- Identity theft coverage and personal property with replacement cost included in all policies.
- Plenty of additional coverages is available to protect your assets.
- Online reviews report affordable premiums.
- Not available in all states.
- No online quote tool.
- Can be expensive for some, our team member is one of them.
- Some complaints about claims processing.
State Auto is a company that has made it onto the Trusted Company partner list. Its establishment was fueled by Robert Pein’s frustrations with pricey insurance and unjust claims. He set out to create a company with a motto of interactive customer service, where every client would receive personalized support. By providing extremely affordable insurance rates and high maximum payouts, the creator of State Auto managed to extend the company’s reach. As a result, State Auto grew rapidly and are now licensed in 33 states.
Nowadays, State Auto offers homeowners, condo, renters, and dwelling fire policies in 28 states: Alabama, Arizona, Arkansas, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Mississippi, Missouri, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wisconsin.
By March 2022, State Auto has been acquired by Liberty Mutual. Consequently, customers can look forward to changes in policies that will align with those of Safeco – another firm under Liberty Mutual.
Despite all the innovation and moving pieces, we set forth to find out if State Auto could deliver the quality coverage and customer service it aspires to relinquish. Keep reading this review of State Auto to find out how their customers truly feel about their service. We’ll even dive into their financial stability and rumors about their claims process.
State Auto homeowners insurance coverages
You can expect State Auto to cater to your unique coverage needs based on your lifestyle and personal circumstances. Their range of coverage, add-ons, and extras offer various levels of protection that are tailored to fit the aspects of your life that matter most.
State Auto advertises its home insurance with a tiered system of coverage. Each home insurance product contains, first and foremost, basic coverage for homeowners in the form of an HO-3. These come in the form of Standard, Protection Plus, and Premier policies. These policies all include coverages for your:
- Dwelling: Crucial components of the home, including the home itself, plus chimneys, adjoining patios, porches, and garages. The limit for this coverage is usually determined based on the replacement cost of the home in the event of an unexpected occurrence.
- Other structures: Unattached structures such as driveways, fencing, pools, gazebos, etc.
- Personal property: Your personal belongings, including recreational items, furniture, electronics, and clothing. All State Auto homeowners policies include personal property coverage with replacement cost protection. Most of other insurance companies provide only actual cost value coverage for the personal belongings.
- Loss of use: In the event of a disaster that renders your home uninhabitable, this coverage is there to lend a helping hand. It covers temporary accommodation, meals, laundry, transport, pet lodging, and other expenses during the repair or reconstruction period. This coverage usually comes with a time limit and is normally equivalent to 20% of your dwelling coverage.
- Personal liability: Makes sure that you don’t have to worry about any legal or financial repercussions in case of any accidental harm or damage caused to property. This coverage effectively secures you against unanticipated incidents, even if they occur outside of your home.
- Medical payments: Covers small medical expenses for people injured on someone else’s property, regardless of who is at fault. These expenses may include hospital bills, physical therapy, ambulance rides, and X-rays.
- Identity theft: Covers the costs associated with identity recovery, including applications, court fees, and more. Even Standard policy from State Auto comes with this coverage. It is usually not included in standard policies by other insurers.
All of these coverages are included in Standard homeowners plan. If you upgrade to Protection Plus policy you will also get lock replacement, freezer contents, and golf cart rentals coverages. Premier expands the protection further by including coverage for special items like silverware, jewelry, fine art, collectibles, etc. Volunteer wrongful acts coverage and HomeXtended® endorsement are also included in Premier.
Additional coverages and endorsements
State Auto has a collection of additional coverages you can add to your policy as well. Some of these are automatically included with tiered coverage, while others are there just in case you need them. Optional coverages include:
- Blanket personal property coverage: A single monetary limit for all items belonging to a particular category, like jewelry, computers, or firearms. This coverage is included with Premier.
- Earthquake coverage: Takes care of the costs associated with damage from earth movement in the form of an earthquake.
- Lock replacement: Covers the costs of repairing or replacing your lock when your home has been burglarized, or just when you lose your keys. Included with Protection Plus and Premier.
- HomeXtended® coverage endorsement extra: Provides additional assurance for your residence and belongings. Included with Premier and purchasable as an add-on with Protection Plus.
- Scheduled personal property: Grants protection for any physical damage or loss caused to particular items that are specified, with a few exceptions, under open perils coverage.
- Golf cart rentals: Covers the costs of damage to a rented golf cart. Included with Protection Plus and Premier.
- Service line: Takes care of the costs associated with the damage or loss of underground systems on your property. These could include damage caused by the rupturing, collapsing, or tearing of pipes or wires under your house.
- Freezer contents: Pays up to $1,000 to replace refrigerated or frozen contents after a power outage. Included with Protection Plus and Premier.
- Water backup: Protection from potential water damage caused by sewer or drain backups, or in the event of malfunctioning sump pumps.
- Home sharing: Covers theft, furnishings, medical expenses, liability, and more in the case you’re sharing your home with someone else.
- Home systems protection: Provides an affordable solution that covers a vast range of equipment, from air conditioning units to computers to security monitoring devices. In the event of an equipment failure, this coverage will not only pay to repair or replace the affected equipment but also any other damage caused by its malfunction.
- Ordinance or law: In the event of a loss, a policy now provides extended coverage to cover any extra expense incurred in adhering to the rules and regulations laid down in an ordinance or law.
- Personal injury liability: Protection against claims of Personal Injury which includes situations like improper arrest, illegal eviction, defamation, or libel.
- Volunteer wrongful acts: Protects from legal obligations following damage caused by negligence or errors during the insured’s duty as a volunteer. Included with Premier.
State Auto home insurance premiums
You can get State Auto insurance after you initiate contact with an agent. Considering State Auto is licensed in 45 states, plus D.C., it’s not impossible to find out how much coverage with this insurer will cost you.
One of our writers is insured by State Auto and her premium is $1,906.41 a year for $154,300 worth of dwelling coverage in the state of Arkansas. Southern homeowners are already suffering an increase in annual premiums due to the increased likelihood of experiencing strong winds and tornadoes.
As for our team member, rates increased by $400 in the last year. For only $154,300 worth of coverage, we’ve been quoted rates significantly lower. This property could be saving at least $700 annually for similar coverage under another insurer.
Online reviews paint a slightly different picture. There are multiple homeowners who state they were able to get very competitive and affordable rates with State Auto. Some customers do comlpain that rates are increasing aggressively with each renewal.
According to PolicyGenius’s data, State Auto has some of the most affordable premiums with $300,000 worth of dwelling coverage costing just over $850 per year. This is an astounding 76% below the national average. Perhaps, State Auto’s premiums depend a lot on the location, as our team member is paying more than double the premium for half the dwelling coverage.
State Auto home insurance discounts
Clients with new homes or protective equipment can avail of various discounts offered by State Auto. Additionally, the company offers discounts to those who bundle multiple insurance policies and remain loyal to the company for a considerable period. All HO-3 plans are eligible for the below discounts:
- Smart home discount: Get a discount on your home insurance by having security gadgets like smoke alarms, sprinklers, motion and heat detectors, smart lights, and security cameras.
- Fortified home discount: Homes equipped with protection against natural disasters such as hurricanes, strong winds, hailstorms, and more may qualify for discounts under the fortified home program.
- Bundled discount: Clients can receive a discount on their HO-3 policy if they choose to bundle it with other policies, such as auto insurance or an umbrella policy. This policy discount is available to those who opt for combining their policies.
- Loyalty discount: A discount awaits loyal clients who have remained with the company for more than 5 years, resulting in a decrease in their premiums.
- Advance quote discount: When you get a quote for home insurance at least a week before your policy’s effective date, you can receive a discount.
- New construction: You can receive a discount on your annual premium if your home was built a predetermined number of years ago.
- Roof construction: If the material of your roof is designed to increase protection from the elements, you may be eligible for a discount.
How their customers feel
State Auto homeowners insurance has registered the below-average level of complaints through NAIC (National Association of Insurance Commissioners. For 2022, State Auto’s complaint index is 0.58 for homeowners insurance. Since national average is always set at 1.00, State Auto is getting way less complaints for its homeowners than an average insurer of their size. Data shows that they have received more auto complaints than homeowner complaints. These complaints were driven more toward claims delays and unsatisfactory settlements.
Online, customers are split. Many customers with negative things to say are mostly upset with their claims being swept under the rug. Several reviews outline details explaining how courteous their agents are, but how painfully unknowledgeable adjusters and investigators are. Many are left paying for damages out of pocket due to bad faith claims.
Claims experience
If you need to file a claim with State Auto, you can log in to your account and file there. From here, you can also keep up with your claim details.
As we mentioned earlier, you may experience issues with your claims process. Many customers dealing with claims cite waiting as long as 5 months to get to an unfavorable solution. Other homeowners don’t necessarily have a problem getting their claims paid out but aren’t too excited about going months without a claims adjuster.
Financial stability ratings
State Auto has an “Excellent” A rating from AM Best for both financial stability and long-term issuer credit. This score was just brought up from an A- just a few years ago.
Weiss Ratings sees State Auto slightly less favorably, with a solid “C” for financial stability. According to them, this means State Auto offers fair financial security in a currently stable environment. During an economic downturn, State Auto could experience issues keeping up with finances.
Final verdict
State Auto could be the go-to insurance company for those policyholders seeking pre-packaged auto or homeowners coverage. This may especially be the case for those with a willingness to reach out to an agent for an estimate.
State Auto is also a fantastic choice for homeowners who need loads of coverage options and unique endorsements.
If you’re on a budget, you might want to reconsider. State Auto carries the potential to increase your rates and have you paying more for standard coverage. Plus, customers are unimpressed with their claims process, which means you should pay extra close attention to your policy details to avoid bad faith claims.
