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

Quick Facts

• Based on national averages for auto insurance, Farmers Mutual offers significantly less expensive rates than Auto-owners
• Auto-owners may help you save more money -- they offer more discounts than Farmers Mutual
• Farmers Mutual offers more affordable premiums for policyholders whose driving record contains an at-fault collision

Auto-owners or Farmers Mutual: Which Company has the Cheapest Car Insurance?

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

You might have narrowed your search down to Auto-owners or Farmers Mutual, but between the two, which carrier will save you the most?

Looking at the national average rates for both carriers, Auto-owners is quite a bit more expensive than Farmers Mutual, with prices averaging $179 a month compared to just $90 with Farmers Mutual.

Even so, that doesn't necessarily mean Farmers Mutual will be the cheaper 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, where you call home, your age, or even your credit score (among other things). So, at the end of the day, rates from each carrier will differ quite a bit from person to person.

Luckily, we've broken down average premiums from both Auto-owners and Farmers Mutual by a variety of different rate factors, so read on to find out which company is the best for you.

Auto-owners vs. Farmers Mutual: Average Car Insurance Rates by State

Auto-owners and Farmers Mutual only compete against each other in two states, with Farmers Mutual offering more affordable prices to the average driver in all of them. South Dakota has the most noticable difference, where Farmers Mutual rates are $79 less expensive than car insurance premiums at Auto-owners.

There are plenty of other factors that go into your auto insurance cost than just the state you live in. Keep reading to find out more.

Which is the Best Company For Young Drivers?

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

But that doesn't mean teen drivers can't still save money on their auto insurance. As you can see above, teens who use Farmers Mutual save over 55% per month compared to those who use Auto-owners. It's worth noting that Auto-owners offers car insurance in 23 different states compared to Farmers Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

However, both carriers will reduce premiums by the time drivers turn 25. Farmers Mutual offers the steepest reduction, with 25-year-olds paying less than half what 18-year-old drivers are charged. Auto-owners's average rates decrease almost 60% during that same period.

Which is the Best Company for Retired Drivers?

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

But who has the best rates for retired drivers between Auto-owners and Farmers Mutual? Farmers Mutual gets the edge, with premiums for drivers 65 and older $72 more affordable than the national average for Auto-owners.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance rates tend to be cheaper for married policyholders than they are for single policyholders. That's because policies for married drivers generally cover multiple vehicles, which lots of companies will give you a discount for.

For those who are single, the difference in average prices between these two carriers is significant, with Farmers Mutual premiums coming in at around half of Auto-owners's. The advantage for married couples with Farmers Mutual is also obvious, where drivers save nearly 50% a month.

Auto-owners or Farmers Mutual: Average Rates by Gender

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

Men normally pay about 6% more per month than women with Auto-owners, and almost 10% with Farmers Mutual.

Looking at overall affordability, Farmers Mutual comes out as the cheapest option for both genders, with average rates 49% less for men and 51% cheaper for women.

Auto-owners 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 auto insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different limits and coverages that it can be hard to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- 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 -- in addition to what you get with a liability policy).

Looking specifically at state minimum limits for 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 around $147 a month to Auto-owners's $260.

Is Auto-owners 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 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 speeding tickets and at-fault collisions lead to higher premiums, but which carrier -- Auto-owners or Farmers Mutual -- has the most affordable rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Auto-owners for their auto insurance can typically expect their monthly bill to go up about 27% after getting a speeding ticket. Farmers Mutual policyholders can expect a less drastic increase of around 8%.

That being said, Farmers Mutual has less expensive prices for drivers in both categories -- their rates are around 42% more affordable for drivers with clean records and 54% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through Auto-owners can expect to see about an $47 -- or around 28% -- rise in their car insurance premiums. Drivers who use Farmers Mutual for their insurance will see a monthly bill about $16 (or 19%) more expensive after reporting an accident to their auto insurance company.

At the end of the day, Farmers Mutual offers the lowest rates for drivers with an at-fault accident on their records, with average prices coming in at $86 compared to Auto-Owners Insurance's $168.

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 ticket or even a collision. On average, Auto-owners will climb your premiums around 54% after a DUI, while Farmers Mutual's average rates climb by more than 45%.

Farmers Mutual has the overall cheapest prices for drivers with a DUI on their records at $128 monthly, but it's worth noting that Auto-owners's average rates come from 23 states compared to just two for Farmers Mutual, so the data may be skewed slightly.

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

Did you know many car insurance carriers take your credit score into account when determining rates? This isn't true for everyone (California, for example, has banned the use of credit score as an auto insurance factor) but it will come into play for several drivers.

Insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

Looking at Auto-owners and Farmers Mutual specifically, which company has the most affordable premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Farmers Mutual will usually reward you the most. For policyholders with "excellent" credit scores, Farmers Mutual comes in nearly 14.74 more affordable. Drivers with "good" credit scores generally save about 34% with Farmers Mutual compared to average prices from Auto-owners.

Which Company is Best for Drivers with Bad Credit?

Farmers Mutual typically offers lower rates than Auto-owners when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 49% per month less with Farmers Mutual compared to Auto-owners, and those with "poor" scores typically save an average of about 68% a month.

Is Auto-owners or Farmers Mutual 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 big impact on your monthly premiums? Generally, the more milage you put on your car each year, the more you can expect to pay for auto insurance.

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 Auto-owners, with policyholders who drive the least paying around $1 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, Farmers Mutual is the cheaper carrier.

Auto-owners or Farmers Mutual: 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. Normally, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

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

Those in rural areas can expect to pay about $90 per month with Farmers Mutual and $164 with Auto-owners. Drivers in suburban ZIP codes pay around $87 with Farmers Mutual compared to Auto-owners's $169 a month. In urban areas, Farmers Mutual's average prices are about $93 a month compared to Auto-owners's $205.

Auto-owners vs. Farmers Mutual Discounts

No matter why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many car 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 can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by Auto-owners and Farmers Mutual so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Auto-owners blows Farmers Mutual away when it comes to the sheer amount of discounts available, offering 24 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. Auto-owners also offers discounts for ABS, advance quote, anti-theft, and more.

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

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

So, we've broken down the average premiums for many of the variables insurance carriers look at, and we've shown you all the discounts each carrier offers. That's all well and good, but at the end of the day, which insurance company is the best one for you and your specific profile and needs?

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

• You've been pulled over for speeding recently.
• You live in an urban area.
• You drive fewer than 12,000 miles each year.

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

• You're thinking about moving to another state -- Farmers Mutual only offers policies to Nebraska and South Dakota residents.
• You want to save extra money with discounts.

Hopefully, this guide has ben a valuable resource as you compare Auto-owners and Farmers Mutual. 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 auto insurance -- comparing quotes from multiple companies, not just Auto-owners and Farmers Mutual. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance carriers in your area, all in just a few minutes.

Auto-owners vs. Farmers Mutual FAQs

Is Auto-owners or Farmers Mutual cheaper?

Farmers Mutual is the less expensive of the two companies when looking at national average rates, with policies averaging $90 per month with Farmers Mutual and $179 for Auto-owners. Even so, that doesn't mean Farmers Mutual will be the most affordable carrier for every policyholder, since there are many different factors that are considered when it comes to your car insurance bill.

Who is better, Auto-owners or Farmers Mutual?

Unfortunately, the answer truly is "it depends.". One company is not necessarily "better" for everyone -- it all depends on the makeup of your unique auto insurance profile.

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

Insurance carriers use quite a few different variables when calculating the prices they charge. Factors such as age, where your home is, gender, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Auto-owners and Farmers Mutual calculate premiums using different formulas, so it's likely they'll offer different rates. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from multiple different companies.

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

The only way to find the car insurance company that's right for you is by getting quotes from a handful of 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 ZIP code and you'll get quotes from dozens of your local top auto insurance companies for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't Auto-owners 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.