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

Quick Facts

• Looking at the national averages for car insurance, State Farm offers significantly cheaper premiums than National General
• State Farm offers more affordable rates for policyholders whose driving record contains an at-fault collision
• State Farm tends to be a much less expensive option for policyholders who live in urban areas

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

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

You might have narrowed it down to National General or State Farm for your next policy, but between the two, which one will save you the most?

Looking at nationwide averages, National General is quite a bit more expensive than State Farm, with prices averaging $249 a month compared to just $158 with State Farm.

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

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

National General vs. State Farm: Average Car Insurance Rates by State

National General and State Farm only compete against each other in Texas, where State Farm offers the cheaper average prices. State Farm drivers tend to pay about $126 per month less on average compared to drivers who use National General for their auto insurance.

But there's more to calculating car insurance rates than just where you live. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance premiums of any other group of drivers out there on the road. That's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But that doesn't mean that teen drivers have to just accept sky-high car insurance rates. Just look at the table above -- where 18-year-old drivers who have State Farm for their auto insurance pay almost 40% less than those who use National General.

However, both companies will drop prices once you turn 25. State Farm offers the steepest decrease, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. National General's average premiums reduce over 65% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the cheapest 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 insurance.

So, which company offers the best rates to retired drivers? State Farm gets the edge here, with average prices coming in at around $111 per month compared to National General's $179.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive auto insurance rates than married drivers. This usually boils down to married couples having more than one vehicle on their policy -- something quite a few insurance carriers will reward with discounts.

For those who are single, the difference in average premiums between these two companies is significant, with State Farm rates coming in at a third less than National General's. For married policyholders, the advantage is clear again - State Farm has the edge when it comes to average premiums.

National General or State Farm: Average Rates by Gender

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

Men normally pay about $15 a month more than women with National General, but with State Farm, the difference is closer to $12 per month.

When it comes to the lowest prices for each gender, State Farm comes out on top for both men and women, with average rates $93 less for men and $89 cheaper for women.

National General 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.

Auto insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different coverages and limits that it can be hard to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability coverage).

Looking specifically at state minimum limits for liability insurance, State Farm has the significant edge, with average monthly prices coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging around $216 a month to National General's $348.

Is National General 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 insurance. But that's not to say you can't save money if you don't have the best driving record, either.

Speeding tickets and collisions will most likely raise your premiums, but is National General or State Farm cheaper for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use National General for their car insurance can generally expect their monthly bill to go up about 11% after getting a speeding ticket. State Farm policyholders can expect a bit more drastic of an increase of around 14%.

That being said, State Farm has less expensive rates for drivers in both categories, offering prices that are $27 and $26 more affordable, respectively, compared to National General Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will raise premiums pretty significantly if you get into an at-fault accident with National General increasing by about 66%. State Farm has a less extreme climb, but you can still expect to pay nearly 20% more than you were prior to your first collision.

At the end of the day, State Farm offers the most affordable rates for drivers with an at-fault accident on their records, with average prices coming in at $163 compared to National General Insurance's $472.

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 ticket or even an accident. On average, State Farm will raise your premiums around 25% after a DUI, while National General's average prices increase by more than 10%.

How does Credit Score Impact National General and State Farm Rates?

In many cases, your credit score can be used as one of the variables to determine your monthly auto insurance premiums. This isn't true for everyone (California, for example, has banned the use of credit score as an insurance factor) but it might come into play for lots of drivers.

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

Looking at National General and State Farm specifically, which carrier has the cheapest 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 National General or State Farm 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 auto insurance companies will charge for coverage. Typically, the more milage 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 National General charges. However, there's a small difference in monthly premiums for State Farm, with policyholders who drive the least paying about $13 less each month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, State Farm is the less expensive carrier.

National General or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can have a pretty big impact on your monthly car insurance cost. Generally, those who live in rural areas will pay less than drivers in urban areas because of the small number of vehicles that are on the roads where they live.

When comparing these two carriers side-by-side, State Farm typically comes out as the lowest option for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, State Farm's average prices are around $77 less than National General Insurance. People who live in suburban areas pay about $80 less with State Farm compared to National General. Those in rural areas can expect to save around $117 with State Farm compared to National General.

National General 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 with what seems like a million different discounts out there, it can be challenging 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.

Luckily, we did the hard work for you and looked at all of the different discounts National General and State Farm offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm blows National General away when it comes to the sheer amount of discounts available, offering 15 more discounts than National General.

There are a couple discounts both companies offer, but State Farm also offers discounts for ABS, annual mileage, distant student, and more.

On the other hand, National General has a few proprietary discounts of their own for things like advance quote discounts, group discounts, low mileage discounts, and more.

Final Thoughts: Is National General or State Farm Best for You?

So, we've broken down the average rates for many of the factors auto insurance carriers look at, and we've shown you all the discounts each company offers. But, at the end of the day, which carrier is the right company for you, your vehicle, and your wallet?

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

• You have a clean driving record, free of accidents, tickets, or DUIs.
• You're looking for discounts -- State Farm has the most.
• You live in an suburban area.

National General might be best for you if...

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

Hopefully, this guide has ben a valuable resource as you compare National General and State Farm and that you can now make a more informed decision when it comes to 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 a handful of companies, not just National General and State Farm. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP code below and get free quotes from dozens of the top auto insurance carriers in your area, all in just a few minutes.

National General vs. State Farm FAQs

Is National General or State Farm cheaper?

State Farm is the more affordable of the two companies when looking at national average prices, with policies averaging $158 per month with State Farm and $249 for National General. Even so, that doesn't mean State Farm will be the cheapest company for every driver, since there are a range of different variables that are considered when it comes to your car insurance payment.

Who is better, National General or State Farm?

Unfortunately, the only answer we can give you is "it depends.". One carrier is not "better" for each policyholder -- it all comes down to what your unique insurance profile looks like.

Why do National General and State Farm offer me different rates?

Auto insurance carriers use several different factors when determining the premiums they charge. Things such as age, gender, where you park your car, your driving record, and sometimes even things like your credit score can all be used. Both National General 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 several different companies.

How do I know if National General 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 multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance companies for free. That way, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't National General 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.