When it comes to auto insurance, two big names often top the list: Shelter Insurance and State Farm. But which one is better for your needs?
This comprehensive guide examines the key differences between Shelter Insurance and State Farm to help you make an informed decision.
A Brief Comparison Table
| Feature | Shelter Insurance | State Farm |
| Coverage Options | Standard coverages like liability, collision, comprehensive, etc. GAP auto loan protection available. | Standard auto coverages. Very high liability limits offered. |
| Discounts | Safe driver, good student, multi-policy, anti-theft, auto-pay discounts | Safe driver, good student, multi-policy, Drive Safe & Save program discounts |
| Rates | Competitive pricing in their local markets | Typically lower rates on average nationally |
| Claims | Fast claims processing, 95% within 10 days | Efficient claims handling, high customer satisfaction |
| Financial Strength | A (Excellent) rating from A.M. Best | A++ (Superior) rating from A.M. Best |
| Customer Service | Local agents provide personalized service | 19,000+ local agents nationwide |
| Telematics Program | None | Drive Safe & Save usage-based insurance program |
| Bundling | Discounts for bundling auto with home/life | Discounts for bundling auto with home/life |
Overview Of Shelter Insurance
Shelter Insurance was founded in 1946 in Columbia, Missouri and now operates in 15 states across the Midwest and South. They focus exclusively on auto, home, life and business insurance policies. Some key facts about Shelter Insurance:
- Operates as a mutual insurance company, meaning it is owned by policyholders rather than shareholders. Any profits are returned to customers in the form of dividends.
- Offers auto insurance, homeowners insurance, renters insurance, condo insurance, motorcycle insurance, boat insurance, life insurance and business insurance products.
- Has an A (Excellent) financial strength rating from A.M. Best. This indicates strong ability to pay out claims.
- Provides local agents with neighborhood offices for personalized service.
- Offers standard discounts like multi-policy, safe driver, and good student.
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Overview Of State Farm
Founded in 1922, State Farm is the largest auto and home insurer in the United States. They sell products through local agent offices nationwide. Here are some key State Farm facts:
- Operates as a mutual company like Shelter Insurance, owned by policyholders.
- Offers auto, home, renters, life, health and business insurance products.
- Holds an A++ (Superior) financial strength rating from A.M. Best, indicating excellent ability to pay claims.
- Has over 19,000 local State Farm agents across the country that provide personalized service.
- Offers typical auto insurance discounts like safe driver, good student, multi-car and multi-policy.
Auto Insurance Comparison
Now let’s compare Shelter Insurance and State Farm specifically for auto insurance to see how they stack up.
- Coverage Options
Both companies offer standard auto insurance coverages like liability, collision, comprehensive, medical payments, uninsured/underinsured motorist and more. You can customize your policy with add-ons as needed. Shelter Insurance also offers a GAP auto loan protection option.
In terms ofcoverage amounts, State Farm may have more flexibility for higher liability limits. Overall, you can find very similar coverage options with either insurer.
- Discounts
The auto insurance discounts offered by Shelter Insurance and State Farm are very similar:
- Safe driver discount
- Good student discount
- Multi-policy discount
- Anti-theft features discount
- Automatic payment discount
State Farm also offers a Drive Safe & SaveTM program that uses telematics to monitor driving habits and offer personalized discounts. Shelter does not have a comparable telematics program at this time.
- Rates
Auto insurance rates will vary considerably based on your location, age, driving record and other factors. Getting quotes from both insurers is the best way to compare costs for your situation.
Some consumer surveys have found State Farm to have slightly lower premiums on average compared to Shelter and other national brands. But Shelter Insurance tends to have very competitive pricing in their local markets.
- Claims Process
The claims process will be fairly similar with either insurer. You can report a claim 24/7 online or by phone. Both have apps to track claims and local agents who can assist.
Shelter Insurance advertises fast claims service with 95% of auto claims processed within 10 days. State Farm also has a reputation for efficient claims handling and customer satisfaction. Most policyholders are pleased with the claims experience from both companies.
- Customer Satisfaction
Shelter Insurance and State Farm both have strong customer satisfaction based on third-party surveys and reviews. Each company has achieved impressive customer retention rates.
Shelter Insurance earned very high marks for customer satisfaction in J.D. Power’s regional survey. State Farm consistently ranks high in national customer satisfaction studies. You’ll find plenty of happy customers with either insurer.
Also Read: Choose Between Aetna And Carefirst.
Choosing Between Shelter Insurance Vs. State Farm
When deciding between Shelter Insurance Vs. State Farm for auto coverage, here are a few key considerations:
- Localized service model – Both companies use local agents to provide personalized service. This can be advantageous when filing a claim or getting questions answered. State Farm has significantly more agent offices which provides greater convenience for some customers.
- Competitive pricing – Cost is a primary factor for most insurance shoppers. Be sure to get quotes from Shelter and State Farm agents to see who offers the lower premium. Rates can vary substantially by location.
- Strong financial ratings – Shelter and State Farm have among the highest financial strength ratings in the industry from A.M. Best. This indicates excellent ability to pay out claims, which is reassuring as a policyholder.
- Good student discounts – The good student discounts from Shelter and State Farm are very similar, providing around 25% off for maintaining a B average. This can help lower premiums for teen and college drivers.
- Bundling policies – You may receive a multi-policy discount of 10-15% for bundling home or life insurance with your auto policy. Bundling can provide cost savings with either insurer.
- Extra products – State Farm offers usage-based insurance not available from Shelter. But Shelter has an auto loan protection option that State Farm lacks. Consider which add-ons would benefit you most when choosing.
For many drivers, the decision between Shelter Vs. State Farm will come down to pricing and the quality of your local agent. Be sure to get quotes from both to make an apples-to-apples comparison. Evaluate customer service reviews specific to agents in your area as well. This can help determine which provider is the best fit.
Also watch this about State Farm!
Frequently Asked Questions (FAQ)
Shelter Insurance has a strong industry reputation and high customer satisfaction according to third-party ratings. They are known for good prices on auto and home insurance paired with excellent local service. Shelter Insurance would be considered among the best auto insurance companies for drivers in their market areas.
The cheapest auto insurance company in Arkansas varies by driver and location. On average, some of the most affordable insurers include State Farm, GEICO, Southern Farm Bureau and Shelter Insurance. Comparing quotes is the only way to find the lowest priced company for your situation.
Allstate and State Farm both rank highly for national auto insurance companies. State Farm tends to have lower average rates compared to Allstate and many other large insurers.
State Farm also edges out Allstate slightly in customer satisfaction ratings. Overall, State Farm looks to be the stronger choice for auto insurance between these two industry giants.
According to 2021 rate data, the average annual cost of minimum liability car insurance in Arkansas is $467. For full coverage, the average premium is $1,461 per year.
However, rates can range from around $850 up to $2,300 or more depending on your age, location, driving history and other factors. Comparing quotes is the best way to find the lowest rate.
Also Read: Is Country Financial Better Than State Farm?
The Bottom Line
When choosing between Shelter Insurance Vs. State Farm, you can feel confident either company will provide reliable auto insurance protection along with quality customer service.
Shelter Insurance is a great local option for Midwestern and Southern drivers who want personalized attention. State Farm’s national presence and competitive pricing also makes it an appealing choice for many.
The best auto insurer for you comes down to pricing, availability of discounts, and customer service reputation in your area. Be sure to compare free quotes from Shelter Insurance and State Farm agents to find the right policy at the lowest premium for your situation.