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

Quick Facts

• Based on national averages for car insurance, State National offers significantly less expensive rates than Farmers
• Farmers may help you save more money -- they offer more discounts than State National
• State National tends to be a much cheaper option for policyholders who live in rural neighborhoods

Farmers or State National: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering hefty savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed your search down to Farmers or State National as your top options, but between the two, which one will save you the most?

Looking at the national average rates for both carriers, State National is around $44 a month more affordable than Farmers.

However, that doesn't mean State National will necessarily be less expensive than Farmers for each driver. Auto insurance companies use all sorts of complex algorithms to determine premiums, so depending on where you live or how clean your driving record is (among a lot of other factors), you could see wildly different prices from the ones above.

Wanting to know if Farmers or State National 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. State National: Average Car Insurance Rates by State

Farmers and State National only compete against each other in California, where State National offers the cheaper average rates. State National drivers tend to pay about $9 per month less on average compared to drivers who use Farmers for their insurance.

But there's more to calculating auto insurance prices than just where you call home. Read on to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for car insurance compared to older drivers. It's because 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 rates, teen drivers can still find ways to save money. As you can see above, teens who use State National save over 40% a month compared to those who use Farmers. It's worth noting that Farmers offers insurance in 25 different states compared to State National's one, which can skew the average premiums a bit, but the difference here is still considerable.

That being said, both carriers will decrease prices by the time drivers turn 25. For example, average premiums for Farmers policyholders reduce about $400 and State National's rates lower around $150 over that time.

Which is the Best Company for Retired Drivers?

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

When looking at Farmers and State National specifically, which carrier is best for retired drivers? State National gets the edge, with rates for drivers 65 and older more than 15% more affordable than the national average for Farmers.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be cheaper for married policyholders than they are for single policyholders. That's because policies for married drivers typically cover more than one vehicle, which many companies will give you a discount for.

For those who are single, the difference in average rates between these two carriers is significant, with State National prices coming in at a quarter less than Farmers's. For married couples, the advantage is clear again - State National has the edge when it comes to average premiums.

Farmers or State National: Average Rates by Gender

You may not know, but men usually pay more for auto insurance than women do. This is because men are statistically more likely than women to get into a collision or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher rates.

On average, men see prices about 3% per month higher with Farmers; women and men end up paying same monthly premiums with State National.

Looking at overall affordability, State National comes out as the cheapest option for both genders. On average, male drivers save about $48 a month and women save around $41 with State National compared to the average Farmers policyholder.

Farmers vs. State National: 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, car insurance can be pretty complicated. Everyone needs insurance, but there are so many different coverages and terms that it can be hard to find the right policy for you.

Even so, most policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and passengers if you cause an accident) and full coverage (which typically refers to having collision and comprehensive coverages alongside liability).

Looking specifically at state minimum liability insurance, State National has the significant edge, with average monthly rates coming in at $79. If you want a full coverage policy with the same state minimum limits, State National again has the edge, with policies averaging about $240 per month to Farmers's $281.

Is Farmers or State National Better for Drivers with Spotty Records?

It's no secret -- drivers with good records end up getting the best deals on their auto insurance. But that's not to say you can't save money if you don't have the best driving record, either.

At-fault collisions and speeding tickets will most likely raise your prices, but is Farmers or State National less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers for their car insurance can generally expect their monthly bill to go up around 21% after getting a speeding ticket. State National policyholders can expect a bit more drastic of an increase of about 28%.

But State National has more affordable rates for drivers in both categories, offering premiums that are $60 and $64 cheaper, respectively, compared to Farmers Insurance.

Which Company is Best for Drivers After an Accident?

Farmers drivers who get in a collision can expect to see their prices climb by just under 30%, while those who have insurance through State National will see around a 30% increase.

At the end of the day, State National offers the lowest rates for drivers with an at-fault collision on their records, with average prices coming in at $142 compared to Farmers Insurance's $224.

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, State National increases average premiums by $150 a month -- that's nearly a 60% increase.

Farmers has the overall most affordable 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 State National, so the data may be skewed slightly.

How does Credit Score Impact Farmers and State National Rates?

You may not realized it, but your credit score can be used as one of the variables to calculate your monthly car insurance rates. This isn't true for everyone (for example, are two states that ban the practice entirely), but it will come into play for lots of 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 premiums, while those with poor credit will normally be forced to pay more.

So, which company offers the lowest prices for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, Farmers Insurance will usually reward you. Improving your "good" credit score to an "excellent" one will typically save Farmers Insurance customers about $20. Because undefined, doesn't have data available for credit scores, they most likely don't use credit to calculate your premiums.

Which Company is Best for Drivers with Bad Credit?

If you have bad credit, it can cost you with Farmers Insurance. For drivers with less-than-stellar credit, at Farmers Insurance, you may pay around 20% per month more if you have "poor" credit compared to those with "fair" scores. It's an even larger difference when compared to drivers with "good" or "excellent" scores. Because undefined doesn't have data available for credit scores, they might have better rates for drivers with bad credit over Farmers Insurance.

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

How much you drive can have a pretty big impact on how much auto insurance carriers will charge for coverage. Usually, those who drive fewer miles will end up with more affordable prices since there's less of a chance of causing an accident and filing an insurance claim.

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 significant difference in monthly rates for State National, with policyholders who drive the least paying about $37 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, State National is the cheaper carrier.

Farmers or State National: 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. Normally, 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.

State National tends to offer the most affordable prices for drivers in all areas, regardless of if they're urban, suburban, or rural.

For drivers in urban ZIP codes, State National's average premiums are around $173 a month compared to Farmers's $251. Drivers in suburban ZIP codes pay about $163 with State National compared to Farmers's $189 monthly. Those in rural areas can expect to pay around $143 a month with State National compared to Farmers's $170.

Farmers vs. State National Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you can take advantage of.

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

Farmers knocks State National out of the park when it comes to the sheer number of discounts available, offering 28 different discounts to State National's 10.

There are a couple discounts both companies offer, but Farmers also offers discounts for ABS, advance quote, alternative fuel, and more.

On the other hand, State National has a few proprietary discounts of their own like auto-pilot discounts and renewal discounts.

Final Thoughts: Is Farmers or State National Best for You?

So, you've seen how different factors can affect your car insurance rates. We've shown you all the discounts each carrier offers, too. But, at the end of the day, which insurance company is the best company for you and your specific profile and needs?

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

• You have received a ticket within the last few years.
• You're looking for the best prices on liability only coverage.
• You drive often but have a short commute.

Farmers might be best for you if...

• Your driving record includes a DUI charge.
• Your credit score is high.
• You're looking for the carrier with the most discounts.

Hopefully, this guide has ben a valuable resource as you compare Farmers and State National and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from a handful of carriers, not just Farmers and State National. 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 the top auto insurance companies in your area, all in just a few minutes.

Farmers vs. State National FAQs

Is Farmers or State National cheaper?

State National is the less expensive of the two carriers when looking at national average premiums, with policies averaging $159 per month with State National and $203 for Farmers. Even so, that doesn't mean State National will be the lowest company for each policyholder, since there are a variety of different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Farmers or State National?

Unfortunately, the only answer we can give you is "it depends.". Neither carrier is "better" for every policyholder -- it all boils down to your unique insurance profile. For example, Farmers is more affordable for drivers who have less-than-stellar credit scores, while State National offers cheaper rates for drivers with an at-fault collision on their record.

Why do Farmers and State National offer me different rates?

Car insurance companies use a lot of different factors when determining the premiums they charge. Things such as age, where you call home, gender, your driving record, and sometimes even things like your credit score can all be used. Both Farmers and State National use different formulas, so it's likely they'll offer different rates. The best way to determine which company is the cheapest for you is by comparing personalized quotes from several different carriers.

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

The only way to find the insurance carrier that's right for you is by getting quotes from several 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 auto insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best company for you isn't Farmers or State National 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.