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

Quick Facts

• In general, State Farm offers significantly less expensive premiums than Electric
• State Farm has more affordable rates for drivers who have less-than-stellar credit
• State Farm tends to be a much cheaper option for policyholders who live in suburban areas

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

So, you're thinking about switching your auto insurance. 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 Electric or State Farm as your top options, but between the two, which one will offer you less expensive premiums?

Looking at nationwide averages, Electric has average rates that are about 40% per month more expensive than those from State Farm.

But State Farm may not be the cheapest or best option for each driver out there. After all, car insurance companies can offer drastically different rates to each driver depending on rating factors like your credit score, your driving record, your age, or even where you call home (among other things), so prices could vary drastically from person to person.

Wanting to know if Electric or State Farm is really the right company for you? Keep on reading to see how average rates can change based on all of the factors we've mentioned above.

Electric or State Farm: Average Car Insurance Rates by State

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

That being said, there are plenty of other factors that go into your insurance cost than just the state you live in. 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. It's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their auto insurance. As you can see above, teens who use State Farm save nearly $250 a month compared to those who use Electric.

That being said, with both carriers, you'll see your premiums reduce significantly by the time you turn 25. For example, average prices for Electric policyholders lower almost 55% and State Farm's rates decrease nearly 60% over that time.

Which is the Best Company for Retired Drivers?

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

When looking at Electric and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge, with prices for drivers 65 and older almost 40% less expensive than the national average for Electric.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance rates tend to be more expensive for single policyholders than they are for married policyholders. That's generally because married couples tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, State Farm is the clear winner for those who are single, with premiums around $130 per month more affordable than Electric, on average. The advantage is also clear for married drivers - State Farm offers the lowest average prices.

Electric vs. State Farm: Average Rates by Gender

Did you know men tend to pay more for auto insurance than women? This is because women are less likely to get into accidents and get tickets, which lowers the chances of an insurance claim.

Normally, men see premiums nearly $20 a month higher with Electric, while with State Farm, the difference is closer to $12 per month.

Looking at overall affordability, State Farm comes out as the most affordable option for both genders, with average prices $112 less for men and $105 cheaper for women.

Electric 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 so many different terms and limits that it can make it pretty confusing to find the right policy.

Even so, most policies end up falling into two different types of coverage -- liability only (that covers bodily injury and property damage for other drivers and passengers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability coverage).

If you're looking for state minimum liability insurance, State Farm typically offers significantly cheaper rates of $99 compared to Electric's $150. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies about $150 a month less expensive than Electric, on average.

Is Electric 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 car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with tickets and at-fault collisions on your record, but which of these two companies offers the cheapest prices to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Electric policyholders can expect their premiums to go up an average of $29 per month if they get a ticket, while State Farm normally raises rates around $21 a month, on average.

That being said, State Farm has more affordable prices for drivers in both categories. Drivers with a clean record can save about $74 per month and drivers with a speeding ticket can save around $82 a month with State Farm.

Which Company is Best for Drivers After an Accident?

Both carriers will raise premiums pretty significantly if you get into an at-fault accident with State Farm raising by just under $30. Electric has a less extreme increase, but you can still expect to pay nearly $30 more than you were prior to your first collision.

Overall, drivers who use State Farm end up with the cheaper prices after an accident, with monthly rates averaging $163 compared to Electric Insurance Company's $236.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your auto insurance bill. For example, Electric increases average prices by just under $200 per month -- that's over a 45% increase.

How does Credit Score Impact Electric and State Farm Rates?

Did you know that many car insurance companies take into account your credit score when calculating premiums? This isn't always the case (Michigan, for example, has banned the use of credit score as a rating factor) but it will come into play for many drivers.

Insurance carriers 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.

So, which company offers the lowest rates 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 Electric 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 your monthly car insurance payment? Usually, the more miles you put on your vehicle each year, the more you can expect to pay for auto insurance.

For both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure, State Farm tends to be the cheaper option. Electric's average prices for drivers with 6,000 annual miles come in about 40% more expensive than State Farm. Those who drive 12,000 miles yearly can expect to pay around 42% more with Electric over State Farm.

Electric 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 insurance, but the type of area you live in can have a considerable impact as well. Generally, those who live in rural areas will pay less than policyholders in urban areas due to the small number of cars that are on the roads in those areas.

State Farm tends to offer the most affordable premiums for drivers in all areas, regardless of if they're urban, suburban, or rural.

In urban areas, State Farm's average prices are about $119 less than Electric Insurance Company. Drivers in suburban ZIP codes pay around $73 less with State Farm compared to Electric. If you live in a rural area, you can expect to save about $135 with State Farm compared to Electric.

Electric vs. State Farm 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 taking advantage of as many insurance discounts as you can.

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

Below, we've compared all of the different discounts offered by Electric and State Farm so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

State Farm blows Electric away when it comes to the sheer amount of discounts available, offering 23 different discounts to Electric's 17.

Both companies offer a lot of the same discounts -- like discounts for being a defensive driver, discounts for getting driver training, and multi-policy discounts -- but State Farm also offers annual mileage discounts, distant student discounts, drive safe & save discounts, and more that Electric does not.

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

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

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

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

• You are considering moving to another state -- undefined is only available to residents.
• You have above-average credit.
• Your neighborhood is in the suburbs.

Electric might be best for you if...

• You have a more unique driver profile than those we mentioned above.

We hope this guide has ben a valuable resource as you compare Electric and State Farm. We also hope we've given you the information you need to make the best decision about your 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 a handful of carriers, not just Electric and State Farm. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top car insurance companies in your area, all in just a few minutes.

Electric vs. State Farm FAQs

Is Electric or State Farm cheaper?

Looking just at the national average premiums, State Farm is the more affordable of the two carriers, offering average rates of $158 a month compared to $266 for Electric. However, State Farm won't necessarily be the cheapest carrier for each policyholder, since there are many different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Electric or State Farm?

Unfortunately, the answer truly is "it depends.". No single company is "better" for every driver -- it all depends on the makeup of your unique insurance profile.

Why do Electric and State Farm offer me different rates?

Auto insurance companies take a look at a lot of different factors when determining the rates they charge drivers. Things such as age, where you call home, gender, your driving record, and sometimes even things like your credit score can all be used. Both Electric and State Farm calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from lots of different carriers.

How do I know if Electric 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 multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get free quotes from dozens of the best insurance carriers in your area. With those, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be Electric 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.