AFR vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, AFR offers more affordable rates than State Farm
• AFR has less expensive premiums for policyholders who live in suburban areas
• State Farm may help you save more money -- they offer more discounts than AFR Insurance

AFR or State Farm: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering big savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to AFR or State Farm for your next policy, but which one will save you the most?

Looking at the national average rates for both carriers, State Farm is around $21 more a month than AFR.

That being said, that doesn't necessarily mean AFR will be the cheaper option for every single driver. Insurance companies vary their prices depending on things like how clean your driving record is, how good your credit score is, how old you are, where you live, and tons of other factors, so premiums could differ drastically from person to person.

Wanting to know if AFR or State Farm is really the right carrier for you? Keep on reading to see how average rates can change based on all of the factors we've mentioned above.

AFR vs. State Farm: Average Car Insurance Rates by State

AFR and State Farm only compete against each other in Oklahoma, where AFR offers the cheaper average premiums. Undefined drivers tend to pay about undefined per month less on average compared to drivers who use undefined for their auto insurance.

But there's more to car insurance than just your home state. As we mentioned above, there's a lot of things that go into how auto insurance carriers determine your rates. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for car insurance than any group out there on the road. It's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean that teen drivers have to just accept sky-high insurance prices. As you can see above, teens who use AFR save over 45% a month compared to those who use State Farm.

But with both companies, you'll see your rates lower significantly by the time you turn 25. For example, average premiums for AFR policyholders drop more than 30% and State Farm's prices decrease almost 60% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the lowest auto insurance premiums out there. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for car insurance.

But who has the best rates for retired drivers between AFR and State Farm? State Farm gets the edge, with prices for drivers 65 and older over 10% less expensive than the national average for AFR.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly more affordable insurance premiums than those who are single. That's because policies for married couples normally cover several vehicles, which several carriers will give you a discount for.

For single drivers, the difference in average rates between these two companies is significant, with AFR prices coming in at a quarter less than State Farm's. It's not quite so glaring for married drivers, where drivers who use AFR save about 1% per month.

AFR or State Farm: Average Rates by Gender

You may not know, but car insurance is typically more expensive for men than for women. This is because men are statistically more likely than women to get into collisions and get tickets, which leads to increased risk for insurers and, therefore, higher premiums.

Men usually pay around $4 a month more than women with AFR, and about $10 with State Farm.

Looking at the data for each company specifically, AFR offers the cheapest average rates for both men and women, with average premiums 15% less for men and 11% cheaper for women.

AFR vs. State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

Insurance isn't the easiest topic to understand. Everyone needs auto insurance, but there are so many different coverages and limits that it can be hard to find the right policy for you.

Even so, most policies end up falling into two different types of coverage -- liability coverage (that covers bodily injury and property damage for other drivers and their passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability coverage).

Looking specifically at state minimum liability limits, AFR has the significant edge, with average monthly rates coming in at $65. If you want a full coverage policy with the same state minimum limits, AFR again has the edge, with policies averaging around $209 per month to State Farm's $216.

Is AFR or State Farm Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their insurance. But that's not to say you can't save money if you don't have the best driving record, either.

Collisions and speeding tickets will most likely raise your prices, but is AFR or State Farm cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AFR for their car insurance can typically expect their monthly bill to go up about 26% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of around 14%.

However, AFR has less expensive premiums for drivers in both categories. With AFR Insurance, drivers with a clean record can save about $36 a month and drivers with a ticket can save around $22 per month.

Which Company is Best for Drivers After an Accident?

Both carriers will raise rates pretty significantly if you get into an at-fault collision with State Farm raising by about 18%. AFR has a less extreme rise, but you can still expect to pay 0% more than you were prior to your first accident.

At the end of the day, AFR offers the lowest prices for drivers with an at-fault collision on their records, with average rates coming in at $98 compared to State Farm's $163.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your auto insurance bill. On average, AFR will raise your prices around 55% after a DUI, while State Farm's average premiums increase by more than 25%.

How does Credit Score Impact AFR and State Farm Rates?

Did you know many insurance companies take your credit score into account when determining prices? Certain states and carriers do not allow for credit score to be used as a car insurance factor, but it will come into play for many drivers.

Car insurance companies argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

So, which carrier offers the cheapest rates for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is AFR or State Farm Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a large impact on how much auto insurance carriers will charge for coverage? Normally, the more milage you put on your car each year, the more you can expect to pay for insurance.

As you can see in the table above, annual mileage doesn't have much of an impact on how much AFR charges. However, there's a small difference in monthly premiums for State Farm, with policyholders who drive 6,000 miles each year paying about $13 less every month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, AFR is the more affordable company.

AFR or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a substantial impact as well. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

AFR tends to offer the cheapest premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, AFR Insurance's average prices are around $22 less than State Farm. People who live in suburban areas pay about $22 less with AFR compared to State Farm. Those in rural areas can expect to save around $18 with AFR compared to State Farm.

AFR vs. State Farm Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can. That's where auto insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be difficult to find all the ones you qualify for or to nail down the company that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and compared all of the different discounts offered by AFR and State Farm so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm knocks AFR out of the park when it comes to the sheer number of discounts available, offering 14 more discounts than AFR.

Both companies offer several of the same discounts -- like discounts for being a defensive driver, discounts for getting driver training, and discounts for being a good student -- but State Farm also offers discounts for ABS, annual mileage, anti-theft, and more.

On the other hand, AFR has a few proprietary discounts of their own for things like good payer discounts, new business discounts, and paid in full discounts.

Final Thoughts: Is AFR or State Farm Best for You?

You've seen the effect certain variables have on your car insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, which insurance carrier is the best company for you, your vehicle, and your wallet?

AFR might be best for you if....

• You've received a ticket for speeding recently and don't want to see your rates climb.
• You're looking for the best premiums on liability only coverage.
• You want to save money while purchasing auto insurance for a teenager.

State Farm might be best for you if...

• Your driving record includes a DUI charge.
• You're looking for discounts -- State Farm has the most.
• You're of retirement age and want to take advantage of lower prices.

Hopefully, this guide helps you get a better idea of the difference between AFR and State Farm. We also hope we've given you the information you need to make the best decision about your car insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from multiple companies, not just AFR and State Farm. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

AFR vs. State Farm FAQs

Is AFR or State Farm cheaper?

AFR is the cheaper of the two companies when looking at national average premiums, with policies averaging $137 a month with AFR and $158 for State Farm. But that doesn't mean AFR will be the lowest company for each policyholder, since there are a range of different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, AFR or State Farm?

Unfortunately, the only answer we can give you is "it depends.". Neither carrier is "better" for every policyholder -- it all depends on the makeup of your unique auto insurance profile. For example, State Farm is more affordable for drivers who have already retired, while AFR offers cheaper rates for single policyholders.

Why do AFR and State Farm offer me different rates?

Insurance carriers use quite a few different variables when calculating the premiums they charge. Factors like your driving record, where you live, gender, age, and sometimes even things like your credit score can all be used. Both AFR and State Farm calculate rates using different variables, so it's likely they'll offer different prices. The best way to determine which company is the most affordable for you is by comparing personalized quotes from lots of different companies.

How do I know if AFR or State Farm is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your area information and you'll get quotes from dozens of your local top insurance companies for free. That way, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't AFR or State Farm at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.