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

Quick Facts

• Based on national averages for car insurance, State Farm offers significantly more affordable premiums than Esurance
• Esurance offers more discounts than State Farm
• State Farm has less expensive rates for residents of rural areas

Esurance 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 Esurance or State Farm, but between the two, which one will offer you cheaper premiums?

Looking at the national average rates for both companies, State Farm has average rates that are about 45% per month less expensive than those from Esurance.

However, that doesn't necessarily mean State Farm will be the more affordable option for every single driver. Auto insurance carriers use a variety of complex algorithms to calculate rates, so depending on how old you are or where you live (among multiple other factors), you could see wildly different prices from the ones above.

Wanting to know if Esurance 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.

Esurance or State Farm: Average Car Insurance Rates by State

Esurance and State Farm compete against each other in 11 states, with Esurance offering cheaper prices to the average driver in all of them. If you live in, undefined is the more affordable of the two companies when looking at the overall average premiums, but State Farm is the cheaper option in most of the others.

That being said, there are plenty of other factors that go into your car insurance payment than just where you live. Read on 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 group out there on the road. Generally, that's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

That being said, that doesn't mean teen drivers can't still save money on their auto insurance. For example, 18-year-old drivers pay an average of more than $350 less a month by choosing State Farm over Esurance.

Even so, with both carriers, you'll see your prices reduce significantly once you turn 25. For example, average premiums for Esurance policyholders drop over 65% and State Farm's rates decrease nearly 60% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the lowest insurance premiums you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for car insurance.

But who has the best rates for retired drivers between Esurance and State Farm? State Farm gets the edge here, with average prices coming in at around $111 a month compared to Esurance's $232.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are typically more expensive for single policyholders than they are for married policyholders? This usually boils down to married couples having more than one car on their policy -- something many car insurance companies will reward with discounts.

When it comes to relationship status, State Farm is the clear winner for single drivers, with rates about $178 per month cheaper than Esurance, on average. The advantage is also clear for married drivers - State Farm offers the cheapest average premiums.

Esurance vs. State Farm: Average Rates by Gender

Men are statistically more likely than women to get into accidents and get speeding tickets, which means they'll usually end up paying more for auto insurance than women.

On average, men see rates around 7% a month higher with Esurance, and about 7% more with State Farm.

Looking at the data for each carrier specifically, State Farm offers the lowest average prices for both men and women. On average, male drivers save about $145 per month and women save around $136 with State Farm compared to the average Esurance policyholder.

Esurance 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. There are so many different limits and terms 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 bodily injury and property damage for other drivers and their passengers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- alongside liability coverage).

If you're looking for state minimum limits for liability insurance, State Farm normally offers significantly less expensive premiums of $99 compared to Esurance's $201. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies about $200 a month more affordable than Esurance, on average.

Is Esurance 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.

It's no secret secret that tickets and at-fault accidents lead to higher prices, but which company -- Esurance or State Farm -- has the most affordable rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Esurance policyholders can expect their prices to go up an average of $45 per month if they get a ticket, while State Farm generally raises rates around $21 a month, on average.

But State Farm tends to offer the best prices for both drivers who have clean records and those with a recent speeding ticket, offering premiums that are 45% and 46% less expensive, respectively, compared to Esurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through Esurance can expect to see about an $122 -- or around 34% -- increase in their car insurance prices. Drivers who use State Farm for their insurance will see a monthly bill about $29 (or 18%) more expensive after reporting a collision to their auto insurance carrier.

Overall, the cheaper rates come from State Farm, with monthly premiums averaging $163 compared to Esurance's $364.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even an accident. For example, Esurance increases average rates by just under $60 per month -- that's just under a 20% increase.

How does Credit Score Impact Esurance and State Farm Rates?

Often times, your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for a lot of drivers.

The reasoning insurance carriers use is that policyholders with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper prices, while those with poor credit will typically be forced to pay more.

Looking specifically at Esurance and State Farm, which company has the cheapest premiums 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 Esurance 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 large impact on your monthly auto insurance bill? 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.

For both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure, State Farm tends to be the less expensive option. State Farm's average prices for drivers with 6,000 annual miles come in nearly 50% cheaper than Esurance. Those who drive 12,000 miles each year can expect to pay over 45% less with State Farm over Esurance.

Esurance 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 big impact as well. Generally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because there are a lot more cars on the roads in those areas.

State Farm boasts the lowest average rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the cheapest premiums from both companies, but State Farm comes out on top with average rates around $127 per month. State Farm also has more affordable average prices for drivers in urban and suburban ZIP codes -- a 53% and 44% a month respective difference when compared to Esurance policyholders in similar areas.

Esurance 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 car insurance discounts as you can.

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

In the section below, we've broken down all of the different discounts offered by both Esurance and State Farm so that you can see which carrier can save you the most money each month.

Looking at the total number of discounts, Esurance comes out ahead with 24 discounts to State Farm's 23.

Both carriers offer many of the same discounts -- like anti-theft discounts, DRL discounts, discounts for being a good driver, and mature driver discounts -- but Esurance also offers advance quote discounts, agency transfer discounts, education discounts, and more that State Farm does not.

On the flip side, State Farm has a couple unique discounts of its own -- annual mileage discounts, distant student discounts, drive safe & save discounts, and more.

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

So, we've broken down the average rates for many of the factors insurance companies look at, and we've shown you all the discounts each company offers. But, at the end of the day, is Esurance or State Farm the right one for you and your specific needs?

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

• You value the experience that comes with a large national car insurance carrier.
• Your neighborhood is in the suburbs.
• You have a short drive to work everyday.

Esurance might be best for you if...

• You're looking for discounts -- Esurance has the most.

We hope this guide helps you get a good idea of the differences between Esurance and State Farm. We also hope we've given you the information you need to make the best decision about your 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 auto insurance -- comparing quotes from a handful of carriers, not just Esurance and State Farm. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple quotes from some of the best insurance companies in your area, all for free.

Esurance vs. State Farm FAQs

Is Esurance or State Farm cheaper?

Looking just at the national average prices, State Farm is the less expensive of the two carriers, offering average rates of $158 per month compared to $299 for Esurance. Even so, State Farm won't necessarily be the lowest company for every policyholder, since there are a range of different variables that come into play when it comes to your auto insurance cost.

Who is better, Esurance or State Farm?

Unfortunately, the only answer we can give you is "it depends.". One carrier is not necessarily "better" for each driver -- it all comes down to what your unique car insurance profile looks like.

Why do Esurance and State Farm offer me different rates?

Auto insurance companies take a look at several different factors when calculating the premiums they charge drivers. Variables such as where you live, gender, where you park your vehicle, age, and sometimes even things like your credit score can all be used. Both Esurance and State Farm calculate prices using different formulas, so each one will most likely offer different premiums. The only real way to see which company is the cheapest for you is by comparing personalized quotes from lots of different carriers.

How do I know if Esurance 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 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 car insurance carriers in your area. That way, you can guarantee you're getting the most affordable price. And who knows, the best company for you might not be Esurance 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.