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

Quick Facts

• Looking at the national averages for insurance, State Farm offers more affordable premiums than North Star Mutual
• North Star Mutual offers more affordable prices for policyholders who have a clean record
• State Farm offers more affordable premiums for drivers who have an at-fault accident on their record

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

Are you considering 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 North Star Mutual or State Farm for your next policy, but which carrier has cheaper rates for auto insurance?

As you can see, State Farm has average rates that are about 12% per month less expensive than those from North Star Mutual when looking at the national average rates for car insurance.

Even so, that doesn't mean State Farm will necessarily be cheaper than North Star Mutual for every driver. Insurance companies vary their prices depending on things like how old you are, how good your credit score is, where you live, how clean your driving record is, and all sorts of other factors, so rates could change drastically from person to person.

Luckily, we've broken down average premiums from both North Star Mutual and State Farm by many different rate factors, so read on to find out which carrier is the best for you.

North Star Mutual or State Farm: Average Car Insurance Rates by State

North Star Mutual and State Farm compete against each other in four states, with State Farm offering more affordable prices to the average driver in all of them. Minnesota has the most noticable difference, where State Farm rates are over 60% less expensive than auto insurance premiums at North Star Mutual.

But there's more to insurance than just your home state. As we mentioned above, there's a lot of things that go into how auto insurance carriers calculate your prices. Read on to learn 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 out there on the road. That's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

That being said, that doesn't mean teen drivers can't still save money on their auto insurance. Just look at the table above -- where 18-year-old drivers who have North Star Mutual for their car insurance pay $20 less than those who use State Farm.

But with both companies, you'll see your prices drop significantly once you turn 25. For example, average premiums for North Star Mutual policyholders decrease more than $150 and State Farm's rates lower around $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the lowest insurance prices out there. After all, they've likely been driving for quite some time, which generally lowers their chances of accidents and other infractions that can increase premiums.

When looking at North Star Mutual and State Farm specifically, which company is best for retired drivers? State Farm gets the edge, with prices for drivers 65 and older $33 more affordable than the national average for North Star Mutual.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are usually cheaper for married couples than they are for single policyholders? This usually boils down to married drivers having more than one car on their policy -- something several car insurance carriers will reward with discounts.

When it comes to relationship status, the two companies are comparable for those who are single, with rates only differing about $16 a month, on average. The advantage for married policyholders is more obvious, where drivers who use State Farm save around $30 per month.

North Star Mutual vs. State Farm: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim, which means they'll typically end up paying more for insurance than women.

On average, women see premiums about $4 a month less expensive with North Star Mutual, and over $10 with State Farm.

Looking at the data for each carrier specifically, State Farm offers the cheapest average rates for both men and women, with average prices $18 less for men and $26 cheaper for women.

North Star 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.

It's no secret that auto insurance can be pretty complicated. There are a bunch of different coverages that account for multiple different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

However, most policies end up falling into two different types of coverage -- liability only (which provides bodily injury and property damage coverage for other drivers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with a liability policy).

In this case, North Star Mutual offers the most affordable average premiums for state minimum liability insurance, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $35 with North Star Mutual, while full coverage comes out to be around $80 cheaper with State Farm.

Is North Star Mutual 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 car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with tickets and accidents on your record, but which of these two carriers offers the lowest rates to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

North Star Mutual policyholders can expect their prices to go up an average of $44 per month if they get a ticket, while State Farm normally raises premiums about $21 a month, on average.

Even so, North Star Mutual has more affordable rates for drivers in both categories, offering prices that are $33 and $10 less expensive, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

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

Overall, the cheaper rates come from State Farm, with monthly prices averaging $163 compared to North Star Mutual's $174.

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 insurance bill -- usually a lot more than an accident or speeding ticket. For example, North Star Mutual increases average rates by just under $200 per month -- that's over a 65% increase.

How does Credit Score Impact North Star Mutual and State Farm Rates?

You may not realized it, but your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as a rating factor, but it might come into play for many policyholders.

Auto insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

Looking specifically at State Farm and North Star Mutual, which one has the cheapest premiums 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 North Star Mutual 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 car insurance companies will charge for coverage. Typically, the more miles you put on your car each year, 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 North Star Mutual charges. However, there's a small difference in monthly prices for State Farm, with drivers who put 6,000 miles on their vehicle each year paying around $13 less every month compared to those who drive 12,000 miles annually. Still, State Farm is the more affordable option for drivers in both categories.

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

Where you park your car can play a pretty big role in how much you pay for car insurance. Generally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders because of the number of vehicles that are on the roads in those areas.

When comparing these two carriers side-by-side, State Farm usually comes out as the lowest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

If you live in a rural area, you can expect to save about $39 with State Farm compared to North Star Mutual. Drivers in suburban ZIP codes pay around $4 less with State Farm compared to North Star Mutual. In urban areas, State Farm's average prices are about $23 less than North Star Mutual.

North Star Mutual vs. State Farm Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible. That's where insurance discounts comes into play.

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're eligible for.

In the table below, we've broken down all of the different discounts offered by both North Star Mutual and State Farm so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm knocks North Star Mutual out of the park when it comes to the sheer number of discounts available, offering 23 different discounts to North Star Mutual's 23.

There are a couple discounts both companies offer, but State Farm also offers ABS discounts, annual mileage discounts, distant student discounts, and more that North Star Mutual does not.

On the flip side, North Star Mutual has a couple unique discounts of its own -- family discounts and paid in full discounts.

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

So, you've seen how different factors can affect your auto insurance rates. We've broken down the different discounts each company offers, too. But, at the end of the day, which insurance carrier is the right one for you, your vehicle, and your wallet?

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

• You have an at-fault collision on your record.
• You're looking for discounts -- State Farm has the most.
• You and your spouse are buying car insurance together.

North Star Mutual might be best for you if...

• You have received a ticket within the last few years.
• You want basic insurance coverage at the state minimum limits.
• You're buying car insurance for a teen and looking for a wallet-friendly option.

We hope this guide helps you get a good idea of the differences between North Star Mutual and State Farm and that it aids in making a more informed decision about your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple carriers, not just North Star Mutual and State Farm. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

North Star Mutual vs. State Farm FAQs

Is North Star Mutual or State Farm cheaper?

Looking just at the national average premiums, State Farm is the less expensive of the two carriers, offering average rates of $158 a month compared to $180 for North Star Mutual. However, State Farm won't necessarily be the cheapest company for everyone, since there are several different variables that come into play when it comes to your auto insurance cost.

Who is better, North Star Mutual or State Farm?

Unfortunately, the real answer is "it depends.". Neither carrier is necessarily "better" for each driver -- it all depends on what your unique insurance profile looks like. For example, State Farm offers cheaper prices for drivers with an at-fault accident on their record, while North Star Mutual is less expensive for drivers who have less-than-stellar credit scores.

Why do North Star Mutual and State Farm offer me different rates?

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

How do I know if North Star Mutual 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 several 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 information once and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the cheapest rate. And who knows, the best company for you might not be North Star 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.