Auto-owners vs. Farmers: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, Auto-owners offers less expensive rates than Farmers
• Auto-owners offers more affordable average prices for people who are single and purchasing car insurance by yourself
• Farmers tends to be a much less expensive option for drivers with a DUI charge on their record

Auto-owners vs. Farmers: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering hefty discounts. But exactly how much can you save by switching?

You might have narrowed your search down to Auto-owners or Farmers as your top options, but between the two, which carrier will offer you cheaper premiums?

As you can see, Auto-owners is about $24 per month more affordable than Farmers when looking at the national average rates for auto insurance.

However, that doesn't mean Auto-owners will necessarily be less expensive than Farmers for each driver. Car insurance companies vary their prices depending on things like how clean your driving record is, how old you are, how good your credit score is, where you live, and tons of other factors, so rates could vary drastically from person to person.

Wanting to know if Auto-owners or Farmers is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

Auto-owners or Farmers: Average Car Insurance Rates by State

Auto-owners and Farmers compete against each other in 16 states, with Auto-owners offering cheaper rates to the average driver in all but four of them. If you live in Arkansas, North Dakota, South Dakota, or Tennessee, Farmers is the more affordable of the two carriers when looking at the overall average prices, but Auto-owners is the cheaper option in most of the others.

But there's more to calculating insurance rates than just where you call home. Read on to find out more.

Which is the Best Company For Young Drivers?

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

Even so, that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of nearly $150 less a month by choosing Auto-owners over Farmers.

But both companies will reduce prices once you turn 25. Farmers offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Auto-owners's average premiums lower almost 60% during that same period.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest prices you can find.

So, which company offers the best rates to retired drivers? Auto-owners gets the slight edge, with premiums for drivers 65 and older $10 less expensive than the national average for Farmers.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance prices tend to be more expensive for single policyholders than they are for married policyholders. That's because policies for married drivers generally cover several cars, which many carriers will offer you a discount for.

When it comes to relationship status, Auto-owners is the clear winner for single drivers, with rates around $34 per month more affordable than Farmers, on average. But for married couples, that advantage is much less clear - Auto-owners offers the lowest average premiums.

Auto-owners vs. Farmers: Average Rates by Gender

Men are statistically more likely than women to get into an accident or get pulled over for speeding, which means they'll typically end up paying more for car insurance than women.

On average, women see prices more than $10 a month cheaper with Auto-owners, and about $7 with Farmers.

Looking at the data for each carrier specifically, Auto-owners offers the most affordable average premiums for both men and women. On average, male drivers save about $22 per month and women save around $26 with Auto-owners compared to the average Farmers policyholder.

Auto-owners or Farmers: 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.

For most people, auto insurance can be pretty complicated. There are so many different coverages and limits that it can make it pretty confusing to find the right policy.

The two most common policies end up falling into two different types of coverage -- liability only (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which usually refers to having comprehensive and collision coverages in addition to liability).

If you're looking for state minimum limits for liability insurance, Auto-owners typically offers more affordable rates of $99 compared to Farmers's $126. When it comes to full coverage policies with similar limits, Auto-owners again has the edge, with policies about $20 a month cheaper than Farmers, on average.

Is Auto-owners or Farmers Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

Tickets and accidents will most likely raise your premiums, but is Auto-owners or Farmers less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Auto-owners policyholders can expect their rates to go up an average of $44 per month if they get a ticket, while Farmers usually raises prices around $44 a month, on average.

That being said, Auto-owners tends to offer the best prices for both drivers who have clean records and those with a recent speeding ticket, offering rates that are 25% and 20% cheaper, respectively, compared to Farmers Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will increase premiums pretty significantly if you get into an at-fault accident with Farmers climbing by over $60. Auto-owners has a less extreme rise, but you can still expect to pay more than $45 more than you were prior to your first collision.

Overall, drivers who use Auto-owners end up with the cheaper prices after an accident, with monthly prices averaging $168 compared to Farmers Insurance's $224.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- normally a lot more than an accident or ticket. For example, Auto-owners increases average premiums by just under $150 per month -- that's just under a 55% increase.

If you have a DUI on your record and are looking for more affordable prices, Farmers tends to be the much more affordable option with average rates of $221 monthly compared to $264 from Auto-owners.

How does Credit Score Impact Auto-owners and Farmers Rates?

Did you know that many auto insurance carriers take your credit score into account when calculating premiums? Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for quite a few drivers.

Insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with less expensive rates.

Looking at Auto-owners and Farmers specifically, which company has the lowest prices for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with Auto-owners. Policyholders with "excellent" credit can save over 40% compared to Farmers, and those with "good" scores can also expect to see savings -- about $56 or 30% more affordable each month.

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 rates. Drivers with "fair" credit pay around $33 less with Auto-owners than Farmers, but those whose credit is considered "poor" have it flipped -- saving about $61 a month with Farmers.

Is Auto-owners or Farmers 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 sizable impact on your monthly auto insurance bill? Generally, those who drive fewer miles will end up with less expensive premiums since there's less of a chance of getting into a collision and causing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a small difference in monthly prices for Auto-owners, with policyholders who drive the least paying around $1 less every month compared to those who drive 12,000 miles yearly. Still, Auto-owners is the cheaper option for drivers in both categories.

Auto-owners vs. Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your vehicle can play a considerable role in how much you pay for car insurance. Normally, if you live in a rural area with fewer cars on the road, you'll pay a little less for auto insurance, while the opposite is true for people in urban areas.

Auto-owners boasts the most affordable average premiums for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the cheapest rates from both companies, but Auto-owners comes out on top with average prices about $164 per month. Auto-owners also has more affordable average premiums for policyholders in urban and suburban ZIP codes -- a 18% and 11% per month respective difference when compared to Farmers drivers in similar areas.

Auto-owners vs. Farmers Discounts

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

The difficult part is finding all of the discounts you're eligible for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

Below, we've broken down all of the different discounts offered by both Auto-owners and Farmers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Overall, Farmers comes out ahead with 28 discounts to Auto-owners's 24.

There are a couple discounts both carriers offer, but Farmers also offers alternative fuel discounts, EFT discounts, ESC discounts, and more that Auto-owners does not.

On the flip side, Auto-owners has a couple unique discounts of its own -- company car discounts, COVID-19 relief discount, education discounts, and more.

Final Thoughts: Is Auto-owners or Farmers Best for You?

You've seen the role certain factors have on your insurance and the different discounts companies offer. But, when it comes down to it, which carrier is the best carrier for you and your specific profile and needs?

Auto-owners might be best for you if....

• You've been pulled over for speeding recently.
• Your neighborhood is in the suburbs.
• You are over 65 years old and want to save some money on your car insurance.

Farmers might be best for you if...

• You have a DUI charge on your record.
• You care about discounts (Farmers offers the most).

We hope this guide has ben a valuable resource as you compare Auto-owners and Farmers and that it aids in making a more informed decision about your auto insurance.

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

Auto-owners vs. Farmers FAQs

Is Auto-owners or Farmers cheaper?

Looking just at the national average prices, Auto-owners is the cheaper of the two carriers, offering average rates of $179 a month compared to $203 for Farmers. Even so, Auto-owners won't necessarily be the lowest company for each driver, since there are a variety of different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Auto-owners or Farmers?

Unfortunately, the answer truly is "it depends.". One carrier is not necessarily "better" for every driver -- it all depends on what your unique insurance profile looks like. For example, Farmers offers less expensive rates for drivers with a recent DUI, while Auto-owners is cheaper for drivers with excellent credit.

Why do Auto-owners and Farmers offer me different rates?

Car insurance companies take a look at lots of different factors when determining the premiums they charge policyholders. Variables such as where you call home, where you live, gender, age, and sometimes even things like your credit score can all be used. Both Auto-owners and Farmers use different formulas, so each one will most likely offer different rates. The only real way to see which company is the cheapest for you is by comparing personalized quotes from many different carriers.

How do I know if Auto-owners or Farmers is right for me?

The only way to find the auto insurance carrier that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once and you'll get free quotes from dozens of the best car insurance carriers in your area. That way, you can guarantee you're getting the most affordable rate. And who knows, the best company for you might not be Auto-owners or Farmers at all!

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.