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

Quick Facts

• Looking at the national averages for car insurance, Farmers Mutual offers significantly more affordable prices than Nationwide
• Farmers Mutual tends to be a much less expensive option for drivers who have a speeding ticket on their driving record
• Nationwide may help you save more money -- they offer more discounts than Farmers Mutual

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

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

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

Looking at nationwide averages, Farmers Mutual has average rates that are around 45% a month more affordable than those from Nationwide.

However, Farmers Mutual may not be the cheapest or best option for every single driver out there. Auto insurance carriers use a ton of complex algorithms to determine prices, so depending on where you live or how old you are (among several other factors), you could see wildly different premiums from the ones above.

Luckily, we've broken down average rates from both Farmers Mutual and Nationwide by many different rate factors, so read on to find out which carrier is the best for you.

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

Farmers Mutual and Nationwide only compete against each other in two states, with Farmers Mutual offering cheaper prices to the average driver in all of them. Nebraska has the most noticable difference, where Farmers Mutual premiums are $52 less expensive than car insurance rates at Nationwide.

But there's more to calculating insurance prices than just where you call home. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for auto insurance than any other group of drivers. That's because teen drivers are statistically much more likely to get into an accident that results in an 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. For example, 18-year-old drivers pay an average of almost 50% less per month by choosing Farmers Mutual over Nationwide.

But with both companies, you'll see your premiums drop significantly by the time drivers turn 25. Nationwide offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, Farmers Mutual still has the most affordable rates at $88 monthly.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices you can find.

So, which company offers the best premiums to retired drivers? Farmers Mutual gets the edge, with rates for drivers 65 and older $64 more affordable than the national average for Nationwide.

Which is the Best Company for Married Drivers?

Married couples tend to get slightly cheaper car insurance premiums than those who are single. This usually boils down to married drivers having several vehicles on their policy -- something many insurance carriers will reward with discounts.

For single policyholders, the difference in average rates between these two companies is significant, with Farmers Mutual prices coming in at about half of Nationwide's. The advantage for married policyholders with Farmers Mutual is also obvious, where drivers save around $60 a month.

Farmers Mutual or Nationwide: Average Rates by Gender

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

On average, men see premiums nearly $10 per month higher with Farmers Mutual, and about $10 with Nationwide.

Looking at overall affordability, Farmers Mutual offers the most affordable average rates for both men and women. On average, male drivers save about $82 a month and women save around $78 with Farmers Mutual compared to the average Nationwide policyholder.

Farmers Mutual vs. Nationwide: 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 a bunch of 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.

Even so, 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 generally refers to having collision and comprehensive coverages alongside what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, Farmers Mutual has the significant edge, with average monthly prices 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 per month to Nationwide's $229.

Is Farmers Mutual or Nationwide 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.

At-fault collisions and speeding tickets will most likely raise your premiums, but is Farmers Mutual or Nationwide less expensive for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers Mutual for their auto insurance can usually expect their monthly bill to go up around 8% after getting a speeding ticket. Nationwide policyholders can expect a bit more drastic of an increase of about 16%.

But Farmers Mutual has cheaper prices for drivers in both categories -- their rates are around 44% less expensive for drivers with clean records and 49% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

Farmers Mutual drivers who get in a collision can expect to see their rates rise by over $15, while those who have insurance through Nationwide will see around a $55 increase.

At the end of the day, Farmers Mutual offers the cheapest premiums for drivers with an at-fault collision on their records, with average rates coming in at $86 compared to Nationwide's $178.

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 insurance bill. Nationwide drivers usually see a 46% raise in their car insurance prices after a DUI charge, while Farmers Mutual will typically climb premiums by about 45%.

How does Credit Score Impact Farmers Mutual and Nationwide Rates?

Did you know many auto insurance carriers take your credit score into account when determining rates? This isn't true for everyone (for example, Hawaii and California are two states that ban the practice entirely), but it does affect lots of policyholders out there.

Car insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with cheaper prices.

Looking specifically at Nationwide and Farmers Mutual, which company has the most affordable rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Farmers Mutual or Nationwide 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 carriers will charge for coverage. Generally, 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 Mutual charges. However, there's a small difference in monthly premiums for Nationwide, with policyholders who drive 6,000 miles yearly paying around $1 less every month compared to those who drive 12,000 miles each year. Still, for drivers in both categories, Farmers Mutual is the less expensive carrier.

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

Where you live can play a pretty big role in how much you pay for auto insurance. Usually, if you live in an urban area with more cars on the road, you'll pay a little more for car insurance, while the opposite is true for people in rural areas.

Farmers Mutual boasts the cheapest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Farmers Mutual's average premiums are about $106 less than Nationwide. People who live in suburban areas pay around $72 less with Farmers Mutual compared to Nationwide. Those in rural areas can expect to save about $61 with Farmers Mutual compared to Nationwide.

Farmers Mutual vs. Nationwide Discounts

No matter why you might be in the market for a new 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 taking advantage of as many car insurance discounts as possible.

The difficult part is finding all of the discounts you qualify for, 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 Mutual and Nationwide so that you can find the one that has the most discounts and, therefore, the largest savings.

Nationwide blows Farmers Mutual away when it comes to the sheer amount of discounts available, offering 15 more discounts than Farmers Mutual.

Both companies offer many of the same discounts -- like discounts for getting driver training, multi-policy discounts, and passive restraint discounts -- but Nationwide also offers discounts for advance quote, agency transfer, anti-theft, and more.

On the other hand, Farmers Mutual has a few proprietary discounts of their own for things like multi-car discounts, paid in full discounts, and secondary vehicle discounts.

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

You've seen the effect certain variables have on your insurance and the different discounts carriers offer. But, at the end of the day, which insurance company is the best fit for you?

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

• Your credit is below-average.
• Your credit score is high.
• You don't spend much time in your car.

Nationwide might be best for you if...

• You value the experience that comes with a large national auto insurance carrier.
• You're looking for the company with the most discounts.

Hopefully, this guide helps you get a good idea of the differences between Farmers Mutual and Nationwide. We also hope we've given you the information you need to make the best decision when it comes to your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from a handful of companies, not just Farmers Mutual and Nationwide. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get multiple quotes from some of the best insurance carriers in your area, all for free.

Farmers Mutual vs. Nationwide FAQs

Is Farmers Mutual or Nationwide cheaper?

Farmers Mutual is the more affordable of the two companies when looking at national average rates, with policies averaging $90 a month with Farmers Mutual and $170 for Nationwide. Even so, that doesn't mean Farmers Mutual will be the most affordable carrier for every driver, since there are multiple different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Farmers Mutual or Nationwide?

Sadly, the answer truly is "it depends.". Neither company is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do Farmers Mutual and Nationwide offer me different rates?

Car insurance carriers use quite a few different variables when calculating the prices they charge. Factors like gender, age, where you call home, your driving record, and sometimes even things like your credit score can all be taken into consideration. Both Farmers Mutual and Nationwide calculate premiums using different variables, so it's likely they'll offer different prices. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from several different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from multiple carriers 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 auto insurance companies for free. With those, you can guarantee you're getting the best premium. And maybe you'll find that the best carrier for you isn't Farmers Mutual or Nationwide 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.