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

Quick Facts

• Based on national averages for insurance, American National offers slightly less expensive rates than Farmers Mutual
• American National has more affordable prices for policyholders who are looking to purchase insurance with a spouse
• Farmers Mutual offers more affordable rates for single people who will be the only person on the car insurance policy

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

Are you in the market for 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 American National or Farmers Mutual for your next policy, but which one will offer you cheaper prices?

Looking at the national average rates for both carriers, Farmers Mutual is around $3 more a month than American National.

However, that doesn't necessarily mean American National will be the less expensive option for every single driver. After all, insurance companies can offer drastically different rates to every driver depending on rating factors like your driving record, your age, where you call home, or even your credit score (among other things), so premiums could change drastically from person to person.

Luckily, we've broken down average prices from both American National and Farmers Mutual by multiple different rate factors, so read on to find out which carrier is the best for you.

American National vs. Farmers Mutual: Average Car Insurance Rates by State

American National and Farmers Mutual only compete against each other in one states, with American National offering cheaper premiums to the average driver in all of them. Nebraska has the most noticable difference, where American National rates are $19 more affordable than auto insurance prices at Farmers Mutual.

But there's more to insurance than just where you live. As we mentioned above, there's a lot of things that go into how auto insurance carriers determine your rates. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance premiums of any group on the road. That's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean teen drivers can't still save money on their insurance. As you can see above, teens who use Farmers Mutual save almost 7% per month compared to those who use American National.

That being said, both companies will drop prices once you turn 25. Farmers Mutual offers the steepest reduction, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, American National still has the lowest premiums at $74 a month.

Which is the Best Company for Retired Drivers?

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

But who has the best rates for retired drivers between American National and Farmers Mutual? Farmers Mutual gets the slight edge here, with average prices coming in at about $61 per month compared to American National's $66.

Which is the Best Company for Married Drivers?

Married couples tend to get slightly less expensive auto insurance rates than single drivers. That's because policies for married policyholders usually cover more than one vehicle, which many carriers will give you a discount for.

When it comes to relationship status, Farmers Mutual is the winner for single policyholders, with prices around 1% a month more affordable than American National, on average.

American National or Farmers Mutual: Average Rates by Gender

Because women are less likely to get tickets and get into collisions, they have a decreased chance of filing a claim with insurance. So, insurance companies will tend to offer women more affordable premiums.

Generally, men see prices about 1% per month higher with American National, and around 9% more with Farmers Mutual.

Looking at overall affordability, Farmers Mutual is the lowest company for women. Rates with Farmers Mutual are $1 cheaper for women, while with American National, men can save about $1.

American National 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 pretty complicated. Everyone needs auto insurance, but there are so many different terms and coverages that it can be hard to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which provides bodily injury and property damage coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside what you get with a liability policy).

When it comes to state minimum liability insurance, Farmers Mutual has the edge, while American National offers the cheapest average premiums for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $20 with Farmers Mutual, while full coverage comes out to be around $25 cheaper with American National Insurance Company.

Is American National or Farmers Mutual Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance carriers offering great rates for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Speeding tickets and accidents will most likely raise your prices, but is American National or Farmers Mutual more affordable for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use American National for their auto insurance can generally expect their monthly bill to go up about 20% after getting a speeding ticket. Farmers Mutual policyholders can expect a less drastic increase of around 8%.

If you have gotten a ticket, Farmers Mutual tends to offer the best rates at about 10% less expensive, while American National has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through American National can expect to see around an $28 -- or about 29% -- rise in their car insurance premiums. Drivers who use Farmers Mutual for their auto insurance will see a monthly bill around $16 (or 19%) more expensive after reporting an accident to their car insurance carrier.

At the end of the day, Farmers Mutual offers the most affordable prices for drivers with an at-fault collision on their records, with average premiums coming in at $86 compared to American National Insurance Company's $95.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple speeding ticket or even a collision. On average, Farmers Mutual will climb your rates about 45% after a DUI, while American National's average premiums climb by more than 35%.

But if you end up with a DUI charge and are looking for more affordable prices, American National tends to be cheaper for the average driver, with monthly premiums coming in at around $104 to Farmers Mutual's $128.

How does Credit Score Impact American National and Farmers Mutual Rates?

Often times, your credit score can be used as one of the variables to calculate your monthly insurance rates. Certain states and companies do not allow for credit score to be used as an auto insurance factor, but it does affect a lot of policyholders out there.

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

Looking at American National and Farmers Mutual specifically, which carrier has the best premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, American National will typically reward you the most. For policyholders with "excellent" credit scores, American National comes in over 37.04 more affordable. Drivers with "good" credit scores normally save about 22% with American National compared to average rates from Farmers Mutual.

Which Company is Best for Drivers with Bad Credit?

If you have less-than-stellar credit, it can be somewhat of a toss-up as far as which company offers you the best prices. Drivers with "fair" credit pay around 4% less with American National than Farmers Mutual, but those whose credit is considered "poor" have it flipped -- saving about 30% a month with Farmers Mutual.

Is American National 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 insurance companies will charge for coverage. That's because the fewer miles you put on your car, the less likely you are to be in an accident and file an insurance claim.

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 rates for American National, with policyholders who drive 6,000 miles yearly paying around $9 less every month compared to those who drive 12,000 miles each year.

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

Where you call home can play a large role in how much you pay for auto insurance. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders since there are a lot fewer vehicles on the road where they live, which lowers the chances of an accident.

Looking at these carriers side-by-side, American National boasts the most affordable average premiums in rural and suburban areas, while Farmers Mutual wins in urban areas.

Those in rural areas can expect to save about $17 with American National compared to Farmers Mutual. People who live in suburban areas pay around $2 less with American National compared to Farmers Mutual. For drivers in urban ZIP codes, Farmers Mutual's average prices are about $11 less than American National Insurance Company.

American National 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 where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts American National and Farmers Mutual offer their customers so that you can find the company that has the most discounts and, therefore, the largest savings.

American National knocks Farmers Mutual out of the park when it comes to the sheer number of discounts available, offering seven more discounts than Farmers Mutual.

There are a couple discounts both companies offer, but American National also offers discounts for anti-theft, claim free, COVID-19 relief, and more.

On the other hand, Farmers Mutual has a few proprietary discounts of their own like paid in full discounts and secondary vehicle discounts.

Final Thoughts: Is American National or Farmers Mutual Best for You?

You've seen the role certain factors have on your auto insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, is American National or Farmers Mutual the right carrier for you and your specific needs?

American National might be best for you if....

• You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
• You want to save extra money with discounts.
• You're married and plan to have both of your names on the vehicle's car insurance policy.

Farmers Mutual might be best for you if...

• You have a speeding ticket on your driving record.
• You live in an urban area.
• You have a short commute.

Hopefully, this guide helps you get a good idea of the differences between American National and Farmers Mutual. We also hope we've given you the information you need to make the best decision when it comes to your 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 car insurance -- comparing quotes from a handful of companies, not just American National and Farmers Mutual. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

American National vs. Farmers Mutual FAQs

Is American National or Farmers Mutual cheaper?

American National is the cheaper of the two companies when looking at national average premiums, with policies averaging $87 per month with American National and $90 for Farmers Mutual. But that doesn't mean American National will be the lowest carrier for everyone, since there are lots of different variables that come into play when it comes to your insurance cost.

Who is better, American National or Farmers Mutual?

Sadly, the real answer is "it depends.". No single company is "better" for every policyholder -- it all depends on what your unique auto insurance profile looks like.

Why do American National and Farmers Mutual offer me different rates?

Car insurance carriers use quite a few different factors when determining the rates they charge. Variables like your driving record, where you live, gender, age, and sometimes even things like your credit score can all be used. Both American National and Farmers Mutual use different formulas, so it's likely they'll offer different prices. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from several different companies.

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

The only way to find the auto insurance company that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your area information and you'll get quotes from dozens of your local top car insurance companies for free. That way, you can guarantee you're getting the lowest premium. And maybe you'll find that the best carrier for you isn't American National 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.