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

Quick Facts

• In general, Farmers Mutual offers significantly more affordable prices than State Farm
• Farmers Mutual tends to be a much cheaper option for policyholders whose driving record contains an at-fault collision
• State Farm may help you save more money -- they offer more discounts than Farmers Mutual

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

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

You might be considering Farmers Mutual or State Farm, but between the two, which one will offer you less expensive rates?

As you can see, Farmers Mutual has average rates that are around 45% a month cheaper than those from State Farm when looking at the national average rates for insurance.

But that doesn't mean Farmers Mutual will necessarily be less expensive than State Farm for every driver. Auto insurance carriers vary their prices depending on things like where you live, how clean your driving record is, how old you are, how good your credit score is, and a variety of other factors. So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

Wanting to know if Farmers Mutual or State Farm 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 Mutual vs. State Farm: Average Car Insurance Rates by State

Farmers Mutual and State Farm only compete against each other in two states, with Farmers Mutual offering more affordable rates to the average driver in all of them. Nebraska has the most noticable difference, where Farmers Mutual prices are $114 cheaper than car insurance premiums at State Farm.

There's a lot more that goes into your insurance bill than just the state you live in. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance rates of any other group of drivers. The reason is that teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have Farmers Mutual for their car insurance pay over 50% less than those who use State Farm.

However, both companies will offer you dramatically lower premiums by the time you turn 25. For example, average rates for Farmers Mutual policyholders reduce more than 50% and State Farm's prices decrease almost 60% over that time.

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 most affordable premiums you can find.

So, which carrier offers the best rates to retired drivers? Farmers Mutual gets the edge here, with average premiums coming in at about $61 per month compared to State Farm's $111.

Which is the Best Company for Married Drivers?

Did you know that insurance prices are usually less expensive for married drivers than they are for single policyholders? This usually boils down to married policyholders having more than one vehicle on their policy -- something lots of auto insurance carriers will reward with discounts.

For single drivers, the difference in average premiums between these two companies is significant, with Farmers Mutual rates coming in at around half of State Farm's. The advantage for married couples with Farmers Mutual is also obvious, where drivers save about $55 per month.

Farmers Mutual or State Farm: Average Rates by Gender

Because women are less likely to get into collisions and get speeding tickets, they are less likely to file a claim with insurance. So, insurance carriers will often charge women less than men.

On average, women see prices nearly $10 a month more affordable with Farmers Mutual, and around $10 cheaper with State Farm when compared to their male counterparts.

When it comes to the lowest rates for each gender, Farmers Mutual offers the cheapest average prices for both men and women. On average, male drivers save about $70 per month and women save about $66 with Farmers Mutual compared to the average State Farm policyholder.

Farmers Mutual vs. State Farm: 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 variety 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.

That being said, the most common policies that drivers look at fall into two categories -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes collision and comprehensive coverages that protect your own car, alongside liability).

Looking specifically at state minimum liability insurance, Farmers Mutual has the significant edge, with average monthly premiums 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 around $147 a month to State Farm's $216.

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

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

You'll probably end up paying more with collisions and speeding tickets on your record, but which of these two companies offers the most affordable rates to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Farmers Mutual for their insurance can typically expect their monthly bill to go up about 8% after getting a speeding ticket. State Farm policyholders can expect a bit more drastic of an increase of around 14%.

Even so, Farmers Mutual is normally the cheaper option for drivers both with a ticket and with a clean record, offering prices that are 48% and 51% less expensive, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Farmers Mutual drivers who get in a collision can expect to see their premiums increase by over $15, while those who have insurance through State Farm will see about a $30 increase.

At the end of the day, the more affordable rates come from Farmers Mutual, with average prices coming in at $86 compared to State Farm's $163.

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 speeding ticket when it comes to your car insurance bill. Farmers Mutual drivers usually see a 45% increase in their auto insurance premiums after a DUI charge, while State Farm will generally raise rates by around 25%.

How does Credit Score Impact Farmers Mutual and State Farm Rates?

You may not have known, but your credit score can be used as one of the variables to determine your monthly car insurance premiums. Certain states and carriers do not allow for credit score to be used as a car insurance factor, but it might come into play for many policyholders.

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

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

How much you drive can have a pretty big impact on your monthly auto insurance cost. Normally, 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.

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 prices for State Farm, with drivers who put 6,000 miles on their vehicle yearly paying about $13 less every month compared to those who drive 12,000 miles annually. Still, for drivers in both categories, Farmers Mutual is the more affordable carrier.

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

Where you live can play a substantial role in how much you pay for car insurance. Generally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers since there are a lot more cars on the road where they live, which increases the chances of an accident.

When comparing these two carriers side-by-side, Farmers Mutual typically comes out as the cheapest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save around $37 with Farmers Mutual compared to State Farm. People who live in suburban areas pay about $74 less with Farmers Mutual compared to State Farm. For policyholders in urban ZIP codes, Farmers Mutual's average rates are around $92 less than State Farm.

Farmers Mutual vs. State Farm Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you're eligible for.

Luckily, we did the hard work for you and looked at all of the different discounts Farmers Mutual and State Farm offer their customers so that you can find the company that has the most discounts and, therefore, the largest savings.

State Farm knocks Farmers Mutual out of the park when it comes to the sheer number of discounts available, offering 16 more discounts than Farmers Mutual.

Both companies offer lots of the same discounts -- like discounts for getting driver training, discounts for insuring multiple cars with the same company, and passive restraint discounts -- but State Farm also offers discounts for ABS, annual mileage, anti-theft, and more.

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

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

So, you've seen how different factors can affect your auto insurance prices. We've shown you all the discounts each company offers, too. That's all well and good, but at the end of the day, which carrier is the best carrier for you and your specific profile and needs?

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

• You have a speeding ticket on your driving record.
• Your home is in a busy urban area.
• You live in a rural area.

State Farm might be best for you if...

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

Hopefully, this guide helps you get a better idea of the difference between Farmers Mutual and State Farm 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 auto insurance policy is to compare quotes from several carriers, not just Farmers Mutual and State Farm. 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 car insurance companies in your area, all for free.

Farmers Mutual vs. State Farm FAQs

Is Farmers Mutual or State Farm cheaper?

Farmers Mutual is the less expensive of the two carriers when looking at national average rates, with policies averaging $90 per month with Farmers Mutual and $158 for State Farm. That being said, that doesn't mean Farmers Mutual will be the lowest company for everyone, since there are a bunch of different variables that are considered when it comes to your auto insurance payment.

Who is better, Farmers Mutual or State Farm?

Sadly, the answer truly is "it depends.". Neither carrier is necessarily "better" for each policyholder -- it all depends on what your unique insurance profile looks like. For example, State Farm is more affordable for drivers with excellent credit, while Farmers Mutual offers less expensive premiums for drivers with a recent DUI.

Why do Farmers Mutual and State Farm offer me different rates?

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

How do I know if Farmers Mutual or State Farm 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 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 information once and you'll get quotes from dozens of your local top insurance carriers for free. That way, you can guarantee you're getting the lowest rate. And maybe you'll find that the best company for you isn't Farmers Mutual or State Farm 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.