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

Quick Facts

• Looking at the national averages for auto insurance, State Farm offers significantly more affordable premiums than National Mutual
• National Mutual has less expensive prices for policyholders who haven't received any speeding tickets or been in an accident in the last few years
• State Farm offers more affordable premiums for drivers with a DUI charge on their record

National Mutual vs. State Farm: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

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

Looking at nationwide averages, State Farm has average rates that are about 21% per month cheaper than those from National Mutual.

Even so, State Farm may not be the cheapest or best option for every driver out there. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your age, where you call home, your driving record, or even your credit score (among other things), so prices will change quite a bit from person to person.

Luckily, we've broken down average rates from both National Mutual and State Farm by a bunch of different rate factors, so read on to find out which company is the best for you.

National Mutual or State Farm: Average Car Insurance Rates by State

National Mutual and State Farm only compete against each other in three states, with State Farm offering more affordable premiums to the average driver in all of them. Iowa has the most noticable difference, where State Farm prices are over 70% less expensive than car insurance rates at National Mutual.

There's a lot more that goes into your auto insurance payment than just your home state. 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. It's normally because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have State Farm for their auto insurance pay more than $100 less than those who use National Mutual.

But both carriers will offer you dramatically lower prices once you turn 25. For example, average rates for National Mutual policyholders lower nearly $300 and State Farm's premiums reduce over $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age usually enjoy some of the most affordable insurance rates you can find. After all, they've likely been driving for quite some time, which generally lowers their chances of accidents and other infractions that can increase prices.

When looking at National Mutual and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge here, with average premiums coming in at around $111 per month compared to National Mutual's $134.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly cheaper auto insurance rates than single drivers. This usually boils down to married policyholders having more than one car on their policy -- something quite a few insurance companies will reward with discounts.

When it comes to relationship status, State Farm is the clear winner for single policyholders, with prices about $57 a month more affordable than National Mutual, on average. The advantage for married couples with State Farm is also obvious, where drivers save more than 15% per month.

National Mutual vs. State Farm: Average Rates by Gender

Because men are more likely to get speeding tickets and get into accidents, they have an increased chance of filing a claim with insurance. Therefore, insurance carriers will often charge men more than women.

With National Mutual, men typically pay almost 10% more a month than women., while with State Farm, the difference is closer to 7% per month.

Looking at the data for each company specifically, State Farm comes out on top for both men and women, with average rates $48 less for men and $39 cheaper for women.

National Mutual 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.

For most people, car insurance isn't the easiest topic to understand. Everyone needs auto insurance, but there are so many different terms and limits that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside liability coverage).

In this case, National Mutual offers the lowest average prices for state minimum liability limits, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $5 with National Mutual Insurance, while full coverage comes out to be around $90 less expensive with State Farm.

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

You've probably seen plenty of commercials from insurance companies offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Tickets and collisions will most likely raise your rates, but is National Mutual or State Farm more affordable for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

National Mutual policyholders can expect their prices to go up an average of $11 a month if they get a ticket, while State Farm generally raises premiums about $21 per month, on average.

That being said, National Mutual has less expensive prices for drivers in both categories, offering rates that are $3 and $13 cheaper, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Both carriers will raise premiums pretty significantly if you get into an at-fault accident with National Mutual increasing by over $75. State Farm has a less extreme climb, but you can still expect to pay just under $30 more than you were prior to your first collision.

Overall, State Farm offers the cheapest rates for drivers with an at-fault accident on their records, with monthly prices averaging $163 compared to National Mutual Insurance's $207.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- usually a lot more than an accident or speeding ticket. For example, National Mutual increases average premiums by nearly $200 a month -- that's just under a 60% increase.

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

Did you know that many auto insurance companies take your credit score into account when calculating rates? This isn't always the case (for example, California and Hawaii are two states that ban the practice entirely), but it might come into play for a lot of policyholders.

Insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which reduces the risk involved on their end, while the opposite is true for those with bad credit.

Looking at National Mutual and State Farm specifically, which carrier has the most affordable premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

How much you drive can have a considerable impact on how much car insurance companies will charge for coverage. That's because the more miles you put on your car each year, the more likely you are to get into a collision and cause an insurance claim.

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

National Mutual vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a big role in how much you pay for auto insurance. Typically, 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.

When comparing these two carriers side-by-side, State Farm normally comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest prices from both companies, but State Farm comes out on top with average rates about $127 a month. State Farm also has less expensive average premiums for drivers in urban and suburban ZIP codes -- a 14% and 20% per month respective difference when compared to National Mutual policyholders in similar areas.

National Mutual vs. State Farm Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many auto insurance discounts as you can.

The challenging part is finding all of the discounts you qualify for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the table below, we've taken a look at all of the different discounts National Mutual 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.

Looking at the total number of discounts, State Farm comes out ahead with 23 discounts to National Mutual's 19.

Both carriers offer lots of the same discounts -- like discounts for getting driver training, discounts for being a good student, and passive restraint discounts -- but State Farm also offers ABS discounts, annual mileage discounts, distant student discounts, and more that National Mutual does not.

On the flip side, National Mutual has a couple unique discounts of its own -- advance quote discounts, claim free discounts, continuous insurance discounts, and more.

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

So, we've broken down the average prices for many of the factors car insurance companies look at, and we've shown you all the discounts each carrier offers. But, at the end of the day, is National Mutual or State Farm the right company for you and your specific driver profile?

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

• You value the experience that comes with a large national insurance company.
• You're looking for more protection with "full coverage" car insurance.
• You are over 65 years old and want to save some money on your insurance.

National Mutual might be best for you if...

• You have a clean record.
• You have a speeding ticket on your driving record.
• You want basic auto insurance coverage at the state minimum limits.

We hope this guide has ben a valuable resource as you compare National Mutual and State Farm and that you can now make a more informed decision when it comes to your car 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 several carriers, not just National Mutual and State Farm. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best auto insurance companies in your area, all for free.

National Mutual vs. State Farm FAQs

Is National Mutual or State Farm cheaper?

Looking just at the national average premiums, State Farm is the cheaper of the two carriers, offering average rates of $158 a month compared to $201 for National Mutual. However, State Farm won't necessarily be the cheapest carrier for each driver, since there are a range of different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, National Mutual or State Farm?

Sadly, the only answer we can give you is "it depends.". No one company is necessarily "better" for every driver -- it all depends on what your unique insurance profile looks like. For example, State Farm offers more affordable prices for drivers with an at-fault collision on their record, while National Mutual is less expensive for drivers who have less-than-stellar credit scores.

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

Car insurance companies take a look at many different factors when determining the rates they charge policyholders. Things such as gender, your driving record, where your home is, age, and sometimes even things like your credit score can all be taken into consideration. Both National Mutual and State Farm use different formulas, so each one will most likely offer different premiums. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a variety of different carriers.

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

The only way to find the auto insurance company 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, sites like Compare.com do all the hard work for you. Just enter your ZIP code 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 rate. And who knows, the best carrier for you might not be National Mutual 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.