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

Quick Facts

• In general, Erie offers slightly cheaper rates than State Farm
• Erie offers more affordable premiums for people who are single and purchasing insurance by yourself
• State Farm offers less expensive average rates for drivers with a DUI charge on their record

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

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

You might be considering Erie or State Farm, but which one will offer you more affordable premiums?

As you can see, Erie is about $5 per month less expensive than State Farm when looking at the national average rates for car insurance.

However, that doesn't mean Erie will necessarily be cheaper than State Farm for every driver. Insurance companies vary their prices depending on things like where you live, how clean your driving record is, how good your credit score is, how old you are, and a variety of other factors, so rates could differ drastically from person to person.

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

Erie or State Farm: Average Car Insurance Rates by State

Erie and State Farm compete against each other in 11 states, with Erie offering more affordable premiums to the average driver in all of them. If you live in, undefined is the cheaper 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 where you call home. Continue reading to learn more about how other factors will affect your rates.

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Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for car insurance compared to older drivers. It's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean teen drivers can't still save money on their auto insurance. Just look at the table above -- where 18-year-old drivers who have Erie for their insurance pay nearly $40 less than those who use State Farm.

That being said, both companies will reduce premiums by the time you turn 25. For example, average prices for Erie policyholders decrease more than $150 and State Farm's rates drop around $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 lowest prices you can find.

So, which carrier offers the best premiums to retired drivers? State Farm gets the slight edge here, with average rates coming in at about $111 monthly compared to Erie's $116. But that difference is less than 5%, which means it ultimately will come down to other variables, such as your driving record or where you live.

Which is the Best Company for Married Drivers?

You may not be aware, but insurance prices tend to be more affordable for married drivers than they are for single policyholders. This usually boils down to married couples having more than one car on their policy -- something quite a few auto insurance carriers will reward with discounts.

If you're in the market for car insurance, Erie tends to have the most affordable average premiums regardless of if you're married or single, with prices around 2% less expensive for married policyholders and about 4% cheaper for single drivers.

Erie vs. State Farm: Average Rates by Gender

Men tend to pay more for insurance than women. This is because men are statistically more likely than women to get into an accident or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

Generally, women see rates around 7% a month less with Erie, while with State Farm, the difference is closer to 7% per month.

Looking at the data for each company specifically, Erie comes out as the lowest option for both genders, with average premiums $6 less for men and $5 cheaper for women.

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Erie 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.

It's no secret that auto insurance can be pretty complicated. There are lots of different coverages that account for several different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause a collision.

That being said, most 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 -- alongside liability).

If you're looking for state minimum liability limits, Erie generally offers slightly more affordable rates of $91 compared to State Farm's $99. When it comes to full coverage policies with similar limits, Erie again has the edge, with policies about $1 a month less expensive than State Farm, on average.

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

It's no big secret that drivers who are accident-free get better deals on their insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with tickets and accidents on your record, but which of these two companies offers the most affordable premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Erie policyholders can expect their prices to go up an average of $18 per month if they get a ticket, while State Farm typically raises rates around $21 a month, on average.

But Erie has more affordable premiums for drivers in both categories -- their rates are around 11% less expensive for drivers with clean records and 12% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through Erie can expect to see about an $38 -- or around 24% -- increase in their auto insurance prices. Drivers who use State Farm for their car insurance will see a monthly bill about $29 (or 18%) more expensive after reporting a collision to their auto insurance carrier.

Overall, the less expensive premiums come from Erie, with monthly prices averaging $157 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 insurance bill -- usually a lot more than an accident or speeding ticket. Erie drivers usually see a 40% increase in their car insurance rates after a DUI charge, while State Farm will typically raise prices by around 25%.

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How does Credit Score Impact Erie and State Farm Rates?

Did you know that many auto insurance carriers take your credit score into account when calculating premiums? This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it does affect lots of drivers out there.

Insurance companies argue that those with poor credit scores are less likely to pay their bills on time each month, which increases the risk involved on their end, while the opposite is true for those with good credit.

So, which company offers the best rates for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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Is Erie or State Farm 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 pretty big impact on your monthly auto insurance cost? That's because the fewer miles you drive, the less likely you are to get into a collision and cause an insurance claim.

Erie tends to be the more affordable option for both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure. State Farm's average prices for drivers with 6,000 annual miles come in $4 more expensive than Erie. Those who drive 12,000 miles annually can expect to pay $6 more with State Farm over Erie.

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

Where you call home can have a large impact on your monthly insurance payment. Usually, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because there are a lot fewer vehicles on the road in those areas, which lowers the chances of an accident.

Looking at these carriers side-by-side, Erie normally comes out as the cheaper option for drivers in rural and suburban areas, while State Farm wins in urban areas.

If you live in a rural area, you can expect to save about $12 with Erie compared to State Farm. Drivers in suburban ZIP codes pay around $16 less with Erie compared to State Farm. In urban areas, State Farm's average rates are about $9 less than Erie Insurance.

Erie vs. State Farm Discounts

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

The challenging part is finding all of the discounts you're eligible for, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

In the section below, we've compared all of the different discounts offered by Erie and State Farm so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Overall, State Farm comes out ahead with 23 discounts to Erie's 21.

A couple of those are overlapping for things like anti-theft discounts, distant student discounts, discounts for getting driver training, and discounts for being a good driver. State Farm also offers annual mileage discounts, drive safe & save discounts, good student discounts, and more that Erie does not.

On the flip side, Erie has a couple unique discounts of its own -- advance quote discounts, COVID-19 relief discount, paid in full discounts, and more.

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

So, you've seen how different factors can affect your insurance premiums. We've broken down the different discounts each company offers, too. That's all well and good, but at the end of the day, which carrier is the best carrier for you and your specific profile and needs?

Erie might be best for you if....

• You've received a ticket for speeding recently and don't want to see your prices increase.
• You're looking for more protection with "full coverage" auto insurance.
• You drive fewer than 12,000 miles every year.

State Farm might be best for you if...

• You value the experience that comes with a large national car insurance company.
• You already have a great credit score.
• Your home is in a busy urban area.

We hope this guide helps you get a better idea of the difference between Erie and State Farm and that you can now make a more informed decision when it comes to your 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 car insurance -- comparing quotes from a handful of companies, not just Erie and State Farm. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best auto insurance carriers in your area, all for free.

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Erie vs. State Farm FAQs

Is Erie or State Farm cheaper?

Looking just at the national average rates, Erie is the less expensive of the two companies, offering average rates of $153 per month compared to $158 for State Farm. However, Erie won't necessarily be the cheapest carrier for everyone, since there are multiple different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Erie or State Farm?

Sadly, the only answer we can give you is "it depends.". No one company is necessarily "better" for each driver -- it all comes down to what your unique insurance profile looks like. For example, Erie offers cheaper premiums for single drivers, while State Farm is more affordable for drivers who have already retired.

Why do Erie and State Farm offer me different rates?

Car insurance carriers take a look at several different factors when determining the rates they charge policyholders. Things like gender, where your home is, your driving record, age, and sometimes even things like your credit score can all come into play. Both Erie and State Farm calculate premiums differently, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a bunch of different companies.

How do I know if Erie 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 multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your information once and you'll get free quotes from dozens of the best car insurance companies in your area. With those, you can guarantee you're getting the lowest rate. And who knows, the best carrier for you might not be Erie 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.