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

Quick Facts

• Looking at the national averages for auto insurance, State Farm offers less expensive rates than Selective
• Selective offers more affordable average prices for drivers who have an at-fault accident on their record
• State Farm has cheaper rates for residents of urban areas

Selective vs. 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 big discounts, you're probably wondering exactly how much you might be able to save.

You might have narrowed your search down to Selective or State Farm, but which one will offer you less expensive premiums?

Looking at nationwide averages, State Farm is about $26 per month cheaper than Selective.

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

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

Selective or State Farm: Average Car Insurance Rates by State

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There's a lot more that goes into your auto insurance cost than just the state you live in. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for insurance than any group on the road. It'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 car insurance rates. As you can see above, teens who use State Farm save nearly $95 a month compared to those who use Selective.

But both carriers will lower premiums by the time drivers turn 25. State Farm offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Selective's average prices reduce almost 65% during that same period.

Which is the Best Company for Retired Drivers?

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

But who has the best prices for retired drivers between Selective and State Farm? State Farm gets the slight edge, with rates for drivers 65 and older nearly 10% less expensive than the national average for Selective.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are typically more expensive for single policyholders than they are for married policyholders? That's because policies for married drivers generally cover more than one car, which a lot of companies will offer you a discount for.

When it comes to relationship status, State Farm is the clear winner for single drivers, with prices around $35 per month cheaper than Selective, on average. The advantage for married couples with State Farm is also obvious, where drivers save more than 10% a month.

Selective vs. State Farm: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to auto insurance men will typically end up paying a little more.

Generally, women see rates about $10 per month more affordable with Selective, and over $10 with State Farm.

Looking at overall affordability, State Farm comes out as the lowest option for both genders. On average, male drivers save about $25 a month and women save around $27 with State Farm compared to the average Selective policyholder.

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

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

If you're looking for state minimum limits for liability insurance, State Farm generally offers less expensive premiums of $99 compared to Selective's $127. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies about $25 per month cheaper than Selective, on average.

Is Selective 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.

Tickets and accidents will most likely raise your prices, but is Selective or State Farm more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Selective policyholders can expect their rates to go up an average of $76 a month if they get a ticket, while State Farm usually raises premiums around $21 per month, on average.

However, State Farm has less expensive prices for drivers in both categories -- their rates are around 5% cheaper for drivers with clean records and 29% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

Selective drivers who get in a collision can expect to see their rates climb by just under 15%, while those who have insurance through State Farm will see about a 20% increase.

Overall, drivers who use Selective end up with the cheaper prices after an accident, with monthly premiums averaging $162 compared to State Farm's $163.

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 an accident. On average, Selective will climb your prices around 35% after a DUI, while State Farm's average premiums rise by over 25%.

How does Credit Score Impact Selective and State Farm Rates?

You may not realized it, but your credit score can come into play when carriers calculate your monthly bill. This isn't always the case (California, for example, has banned the use of credit score as a rating factor) but it will come into play for lots of policyholders.

Auto insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with less expensive rates.

Looking at Selective and State Farm specifically, which company 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 Selective or State Farm Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a large impact on how much insurance carriers will charge for coverage? That's because the more miles you put on your vehicle, 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 Selective charges. However, there's a small difference in monthly prices 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, State Farm is the more affordable option for drivers in both categories.

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

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a considerable impact as well. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders because of the number of cars that are on the roads in those areas.

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

For drivers in urban ZIP codes, State Farm offers premiums around $185 a month compared to Selective's $210. People who live in suburban ZIP codes can expect to pay about $161 a month for State Farm and $204 for Selective. Lastly, those in rural areas tend to get the lowest prices from both companies, with average monthly premiums coming in at $127 and $139 for State Farm and Selective respectively.

Selective 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. That's where car insurance discounts comes into play.

But with what seems like a million different discounts out there, it can be challenging to nail down the company 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 Selective and State Farm so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

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

A couple of those are overlapping for things like anti-theft discounts, distant student discounts, discounts for being a good driver, and multi-policy discounts. State Farm also offers ABS discounts, annual mileage discounts, drive safe & save discounts, and more that Selective does not.

On the flip side, Selective has a couple unique discounts of its own -- advance quote discounts, group discounts, occasional operator discounts, and more.

Final Thoughts: Is Selective or State Farm Best for You?

So, you've seen how different factors can affect your auto insurance rates. We've shown you all the discounts each carrier offers, too. That's all well and good, but when it comes down to it, which insurance company is the right one for you and your specific profile and needs?

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

• You're single and purchasing insurance by yourself.
• You want to save extra money with discounts.
• You don't spend much time in your car.

Selective might be best for you if...

• You want to save money on your auto insurance after an accident.

We hope this guide has ben a valuable resource as you compare Selective and State Farm. We also hope we've given you the information you need to make the best decision about 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 carriers, not just Selective 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 car insurance companies in your area, all for free.

Selective vs. State Farm FAQs

Is Selective or State Farm cheaper?

Looking just at the national average prices, State Farm is the cheaper of the two carriers, offering average rates of $158 per month compared to $184 for Selective. Even so, State Farm won't necessarily be the most affordable carrier for every policyholder, since there are many different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Selective or State Farm?

Sadly, the real answer is "it depends.". One company is not "better" for everyone -- it all depends on the makeup of your unique auto insurance profile.

Why do Selective and State Farm offer me different rates?

Insurance companies take a look at many different factors when calculating the rates they charge policyholders. Variables like where you live, where you park your vehicle, gender, age, and sometimes even things like your credit score can all be used. Both Selective and State Farm calculate premiums using different factors, so each one will most likely offer different prices. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from a variety of different carriers.

How do I know if Selective 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 multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best car insurance carriers in your area. That way, you can guarantee you're getting the cheapest price. And who knows, the best carrier for you might not be Selective 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.