Auto-owners vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, State Farm offers cheaper premiums than Auto-owners
• Auto-owners has more affordable prices for policyholders who don't have any speeding tickets, DUIs, or at-fault accidents on their record
• State Farm offers more affordable premiums for drivers who have an at-fault accident on their record

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Auto-owners vs. State Farm: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering hefty discounts. But exactly how much can you save by switching?

You've maybe even narrowed your search down to Auto-owners or State Farm for your next policy, but between the two, which company has less expensive rates for car insurance?

As you can see, State Farm has average rates that are about 12% per month cheaper than those from Auto-owners when looking at the national average rates for auto insurance.

Even so, State Farm may not be the most affordable or best option for each driver out there. Insurance companies use tons of complex algorithms to calculate prices, so depending on how old you are or how clean your driving record is (among a range of other factors), you could see wildly different rates from the ones above.

Wanting to know if Auto-owners 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.

Auto-owners or State Farm: Average Car Insurance Rates by State

Auto-owners and State Farm compete against each other in 23 states, with State Farm offering less expensive prices to the average driver in all of them. If you live in, undefined is the more affordable of the two carriers when looking at the overall average rates, but State Farm is the cheaper option in most of the others.

That being said, there's a lot more that goes into your auto insurance bill than just the state you live in. Read on to find out more.

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Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for car insurance than any group on the road. That's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of $40 less a month by choosing State Farm over Auto-owners.

However, both companies will offer you dramatically lower premiums once you turn 25. For example, average rates for Auto-owners policyholders drop nearly $250 and State Farm's prices decrease more than $200 over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the lowest insurance premiums out there. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for car insurance.

So, which carrier offers the best premiums to retired drivers? State Farm gets the edge here, with average prices coming in at around $111 per month compared to Auto-owners's $133.

Which is the Best Company for Married Drivers?

Did you know that auto insurance rates are usually cheaper for married couples than they are for those who are single? That's because policies for married policyholders normally cover more than one car, which many carriers will offer you a discount for.

When it comes to relationship status, State Farm is the clear winner for single policyholders, with prices about $28 per month less expensive than Auto-owners, on average. It's not quite so glaring for married drivers, where drivers who use State Farm save almost 10% a month.

Auto-owners vs. State Farm: Average Rates by Gender

Did you know women typically pay less for insurance than men? This is because men are statistically more likely than women to get speeding tickets and get into accidents, which leads to increased risk for insurers and, therefore, higher premiums.

Men generally pay around $10 per month more than women with Auto-owners, while with State Farm, the difference is closer to $12 a month.

When it comes to the cheapest prices for each gender, State Farm comes out on top for both men and women, with average premiums 11% less for men and 13% cheaper for women.

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Auto-owners 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, car insurance isn't the easiest topic to understand. There are a variety of different coverages that account for many different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's injuries and property damage if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, alongside liability coverage).

In this case, Auto-owners offers the lowest average rates for state minimum liability insurance, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $0 with Auto-Owners Insurance, while full coverage comes out to be about $45 more affordable with State Farm.

Is Auto-owners or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance companies offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that collisions and tickets lead to higher rates, but which company -- Auto-owners or State Farm -- has the most affordable prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Auto-owners policyholders can expect their premiums to go up an average of $44 per month if they get a ticket, while State Farm usually raises prices around $21 a month, on average.

If you have a clean record, Auto-owners tends to offer the best rates at about 10% cheaper, while State Farm has the edge for drivers with a speeding ticket.

Which Company is Best for Drivers After an Accident?

Auto-owners policyholders who get in an accident can expect to see their premiums increase by just under 30%, while those who have insurance through State Farm will see around a 20% increase.

Overall, the more affordable prices come from State Farm, with monthly rates averaging $163 compared to Auto-Owners Insurance's $168.

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 a collision or ticket. For example, Auto-owners increases average premiums by just under $150 per month -- that's just under a 55% increase.

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How does Credit Score Impact Auto-owners and State Farm Rates?

Often times, your credit score can be used as one of the factors to determine your monthly car insurance rates. This isn't always the case (for example, Hawaii and Michigan are two states that ban the practice entirely), but it does affect several drivers out there.

Insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

Looking at Auto-owners and State Farm specifically, which carrier has the cheapest prices for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is Auto-owners or State Farm Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much auto insurance companies will charge for coverage. Typically, the more miles you drive, the more you can expect to pay for car insurance.

For both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure, State Farm tends to be the less expensive option. Auto-owners's average rates for drivers with 6,000 annual miles come in over 15% more expensive than State Farm. Those who drive 12,000 miles each year can expect to pay nearly 10% more with Auto-owners over State Farm.

Auto-owners vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a pretty big impact on your monthly auto insurance payment. Usually, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers because of the small number of cars that are on the roads in those areas.

State Farm boasts the most affordable average premiums for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest prices from both carriers, but State Farm comes out on top with average premiums about $127 monthly. State Farm also has cheaper average rates for drivers in urban and suburban ZIP codes -- a $20 and $8 a month respective difference when compared to Auto-owners policyholders in similar areas.

Auto-owners 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, and the best way to do that is by utilizing as many car insurance discounts as you can.

But where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you qualify for.

In the table below, we've taken a look at all of the different discounts Auto-owners and State Farm 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.

Looking at the total number of discounts, Auto-owners comes out ahead with 24 discounts to State Farm's 23.

There are a couple discounts both companies offer, but Auto-owners also offers advance quote discounts, company car discounts, COVID-19 relief discount, and more that State Farm does not.

On the flip side, State Farm has a couple unique discounts of its own -- annual mileage discounts, drive safe & save discounts, DRL discounts, and more.

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Final Thoughts: Is Auto-owners or State Farm Best for You?

So, you've seen how different variables can affect your insurance prices. We've broken down the different discounts each carrier offers, too. But, at the end of the day, which company is the right fit for you?

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

• You have an at-fault collision on your record.
• Your credit score is high.
• You have a short commute.

Auto-owners might be best for you if...

• You don't have any speeding tickets, DUIs, or at-fault accidents on your record.
• You're looking for discounts -- Auto-owners has the most.
• You want basic auto insurance coverage at the state minimum limits.

We hope this guide helps you get a better idea of the difference between Auto-owners and State Farm and that it aids in making a more informed decision about your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple carriers, not just Auto-owners and State Farm. Luckily, Compare.com makes 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.

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Auto-owners vs. State Farm FAQs

Is Auto-owners or State Farm cheaper?

Looking just at the national average rates, State Farm is the less expensive of the two carriers, offering average rates of $158 per month compared to $179 for Auto-owners. But State Farm won't necessarily be the most affordable carrier for every driver, since there are lots of different factors that come into play when it comes to your auto insurance cost.

Who is better, Auto-owners or State Farm?

Sadly, the only answer we can give you is "it depends.". No one company is "better" for each driver -- it all comes down to what your unique car insurance profile looks like.

Why do Auto-owners and State Farm offer me different rates?

Insurance companies take a look at lots of different variables when calculating the premiums they charge drivers. Things such as where you live, where your home is, age, gender, and sometimes even things like your credit score can all come into play. Both Auto-owners and State Farm use different formulas, 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 bunch of different carriers.

How do I know if Auto-owners 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 several 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 free quotes from dozens of the best insurance carriers in your area. That way, you can guarantee you're getting the best rate. And who knows, the best carrier for you might not be Auto-owners or State Farm at all!

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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.