also drew attention in 2023 for non-renewing home, auto, and umbrella policies in Florida over hurricane exposure, worth asking about in catastrophe-prone states specifically.
Which Bundle Is Better For You?
If direct, single-carrier bundling and the larger discount matter most, State Farm’s numbers currently look stronger on paper, though its AM Best trend is worth watching. If you already have a Farmers agent relationship or prefer Farmers’ Signal telematics program, its improving financial-strength trajectory is a reasonable offsetting factor. As always, get itemized quotes from both rather than deciding on brand reputation alone.
Frequently Asked Questions
Do both Farmers and State Farm underwrite home and auto directly?
Yes, both are direct writers of home and auto insurance in most states, unlike GEICO or Progressive, which typically broker homeowners coverage to partner carriers.
Which carrier has the better bundle discount?
Sources that compare both directly (e.g. MoneyGeek) put State Farm’s average bundle discount (~23%) higher than Farmers’ (~18%), though other sources cite Farmers more conservatively at 10%+.
Is Farmers financially stable after its Florida exit?
AM Best’s most recent action (September 2026) revised Farmers’ outlook to Positive, citing underwriting profitability and surplus growth, the 2023 Florida non-renewals were a state-specific catastrophe-exposure decision, not a sign of broader financial trouble.
Key Takeaways
- Both Farmers and State Farm underwrite home and auto directly, making this a more direct bundle comparison than carriers that broker out one line.
- Farmers’ AM Best outlook was revised to Positive in September 2026; State Farm’s rating was downgraded from A++ to A+ in November 2025, opposite trend lines worth watching.
- State Farm’s reported average bundle discount (~23%) tends to come in higher than Farmers’ (~18% to ~10%+, depending on source).
- Neither carrier ranked in J.D. Power’s top 3 for 2025 Auto Claims Satisfaction.
- Ask about state-specific underwriting restrictions (e.g. Farmers’ 2023 Florida exit) if you’re in a catastrophe-prone state.
Insurance Disclaimer
Disclaimer: The content on this page is for informational purposes only and does not constitute insurance, legal, or financial advice. Insurance rates, discounts, and availability vary by state, provider, coverage level, and individual risk factors. Savings figures are general industry estimates and are not guaranteed for any individual. Always consult directly with licensed insurance professionals and obtain multiple quotes before making coverage decisions. BundleInsuranceGuide.com may earn a commission from affiliate links on this page at no additional cost to you.