State Farm and Farmers are two well-known auto insurance providers, but which one offers cheaper rates in 2022?
State Farm is the biggest property and casualty insurance company in the U.S., writing more premiums in 2021 than any other insurer, according to recently released data from the National Association of Insurance Commissioners (NAIC). But Farmers is a major competitor and both firms offer policies throughout the U.S.
If you’ve been shopping for car insurance, you may have noticed that State Farm, Farmers and other insurers offer different rates. The prices differ because each insurer uses its own unique formula to assess risk and determine how much you pay.
When looking at just State Farm and Farmers, a 2022 analysis of rate information by Insurance.com found that State Farm has cheaper rates than Farmers in most categories.
But keep in mind that rates vary according to age, gender, where you live, your driving history and the type of car you drive. Just because State Farm offers cheaper rates in most insurance categories, it doesn’t necessarily mean its rates will be cheaper for you.
Below, we look at insurance categories, which carrier has the cheaper insurance rates and discuss some of the factors that can affect your insurance premiums.
Cheapest for teen drivers: State Farm
State Farm has cheaper car insurance rates than Farmers for both male and female teen drivers, according to Insurance.com’s rate study. The average cost of insuring a car for a male teen with State Farm is $3,480 a year – that's $3,833 less than the average insurance cost to insure a teen with Farmers.
Young, inexperienced drivers pay higher car insurance premiums because they're at risk of being involved in accidents. As a driver gets older and more experienced, their rates start to decrease steadily.
Use the below table to compare rates for male and female teenage drivers from State Farm and Farmers.
| Company | Female | Male |
|---|---|---|
| State Farm | $ 3,480 | $ 4,175 |
| Farmers | $ 7,313 | $ 7,710 |
Cheapest for young adult drivers: State Farm
State Farm wins in this category as well. According to Insurance.com analysis, State Farm offers cheaper car insurance rates for young male and female drivers. State Farm insurance costs an average of $2,452 a year for young male drivers, whereas Farmers charges $3,077 a year for male drivers of the same age group.
The table below shows the State Farm and Farmers average annual car insurance rates for young drivers.
| Company | Female | Male |
|---|---|---|
| State Farm | $ 2,129 | $ 2,452 |
| Farmers | $ 2,862 | $ 3,077 |
Cheapest for adult drivers: State Farm
According to Insurance.com research, State Farm’s average car insurance rates are cheaper for adult drivers than Farmers' average rates. State Farm offers adult male drivers a full coverage policy for $1,469 a year, while Farmers has an average annual cost of $2,001 per year for the same coverage.
Below are the average State Farm and Farmers car insurance rates for adult drivers:
| Company | Female | Male |
|---|---|---|
| State Farm | $ 1,446 | $ 1,469 |
| Farmers | $ 2,028 | $ 2,001 |
Cheapest for senior drivers: State Farm
Senior drivers often have a hard time finding affordable car insurance. However, State Farm has cheaper car insurance rates for senior drivers than Farmers, based on Insurance.com analysis.
Insurance.com found that State Farm has rates that are 34% cheaper than Farmers for senior male drivers.
Below are the average State Farm and Farmers car insurance rates for senior drivers:
| Company | Female | Male |
|---|---|---|
| State Farm | $ 1,344 | $ 1,344 |
| Farmers | $ 1,941 | $ 2,024 |
Cheapest car insurance company based on driving profile
Your credit score and driving record are two essential factors in determining your car insurance rates. A low credit rating, any violations, or an accident on your record can lead to a high premium for you.
State Farm is the more affordable choice for drivers with poor credits, DUI, and speeding tickets.
Cheapest for a driver with poor credits: State Farm
State Farm offers the cheaper rates for drivers with poor credit scores at about $4,264 for male drivers--- that's 21% cheaper than the average rate of Farmers.
However, in states like California, Hawaii, Massachusetts, and Michigan, insurance companies are not allowed to use credit scores as a parameter to calculate insurance rates.
The table below provides average insurance premiums for Farmers and State Farm for drivers with poor credits.
| Company | Female | Male |
|---|---|---|
| State Farm | $ 4,264 | $ 4,264 |
| Farmers | $ 5,605 | $ 5,389 |
Cheapest for drivers with DUI: State Farm
According to Insurance.com research, State Farm provides cheaper insurance rates to drivers with a DUI on their record than Farmers. Its average annual rate is $3,462 for both male and female drivers. However, it's still $2,027 more than the State Farm national average yearly rate for a 40-year-old driver with a clean record.
Around 32 people die in drunk-driving crashes every day in the United States— that's one person every 45 minutes, according to NHTSA. Drivers with a DUI on their record pose a greater risk to insurance companies and thus face increased insurance premiums.
Below are the average annual rates from State Farm and Farmers for drivers with a DUI on their record.
| Company | Female | Male |
|---|---|---|
| State Farm | $ 3,462 | $ 3,462 |
| Farmers | $ 4,586 | $ 4,487 |
Cheapest for a driver with speeding tickets: State Farm
State Farm offers cheaper car insurance rates for drivers with speeding tickets at about $2,088 a year for both male and female drivers. Farmers' rate for male drivers with speeding tickets on their record is $3,725 -- $1,637 more than State Farm's average rates for male drivers.
The table below compares rates between State Farm and Farmers for drivers with speeding tickets.
| Company | Female | Male |
|---|---|---|
| State Farm | $ 2,088 | $ 2,088 |
| Farmers | $ 3,822 | $ 3,725 |
State Farm Vs. Farmers: Discounts
When it comes to choosing a car insurance provider, there are many factors to consider. Both State Farm and Farmers offer various discounts that can save drivers money on their premiums.
State Farm and Farmers provide discounts for things like having multiple policies with the company, having a clean driving record, and completing a defensive driving course. Ultimately, the best choice will depend on your circumstances and which discounts you are eligible for.
Below is a list of discounts offered by State Farm and Farmers:
| Category | Farmers | State Farm |
|---|---|---|
| Airbags | Yes | Yes |
| Anti-theft device | Yes | Yes |
| Daily commute | No | Yes |
| Days advanced purchase | Yes | No |
| Days per week driven | No | Yes |
| Defensive driver | Yes | Yes |
| Driver training | Yes | Yes |
| Electronic funds transfer | Yes | No |
| Good student | Yes | Yes |
| Homeowner | Yes | Yes |
| Lower annual mileage | Yes | Yes |
| Loyalty - Years renewal with company | Yes | Yes |
| Marital status | Yes | No |
| Multi-policy | Yes | Yes |
| Paperless/electronic documents | Yes | No |
| Payment type | Yes | No |
| Primary use | Yes | Yes |
| Purchase status | Yes | No |
| Safety devices | Yes | Yes |
| Student away at school | Yes | Yes |
| Telematics | No | Yes |
| Years insured | Yes | Yes |
| Years licensed | Yes | Yes |
Final Thoughts: State Farm Vs. Farmers
Both State Farm and Farmers are well-established companies with a long history of providing quality service. Both insurers are also reliable choices for car insurance. However, State Farm offers comprehensive coverage at a lower price point. Farmers is close, but their rates are just slightly higher than State Farm.
Ultimately, the best choice for you will depend on your specific needs and preferences. There's no one-size-fits-all when it comes to choosing an insurer, so taking the time to compare your options can help you find affordable coverage for your insurance needs.
Sources
- Insurance.com “10 biggest property and casualty insurance companies in 2022.”
- NHTSA “Drunk Driving.” Accessed May 2022.