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

Quick Facts

• Based on national averages for auto insurance, State Farm offers significantly more affordable rates than The General
• State Farm offers more affordable prices for policyholders who live in urban areas
• The General has cheaper rates in AZ, MO, and UT

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

So, you're thinking about switching to a new insurance policy. With so many ads from all sorts of companies offering large savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to State Farm or The General as your top options, but which company will offer you less expensive premiums?

As you can see, The General has average rates that are around 35% 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 cheaper than The General for each driver. Auto insurance carriers vary their prices depending on things like how clean your driving record is, where you live, how old you are, how good your credit score is, and a ton of other factors, so premiums will vary quite a bit from person to person.

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

State Farm vs. The General: Average Car Insurance Rates by State

State Farm and The General only compete against each other in three states, with State Farm offering less expensive premiums to the average driver in all of them. If you live in Utah, The General is the more affordable of the two companies when looking at the overall average rates. State Farm is the cheaper option in Arizona and Missouri.

That being said, there's a lot more that goes into your car insurance bill than just where you live. Read on to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance prices of any group on the road. The reason is that teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, 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 almost 20% per month compared to those who use The General. It's worth noting that State Farm offers insurance in 51 different states compared to The General's three, which can skew the average prices a bit, but the difference here is still considerable.

That being said, both carriers will offer you dramatically lower premiums by the time drivers turn 25. For example, average rates for State Farm policyholders reduce about $200 and The General's prices lower over $200 over that time.

Which is the Best Company for Retired Drivers?

When it comes to car insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest premiums you'll ever see.

When looking at State Farm and The General specifically, which carrier is best for retired drivers? State Farm gets the edge, with rates for drivers 65 and older nearly 45% less expensive than the national average for The General.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance premiums tend to be more affordable for married policyholders than they are for single drivers. This usually boils down to married couples having several vehicles on their policy -- something many auto insurance companies will reward with discounts.

For those who are single, the difference in average prices between these two carriers is significant, with State Farm rates coming in at a third less than The General's. The advantage for married drivers with State Farm is also obvious, where drivers save more than 35% a month.

State Farm or The General: Average Rates by Gender

Did you know men tend to pay more for car insurance than women? This is because men are statistically more likely than women to get into collisions and file an insurance claim, which leads to increased risk for insurers and, therefore, higher prices.

Men typically pay around $10 per month more than women with State Farm, and over $30 with The General.

When it comes to the most affordable premiums for each gender, State Farm comes out as the lowest option for both genders. On average, women save about $73 a month and men save about $93 with State Farm compared to the average The General policyholder.

State Farm vs. The General: 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 limits and terms 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 (which provides property damage and bodily injury coverage for other drivers and their passengers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to what you get with liability).

Looking specifically at state minimum liability insurance, State Farm has the significant edge, with average monthly rates 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 around $216 per month to The General's $329.

Is State Farm or The General 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 at-fault accidents will most likely raise your prices, but is State Farm or The General cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use State Farm for their car insurance can generally expect their monthly bill to go up about 14% after getting a speeding ticket. The General policyholders can expect a bit more drastic of an increase of around 20%.

But State Farm tends to offer the best prices for drivers both with a ticket and with a clean record. With State Farm, drivers with a clean record can save about $58 a month and drivers with a speeding ticket can save around $85 per month.

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 The General climbing by about 31%. 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, State Farm offers the cheapest prices for drivers with an at-fault collision on their records, with average premiums coming in at $163 compared to The General's $279.

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 auto insurance bill -- normally a lot more than an accident or ticket. The General drivers usually see a 24% increase in their insurance rates after a DUI charge, while State Farm will usually climb prices by around 25%.

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

How does Credit Score Impact State Farm and The General Rates?

Did you know many car insurance carriers take into account your credit score when determining premiums? Certain states and companies do not allow for credit score to be used as a car insurance factor, but it might come into play for several drivers.

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

Looking specifically at State Farm and The General, which one has the best prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, State Farm will generally reward you the most. For drivers with "excellent" credit scores, State Farm comes in just under 54.55 more affordable. Drivers with "good" credit scores normally save about 52% with State Farm compared to average premiums from The General.

Which Company is Best for Drivers with Bad Credit?

State Farm typically offers lower rates than The General when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 40% a month less with State Farm compared to The General, and those with "poor" scores typically save an average of about 8% monthly.

Is State Farm or The General Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a sizable impact on your monthly auto insurance cost. That's because the more milage you drive, the more likely you are to be in a collision and file an insurance claim.

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

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

Where you live can have a substantial impact on your monthly car insurance payment. Usually, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers due to the small number of vehicles that are on the roads where they live.

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

For policyholders in urban ZIP codes, State Farm's average rates are about 40% less than The General. People who live in suburban areas pay around 28% less with State Farm compared to The General. Those in rural areas can expect to save about 33% with State Farm compared to The General.

State Farm vs. The General Discounts

No matter why you might be in the market for a new 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 auto insurance discounts as possible.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both State Farm and The General so that you can see which carrier can save you the most money each month.

State Farm knocks The General out of the park when it comes to the sheer number of discounts available, offering 17 more discounts than The General.

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

On the other hand, The General has a few proprietary discounts of their own for things like group discounts, liability only discounts, paid in full discounts, and more.

Final Thoughts: Is State Farm or The General Best for You?

You've seen the role certain variables have on your insurance and the different discounts companies offer. But, when it comes down to it, is State Farm or The General the right company for you and your specific needs?

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

• You will be the only person on the auto insurance policy.
• Your credit score is high.
• You drive fewer than 6,000 miles yearly.

The General might be best for you if...

• You're looking for the best rates in AZ, MO, and UT.

Hopefully, this guide helps you get a better idea of the difference between State Farm and The General 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 State Farm and The General. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

State Farm vs. The General FAQs

Is State Farm or The General cheaper?

State Farm is the cheaper of the two carriers when looking at national average prices, with policies averaging $158 per month with State Farm and $241 for The General. However, that doesn't mean State Farm will be the most affordable company for everyone, since there are multiple different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, State Farm or The General?

Sadly, the real answer is "it depends.". No one carrier is necessarily "better" for everyone -- it all depends on the makeup of your unique auto insurance profile.

Why do State Farm and The General offer me different rates?

Insurance companies use a lot of different variables when calculating the rates they charge. Factors such as your driving record, age, gender, where you call home, and sometimes even things like your credit score can all be used. Both State Farm and The General use different formulas, so it's likely they'll offer different prices. The best way to determine which company is the lowest for you is by comparing personalized quotes from a range of different carriers.

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

The only way to find the auto 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 car insurance carriers for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't State Farm or The General 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.