Farm Bureau vs. Michigan: Which Company is the Best Fit for You?

Quick Facts

• In general, Farm Bureau offers significantly less expensive rates than Michigan
• Farm Bureau tends to be a much more affordable option for policyholders who live in urban areas
• Michigan may help you save more money -- they offer more discounts than Farm Bureau Insurance of Michigan

Farm Bureau or Michigan: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. You've probably seen commercials and billboards from companies offering large savings, but exactly how much money can you save by switching?

You might have narrowed it down to Farm Bureau or Michigan for your next policy, but between the two, which carrier will offer you cheaper premiums?

As you can see, Farm Bureau has average rates that are around 30% a month more affordable than those from Michigan when looking at the national average rates for insurance.

Even so, that doesn't mean Farm Bureau will necessarily be cheaper than Michigan for every single driver. Auto insurance carriers vary their rates depending on things like how old you are, how good your credit score is, how clean your driving record is, where you live, and a variety of other factors, so premiums will differ quite a bit from person to person.

So, if you want to find out which of Farm Bureau or Michigan is really the best for you, keep reading to see average prices for each company broken down by multiple different rate factors.

Farm Bureau vs. Michigan: Average Car Insurance Rates by State

Both Farm Bureau and Michigan only offer insurance in Michigan, so you'll see that the average figures here will mirror the ones we mentioned above. Farm Bureau drivers tend to pay about $137 per month less on average compared to drivers who use Michigan for their car insurance.

Typically, where you call home will play a big role in how much you pay for auto insurance, but since both companies only do business in Michigan, an array of other variables will come into play when you compare Farm Bureau and Michigan. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for car insurance compared to older drivers. Usually, that's because teen drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of over 65% less a month by choosing Farm Bureau over Michigan.

However, both companies will offer you dramatically lower prices by the time you turn 25. For example, average premiums for Farm Bureau policyholders drop about $100 and Michigan's prices lower more than $500 over that time.

Which is the Best Company for Retired Drivers?

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

So, which carrier offers the best premiums to retired drivers? Farm Bureau gets the edge, with rates for drivers 65 and older $36 less expensive than the national average for Michigan.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are typically more expensive for single drivers than they are for married couples? That's usually because married drivers tend to own and insure more than one vehicle, which can often earn you a discount.

For single policyholders, the difference in average rates between these two carriers is significant, with Farm Bureau prices coming in at a third less than Michigan's. It's not quite so glaring for married policyholders, where drivers who use Farm Bureau save around $25 per month.

Farm Bureau or Michigan: Average Rates by Gender

Women tend to pay less for insurance than men. That's because men are more likely to get tickets and get into accidents, which raises the chances of filing a claim with insurance.

Men and women end up paying the same monthly premiums with Farm Bureau; women and men get the same monthly rates with Michigan.

Looking at overall affordability, Farm Bureau comes out on top for both men and women, with average prices 29% less for men and 29% cheaper for women.

Farm Bureau vs. Michigan: 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.

For most people, auto insurance can be pretty complicated. There are many different coverages that account for lots of 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 that drivers look at fall into two categories -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to liability coverage).

Looking specifically at state minimum liability limits, Farm Bureau has the significant edge, with average monthly premiums coming in at $218. If you want a full coverage policy with the same state minimum limits, Farm Bureau again has the edge, with policies averaging about $468 a month to Michigan's $649.

Is Farm Bureau or Michigan Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their 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 Farm Bureau for their auto insurance can typically expect their monthly bill to go up around 32% after getting a speeding ticket. Michigan policyholders can expect a bit more drastic of an increase of about 42%.

But Farm Bureau is generally the cheaper option for both drivers who have clean records and those with a recent ticket. With Farm Bureau Insurance of Michigan, drivers with a clean record can save around $79 per month and drivers with a speeding ticket can save about $190 a month.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Farm Bureau can expect to see around an $31 -- or about 13% -- rise in their auto insurance rates. Drivers who use Michigan for their car insurance will see a monthly bill around $150 (or 35%) more expensive after reporting a collision to their insurance company.

At the end of the day, the less expensive premiums come from Farm Bureau, with average rates coming in at $233 compared to Michigan Insurance Company's $431.

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 car insurance bill -- normally a lot more than an accident or ticket. Michigan drivers usually see a 61% increase in their insurance premiums after a DUI charge, while Farm Bureau will generally climb prices by about 68%.

But if you end up with a DUI charge and are looking for more affordable rates, Farm Bureau tends to be more affordable for the average driver, with monthly premiums coming in at around $641 to Michigan's $723.

How does Credit Score Impact Farm Bureau and Michigan Rates?

In many cases, your credit score can be used as one of the factors to determine your monthly auto insurance premiums. This isn't true for everyone (for example, Hawaii and Massachusetts are two states that ban the practice entirely), but it might come into play for lots of drivers.

The reasoning car 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.

So, which carrier offers the lowest rates for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Farm Bureau or Michigan Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a substantial impact on your monthly insurance bill. Normally, the more milage you put on your vehicle, the more you can expect to pay for coverage.

Farm Bureau tends to be the cheaper option for both remote workers and those taking short commutes. Michigan's average prices for drivers with 6,000 annual miles come in about 26% more expensive than Farm Bureau. Those who drive 12,000 miles annually can expect to pay around 31% more with Michigan over Farm Bureau.

Farm Bureau or Michigan: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a large impact on your monthly auto insurance cost. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

When comparing these two companies side-by-side, Farm Bureau generally comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

If you live in a rural area, you can expect to pay about $223 per month with Farm Bureau compared to Michigan's $460. People in suburban areas pay around $349 with Farm Bureau compared to Michigan's $488 monthly. In urban areas, Farm Bureau's average premiums are about $457 while Michigan offers prices around $493.

Farm Bureau vs. Michigan Discounts

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

But with what seems like a million different discounts out there, it can be hard to find all the ones you're eligible for or to nail down the company that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and looked at all of the different discounts Farm Bureau and Michigan offer their customers so that you can find the one that has the most discounts and, therefore, the largest savings.

Michigan knocks Farm Bureau out of the park when it comes to the sheer number of discounts available, offering 17 different discounts to Farm Bureau's 17.

There are a couple discounts both carriers offer, but Michigan also offers discounts for ABS, COVID-19 relief, defensive driver, and more.

On the other hand, Farm Bureau has a few proprietary discounts of their own like group discounts and term discounts.

Final Thoughts: Is Farm Bureau or Michigan Best for You?

You've seen the effect certain variables have on your auto insurance and the different discounts companies offer. That's all well and good, but at the end of the day, is Farm Bureau or Michigan the right company for you and your specific profile and needs?

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

• Your driving record includes a DUI charge.
• You already have a great credit score.
• You drive fewer than 12,000 miles yearly.

Michigan might be best for you if...

• You care about discounts (Michigan offers the most).

Hopefully, this guide helps you get a good idea of the differences between Farm Bureau and Michigan and that you can now make a more informed decision when it comes to your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several carriers, not just Farm Bureau and Michigan. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best insurance companies in your area, all for free.

Farm Bureau vs. Michigan FAQs

Is Farm Bureau or Michigan cheaper?

Farm Bureau is the less expensive of the two carriers when looking at national average rates, with policies averaging $343 per month with Farm Bureau and $480 for Michigan. That being said, that doesn't mean Farm Bureau will be the cheapest carrier for everyone, since there are a bunch of different factors that are considered when it comes to your car insurance payment.

Who is better, Farm Bureau or Michigan?

Unfortunately, the only answer we can give you is "it depends.". Neither company is "better" for every policyholder -- it all depends on what your unique auto insurance profile looks like.

Why do Farm Bureau and Michigan offer me different rates?

Insurance companies use several different variables when determining the premiums they charge. Factors like where you call home, gender, age, where you park your car, and sometimes even things like your credit score can all be used. Both Farm Bureau and Michigan calculate rates using different formulas, so it's likely they'll offer different premiums. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from a variety of different carriers.

How do I know if Farm Bureau or Michigan 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, sites like Compare.com make it easy for you to do just that. Just enter your area information and you'll get quotes from dozens of your local top insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't Farm Bureau or Michigan 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.