Allstate vs. Farmers Mutual: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, Farmers Mutual offers significantly more affordable rates than Allstate
• Allstate may help you save more money -- they offer more discounts than Farmers Mutual
• Farmers Mutual has cheaper prices for drivers with a DUI

Allstate or Farmers Mutual: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to 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 might be considering Allstate or Farmers Mutual as your top options, but which carrier will save you the most?

Looking at nationwide averages, Farmers Mutual has average rates that are around 55% a month less expensive than those from Allstate.

But that doesn't necessarily mean Farmers Mutual will be the more affordable option for each driver. Auto insurance carriers use tons of complex algorithms to determine premiums, so depending on how clean your driving record is or where you live (among a whole range of other factors), you could see wildly different prices from the ones above.

Wanting to know if Allstate or Farmers Mutual is really the right company for you? Keep on reading to see how average rates can change based on all of the factors we've mentioned above.

Allstate vs. Farmers Mutual: Average Car Insurance Rates by State

Allstate and Farmers Mutual only compete against each other in two states, with Farmers Mutual offering less expensive prices to the average driver in all of them. Nebraska has the most noticable difference, where Farmers Mutual rates are $62 cheaper than car insurance premiums at Allstate.

That being said, there's a lot more that goes into your insurance payment than just your home state. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for auto insurance compared to older drivers. It's because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

However, that doesn't mean teen drivers can't still save money on their car insurance. For example, 18-year-old drivers pay an average of over 60% less per month by choosing Farmers Mutual over Allstate. It's worth noting that Allstate offers insurance in 47 different states compared to Farmers Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

That being said, with both companies, you'll see your premiums reduce significantly by the time you turn 25. For example, average rates for Allstate policyholders lower almost 65% and Farmers Mutual's prices decrease more than 50% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest auto insurance premiums you can find. After all, they've likely been driving for quite some time, which normally reduces their chances of collisions and other infractions that can raise rates.

When looking at Allstate and Farmers Mutual specifically, which carrier is best for retired drivers? Farmers Mutual gets the edge, with premiums for drivers 65 and older $91 less expensive than the national average for Allstate.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are usually cheaper for married couples than they are for single policyholders? That's because policies for married drivers typically cover several vehicles, which several carriers will give you a discount for.

For those who are single, the difference in average prices between these two companies is significant, with Farmers Mutual premiums coming in at about half of Allstate's. The advantage for married policyholders with Farmers Mutual is also obvious, where drivers save nearly 55% a month.

Allstate or Farmers Mutual: Average Rates by Gender

Did you know men tend to pay more for car insurance than women? This is because men are statistically more likely than women to get pulled over for speeding or get into a collision, which leads to increased risk for insurers and, therefore, higher prices.

With Allstate, women normally pay around $10 per month less than men, but with Farmers Mutual, the difference is closer to $8 a month.

Looking at overall affordability, Farmers Mutual offers the cheapest average rates for both men and women, with average premiums $109 less for men and $108 cheaper for women.

Allstate vs. Farmers Mutual: 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.

It's no secret that insurance can be a complicated subject for most people. There are so many different terms and coverages that it can make it pretty confusing to find the right policy for you.

Even so, the most common policies that drivers look at fall into two categories -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which generally refers to having collision and comprehensive coverages alongside what you get with a liability policy).

Looking specifically at state minimum liability insurance, Farmers Mutual has the significant edge, with average monthly prices coming in at $32. If you want a full coverage policy with the same state minimum limits, Farmers Mutual again has the edge, with policies averaging about $147 per month to Allstate's $289.

Is Allstate or Farmers Mutual Better for Drivers with Spotty Records?

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

It's no secret secret that accidents and speeding tickets lead to higher rates, but which company -- Allstate or Farmers Mutual -- has the most affordable premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Allstate for their auto insurance can usually expect their monthly bill to go up around 15% after getting a speeding ticket. Farmers Mutual policyholders can expect a less drastic increase of about 8%.

That being said, Farmers Mutual tends to offer the best prices for drivers both with clean records and with a ticket, offering rates that are $86 and $107 more affordable, respectively, compared to Allstate.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through Allstate can expect to see around an $73 -- or about 32% -- rise in their auto insurance prices. Drivers who use Farmers Mutual for their car insurance will see a monthly bill around $16 (or 19%) more expensive after reporting a collision to their insurance carrier.

At the end of the day, drivers who use Farmers Mutual end up with the cheaper prices after an accident, with average premiums coming in at $86 compared to Allstate's $229.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your auto insurance bill. On average, Allstate will raise your rates about 31% after a DUI, while Farmers Mutual's average prices rise by more than 45%.

Farmers Mutual has the overall lowest premiums for drivers with a DUI on their records at $128 monthly, but it's worth noting that Allstate's average rates come from 47 states compared to just two for Farmers Mutual, so the data may be skewed slightly.

How does Credit Score Impact Allstate and Farmers Mutual Rates?

You may not have known, but your credit score can come into play when carriers calculate your monthly bill. This isn't true for everyone (for example, Michigan and Massachusetts are two states that ban the practice entirely), but it does affect quite a few drivers out there.

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

Looking at Allstate and Farmers Mutual specifically, which company has the best rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Farmers Mutual will generally reward you the most. For drivers with "excellent" credit scores, Farmers Mutual comes in nearly 44.14 less expensive. Drivers with "good" credit scores typically save around 51% with Farmers Mutual compared to average prices from Allstate.

Which Company is Best for Drivers with Bad Credit?

Farmers Mutual typically offers lower premiums than Allstate when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 56% a month less with Farmers Mutual compared to Allstate, and those with "poor" scores usually save an average of around 63% a month.

Is Allstate or Farmers Mutual Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in 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 coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers Mutual charges. However, there's a small difference in monthly prices for Allstate, with policyholders who drive 6,000 miles each year paying about $3 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, Farmers Mutual is the more affordable company.

Allstate or Farmers Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can play a pretty big role in how much you pay for car insurance. Usually, those who live in rural areas will pay less than policyholders in urban areas since there are a lot fewer vehicles on the road where they live, which lowers the chances of an accident.

Farmers Mutual boasts the cheapest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Those in rural areas can expect to save around $84 with Farmers Mutual compared to Allstate. People who live in suburban areas pay about $112 less with Farmers Mutual compared to Allstate. For drivers in urban ZIP codes, Farmers Mutual's average rates are around $129 less than Allstate.

Allstate vs. Farmers Mutual Discounts

You want to save as much money as you can, right? The best way to do that is by utilizing as many insurance discounts as possible.

But with what seems like a million different discounts out there, it can be challenging to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by Allstate and Farmers Mutual so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Allstate blows Farmers Mutual away when it comes to the sheer amount of discounts available, offering 40 different discounts to Farmers Mutual's seven.

A couple of those are overlapping for things like discounts for getting driver training, discounts for being a good student, and multi-policy discounts. Allstate also offers discounts for ABS, advance quote, agency transfer, and more.

On the other hand, Farmers Mutual has a proprietary discount of their own -- a secondary vehicle discounts.

Final Thoughts: Is Allstate or Farmers Mutual Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts companies offer. But, at the end of the day, is Allstate or Farmers Mutual the right carrier for you, your vehicle, and your wallet?

Farmers Mutual might be best for you if....

• You've received a ticket for speeding recently and don't want to see your premiums climb.
• You have above-average credit.
• Your neighborhood is in a rural area.

Allstate might be best for you if...

• You're planning on moving to another state soon -- Farmers Mutual only offers policies to Nebraska and South Dakota residents.
• You're looking for the carrier with the most discounts.

Hopefully, this guide has ben a valuable resource as you compare Allstate and Farmers Mutual and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just Allstate and Farmers Mutual. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top auto insurance companies in your area, all in just a few minutes.

Allstate vs. Farmers Mutual FAQs

Is Allstate or Farmers Mutual cheaper?

Farmers Mutual is the cheaper of the two carriers when looking at national average prices, with policies averaging $90 per month with Farmers Mutual and $199 for Allstate. But that doesn't mean Farmers Mutual will be the most affordable company for each driver, since there are many different variables that come into play when it comes to your insurance bill.

Who is better, Allstate or Farmers Mutual?

Unfortunately, the answer truly is "it depends.". One carrier is not necessarily "better" for every policyholder -- it all depends on the makeup of your unique car insurance profile.

Why do Allstate and Farmers Mutual offer me different rates?

Auto insurance companies use many different factors when determining the premiums they charge. Variables such as your driving record, gender, where you live, age, and sometimes even things like your credit score can all be taken into consideration. Both Allstate and Farmers Mutual use different formulas, so it's likely they'll offer different rates. The best way to determine which company is the cheapest for you is by comparing personalized quotes from a range of different carriers.

How do I know if Allstate or Farmers Mutual is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from a handful of companies 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 ZIP code and you'll get quotes from dozens of your local top insurance carriers for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't Allstate or Farmers Mutual 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.