What is the AM Best rating for State Farm Insurance Company?
Asked by: Cary Shields | Last update: November 15, 2025Score: 4.6/5 (60 votes)
What is State Farm's current AM Best rating?
OLDWICK, N.J., October 18, 2024--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa+" (Superior) of State Farm Mutual Automobile Insurance Company (State Farm Mutual) and its affiliates, State Farm Fire and Casualty ...
Did State Farm lose their AM Best rating?
On March 28th, AM Best downgraded State Farm General from “A” to “B”. State Farm General is their Homeowners product in the state of California. It is separate from their Auto product.
What is the rating of state farm insurance?
In Bankrate's 2025 analysis of auto insurance carriers, State Farm received a high Bankrate Score of 4.3 out of 5.0. Our State Farm insurance review looked at average premium data along with coverage offerings, discount availability, financial strength ratings and customer satisfaction scores.
Where does State Farm rank in insurance companies?
State Farm is the biggest auto insurance company in the country by market share. Progressive, Geico and Allstate are the next three largest. Most of the largest companies in the country are familiar because of national advertising campaigns.
How We Analyze Insurance Companies
Does State Farm have a good reputation for paying claims?
Yes, State Farm is a good insurance company. WalletHub's editors give State Farm a rating of 4.1/5 due to its typically quick claims inspection and payout process, generous discounts, wide variety of insurance types and coverage options, and personalized customer service.
What is the customer satisfaction rating of State Farm?
State Farm received an overall satisfaction score of 79 out of 100 by a pool of its customers in a NerdWallet survey conducted online in June and July 2024.
Why did State Farm get downgraded?
State Farm General's downgrade was related to a specific set of conditions in California that are making it difficult for homeowner's insurers to operate profitably in the state, such as the increased incidence of wildfires.
What is an A.M. Best rating?
A rating by A.M. Best is based on a comprehensive evaluation of an insurance company's financial strength, operating performance and business profile. A.M. Best also regularly publishes Impairment Studies, which evaluate rating performance over time.
Is State Farm in financial trouble?
In a sign of financial trouble, State Farm General has asked for permission to dramatically increase insurance rates for millions of California homeowners and renters. The company saw its net losses grow to $880 million last year from $98.4 million in 2022.
Is Progressive AM Best rated?
We have received some of the highest financial ratings and honors from A.M Best and other leading organizations, which means that we have a superior ability to honor our insurance commitments and pay claims for our customers.
Is State Farm a good insurance company for seniors?
State Farm is our top pick for auto and home insurance for seniors, thanks to their affordable plans and excellent customer service.
How financially stable is State Farm insurance?
The financial strength rating of State Farm General Insurance Company was recently downgraded from stable to negative, moving from A (excellent) to B (fair), while the insurer's long-term issuer credit rating (ICR) fell from “a” (excellent) to “bb+” and now also carries a negative outlook.
Who has better rates State Farm or Allstate?
State Farm also tends to offer lower average rates than Allstate for both liability-only and full-coverage policies. However, Allstate offers slightly more opportunities to score a discount. Both insurance companies offer lower average premiums than the national average.
What insurance company has the best financial rating?
MassMutual has been in business for over 170 years, and carries the highest ratings for financial security from AM Best.
Why does State Farm deny so many claims?
Some common reasons for claim denials include: Insufficient evidence or information: The burden of proof falls on the injured party. State Farm might deny your claim if it believes you have insufficient evidence to prove how the car accident occurred or the severity of your damages.
Did State Farm lose its rating?
The ratings agency announced that it has lowered State Farm General's FSR from A (excellent) to B (fair) and its Long-Term ICR from “a” (excellent) to “bb+” (fair). The rating agency has also revised its outlook for the insurer's FSR from stable to negative.
What is the Geico AM Best rating?
AA+ rating from Standard and Poor's. Aa1 from Moody's. A++ from A. M. Best.
Which insurance company has the highest customer satisfaction in the USA?
Chubb ranked highest overall in customer satisfaction with a score of 688/1,000, followed by AIG with a score of 680 in the 2024 U.S. Home Insurance Study.
What is State Farm reputation?
State Farm also has high customer satisfaction ratings and a strong financial strength rating, although its complaint ratings are just average. It also offers a good selection of coverage and discount options, though not as many as some other top insurance companies.
Is Progressive or State Farm better?
State Farm's ratings for overall satisfaction and claims satisfaction meet or exceed industry averages, according to J.D. Power. Progressive's ratings are below these averages. However, Progressive has a better auto complaint rating than State Farm from the National Association of Insurance Commissioners (NAIC).
Does State Farm pay out on claims?
When State Farm® "settles" a claim, we pay a policyholder for a loss or risk subject to the terms and conditions of your policy.
Who owns State Farm Insurance?
State Farm is a mutual company, which means that it is owned by its policyholders. Unlike publicly traded companies, State Farm does not have shareholders to whom it needs to provide dividends.