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

Quick Facts

• Based on national averages for car insurance, State Farm offers less expensive prices than Farmers Union
• State Farm tends to be a much cheaper option for residents of urban areas
• State Farm offers more affordable average premiums for residents of rural areas

Farmers Union vs. State Farm: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering big discounts, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to Farmers Union or State Farm as potential options, but between the two, which one will save you the most?

Looking at the national average rates for both companies, Farmers Union has average rates that are about 16% per month more expensive than those from State Farm.

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

Wanting to know if Farmers Union or State Farm is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

Farmers Union or State Farm: Average Car Insurance Rates by State

Farmers Union and State Farm compete against each other in four states, with State Farm offering more affordable rates to the average driver in all of them. Minnesota has the most noticable difference, where State Farm premiums are over 70% cheaper than car insurance prices at Farmers Union.

That being said, there are plenty of other factors that go into your auto insurance cost than just your home state. Read on to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance rates of any other group of drivers. Normally, that's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

Even so, that doesn't mean that teen drivers have to just accept sky-high insurance prices. Just look at the table above -- where 18-year-old drivers who have State Farm for their auto insurance pay more than $20 less than those who use Farmers Union.

However, both companies will lower rates by the time drivers turn 25. For example, average premiums for Farmers Union policyholders decrease around $200 and State Farm's rates reduce over $200 over that time.

Which is the Best Company for Retired Drivers?

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

So, which company offers the best prices to retired drivers? State Farm gets the edge, with rates for drivers 65 and older about 25% less expensive than the national average for Farmers Union.

Which is the Best Company for Married Drivers?

Married couples tend to get slightly cheaper auto insurance premiums than single policyholders. That's because policies for married policyholders usually cover more than one car, which many carriers will offer you a discount for.

When it comes to relationship status, State Farm is the clear winner for single drivers, with prices around $33 a month more affordable than Farmers Union, on average. For married drivers, the advantage is clear again - State Farm has the edge when it comes to average rates.

Farmers Union vs. State Farm: Average Rates by Gender

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

Men typically pay about 6% more per month than women with Farmers Union, and around 7% with State Farm.

Looking at overall affordability, State Farm offers the lowest average prices for both men and women. On average, male drivers save about $31 a month and women save about $32 with State Farm compared to the average Farmers Union policyholder.

Farmers Union or 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.

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

If you're looking for state minimum limits for liability insurance, State Farm generally offers slightly cheaper premiums of $99 compared to Farmers Union's $107. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies around $55 per month less expensive than Farmers Union, on average.

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

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

At-fault accidents and tickets will most likely raise your rates, but is Farmers Union or State Farm more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Farmers Union policyholders can expect their prices to go up an average of $50 a month if they get a ticket, while State Farm normally raises rates about $21 per month, on average.

But State Farm has less expensive premiums for drivers in both categories, offering rates that are $4 and $33 more affordable, respectively, compared to Farmers Union Insurance.

Which Company is Best for Drivers After an Accident?

Farmers Union drivers who get in an accident can expect to see their prices climb by just under $70, while those who have insurance through State Farm will see around a $30 increase.

Overall, State Farm offers the most affordable premiums for drivers with an at-fault accident on their records, with monthly prices averaging $163 compared to Farmers Union Insurance's $207.

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. Farmers Union drivers usually see a 39% climb in their insurance premiums after a DUI charge, while State Farm will usually increase rates by about 25%.

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

Did you know that many auto insurance companies take your credit score into account when calculating premiums? This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it might come into play for several policyholders.

The reasoning car insurance carriers 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 best rates for policyholders 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 Union or State Farm Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a substantial impact on your monthly prices. Generally, the more miles you put on your car, the more you can expect to pay for insurance.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers Union charges. However, there's a small difference in monthly rates for State Farm, with policyholders who drive the least paying around $13 less each month compared to those who drive 12,000 miles yearly. Still, State Farm is the cheaper option for drivers in both categories.

Farmers Union vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a pretty big impact on your monthly car insurance bill. Usually, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders due to the small number of vehicles that are on the roads in those areas.

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

For drivers in urban ZIP codes, State Farm offers premiums about $185 monthly compared to Farmers Union's $226. People who live in suburban ZIP codes can expect to pay around $161 a month for State Farm and $172 for Farmers Union. Lastly, those in rural areas tend to get the most affordable prices from both companies, with average monthly rates coming in at $127 and $170 for State Farm and Farmers Union respectively.

Farmers Union vs. State Farm Discounts

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

But with what seems like a million different discounts out there, it can be difficult to nail down the carrier that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

In the section below, we've compared all of the different discounts offered by Farmers Union and State Farm so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

State Farm knocks Farmers Union out of the park when it comes to the sheer number of discounts available, offering 12 more discounts than Farmers Union.

A couple of those are overlapping for things like farm discounts, discounts for being a good driver, and discounts for insuring multiple cars with the same company. State Farm also offers ABS discounts, annual mileage discounts, anti-theft discounts, and more that Farmers Union does not.

On the flip side, Farmers Union has a couple unique discounts of its own -- group discounts, minor child discounts, and paid in full discounts.

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

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

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

• You have a DUI charge on your record.
• You want basic insurance coverage at the state minimum limits.
• You have a short drive to work everyday.

Farmers Union might be best for you if...

• You have a more unique driver profile than those we mentioned above.

We hope this guide has ben a valuable resource as you compare Farmers Union and State Farm and that it aids in making a more informed decision about your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just Farmers Union and State Farm. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple quotes from some of the best auto insurance companies in your area, all for free.

Farmers Union vs. State Farm FAQs

Is Farmers Union or State Farm cheaper?

Looking just at the national average prices, State Farm is the more affordable of the two carriers, offering average rates of $158 per month compared to $189 for Farmers Union. However, State Farm won't necessarily be the cheapest company for every policyholder, since there are many different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Farmers Union or State Farm?

Sadly, the only answer we can give you is "it depends.". No single carrier is "better" for everyone -- it all depends on what your unique car insurance profile looks like. For example, State Farm offers less expensive rates for policyholders with an at-fault collision on their record, while Farmers Union is cheaper for drivers who have less-than-stellar credit scores.

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

Auto insurance companies take a look at a lot of different factors when determining the premiums they charge drivers. Things such as your driving record, where you call home, age, gender, and sometimes even things like your credit score can all be used. Both Farmers Union and State Farm calculate prices differently, so each one will most likely offer different premiums. The only real way to see which company is the lowest for you is by comparing personalized quotes from a bunch of different carriers.

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

The only way to find the 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 area information and you'll get free quotes from dozens of the best car insurance carriers in your area. With those, you can guarantee you're getting the best price. And who knows, the best company for you might not be Farmers Union or State Farm 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.