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

Quick Facts

• Looking at the national averages for car insurance, State Farm offers slightly more affordable rates than Direct Auto
• Direct Auto has cheaper prices for drivers with a DUI charge on their record
• State Farm tends to be a much less expensive option for couples purchasing insurance together

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

Are you considering a new insurance policy? With so many ads from all sorts of companies offering large discounts, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to Direct Auto or State Farm for your next policy, but which carrier will offer you more affordable rates?

Looking at the national average rates for both companies, State Farm is about $12 per month cheaper than Direct Auto.

Even so, that doesn't necessarily mean State Farm will be the less expensive option for every single driver. Auto insurance carriers use tons of complex algorithms to calculate prices, so depending on how clean your driving record is or how good your credit score is (among numerous other factors), you could see wildly different premiums from the ones above.

Luckily, we've broken down average prices from both Direct Auto and State Farm by many different rate factors, so read on to find out which company is the best for you.

Direct Auto or State Farm: Average Car Insurance Rates by State

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

That being said, there are plenty of other factors that go into your insurance cost than just where you call home. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for car insurance compared to older drivers. That's normally 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. As you can see above, teens who use State Farm save $10 a month compared to those who use Direct Auto.

But both companies will lower rates by the time you turn 25. For example, average prices for Direct Auto policyholders drop more than 55% and State Farm's rates decrease nearly 60% over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best premiums for retired drivers between Direct Auto and State Farm? State Farm gets the edge, with rates for drivers 65 and older $13 less expensive than the national average for Direct Auto.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are typically more expensive for single policyholders than they are for married drivers? That's because policies for married policyholders usually cover multiple cars, which a lot of carriers will offer you a discount for.

If you're in the market for insurance, State Farm tends to have the cheapest average prices regardless of if you're married or single, with prices around 7% more affordable for married couples and almost 10% cheaper for those who are single.

Direct Auto vs. State Farm: Average Rates by Gender

Because men are more likely to get into accidents and get tickets, they have a higher chance of filing a claim with insurance. Therefore, insurance companies will often charge men more than women.

With Direct Auto, women normally pay about $4 per month less than men, and over $10 with State Farm.

When it comes to the lowest rates for each gender, State Farm comes out as the most affordable option for both genders. On average, male drivers save about $8 a month and women save around $16 with State Farm compared to the average Direct Auto policyholder.

Direct Auto 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 auto insurance can be a complicated subject for most people. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which generally refers to having comprehensive and collision coverages alongside liability).

In this case, Direct Auto offers the cheapest average premiums for state minimum liability insurance, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $3 with Direct Auto Insurance, while full coverage comes out to be about $30 more affordable with State Farm.

Is Direct Auto or State Farm Better for Drivers with Spotty Records?

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

Collisions and tickets will most likely raise your rates, but is Direct Auto or State Farm less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Direct Auto policyholders can expect their premiums to go up an average of $38 per month if they get a ticket, while State Farm typically raises rates around $21 a month, on average.

However, State Farm tends to offer the best prices for drivers both with a speeding ticket and with a clean record. Drivers with a clean record can save about $9 per month and drivers with a ticket can save around $26 a month with State Farm.

Which Company is Best for Drivers After an Accident?

Direct Auto policyholders who get in a collision can expect to see their prices rise by over $45, while those who have insurance through State Farm will see about a $30 increase.

Overall, State Farm offers the lowest premiums for drivers with an at-fault accident on their records, with monthly rates averaging $163 compared to Direct Auto Insurance's $190.

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 -- normally a lot more than an accident or speeding ticket. On average, State Farm will climb your prices around 25% after a DUI, while Direct Auto's average rates increase by just under 15%.

How does Credit Score Impact Direct Auto and State Farm Rates?

Did you know that many auto insurance companies take into account your credit score when calculating prices? This isn't always the case (for example, Massachusetts and Hawaii are two states that ban the practice entirely), but it does affect lots of drivers out there.

The reasoning car insurance carriers use is that policyholders with bad credit will be less likely to pay their bills on time; so generally, they'll be asked to pay more, while those with good credit will be rewarded with cheaper premiums.

So, which carrier 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 Direct Auto or State Farm 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 how much insurance companies will charge for coverage? That's because the more miles you put on your vehicle, the more likely you are to get into a collision and cause an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Direct Auto charges. However, there's a small difference in monthly premiums for State Farm, with policyholders who drive the least paying about $13 less each month compared to those who drive 12,000 miles yearly. Still, State Farm is the more affordable option for drivers in both categories.

Direct Auto vs. State Farm: 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 large impact as well. Usually, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers due to the small number of cars that are on the roads in those areas.

State Farm boasts the most affordable average premiums in urban and suburban areas, while Direct Auto wins in rural areas.

In urban areas, State Farm's average rates are around $185 per month compared to Direct Auto's $226. People in suburban areas pay about $161 with State Farm compared to Direct Auto's $168 a month. If you live in a rural area, you can expect to pay around $116 per month with Direct Auto and $127 with State Farm.

Direct Auto vs. State Farm Discounts

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

But with what seems like a million different discounts out there, it can be difficult to find all the ones you can take advantage of or to nail down the carrier that has the most discounts for your unique driver profile.

In the section below, we've taken a look at all of the different discounts Direct Auto and State Farm offer their customers so that you can see which company can save you the most money each month.

Overall, State Farm has the advantage when it comes to total number of discounts. Direct Auto offers a grand total of 19 discounts, while State Farm has 23.

A couple of those are overlapping for things like ABS discounts, discounts for being a defensive driver, discounts for being a good student, and discounts for insuring multiple cars with the same company. State Farm also offers annual mileage discounts, distant student discounts, drive safe & save discounts, and more that Direct Auto does not.

On the flip side, Direct Auto has a couple unique discounts of its own -- advance quote discounts, bike policy discounts, EFT discounts, and more.

Final Thoughts: Is Direct Auto or State Farm Best for You?

So, you've seen how different factors can affect your insurance prices. We've broken down the different discounts each company offers, too. But, when it comes down to it, which insurance carrier is the best one for you and your specific driver profile?

State Farm might be best for you if....

• You have a speeding ticket on your driving record.
• You're looking for the company with the most discounts.
• You're married and plan to have both of your names on the vehicle's auto insurance policy.

Direct Auto might be best for you if...

• You have a DUI charge on your record.
• You want basic car insurance coverage at the state minimum limits.
• Your neighborhood is in a rural area.

We hope this guide has ben a valuable resource as you compare Direct Auto and State Farm and that you can now make a more informed decision when it comes to your auto 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 insurance -- comparing quotes from multiple carriers, not just Direct Auto and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best car insurance companies in your area, all for free.

Direct Auto vs. State Farm FAQs

Is Direct Auto or State Farm cheaper?

Looking just at the national average rates, State Farm is the less expensive of the two carriers, offering average rates of $158 a month compared to $170 for Direct Auto. That being said, State Farm won't necessarily be the lowest carrier for every driver, since there are a variety of different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Direct Auto or State Farm?

Unfortunately, the real answer is "it depends.". Neither company is "better" for each driver -- it all boils down to your unique auto insurance profile. For example, Direct Auto offers cheaper premiums for drivers with a recent DUI, while State Farm is more affordable for drivers with excellent credit.

Why do Direct Auto and State Farm offer me different rates?

Insurance companies take a look at many different factors when determining the prices they charge policyholders. Things such as age, where you park your vehicle, gender, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Direct Auto and State Farm use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from lots of different carriers.

How do I know if Direct Auto or State Farm 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 companies 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 free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the best price. And who knows, the best carrier for you might not be Direct Auto 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.