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

Quick Facts

• Looking at the national averages for car insurance, Farmers offers significantly more affordable premiums than Michigan
• Farmers offers more affordable prices for drivers with a DUI charge on their record
• Michigan offers more affordable premiums for residents in Michigan

Farmers vs. Michigan: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering big discounts. But exactly how much can you save by switching?

You might be considering Farmers or Michigan as potential options, but between the two, which carrier will save you the most?

As you can see, Michigan has average rates that are about 60% per month more expensive than those from Farmers when looking at the national average rates for insurance.

Even so, Farmers may not be the most affordable or best option for each driver out there. Car insurance companies use a variety of complex algorithms to calculate prices, so depending on how good your credit score is or how clean your driving record is (among a variety of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average premiums from both Farmers and Michigan by lots of different rate factors, so read on to find out which company is the best for you.

Farmers or Michigan: Average Car Insurance Rates by State

Farmers and Michigan only compete against each other in Michigan, where Michigan offers the cheaper average prices. For Michigan residents, Michigan offers auto insurance for $480 per month on average. Farmers's average rates come out to be over 20% more expensive, at $614 a month.

But there's more to car insurance than just where you call home. As we mentioned above, there's a lot of things that go into how auto insurance carriers determine your prices. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for insurance than any group on the road. It's typically because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But 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 $500 less a month by choosing Farmers over Michigan. It's worth noting that Farmers offers insurance in 25 different states compared to Michigan's one, which can skew the average premiums a bit, but the difference here is still considerable.

That being said, both companies will offer you dramatically lower rates once you turn 25. For example, average premiums for Farmers policyholders reduce over 70% and Michigan's prices drop more than 70% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the cheapest car insurance rates you can find. After all, they've likely been driving for quite some time, which normally decreases their chances of accidents and other infractions that can increase prices.

So, which carrier offers the best premiums to retired drivers? Farmers gets the edge, with rates for drivers 65 and older over 55% less expensive than the national average for Michigan.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance premiums tend to be cheaper for married couples than they are for single drivers. This usually boils down to married policyholders having more than one car on their policy -- something lots of insurance carriers will reward with discounts.

When it comes to relationship status, Farmers is the clear winner for those who are single, with rates around $338 per month more affordable than Michigan, on average. The advantage for married drivers with Farmers is also obvious, where drivers save nearly $200 a month.

Farmers vs. Michigan: Average Rates by Gender

Because men are more likely to get into accidents and get tickets, they have an increased chance of filing a claim with insurance. Therefore, insurance companies will tend to offer men more expensive prices.

With Farmers, men generally pay about $7 per month more than women; women and men end up paying same monthly rates with Michigan.

Looking at overall affordability, Farmers offers the most affordable average premiums for both men and women, with average prices 57% less for men and 58% cheaper for women.

Farmers or 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.

It's no secret that car insurance can be pretty complicated. There are so many different terms and coverages 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 property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with a liability policy).

If you're looking for state minimum liability insurance, Farmers typically offers significantly less expensive premiums of $126 compared to Michigan's $312. When it comes to full coverage policies with similar limits, Farmers again has the edge, with policies around $350 a month cheaper than Michigan, on average.

Is Farmers or Michigan Better for Drivers with Spotty Records?

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

It's no secret secret that tickets and collisions lead to higher prices, but which company -- Farmers or Michigan -- has the cheapest premiums for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Farmers policyholders can expect their prices to go up an average of $44 per month if they get a ticket, while Michigan usually raises rates about $205 a month, on average.

However, Farmers is normally the less expensive option for drivers both with clean records and with a speeding ticket -- their rates are around 42% cheaper for drivers with clean records and 58% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

Farmers drivers who get in a collision can expect to see their premiums rise by over $60, while those who have insurance through Michigan will see around a $150 increase.

Overall, drivers who use Farmers end up with the cheaper prices after an accident, with monthly prices averaging $224 compared to Michigan Insurance Company's $431.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your auto insurance bill. For example, Michigan increases average rates by just under $450 per month -- that's over a 60% increase.

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

How does Credit Score Impact Farmers and Michigan Rates?

Did you know that many car insurance companies take your credit score into account when calculating rates? This isn't always the case (for example, California and Hawaii are two states that ban the practice entirely), but it does affect several policyholders out there.

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

Looking at Farmers and Michigan specifically, which company has the best premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Michigan is one of a handful of states that does not allow insurance companies from using credit scores to calculate rates. And since Michigan is only available in Michigan, there is no data available on how credit score impacts premiums because it's not a factor at all. This may be a good thing, since Farmers and other carriers tend to raise prices quite a bit in other states if you don't have excellent credit.

Which Company is Best for Drivers with Bad Credit?

If you have bad credit and live in Michigan, the good news is it won't cost you extra when it comes to car insurance. As you can see, poor credit can really cost Farmers drivers in other states, but no need to worry if you live in Michigan.

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

The amount of time you spend behind the wheel of your car plays a big role in how much insurance companies will charge for coverage. Usually, the more miles you put on your car, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a pretty significant difference in monthly premiums for Michigan, with drivers who put 6,000 miles on their vehicle every year paying about $59 less each month compared to those who drive 12,000 miles annually. Still, Farmers is the cheaper option for drivers in both categories.

Farmers vs. Michigan: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your car can play a sizable role in how much you pay for auto insurance. Generally, those who live in urban areas will pay more than policyholders in rural areas due to the number of vehicles that are on the roads in those areas.

Farmers tends to offer the lowest rates for drivers in every type of area, no matter if it's urban, suburban, or rural.

Drivers in rural ZIP codes see the most affordable premiums from both carriers, but Farmers comes out on top with average prices around $170 a month. Farmers also has more affordable average rates for policyholders in urban and suburban ZIP codes -- a 49% and 61% a month respective difference when compared to Michigan drivers in similar areas.

Farmers vs. Michigan Discounts

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

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

In the section below, we've broken down all of the different discounts offered by both Farmers and Michigan so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Farmers blows Michigan away when it comes to the sheer amount of discounts available, offering 11 more discounts than Michigan.

Both companies offer many of the same discounts -- like ABS discounts, anti-theft discounts, discounts for being a good driver, and paid in full discounts -- but Farmers also offers alternative fuel discounts, distant student discounts, driver training discounts, and more that Michigan does not.

On the flip side, Michigan has a couple unique discounts of its own -- COVID-19 relief discount, family car discounts, family discounts, and more.

Final Thoughts: Is Farmers or Michigan Best for You?

So, we've broken down the average prices for many of the variables auto insurance carriers look at, and walked through the different discounts each company offers, too. But, at the end of the day, is Farmers or Michigan the best fit for you?

Farmers might be best for you if....

• You have received a ticket within the last few years.
• Your neighborhood is in a city.
• Your home is located in the suburbs.

Michigan might be best for you if...

• You like the personalized touch of a small, local carrier.

We hope this guide helps you get a good idea of the differences between Farmers and Michigan. We also hope we've given you the information you need to make the best decision about your car 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 insurance -- comparing quotes from multiple companies, not just Farmers and Michigan. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

Farmers vs. Michigan FAQs

Is Farmers or Michigan cheaper?

Looking just at the national average premiums, Farmers is the less expensive of the two companies, offering average rates of $203 per month compared to $480 for Michigan. That being said, Farmers won't necessarily be the lowest company for every policyholder, since there are many different factors that come into play when it comes to your auto insurance bill.

Who is better, Farmers or Michigan?

Sadly, the answer truly is "it depends.". Neither carrier is necessarily "better" for each driver -- it all depends on the makeup of your unique insurance profile.

Why do Farmers and Michigan offer me different rates?

Auto insurance carriers take a look at many different variables when determining the rates they charge policyholders. Things such as age, where you live, gender, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Farmers and Michigan calculate premiums using different factors, so each one will most likely offer different prices. The only real way to see which company is the most affordable for you is by comparing personalized quotes from a bunch of different companies.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from a handful of carriers 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 ZIP code and you'll get free quotes from dozens of the best insurance companies in your area. With those, you can guarantee you're getting the cheapest premium. And who knows, the best company for you might not be Farmers or Michigan 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.