Preferred 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 Preferred Mutual
• State Farm has less expensive prices for policyholders who live in rural neighborhoods
• State Farm offers more affordable rates for policyholders who live in urban areas

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

So, you're thinking about switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering huge savings. But exactly how much can you save by switching?

You've maybe even narrowed your search down to Preferred Mutual or State Farm as your top options, but which carrier will save you the most?

As you can see, Preferred Mutual has average rates that are around 70% a month more expensive than those from State Farm when looking at the national average rates for insurance.

Even so, that doesn't mean State Farm will necessarily be more affordable than Preferred Mutual for each driver. Car insurance carriers use all sorts of complex algorithms to determine premiums, so depending on how good your credit score is or how clean your driving record is (among a wide array of other factors), you could see wildly different prices from the ones above.

So, if you want to find out which of Preferred Mutual or State Farm is really the best for you, keep reading to see average premiums for each carrier broken down by a variety of different rate factors.

Preferred Mutual vs. State Farm: Average Car Insurance Rates by State

Preferred Mutual and State Farm only compete against each other in two states, with State Farm offering cheaper rates to the average driver in all of them. Massachusetts has the most noticable difference, where State Farm prices are $92 less expensive than auto insurance rates at Preferred Mutual.

But there's more to insurance than just where you live. As we mentioned above, there's a lot of things that go into how auto insurance companies calculate your premiums. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for car insurance than any group on the road. It's typically because 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. For example, 18-year-old drivers pay an average of over 70% less per month by choosing State Farm over Preferred Mutual.

But both carriers will offer you dramatically lower rates once you turn 25. For example, average premiums for Preferred Mutual policyholders lower about $500 and State Farm's prices decrease more than $200 over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest rates out there.

So, which company offers the best premiums to retired drivers? State Farm gets the edge, with prices for drivers 65 and older over 70% cheaper than the national average for Preferred Mutual.

Which is the Best Company for Married Drivers?

Those who are single tend to get offered slightly more expensive car insurance premiums than married drivers. That's usually because married policyholders tend to own and insure multiple vehicles, which can often earn you a discount.

For single drivers, the difference in average rates between these two companies is significant, with State Farm prices coming in at around 70% less than Preferred Mutual's. The advantage is also clear for married couples - State Farm offers the most affordable average rates.

Preferred Mutual or State Farm: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into a collision. That means when it comes to auto insurance men will generally end up paying a little more.

Typically, women see prices about $15 a month more affordable with Preferred Mutual, and around $12 less with State Farm.

Looking at the data for each carrier specifically, State Farm comes out on top for both men and women, with average premiums 70% less for men and 72% cheaper for women.

Preferred 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 can be pretty complicated. There are so many different coverages and limits that it can make it pretty confusing to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (that covers bodily injury and property damage for other drivers and passengers if you cause an accident) and full coverage (which typically refers to having collision and comprehensive coverages in addition to what you get with liability coverage).

Looking specifically at state minimum liability limits, 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 about $216 per month to Preferred Mutual's $850.

Is Preferred 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 at-fault collisions and speeding tickets on your record, but which of these two carriers offers the cheapest premiums to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Preferred Mutual for their auto insurance can generally expect their monthly bill to go up around 1% after getting a speeding ticket. State Farm policyholders can expect a bit more drastic of an increase of about 14%.

That being said, State Farm tends to offer the best prices for both drivers who have clean records and those with a recent ticket -- their rates are around 66% less expensive for drivers with clean records and 60% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

Preferred Mutual drivers who get in a collision can expect to see their rates climb by just under 20%, while those who have insurance through State Farm will see around a 20% increase.

At the end of the day, the more affordable premiums come from State Farm, with average rates coming in at $163 compared to Preferred Mutual's $486.

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 -- normally a lot more than an accident or speeding ticket. Preferred Mutual drivers usually see a 57% increase in their car insurance prices after a DUI charge, while State Farm will usually raise rates by about 25%.

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

Often times, your credit score can come into play when companies determine your monthly bill. This isn't true for everyone (for example, Hawaii and California are two states that ban the practice entirely), but it does affect lots of policyholders out there.

The reasoning auto insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with less expensive premiums.

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Preferred 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 insurance companies will charge for coverage. Generally, those who drive fewer miles will end up with cheaper rates since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, State Farm tends to be the more affordable option. Preferred Mutual's average premiums for drivers with 6,000 annual miles come in around 72% more expensive than State Farm. Those who drive 12,000 miles every year can expect to pay about 70% more with Preferred Mutual over State Farm.

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

Where your home is can play a pretty big role in how much you pay for auto insurance. Normally, those who live in urban areas will pay more than drivers in rural areas since there are a lot more cars on the roads where they live.

When comparing these two carriers side-by-side, State Farm usually 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 $126 with State Farm compared to Preferred Mutual. People who live in suburban areas pay about $311 less with State Farm compared to Preferred Mutual. For policyholders in urban ZIP codes, State Farm's average premiums are around $717 less than Preferred Mutual.

Preferred Mutual vs. State Farm Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can. That's where insurance discounts comes into play.

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

Luckily, we did the hard work for you and compared all of the different discounts offered by Preferred Mutual and State Farm so that you can find the one that has the most discounts and, therefore, the largest savings.

State Farm blows Preferred Mutual away when it comes to the sheer amount of discounts available, offering 23 different discounts to Preferred Mutual's 14.

There are a couple discounts both companies offer, but State Farm also offers discounts for distant student, drive safe & save, driver training, and more.

On the other hand, Preferred Mutual has a few proprietary discounts of their own for things like group discounts, new business discounts, and paid in full discounts.

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

You've seen the role certain factors have on your car insurance and the different discounts carriers offer. But, when it comes down to it, which insurance carrier is the best company for you and your specific driver profile?

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

• You don't have any speeding tickets, DUIs, or at-fault accidents on your record.
• Your credit is less-than-stellar.
• You want to save money while purchasing insurance for a teenager.

Preferred Mutual might be best for you if...

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

Hopefully, this guide helps you get a good idea of the differences between Preferred 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 several companies, not just Preferred Mutual 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 carriers in your area, all for free.

Preferred Mutual vs. State Farm FAQs

Is Preferred Mutual or State Farm cheaper?

State Farm is the less expensive of the two companies when looking at national average rates, with policies averaging $158 a month with State Farm and $542 for Preferred Mutual. However, that doesn't mean State Farm will be the lowest company for each driver, since there are a range of different variables that are considered when it comes to your car insurance bill.

Who is better, Preferred Mutual or State Farm?

Unfortunately, the answer truly is "it depends.". Neither carrier is necessarily "better" for everyone -- it all boils down to your unique auto insurance profile.

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

Car insurance carriers use many different factors when determining the prices they charge. Variables such as age, gender, where you live, your driving record, and sometimes even things like your credit score can all come into play. Both Preferred Mutual and State Farm calculate rates using different factors, 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 companies.

How do I know if Preferred 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 multiple carriers 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 car insurance companies for free. With those, you can guarantee you're getting the lowest rate. And maybe you'll find that the best company for you isn't Preferred 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.