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

Quick Facts

• Based on national averages for auto insurance, Union Mutual offers less expensive rates than State Farm
• State Farm offers cheaper average premiums for drivers with a DUI charge on their record
• Union Mutual tends to be a much more affordable option for people who are single and purchasing insurance by yourself

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

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

You might have narrowed your search down to State Farm or Union Mutual as your top options, but between the two, which one will save you the most?

Looking at the national average rates for both companies, State Farm has average rates that are about 16% per month more expensive than those from Union Mutual.

But that doesn't necessarily mean Union Mutual will be the less expensive option for every driver. After all, auto insurance carriers can offer drastically different rates to each driver depending on rating factors like your credit score, your age, where you call home, or even your driving record (among other things). So, at the end of the day, prices from every company will differ quite a bit from person to person.

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

State Farm or Union Mutual: Average Car Insurance Rates by State

State Farm and Union Mutual only compete against each other in Vermont, where State Farm offers the cheaper average premiums. For Vermont residents, State Farm offers car insurance for $80 monthly on average. Union Mutual's average rates come out to be over 60% more expensive, at $132 a month.

But there's more to calculating insurance premiums than just your home state. Read on to find out more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for auto insurance than any other group of drivers out there 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.

However, that doesn't mean that teen drivers have to just accept sky-high car insurance prices. As you can see above, teens who use Union Mutual save nearly $15 a month compared to those who use State Farm. It's worth noting that State Farm offers auto insurance in 51 different states compared to Union Mutual's one, which can skew the average rates a bit, but the difference here is still considerable.

That being said, both companies will offer you dramatically lower prices once you turn 25. For example, average premiums for State Farm policyholders drop almost 60% and Union Mutual's prices decrease more than 70% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the most affordable car insurance premiums you'll ever find. After all, they've likely been driving for quite some time, which typically reduces their chances of accidents and other infractions that can increase rates.

So, which company offers the best prices to retired drivers? Union Mutual gets the edge here, with average premiums coming in at around $97 per month compared to State Farm's $111.

Which is the Best Company for Married Drivers?

Did you know that insurance rates are usually more expensive for single drivers than they are for married couples? This usually boils down to married drivers having multiple cars on their policy -- something many car insurance carriers will reward with discounts.

When it comes to relationship status, Union Mutual is the clear winner for those who are single, with premiums about $23 per month cheaper than State Farm, on average. The advantage for married policyholders with Union Mutual is also obvious, where drivers save nearly 25% a month.

State Farm vs. Union Mutual: Average Rates by Gender

Women tend to pay less for auto insurance than men. This is because men are statistically more likely than women to get into accidents and get speeding tickets, which leads to increased risk for insurers and, therefore, higher rates.

Usually, women see prices over $10 per month more affordable with State Farm, while with Union Mutual, the difference is closer to $14 a month.

Looking at overall affordability, Union Mutual comes out on top for both men and women, with average rates $25 less for men and $27 cheaper for women.

State Farm or Union Mutual: 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. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's property damage and injuries if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to liability coverage).

In this case, Union Mutual offers the lowest average premiums for state minimum liability limits, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $50 with Union Mutual, while full coverage comes out to be around $0 cheaper with State Farm.

Is State Farm or Union Mutual 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 at-fault collisions will most likely raise your prices, but is State Farm or Union Mutual more affordable for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

State Farm policyholders can expect their rates to go up an average of $21 per month if they get a ticket, while Union Mutual normally raises prices about $4 a month, on average.

Even so, Union Mutual has less expensive premiums for drivers in both categories, offering prices that are $46 and $63 cheaper, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through State Farm can expect to see around an $29 -- or about 18% -- increase in their auto insurance rates. Drivers who use Union Mutual for their insurance will see a monthly bill around $15 (or 15%) more expensive after reporting a collision to their car insurance carrier.

Overall, Union Mutual offers the most affordable premiums for drivers with an at-fault accident on their records, with monthly rates averaging $103 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, Union Mutual will increase your prices about 64% after a DUI, while State Farm's average premiums climb by over 25%.

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

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

Often times, your credit score can come into play when companies calculate your monthly bill. Certain states and carriers do not allow for credit score to be used as a rating factor, but it might come into play for a lot of policyholders.

The reasoning auto insurance companies 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.

Looking specifically at Union Mutual and State Farm, which carrier has the lowest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with State Farm. Drivers with "excellent" credit can save 20% compared to Union Mutual, and those with "good" scores can also expect to see savings -- around $2 or 2% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

Union Mutual typically offers lower prices than State Farm when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about $21 per month less with Union Mutual compared to State Farm, and those with "poor" scores generally save an average of around $106 a month.

Is State Farm or Union Mutual 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 sizable impact on your monthly car insurance bill? That's because the fewer miles you drive, the less 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 Union Mutual charges. However, there's a small difference in monthly rates for State Farm, with policyholders who drive the least paying about $13 less every month compared to those who drive 12,000 miles each year. Still, Union Mutual is the less expensive option for drivers in both categories.

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

Where you call home can have a big impact on your monthly 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 in those areas.

When comparing these two carriers side-by-side, Union Mutual tends to offer the cheapest option for drivers in urban and suburban areas, while State Farm wins in rural areas.

Those in rural areas can expect to pay around $127 per month with State Farm and $132 with Union Mutual. People in suburban areas pay about $135 with Union Mutual compared to State Farm's $161 a month. For drivers in urban ZIP codes, Union Mutual's average premiums are around $128 while State Farm offers prices about $185.

State Farm vs. Union Mutual Discounts

You want to save as much money as possible, right? The best way to do that is by taking advantage of as many auto insurance discounts as you can.

The challenging part is finding all of the discounts you can take advantage of, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the section below, we've compared all of the different discounts offered by State Farm and Union Mutual 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 blows Union Mutual away when it comes to the sheer amount of discounts available, offering 13 more discounts than Union Mutual.

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

On the flip side, Union Mutual has a couple unique discounts of its own -- company car discounts and hybrid vehicle discounts.

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

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

Union Mutual might be best for you if....

• You're single and purchasing auto insurance by yourself.
• Your home is located in the suburbs.
• You're married and plan to have both of your names on the vehicle's car insurance policy.

State Farm might be best for you if...

• You're thinking about moving to another state -- Union Mutual only offers policies in VT.
• You already have a great credit score.
• You're looking for more protection with "full coverage" insurance.

We hope this guide helps you get a better idea of the difference between State Farm and Union Mutual and that it aids in making a more informed 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 companies, not just State Farm and Union Mutual. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple quotes from some of the best insurance carriers in your area, all for free.

State Farm vs. Union Mutual FAQs

Is State Farm or Union Mutual cheaper?

Looking just at the national average rates, Union Mutual is the more affordable of the two companies, offering average rates of $132 a month compared to $158 for State Farm. But Union Mutual won't necessarily be the most affordable company for everyone, since there are many different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, State Farm or Union Mutual?

Unfortunately, the answer truly is "it depends.". One carrier is not "better" for every driver -- it all comes down to what your unique car insurance profile looks like.

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

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

How do I know if State Farm or Union Mutual 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 carriers 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 auto insurance companies in your area. With those, you can guarantee you're getting the most affordable price. And who knows, the best company for you might not be State Farm or Union Mutual 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.