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

Quick Facts

• Based on national averages for insurance, State Farm offers slightly cheaper prices than Equity
• Equity tends to be a much more affordable option for drivers with a DUI charge on their record
• State Farm offers more affordable premiums for policyholders who may not have much of a commute

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

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering hefty discounts, you're probably wondering exactly how much you might be able to save.

You might have narrowed your search down to Equity or State Farm for your next policy, but between the two, which company will save you the most?

Looking at nationwide averages, State Farm is about $7 per month less expensive than Equity.

But State Farm may not be the most affordable or best option for every single driver out there. Car insurance companies vary their prices depending on things like how good your credit score is, how clean your driving record is, where you live, how old you are, and a ton of other factors, so rates will vary quite a bit from person to person.

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

Equity or State Farm: Average Car Insurance Rates by State

Equity and State Farm only compete against each other in two states, with State Farm offering cheaper rates to the average driver in all of them. Oklahoma has the most noticable difference, where Equity prices are over 10% less expensive than insurance premiums at State Farm.

There's a lot more that goes into your auto insurance cost than just the state you live in. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance rates of any group on the road. That's usually because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean that teen drivers have to just accept sky-high car insurance prices. For example, 18-year-old drivers pay an average of $1 less a month by choosing State Farm over Equity.

However, both carriers will offer you dramatically lower premiums once you turn 25. State Farm offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Equity's average prices decrease nearly 60% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the lowest auto insurance rates out there. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

But who has the best rates for retired drivers between Equity and State Farm? State Farm gets the edge, with premiums for drivers 65 and older almost 15% more affordable than the national average for Equity.

Which is the Best Company for Married Drivers?

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

If you're in the market for car insurance, State Farm tends to have the cheapest average premiums regardless of marital status, with prices around $1 less expensive for married couples and more than $10 cheaper for those who are single.

Equity vs. State Farm: Average Rates by Gender

Because men are more likely to get speeding tickets and get into collisions, they are more likely to file a claim with insurance. Therefore, insurance carriers will tend to offer men more expensive prices.

With Equity, men generally pay over 10% more per month than women., while with State Farm, the difference is closer to 7% a month.

Looking at overall affordability, State Farm comes out as the most affordable option for both genders. On average, women save about $2 per month and men save about $11 with State Farm compared to the average Equity policyholder.

Equity 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.

Insurance can be a complicated subject for most people. Everyone needs auto insurance, but there are so many different terms and coverages that it can be hard to find the right policy.

That being said, most policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability).

In this case, Equity offers the lowest average rates 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 $30 with Equity Insurance Company, while full coverage comes out to be around $45 more affordable with State Farm.

Is Equity 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 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 accidents 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?

Equity policyholders can expect their premiums to go up an average of $6 a month if they get a ticket, while State Farm typically raises rates about $21 per month, on average.

But State Farm has cheaper prices for drivers in both categories -- their rates are around 13% less expensive for drivers with clean records and 3% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Equity can expect to see around an $25 -- or about 14% -- increase in their auto insurance rates. Drivers who use State Farm for their car insurance will see a monthly bill around $29 (or 18%) more expensive after reporting a collision to their auto insurance carrier.

Overall, State Farm offers the cheapest premiums for drivers with an at-fault accident on their records, with monthly rates averaging $163 compared to Equity Insurance Company's $179.

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. State Farm drivers usually see a 25% raise in their auto insurance premiums after a DUI charge, while Equity will generally climb prices by about 7%.

How does Credit Score Impact Equity and State Farm Rates?

Did you know that many insurance carriers take into account your credit score when calculating rates? This isn't always the case (for example, Michigan and Massachusetts are two states that ban the practice entirely), but it does affect a lot of policyholders out there.

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

Looking at Equity and State Farm specifically, which one has the best prices 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 Equity 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 big impact on your monthly insurance bill? Typically, those who drive fewer miles will end up with cheaper premiums since there's less of a chance of getting into a collision and causing an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Equity charges. However, there's a small difference in monthly prices for State Farm, with policyholders who drive 6,000 miles annually paying around $13 less every month compared to those who drive 12,000 miles yearly. Still, State Farm is the less expensive option for drivers in both categories.

Equity 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 auto insurance, but the type of area you live in can have a sizable impact as well. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because there are a lot more vehicles on the roads in those areas.

When comparing these two carriers side-by-side, State Farm typically comes out as the more affordable option for drivers in rural and urban areas, while Equity wins in suburban areas.

If you live in a rural area, you can expect to save about 11% with State Farm compared to Equity. Drivers in suburban ZIP codes pay around 2% less with Equity compared to State Farm. In urban areas, State Farm's average rates are about 4% less than Equity Insurance Company.

Equity vs. State Farm Discounts

Regardless of why you might be in the market for a new car 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 where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you can take advantage of.

Below, we've compared all of the different discounts offered by Equity and State Farm so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

State Farm blows Equity away when it comes to the sheer amount of discounts available, offering 13 more discounts than Equity.

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

On the flip side, Equity has a couple unique discounts of its own -- agency transfer discounts, education discounts, group discounts, and more.

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

So, you've seen how different variables can affect your car insurance prices. We've shown you all the discounts each carrier offers, too. That's all well and good, but when it comes down to it, which company is the best carrier for you and your specific profile and needs?

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

• You're single and purchasing auto insurance by yourself.
• You already have a great credit score.
• You drive fewer than 6,000 miles each year.

Equity 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 home is located in the suburbs.

We hope this guide helps you get a better idea of the difference between Equity and State Farm. We also hope we've given you the information you need to make the best decision about your auto 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 a handful of carriers, not just Equity 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.

Equity vs. State Farm FAQs

Is Equity or State Farm cheaper?

Looking just at the national average premiums, State Farm is the less expensive of the two carriers, offering average rates of $158 a month compared to $165 for Equity. Even so, State Farm won't necessarily be the cheapest carrier for everyone, since there are a bunch of different factors that come into play when it comes to your insurance payment.

Who is better, Equity or State Farm?

Unfortunately, the real answer is "it depends.". No one company is "better" for everyone -- it all boils down to your unique auto insurance profile. For example, State Farm offers cheaper rates for policyholders with an at-fault collision on their record, while Equity is more affordable for drivers who have less-than-stellar credit scores.

Why do Equity and State Farm offer me different rates?

Insurance companies take a look at several different variables when determining the prices they charge drivers. Factors such as gender, age, your driving record, where you call home, and sometimes even things like your credit score can all come into play. Both Equity and State Farm calculate premiums using different variables, so each one will most likely offer different prices. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from many different carriers.

How do I know if Equity 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 makes it easy for you to do just that. Just enter your information once 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 most affordable price. And who knows, the best carrier for you might not be Equity 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.