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

Quick Facts

• In general, Depositors offers significantly less expensive premiums than Farmers
• Depositors tends to be a much cheaper option for residents of urban areas
• Farmers offers more discounts than Depositors Insurance Company

Depositors vs. Farmers: Which Company has the Cheapest Car Insurance?

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

You've maybe even narrowed your search down to Depositors or Farmers for your next policy, but between the two, which carrier has more affordable prices for car insurance?

As you can see, Depositors has average rates that are about 25% per month cheaper than those from Farmers when looking at the national average rates for auto insurance.

Even so, Depositors may not be the cheapest or best option for every driver out there. Car insurance companies vary their rates depending on things like how good your credit score is, how old you are, how clean your driving record is, where you live, and tons of other factors. So, at the end of the day, prices from each company will differ quite a bit from person to person.

Luckily, we've broken down average premiums from both Depositors and Farmers by lots of different rate factors, so read on to find out which carrier is the best for you.

Depositors or Farmers: Average Car Insurance Rates by State

Depositors and Farmers compete against each other in five states, with Depositors offering less expensive prices to the average driver in all of them. Nevada has the most noticable difference, where Depositors rates are over 40% more affordable than insurance premiums at Farmers.

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

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance prices of any other group of drivers out there on the road. It's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $200 less a month by choosing Depositors over Farmers.

But both companies will offer you dramatically lower prices by the time drivers turn 25. For example, average premiums for Depositors policyholders drop nearly $200 and Farmers's rates decrease around $400 over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the lowest car 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 auto insurance.

So, which company offers the best rates to retired drivers? Depositors gets the edge here, with average prices coming in at about $111 a month compared to Farmers's $143.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive insurance rates than married drivers. That's because policies for married couples generally cover more than one car, which several carriers will offer you a discount for.

When it comes to relationship status, Depositors is the clear winner for single policyholders, with premiums around $74 per month less expensive than Farmers, on average. The advantage for married policyholders with Depositors is also obvious, where drivers save over $30 a month.

Depositors vs. Farmers: Average Rates by Gender

You may not know, but car insurance is usually cheaper for women than it is for men. This is because men are more likely to get tickets and get into accidents, which raises the chances of an insurance claim.

On average, women see rates about 6% per month less with Depositors, and around 3% less with Farmers when compared to their male counterparts.

Looking at the data for each carrier specifically, Depositors comes out on top for both men and women. On average, male drivers save about $55 a month and women save about $57 with Depositors compared to the average Farmers policyholder.

Depositors 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.

It's no secret that insurance can be pretty complicated. Everyone needs car insurance, but there are so many different coverages and limits that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides property damage and bodily injury coverage for other drivers and passengers if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability coverage).

If you're looking for state minimum liability limits, Depositors typically offers significantly more affordable premiums of $84 compared to Farmers's $126. When it comes to full coverage policies with similar limits, Depositors again has the edge, with policies around $70 per month cheaper than Farmers, on average.

Is Depositors or Farmers Better for Drivers with Spotty Records?

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

It's no secret secret that tickets and at-fault accidents lead to higher prices, but which company -- Depositors or Farmers -- has the cheapest rates for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Depositors policyholders can expect their premiums to go up an average of $24 a month if they get a ticket, while Farmers generally raises prices about $44 per month, on average.

However, Depositors has more affordable premiums for drivers in both categories, offering prices that are 35% and 37% less expensive, respectively, compared to Farmers Insurance.

Which Company is Best for Drivers After an Accident?

Depositors drivers who get in a collision can expect to see their rates rise by over $50, while those who have insurance through Farmers will see around a $60 increase.

Overall, Depositors offers the lowest premiums for drivers with an at-fault accident on their records, with monthly rates averaging $157 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 -- typically a lot more than an accident or speeding ticket. For example, Depositors increases average prices by over $90 a month -- that's over a 45% increase.

How does Credit Score Impact Depositors and Farmers Rates?

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

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

Looking at Depositors and Farmers specifically, which one has the most affordable premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

How much you drive can have a considerable impact on your monthly car insurance payment. Usually, the more miles you put on your car each year, the more you can expect to pay for auto insurance.

In this case, neither Depositors or Farmers report increasing prices for drivers with higher annual mileage figures. That being said, Depositors comes out as the cheapest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their vehicle each year, with average rates of $148 per month for both.

Depositors vs. Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a large role in how much you pay for insurance. Normally, those who live in rural areas will pay less than policyholders in urban areas because there are a lot fewer cars on the road in those areas, which decreases the chances of an accident.

When comparing these two carriers side-by-side, Depositors typically comes out as the lowest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable prices from both companies, but Depositors comes out on top with average premiums about $130 per month. Depositors also has cheaper average prices for policyholders in urban and suburban ZIP codes -- a 31% and 26% a month respective difference when compared to Farmers drivers in similar areas.

Depositors vs. Farmers Discounts

Regardless of 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 possible, and the best way to do that is by utilizing as many insurance discounts as you can.

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

In the table below, we've compared all of the different discounts offered by Depositors and Farmers so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

Farmers knocks Depositors out of the park when it comes to the sheer number of discounts available, offering 11 more discounts than Depositors.

There are a couple discounts both carriers offer, but Farmers also offers ABS discounts, alternative fuel discounts, anti-theft discounts, and more that Depositors does not.

On the flip side, Depositors has a couple unique discounts of its own -- COVID-19 relief discount, employee discounts, intra-agency transfer discounts, and more.

Final Thoughts: Is Depositors or Farmers Best for You?

You've seen the effect certain factors have on your car insurance and the different discounts companies offer. But, when it comes down to it, which company is the best fit for you?

Depositors might be best for you if....

• Your credit is less-than-stellar.
• You're looking for more protection with "full coverage" auto insurance.
• You don't spend much time in your car.

Farmers might be best for you if...

• You already have plans to move to another state -- undefined only offers policies to residents.
• You're looking for the carrier with the most discounts.

We hope this guide has ben a valuable resource as you compare Depositors and Farmers and that you can now make a more informed decision when it comes to your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Depositors and Farmers. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

Depositors vs. Farmers FAQs

Is Depositors or Farmers cheaper?

Looking just at the national average rates, Depositors is the less expensive of the two carriers, offering average rates of $148 per month compared to $203 for Farmers. That being said, Depositors won't necessarily be the lowest company for everyone, since there are multiple different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Depositors or Farmers?

Sadly, the real answer is "it depends.". Neither carrier is "better" for everyone -- it all comes down to what your unique auto insurance profile looks like.

Why do Depositors and Farmers offer me different rates?

Insurance companies take a look at lots of different factors when determining the premiums they charge policyholders. Things such as your driving record, gender, age, where you park your vehicle, and sometimes even things like your credit score can all come into play. Both Depositors and Farmers use different formulas, so each one will most likely offer different rates. The only real way to see which company is the most affordable for you is by comparing personalized quotes from a bunch of different carriers.

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

The only way to find the car 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, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best insurance carriers in your area. That way, you can guarantee you're getting the cheapest rate. And who knows, the best company for you might not be Depositors 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.