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

Quick Facts

• Looking at the national averages for auto insurance, Farmers Mutual offers significantly more affordable rates than Farmers
• Farmers may help you save more money -- they offer more discounts than Farmers Mutual
• Farmers Mutual offers more affordable prices for policyholders who are looking to purchase insurance with a spouse

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

So, you're considering switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering hefty savings. But exactly how much can you save by switching?

You've maybe even narrowed it down to Farmers or Farmers Mutual, but which carrier has less expensive rates for insurance?

Looking at the national average rates for both carriers, Farmers has average rates that are around 55% a month more expensive than those from Farmers Mutual.

But that doesn't necessarily mean Farmers Mutual will be the cheaper option for every driver. Auto insurance companies use a ton of complex algorithms to determine prices, so depending on how clean your driving record is or where you live (among numerous other factors), you could see wildly different premiums from the ones above.

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

Farmers vs. Farmers Mutual: Average Car Insurance Rates by State

Farmers and Farmers Mutual only compete against each other in two states, with Farmers Mutual offering more affordable prices to the average driver in all of them. Nebraska has the most noticable difference, where Farmers Mutual premiums are $137 less expensive than car insurance prices at Farmers.

But there's more to calculating auto insurance premiums than just where you call home. Continue reading to see how other variables 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 other group of drivers. The reason is that teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

That being said, that doesn't mean teen drivers can't still save money on their car insurance. As you can see above, teens who use Farmers Mutual save almost 65% per month compared to those who use Farmers. It's worth noting that Farmers offers auto insurance in 25 different states compared to Farmers Mutual's two, which can skew the average prices a bit, but the difference here is still considerable.

Even so, with both carriers, you'll see your rates drop significantly once you turn 25. For example, average premiums for Farmers policyholders reduce over 70% and Farmers Mutual's prices decrease more than 50% over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest premiums you'll ever find.

When looking at Farmers and Farmers Mutual specifically, which company is best for retired drivers? Farmers Mutual gets the edge, with rates for drivers 65 and older $82 cheaper than the national average for Farmers.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are generally more expensive for single policyholders than they are for married couples? That's usually because married policyholders 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 prices between these two companies is significant, with Farmers Mutual rates coming in at about half of Farmers's. The advantage is also clear for married drivers - Farmers Mutual offers the most affordable average premiums.

Farmers or Farmers Mutual: Average Rates by Gender

Because women are less likely to get tickets and get into accidents, they run a lower risk of filing a claim with insurance. So, women tend to get cheaper rates than men.

Generally, women see prices around 3% a month less with Farmers, and about 9% less with Farmers Mutual.

Looking at the data for each carrier specifically, Farmers Mutual comes out on top for both men and women. On average, women save about $114 per month and men save around $113 with Farmers Mutual compared to the average Farmers policyholder.

Farmers vs. Farmers Mutual: 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 auto insurance can be pretty complicated. There are so many different limits and coverages that it can make it pretty confusing to find the right policy for you.

However, most policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers and passengers if you cause a collision) and full coverage (which typically refers to having collision and comprehensive coverages in addition to what you get with liability).

Looking specifically at state minimum liability insurance, Farmers Mutual has the significant edge, with average monthly rates coming in at $32. If you want a full coverage policy with the same state minimum limits, Farmers Mutual again has the edge, with policies averaging about $147 a month to Farmers's $281.

Is Farmers or Farmers Mutual Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance carriers offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Speeding tickets and at-fault collisions will most likely raise your rates, but is Farmers or Farmers Mutual more affordable for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers for their insurance can normally expect their monthly bill to go up around 21% after getting a speeding ticket. Farmers Mutual policyholders can expect a less drastic increase of about 8%.

But Farmers Mutual has cheaper prices for drivers in both categories -- their rates are around 57% less expensive for drivers with clean records and 63% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through Farmers can expect to see around an $62 -- or about 28% -- rise in their insurance premiums. Drivers who use Farmers Mutual for their car insurance will see a monthly bill around $16 (or 19%) more expensive after reporting an accident to their auto insurance company.

At the end of the day, Farmers Mutual offers the cheapest prices for drivers with an at-fault collision on their records, with average rates coming in at $86 compared to Farmers Insurance's $224.

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 a collision. For example, Farmers increases average premiums by nearly $60 per month -- that's more than a 25% increase.

Farmers Mutual has the overall most affordable rates for drivers with a DUI on their records at $128 a month, but it's worth noting that Farmers's average rates come from 25 states compared to just two for Farmers Mutual, so the data may be skewed slightly.

How does Credit Score Impact Farmers and Farmers Mutual Rates?

You may not have known, but your credit score can come into play when companies calculate your monthly bill. This isn't true for everyone (Massachusetts, for example, has banned the use of credit score as an insurance factor) but it does affect lots of drivers out there.

Car insurance carriers argue that those with poor credit scores are less likely to pay their bills on time every month, which raises the risk involved on their end, while the opposite is true for those with good credit.

Looking specifically at Farmers and Farmers Mutual, which one has the best prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, Farmers Mutual will generally reward you the most. For drivers with "excellent" credit scores, Farmers Mutual comes in over 50.61 less expensive. Drivers with "good" credit scores usually save about 54% with Farmers Mutual compared to average rates from Farmers.

Which Company is Best for Drivers with Bad Credit?

Farmers Mutual typically offers lower prices than Farmers when it comes to drivers with bad credit. Drivers with "fair" credit pay around 57% a month less with Farmers Mutual compared to Farmers, and those with "poor" scores normally save an average of about 60% monthly.

Is Farmers or Farmers Mutual 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 pretty big impact on how much insurance companies will charge for coverage? Typically, the more milage you put on your car each year, the more you can expect to pay for car insurance.

In this case, neither Farmers or Farmers Mutual report increasing premiums for drivers with higher annual mileage figures. Still, Farmers Mutual comes out as the lowest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their vehicle each year, with average rates of $90 per month for both.

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

Where you live can have a sizable impact on your monthly insurance cost. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because of the number of cars that are on the roads where they live.

When comparing these two carriers side-by-side, Farmers Mutual typically comes out as the cheapest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Those in rural areas can expect to pay around $90 per month with Farmers Mutual compared to Farmers's $170. Drivers in suburban ZIP codes pay about $87 with Farmers Mutual compared to Farmers's $189 a month. In urban areas, Farmers Mutual's average prices are around $93 a month compared to Farmers's $251.

Farmers vs. Farmers Mutual 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, and the best way to do that is by utilizing as many car insurance discounts as possible.

But where do you even start? With so many discounts out there, it may seem difficult to find all the of the ones you're eligible for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both Farmers and Farmers Mutual so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Farmers knocks Farmers Mutual out of the park when it comes to the sheer number of discounts available, offering 28 different discounts to Farmers Mutual's seven.

A couple of those are overlapping for things like discounts for getting driver training, discounts for being a good student, and multi-policy discounts. Farmers also offers discounts for ABS, advance quote, alternative fuel, and more.

On the other hand, Farmers Mutual has a proprietary discount of their own -- a secondary vehicle discounts.

Final Thoughts: Is Farmers or Farmers Mutual Best for You?

You've seen the role certain factors have on your insurance and the different discounts companies offer. But, at the end of the day, which insurance carrier is the right company for you and your specific needs?

Farmers Mutual might be best for you if....

• You will be the only person on the auto insurance policy.
• You're looking for the best premiums on liability only coverage.
• You want to save money while purchasing insurance for a teenager.

Farmers might be best for you if...

• You already have plans to move to another state -- Farmers Mutual is only available in Nebraska and South Dakota.
• You want to save extra money with discounts.

Hopefully, this guide helps you get a good idea of the differences between Farmers and Farmers Mutual. 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 sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from several carriers, not just Farmers and Farmers Mutual. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

Farmers vs. Farmers Mutual FAQs

Is Farmers or Farmers Mutual cheaper?

Farmers Mutual is the cheaper of the two carriers when looking at national average prices, with policies averaging $90 per month with Farmers Mutual and $203 for Farmers. Even so, that doesn't mean Farmers Mutual will be the most affordable company for every driver, since there are many different variables that are considered when it comes to your car insurance payment.

Who is better, Farmers or Farmers Mutual?

Unfortunately, the only answer we can give you is "it depends.". One carrier is not "better" for each policyholder -- it all depends on the makeup of your unique auto insurance profile.

Why do Farmers and Farmers Mutual offer me different rates?

Insurance companies use a lot of different factors when determining the premiums they charge. Things like age, where your home is, gender, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Farmers and Farmers Mutual calculate rates using different variables, so it's likely they'll offer different prices. The best way to determine which company is the lowest for you is by comparing personalized quotes from several different carriers.

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

The only way to find the auto insurance carrier that's right for you is by getting quotes from a handful of 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 ZIP code and you'll get quotes from dozens of your local top car insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't Farmers or Farmers Mutual 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.