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

Quick Facts

• In general, State Farm offers slightly less expensive rates than State National
• State Farm tends to be a much cheaper option for drivers with a DUI
• State National offers more affordable premiums for policyholders who drive fewer than 6,000 miles yearly

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

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering huge savings, but exactly how much money can you save by switching?

You might be considering State Farm or State National, but between the two, which company will offer you more affordable rates?

As you can see, State National is around $1 more a month than State Farm when looking at the national average rates for insurance.

But that doesn't mean State Farm will necessarily be cheaper than State National for every driver. Car insurance carriers vary their prices depending on things like how old you are, how good your credit score is, how clean your driving record is, where you live, and a ton of other factors. So, at the end of the day, premiums from every company will differ quite a bit from person to person.

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

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

State Farm and State National only compete against each other in California, where State National offers the cheaper average rates. State National drivers tend to pay about $65 per month less on average compared to drivers who use State Farm for their auto insurance.

But there's more to insurance than just where you call home. As we mentioned above, there's a lot of things that go into how car insurance companies determine your premiums. Read on to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have State National for their auto insurance pay 10% less than those who use State Farm. It's worth noting that State Farm offers insurance in 51 different states compared to State National's one, which can skew the average rates a bit, but the difference here is still considerable.

However, both carriers will reduce premiums by the time drivers turn 25. State National offers the steepest drop, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, State Farm still has the most affordable rates at $142 per month.

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 see. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for auto insurance.

But who has the best rates for retired drivers between State Farm and State National? State Farm gets the slight edge here, with average prices coming in at about $111 monthly compared to State National's $118.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be more expensive for single drivers than they are for married drivers. This usually boils down to married policyholders having more than one vehicle on their policy -- something a lot of car insurance companies will reward with discounts.

When it comes to relationship status, State National is the winner for single policyholders, with prices around 1% a month less expensive than State Farm, on average.

State Farm or State National: Average Rates by Gender

Because women are less likely to get into accidents and get speeding tickets, they have a lower chance of filing a claim with insurance. So, women normally pay less for auto insurance than men.

On average, women see rates about 7% per month less with State Farm; everyone gets the same monthly premiums regardless of gender with State National.

When it comes to the lowest rates for each gender, State Farm is the cheapest company for women. Rates with State Farm are $7 cheaper for women, while with State National, men can save around $7.

State Farm vs. State National: 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 car insurance can be a complicated subject for most people. Everyone needs insurance, but there are so many different limits and terms that it can be hard 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 property damage and bodily injury for other drivers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- alongside liability).

When it comes to state minimum liability limits, State National has the edge, while State Farm offers the most affordable average premiums for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $20 with State National, while full coverage comes out to be about $25 more affordable with State Farm.

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

It's no secret -- drivers with good records end up getting the best deals on their auto 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 prices, but is State Farm or State National less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use State Farm for their insurance can typically expect their monthly bill to go up around 14% after getting a speeding ticket. State National policyholders can expect a bit more drastic of an increase of about 28%.

Even so, State National is normally the cheaper option for both drivers who have a recent ticket and those with clean records -- their rates are around 24% more affordable for drivers with clean records and 8% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

Both carriers will raise rates pretty significantly if you get into an at-fault collision with State National increasing by around 28%. State Farm has a less extreme increase, but you can still expect to pay nearly 20% more than you were prior to your first accident.

At the end of the day, the cheaper premiums come from State National, with average prices coming in at $142 compared to State Farm's $163.

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 -- generally a lot more than an accident or speeding ticket. State National drivers usually see a 60% increase in their auto insurance rates after a DUI charge, while State Farm will typically climb prices by about 25%.

State Farm has the overall lowest premiums for drivers with a DUI on their records at $179 a month, but it's worth noting that State Farm's average rates come from 51 states compared to just one for State National, so the data may be skewed slightly.

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

Did you know many insurance companies take your credit score into account when determining prices? This isn't true for everyone (Hawaii, for example, has banned the use of credit score as an insurance factor) but it might come into play for several policyholders.

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

So, which carrier offers the best premiums for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Usually, if you have stellar credit, you can expect to be rewarded. With State Farm, improving your score from "good" to "excellent" will normally save you around $25. Because State National, doesn't have data available for credit scores, they most likely don't use credit to calculate your prices.

Which Company is Best for Drivers with Bad Credit?

Having bad credit can cost you with State Farm. For drivers with less-than-stellar credit, at State Farm, you may pay about 50% a month more if you have "poor" credit compared to those with "fair" scores. It's an even larger difference when compared to drivers with "good" or "excellent" scores. State National, on the other hand, doesn't have data available for credit scores, which means drivers with bad credit may find better rates with State National over State Farm.

Is State Farm or State National 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 your monthly auto insurance bill? Usually, the more milage you drive, the more you can expect to pay for coverage.

Looking specifically at State National and State Farm, State Farm is the cheaper option for people with short commutes, while State Farm has better rates for those who work from home. State Farm's average premiums for drivers with 6,000 annual miles come in $10 more expensive than State National. Those who drive 12,000 miles annually can expect to pay nearly $15 more with State National over State Farm.

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

Where you live can have a sizable impact on your monthly car insurance cost. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

When comparing these two companies side-by-side, State Farm typically comes out as the less expensive option for drivers in rural and suburban areas, while State National wins in urban areas.

For drivers in urban ZIP codes, State National's average rates are around $12 less than State Farm. People who live in suburban areas pay about $2 less with State Farm compared to State National. Those in rural areas can expect to save around $16 with State Farm compared to State National.

State Farm vs. State National Discounts

No matter 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 you can, and the best way to do that is by taking advantage of as many car insurance discounts as possible.

But with what seems like a million different discounts out there, it can be challenging to find all the ones you're eligible for or to nail down the company that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and looked at all of the different discounts State Farm and State National 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 knocks State National out of the park when it comes to the sheer number of discounts available, offering 23 different discounts to State National's 10.

There are a couple discounts both carriers offer, but State Farm also offers discounts for ABS, annual mileage, defensive driver, and more.

On the other hand, State National has a few proprietary discounts of their own like auto-pilot discounts and group discounts.

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

You've seen the effect certain variables have on your insurance and the different discounts companies offer. That's all well and good, but when it comes down to it, which insurance carrier is the right fit for you?

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

• Your credit is below-average.
• Your home is located in the suburbs.
• You are purchasing your auto insurance with a spouse.

State National might be best for you if...

• You will be the only person on the insurance policy.
• You're looking for the best prices on liability only coverage.
• You drive fewer than 6,000 miles each year.

Hopefully, this guide helps you get a better idea of the difference between State Farm and State National. 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 auto insurance -- comparing quotes from several carriers, not just State Farm and State National. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best car insurance companies in your area, all in just a few minutes.

State Farm vs. State National FAQs

Is State Farm or State National cheaper?

State Farm is the more affordable of the two carriers when looking at national average premiums, with policies averaging $158 per month with State Farm and $159 for State National. That being said, that doesn't mean State Farm will be the most affordable company for everyone, since there are many different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, State Farm or State National?

Sadly, the only answer we can give you is "it depends.". Neither carrier is "better" for everyone -- it all depends on what your unique auto insurance profile looks like. For example, State Farm is cheaper for drivers who have already retired, while State National offers less expensive prices for single policyholders.

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

Insurance companies use lots of different variables when calculating the rates they charge. Factors such as gender, where you call home, your driving record, age, and sometimes even things like your credit score can all come into play. Both State Farm and State National calculate premiums using different variables, so it's likely they'll offer different prices. The best way to determine which company is the cheapest for you is by comparing personalized quotes from multiple different carriers.

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

The only way to find the car insurance carrier 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, Compare.com does all the hard work for you. Just enter your information once and you'll get quotes from dozens of your local top auto insurance carriers 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 State Farm or State National 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.