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

Quick Facts

• In general, Equity offers more affordable rates than Farmers
• Equity offers more affordable prices for single people who will be the only person on the car insurance policy
• Farmers may help you save more money -- they offer more discounts than Equity Insurance Company

Equity or Farmers: Which Company has the Cheapest Car Insurance?

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

You might have narrowed it down to Equity or Farmers for your next policy, but which company has less expensive rates for insurance?

Looking at nationwide averages, Farmers has average rates that are around 19% a month more expensive than those from Equity.

However, Equity may not be the cheapest or best option for every driver out there. Auto insurance carriers use a variety of complex algorithms to determine prices, so depending on where you live or how good your credit score is (among a bunch of other factors), you could see wildly different premiums from the ones above.

Wanting to know if Equity or Farmers 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.

Equity vs. Farmers: Average Car Insurance Rates by State

Equity and Farmers only compete against each other in two states, with Farmers offering cheaper prices to the average driver in all of them. Arkansas has the most noticable difference, where Farmers premiums are $41 more affordable than car insurance prices at Equity.

There are plenty of other factors that go into your auto insurance bill than just your home state. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for insurance than any other group of drivers out there on the road. That's generally because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have Equity for their auto insurance pay almost 35% less than those who use Farmers.

That being said, both companies will decrease premiums once you turn 25. For example, average rates for Equity policyholders reduce nearly 60% and Farmers's prices lower over 70% over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best premiums for retired drivers between Equity and Farmers? Equity gets the edge here, with average rates coming in at about $128 monthly compared to Farmers's $143.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive insurance prices than married drivers. That's normally because married couples tend to own and insure more than one vehicle, which can often earn you a discount.

For those who are single, the difference in average rates between these two carriers is significant, with Equity prices coming in at a quarter less than Farmers's. The advantage for married policyholders with Equity is also obvious, where drivers save around $25 per month.

Equity or Farmers: Average Rates by Gender

Men are statistically more likely than women to get into accidents and file an insurance claim, which means they'll generally end up paying more for car insurance than women.

With Equity, men typically pay about $20 a month more than women, and around $7 with Farmers.

When it comes to the lowest premiums for each gender, Equity comes out as the cheapest option for both genders, with average rates $32 less for men and $46 cheaper for women.

Equity vs. 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 a complicated subject for most people. There are lots of different coverages that account for several different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

The two most common policies end up falling into two different types of coverage -- liability coverage (that covers bodily injury and property damage for other drivers and their passengers if you cause an accident) and full coverage (which usually refers to having collision and comprehensive coverages alongside what you get with a liability policy).

Looking specifically at state minimum liability insurance, Equity has the significant edge, with average monthly premiums coming in at $67. If you want a full coverage policy with the same state minimum limits, Equity again has the edge, with policies averaging about $262 per month to Farmers's $281.

Is Equity or Farmers Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

You'll probably end up paying more with speeding tickets and collisions on your record, but which of these two companies offers the most affordable prices to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Equity for their car insurance can typically expect their monthly bill to go up around 4% after getting a speeding ticket. Farmers policyholders can expect a bit more drastic of an increase of about 21%.

Even so, Equity has cheaper premiums for drivers in both categories, offering prices that are 5% and 22% less expensive, respectively, compared to Farmers Insurance.

Which Company is Best for Drivers After an Accident?

Equity drivers who get in a collision can expect to see their rates rise by just under 15%, while those who have insurance through Farmers will see around a 30% increase.

At the end of the day, drivers who use Equity end up with the cheaper prices after an accident, with average prices coming in at $179 compared to Farmers Insurance's $224.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or ticket when it comes to your insurance bill. On average, Farmers will climb your premiums about 27% after a DUI, while Equity's average rates climb by 7%.

How does Credit Score Impact Equity and Farmers Rates?

Did you know many auto insurance carriers take your credit score into account when determining prices? Certain states and companies do not allow for credit score to be used as an insurance factor, but it does affect quite a few policyholders out there.

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, drivers with bad credit will often be forced to pay more.

So, which carrier offers the best premiums for policyholders 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 Equity or Farmers Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a sizable impact on how much auto insurance companies will charge for coverage. Generally, the more milage you put on your car each year, the more you can expect to pay for coverage.

In this case, neither Equity or Farmers report increasing rates for drivers with higher annual mileage figures. Even so, Equity comes out as the lowest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their vehicle yearly, with average premiums of $165 a month for both.

Equity or Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a big role in how much you pay for car insurance. 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.

When comparing these two carriers side-by-side, Equity usually comes out as the lowest option for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to save around 16% with Equity compared to Farmers. People who live in suburban areas pay about 16% less with Equity compared to Farmers. For drivers in urban ZIP codes, Equity Insurance Company's average premiums are around 24% less than Farmers Insurance.

Equity vs. Farmers 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. That's where car insurance discounts comes into play.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you're eligible for.

Luckily, we did the hard work for you and compared all of the different discounts offered by Equity and Farmers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Farmers blows Equity away when it comes to the sheer amount of discounts available, offering 28 different discounts to Equity's 10.

A couple of those are overlapping for things like discounts for getting driver training, group discounts, and discounts for being a homeowner. Farmers also offers discounts for ABS, advance quote, alternative fuel, and more.

On the other hand, Equity has a few proprietary discounts of their own for things like agency transfer discounts, education discounts, and renewal discounts.

Final Thoughts: Is Equity or Farmers Best for You?

So, you've seen how different variables can affect your auto insurance rates. We've shown you all the discounts each carrier offers, too. That's all well and good, but at the end of the day, which company is the right fit for you?

Equity might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You are purchasing your car insurance with a spouse.

Farmers might be best for you if...

• You value the experience that comes with a large national insurance carrier.
• You're looking for the company with the most discounts.

Hopefully, this guide has ben a valuable resource as you compare Equity 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 sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from a handful of companies, not just Equity and Farmers. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance carriers in your area, all in just a few minutes.

Equity vs. Farmers FAQs

Is Equity or Farmers cheaper?

Equity is the cheaper of the two companies when looking at national average prices, with policies averaging $165 per month with Equity and $203 for Farmers. However, that doesn't mean Equity will be the cheapest carrier for every driver, since there are many different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Equity or Farmers?

Unfortunately, the answer truly is "it depends.". No one company is "better" for everyone -- it all comes down to what your unique car insurance profile looks like. For example, Farmers is less expensive for drivers with excellent credit, while Equity offers more affordable rates for drivers with a recent DUI.

Why do Equity and Farmers offer me different rates?

Auto insurance carriers use a lot of different variables when calculating the prices they charge. Factors like your driving record, where you call home, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both Equity and Farmers calculate premiums using different formulas, so it's likely they'll offer different rates. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from multiple 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 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 lowest premium. And maybe you'll find that the best carrier for you isn't Equity or Farmers 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.