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

Quick Facts

• In general, Depositors offers slightly cheaper premiums than State Farm
• Depositors offers more affordable rates for drivers who have an at-fault accident on their record
• State Farm has more affordable premiums for drivers with a DUI charge on their record

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

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You've maybe even narrowed it down to Depositors or State Farm for your next policy, but between the two, which carrier has less expensive prices for insurance?

Looking at nationwide averages, Depositors is about $10 per month more affordable than State Farm.

That being said, that doesn't mean Depositors will necessarily be less expensive than State Farm for every single driver. Auto insurance companies use a variety of complex algorithms to calculate premiums, so depending on how old you are or where you live (among several other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average prices from both Depositors and State Farm by a range of different rate factors, so read on to find out which carrier is the best for you.

Depositors or State Farm: Average Car Insurance Rates by State

Depositors and State Farm compete against each other in five states, with State Farm offering cheaper rates to the average driver in all of them. Montana has the most noticable difference, where State Farm premiums are over 70% more affordable than car insurance prices at Depositors.

But there's more to calculating auto insurance premiums than just your home state. Read on to find out more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for insurance than any group on the road. It's usually because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $40 less a month by choosing Depositors over State Farm.

However, with both carriers, you'll see your rates decrease significantly once you turn 25. For example, average premiums for Depositors policyholders lower nearly 60% and State Farm's rates reduce almost 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the most affordable auto insurance prices you can find. After all, they've likely been driving for quite some time, which normally lowers their chances of accidents and other infractions that can increase premiums.

But who has the best prices for retired drivers between Depositors and State Farm? Depositors gets the slight edge here, with average rates coming in at around $111 per month compared to State Farm's $111. Even so, that difference is less than 5%, which means it ultimately will come down to other factors, such as your driving record or where you live.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance prices tend to be more expensive for those who are single than they are for married couples. This usually boils down to married policyholders having several cars on their policy -- something lots of insurance companies will reward with discounts.

If you're in the market for car insurance, Depositors tends to have the cheapest average rates regardless of marital status, with prices over $10 cheaper for single drivers and nearly $10 less expensive for married drivers.

Depositors vs. State Farm: Average Rates by Gender

Men typically pay more for auto insurance than women. This is because men are statistically more likely than women to cause a collision and get into accidents, which leads to increased risk for insurers and, therefore, higher premiums.

On average, men see rates about 6% per month higher with Depositors, and around 7% more with State Farm.

Looking at the data for each company specifically, Depositors offers the lowest average premiums for both men and women, with average prices 7% less for men and 6% cheaper for women.

Depositors or State Farm: 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 multiple different coverages that account for a bunch of different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

But the most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's injuries and property damage if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability).

If you're looking for state minimum liability insurance, Depositors normally offers more affordable premiums of $84 compared to State Farm's $99. When it comes to full coverage policies with similar limits, Depositors again has the edge, with policies about $5 a month less expensive than State Farm, on average.

Is Depositors or State Farm 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 collisions lead to higher prices, but which carrier -- Depositors or State Farm -- has the cheapest rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Depositors policyholders can expect their premiums to go up an average of $24 per month if they get a ticket, while State Farm usually raises rates around $21 a month, on average.

Even so, Depositors tends to offer the best prices for drivers both with clean records and with a speeding ticket, offering prices that are 21% and 16% cheaper, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Depositors drivers who get in an accident can expect to see their rates rise by over 30%, while those who have insurance through State Farm will see about a 20% increase.

Overall, the less expensive prices come from Depositors, with monthly premiums averaging $157 compared to State Farm's $163.

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 insurance bill -- generally a lot more than a collision or ticket. For example, Depositors increases average rates by over $90 per month -- that's over a 45% increase.

How does Credit Score Impact Depositors and State Farm Rates?

Did you know that many car insurance carriers take into account your credit score when calculating premiums? Certain states and companies do not allow for credit score to be used as a rating factor, but it does affect a lot of policyholders out there.

Auto insurance carriers argue that those with poor credit scores are less likely to pay their bills on time each month, which increases the risk involved on their end, while the opposite is true for those with good credit.

So, which company offers the best prices for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Depositors or State Farm 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 your monthly car insurance payment. Normally, the more miles you drive, 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 Depositors charges. However, there's a small difference in monthly premiums for State Farm, with policyholders who drive 6,000 miles every year paying around $13 less each month compared to those who drive 12,000 miles annually. Still, Depositors is the cheaper option for drivers in both categories.

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

Where you live can play a substantial role in how much you pay for insurance. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

Depositors boasts the most affordable average prices in urban and suburban areas, while State Farm wins in rural areas.

In urban areas, Depositors Insurance Company's average rates are about 6% less than State Farm. Drivers in suburban ZIP codes pay around 14% less with Depositors compared to State Farm. If you live in a rural area, you can expect to save about 2% with State Farm compared to Depositors.

Depositors vs. State Farm Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible. That's where car insurance discounts comes into play.

The hard 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 Depositors and State Farm so that you can see which one can save you the most money each month.

State Farm knocks Depositors out of the park when it comes to the sheer number of discounts available, offering six more discounts than Depositors.

There are a couple discounts both companies offer, but State Farm also offers ABS discounts, annual mileage discounts, anti-theft discounts, and more that Depositors does not.

On the flip side, Depositors has a couple unique discounts of its own -- advance quote discounts, COVID-19 relief discount, EFT discounts, and more.

Final Thoughts: Is Depositors or State Farm Best for You?

So, we've broken down the average premiums for many of the variables insurance carriers look at, and walked through the different discounts each carrier offers, too. But, when it comes down to it, is Depositors or State Farm the right company for you and your specific profile and needs?

Depositors might be best for you if....

• You've been pulled over for speeding recently.
• Your home is in a busy urban area.
• You've started working from home and don't have much of a commute.

State Farm might be best for you if...

• You already have plans to move to another state -- undefined is only available in.
• You already have a great credit score.
• You live in a rural area.

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

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

Depositors vs. State Farm FAQs

Is Depositors or State Farm cheaper?

Looking just at the national average prices, Depositors is the more affordable of the two companies, offering average rates of $148 a month compared to $158 for State Farm. That being said, Depositors won't necessarily be the lowest company for every driver, since there are a variety of different factors that come into play when it comes to your auto insurance cost.

Who is better, Depositors or State Farm?

Sadly, the only answer we can give you is "it depends.". Neither carrier is "better" for everyone -- it all boils down to your unique insurance profile.

Why do Depositors and State Farm offer me different rates?

Auto insurance carriers take a look at several different variables when determining the premiums they charge policyholders. Things such as gender, your driving record, age, where you park your car, and sometimes even things like your credit score can all be taken into consideration. Both Depositors and State Farm calculate prices differently, 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 several different companies.

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

The only way to find the insurance carrier 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, sites like Compare.com do all the hard work for you. Just enter your information once and you'll get free quotes from dozens of the best car insurance companies in your area. That way, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Depositors or State Farm 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.