Auto-Owners Insurance vs State Farm

Verdict

State Farm and Auto-Owners Insurance are both policyholder-owned mutuals sold through local agents, and both are rated A+ (Superior) by AM Best. Both reached that level by downgrade: Auto-Owners from A++ in October 2024, State Farm in November 2025. State Farm, the largest U.S. auto insurer, wrote $69.16 billion of private passenger auto premium in 2025 (18.61%) through more than 19,200 captive agent offices. Auto-Owners, based in Lansing, Michigan, wrote $5.16 billion (1.39%). It sells only through about 48,000 independent agents in 26 states.

Their claims scores are close. In the J.D. Power 2025 claims study State Farm scored 716 (tied 8th of 20) and Auto-Owners 711 (10th), both above the 700 average. Overall satisfaction diverges. In the J.D. Power 2026 U.S. Auto Insurance Study State Farm beat the regional average in nine of 11 regions. Auto-Owners fell below the average in all five regions where it was ranked. The products differ too. State Farm has Drive Safe & Save and Steer Clear. Auto-Owners has no telematics program for adults but offers uncommon coverages such as diminished value, gap and a Purchase Price Guarantee.

Price depends on the household and the state. If you're in Auto-Owners' territory, get quotes from both.

Choose Auto-Owners if

• You want an independent agent who can compare several carriers, and who is your first stop for claims.
• You want diminished value coverage, gap coverage or a Purchase Price Guarantee on a new car.
• You'd benefit from Collision Coverage Advantage, which waives your collision deductible in a crash with another Auto-Owners-insured car.
• You have a teen driver and can stack good student (up to 20%), away-at-school and Teen Driver Monitoring discounts.
• You have classic, modified or wheelchair-accessible vehicles to insure.

Choose State Farm if

• You live outside Auto-Owners' 26 states.
• You want a safe-driving telematics discount: 10% for enrolling in Drive Safe & Save, up to 30% for safe drivers.
• Overall satisfaction matters. State Farm was above average in nine of 11 J.D. Power regions in 2026.
• You want to quote and manage your policy online or in an app.
• You want a share of the $5 billion auto dividend State Farm paid in 2026.

Key differences

Auto-Owners asks policyholders to report claims through their agent first, with an after-hours line, so ask how your agent handles claims. Compare equal coverage on the car insurance quote comparison worksheet, and see regional car insurers: when smaller carriers can beat the giants for how regional carriers stack up against the giants.