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

Quick Facts

• Looking at the national averages for insurance, Farmers offers slightly more affordable premiums than Iowa Mutual
• Farmers has cheaper rates for policyholders who don't have any speeding tickets, DUIs, or at-fault collisions on their record
• Iowa Mutual has less expensive premiums for drivers who have a speeding ticket on their driving record

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

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

You might have narrowed your search down to Farmers or Iowa Mutual for your next policy, but between the two, which carrier has more affordable rates for auto insurance?

Looking at nationwide averages, Iowa Mutual is around $8 more a month than Farmers.

That being said, that doesn't necessarily mean Farmers will be the less expensive option for every driver. After all, car insurance carriers can offer drastically different rates to every driver depending on rating factors like where you call home, your driving record, your age, or even your credit score (among other things). So, at the end of the day, prices from each carrier will differ quite a bit from person to person.

Wanting to know if Farmers or Iowa Mutual 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.

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

Farmers and Iowa Mutual only compete against each other in Nebraska, where Iowa Mutual offers the cheaper average prices. Iowa Mutual drivers tend to pay about $12 per month less on average compared to drivers who use Farmers for their insurance.

That being said, there are plenty of other factors that go into your car insurance cost than just where you live. Keep reading to learn more.

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 out there on the road. 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.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. As you can see above, teens who use Iowa Mutual save almost 6% a month compared to those who use Farmers. It's worth noting that Farmers offers auto insurance in 25 different states compared to Iowa Mutual's one, which can skew the average premiums a bit, but the difference here is still considerable.

Even so, with both companies, you'll see your rates drop significantly by the time you turn 25. Iowa Mutual offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, Farmers still has the most affordable prices at $155 a month.

Which is the Best Company for Retired Drivers?

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

When looking at Farmers and Iowa Mutual specifically, which carrier is best for retired drivers? In this case, Farmers has the slight edge, with premiums about $3 per month less than Iowa Mutual. However, that difference is less than 5%, which means it ultimately will come down to other variables, like where you live or your credit score.

Which is the Best Company for Married Drivers?

Married couples tend to get slightly cheaper car insurance rates than those who are single. That's usually because married policyholders tend to own and insure several vehicles, which can often earn you a discount.

If you're in the market for auto insurance, Farmers tends to have the most affordable average prices regardless of if you're married or single, with prices around $10 less expensive for married drivers and about $5 more affordable for single drivers.

Farmers or Iowa Mutual: Average Rates by Gender

You may not know, but men generally pay more for car insurance than women do. This is because men are statistically more likely than women to cause a collision and get into accidents, which leads to increased risk for insurers and, therefore, higher premiums.

Typically, women see rates around 3% a month less with Farmers, and nearly 15% less with Iowa Mutual when compared to their male counterparts.

When it comes to the lowest prices for each gender, Iowa Mutual is the cheapest company for women. Rates with Iowa Mutual are $5 cheaper for women, while with Farmers, men can save about $5.

Farmers vs. Iowa 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.

For most people, insurance isn't the easiest topic to understand. There are a range of different coverages that account for many 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.

But most policies end up falling into two different types of coverage -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which normally refers to having collision and comprehensive coverages in addition to liability).

When it comes to state minimum limits for liability insurance, Iowa Mutual has the edge, while Farmers offers the lowest average rates for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $30 with Iowa Mutual, while full coverage comes out to be around $45 cheaper with Farmers Insurance.

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

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

At-fault accidents and speeding tickets will most likely raise your premiums, but is Farmers or Iowa Mutual less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use Farmers for their insurance can typically expect their monthly bill to go up about 21% after getting a speeding ticket. Iowa Mutual policyholders can expect a less drastic increase of around 6%.

If you have gotten a ticket, Iowa Mutual tends to offer the best prices at about 15% more affordable, while Farmers has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

Both companies will raise premiums pretty significantly if you get into an at-fault collision with Farmers raising by around 28%. Iowa Mutual has a less extreme raise, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, the cheaper rates come from Iowa Mutual, with average premiums coming in at $191 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 speeding ticket or even a collision. For example, Iowa Mutual increases average rates by more than $150 per month -- that's just under a 50% increase.

Farmers has the overall cheapest prices for drivers with a DUI on their records at $221 per month, but it's worth noting that Farmers's average rates come from 25 states compared to just one for Iowa Mutual, so the data may be skewed slightly.

How does Credit Score Impact Farmers and Iowa Mutual Rates?

Did you know many car insurance carriers take into account your credit score when determining premiums? This isn't true for everyone (Michigan, for example, has banned the use of credit score as a car insurance factor) but it will come into play for many policyholders.

The reasoning insurance companies use is that drivers 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 normally be forced to pay more.

So, which carrier offers the most affordable rates for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Iowa Mutual will usually reward you the most. For drivers with "excellent" credit scores, Iowa Mutual comes in NaN more affordable. Drivers with "good" credit scores generally save about 6% with Iowa Mutual compared to average prices from Farmers.

Which Company is Best for Drivers with Bad Credit?

Farmers typically offers lower premiums than Iowa Mutual when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 4% a month less with Farmers compared to Iowa Mutual, and those with "poor" scores typically save an average of about 12% monthly.

Is Farmers or Iowa Mutual Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on your monthly rates. Generally, those who drive less will end up with cheaper premiums since there's less of a chance of causing an accident and filing an insurance claim.

In this case, neither Farmers or Iowa Mutual report increasing rates for drivers with higher annual mileage figures. Even so, Farmers comes out as the lowest for drivers at both intervals, whether they put 6,000 or 12,000 miles on their car yearly, with average prices of $203 per month for both.

Farmers or Iowa Mutual: 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. Normally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because of the number of vehicles that are on the roads where they live.

Looking at these carriers side-by-side, Farmers tends to offer the cheapest option for drivers in rural and suburban areas, while Iowa Mutual wins in urban areas.

For drivers in urban ZIP codes, Iowa Mutual's average prices are around $248 while Farmers offers rates about $251. Drivers in suburban ZIP codes pay around $189 with Farmers compared to Iowa Mutual's $199 a month. If you live in a rural area, you can expect to pay about $170 per month with Farmers and $187 with Iowa Mutual.

Farmers vs. Iowa Mutual Discounts

No matter 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 you can, and the best way to do that is by utilizing as many auto insurance discounts as possible.

The difficult part is finding all of the discounts you can take advantage of, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

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

Farmers knocks Iowa Mutual out of the park when it comes to the sheer number of discounts available, offering 28 different discounts to Iowa Mutual's 12.

Both companies offer lots of the same discounts -- like ABS discounts, discounts for being a defensive driver, discounts for being a good student, and multi-policy discounts -- but Farmers also offers discounts for advance quote, alternative fuel, distant student, and more.

On the other hand, Iowa Mutual has a few proprietary discounts of their own for things like claim free discounts, hybrid vehicle discounts, and renewal discounts.

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

So, you've seen how different factors can affect your car insurance prices. We've shown you all the discounts each company offers, too. But, when it comes down to it, is Farmers or Iowa Mutual the right company for you, your vehicle, and your wallet?

Farmers might be best for you if....

• Your driving record includes a DUI charge.
• You care about discounts (Farmers offers the most).
• You live in a rural neighborhood.

Iowa Mutual might be best for you if...

• You have received a ticket within the last few years.
• You're looking for the best premiums on liability only coverage.
• You want to save money while purchasing insurance for a teenager.

Hopefully, this guide helps you get a good idea of the differences between Farmers and Iowa Mutual and that it aids in making a more informed 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 insurance policy is to compare quotes from a handful of carriers, not just Farmers and Iowa Mutual. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

Farmers vs. Iowa Mutual FAQs

Is Farmers or Iowa Mutual cheaper?

Farmers is the less expensive of the two carriers when looking at national average rates, with policies averaging $203 a month with Farmers and $211 for Iowa Mutual. That being said, that doesn't mean Farmers will be the most affordable carrier for every driver, since there are a variety of different variables that are considered when it comes to your insurance payment.

Who is better, Farmers or Iowa Mutual?

Sadly, the answer truly is "it depends.". One company is not necessarily "better" for each policyholder -- it all boils down to your unique auto insurance profile. For example, Farmers is more affordable for drivers who have less-than-stellar credit scores, while Iowa Mutual offers cheaper prices for policyholders with an at-fault collision on their record.

Why do Farmers and Iowa Mutual offer me different rates?

Car insurance companies use several different factors when calculating the premiums they charge. Things like your driving record, where you park your car, age, gender, and sometimes even things like your credit score can all be used. Both Farmers and Iowa Mutual use different formulas, so it's likely they'll offer different rates. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from a bunch of different carriers.

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

The only way to find the 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 area information and you'll get quotes from dozens of your local top auto insurance carriers for free. With those, you can guarantee you're getting the cheapest price. And maybe you'll find that the best carrier for you isn't Farmers or Iowa 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.