Farmers vs. Nationwide: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for insurance, Nationwide offers cheaper prices than Farmers
• Farmers has less expensive premiums for drivers with a DUI charge on their record
• Nationwide offers more affordable average prices for drivers who have an at-fault accident on their record

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Farmers vs. Nationwide: Which Company has the Cheapest Car Insurance?

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

You've maybe even narrowed it down to Farmers or Nationwide as your top options, but which one will offer you cheaper rates?

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

But Nationwide may not be the lowest or best option for every single driver out there. Auto insurance carriers use tons of complex algorithms to calculate premiums, so depending on how good your credit score is or how clean your driving record is (among an array of other factors), you could see wildly different rates from the ones above.

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

Farmers or Nationwide: Average Car Insurance Rates by State

Farmers and Nationwide compete against each other in 16 states, with Nationwide offering less expensive rates to the average driver in all but two of them. If you live in Arkansas or California, Farmers is the more affordable of the two companies when looking at the overall average prices, but Nationwide is the cheaper option in most of the others.

There are plenty of other factors that go into your car 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 generally pay a lot more for insurance than any other group of drivers out there on the road. Normally, that's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. As you can see above, teens who use Nationwide save more than $150 a month compared to those who use Farmers.

However, with both carriers, you'll see your rates drop significantly by the time drivers turn 25. For example, average prices for Farmers policyholders reduce nearly $400 and Nationwide's premiums lower around $250 over that time.

Which is the Best Company for Retired Drivers?

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

So, which company offers the best premiums to retired drivers? Nationwide gets the edge, with prices for drivers 65 and older $18 cheaper than the national average for Farmers.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly less expensive car insurance premiums than single policyholders. That's typically because married couples tend to own and insure multiple cars, which can often earn you a discount.

When it comes to relationship status, Nationwide is the clear winner for those who are single, with rates about $44 per month more affordable than Farmers, on average. The advantage is also clear for married drivers - Nationwide offers the most affordable average premiums.

Farmers vs. Nationwide: Average Rates by Gender

Did you know women usually pay less for auto insurance than men? This is because men are more likely to get into collisions and get tickets, which increases the chances of an insurance claim.

Generally, men see prices around 3% a month higher with Farmers, and about 7% more with Nationwide.

Looking at the data for each carrier specifically, Nationwide comes out on top for both men and women, with average rates $31 less for men and $36 cheaper for women.

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Farmers or Nationwide: 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. Everyone needs insurance, but there are so many different coverages and terms that it can be hard to find the right policy.

The two most common policies end up falling into two different types of coverage -- liability only (which provides property damage and bodily injury coverage for other drivers and passengers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability coverage).

If you're looking for state minimum limits for liability insurance, Nationwide normally offers less expensive prices of $112 compared to Farmers's $126. When it comes to full coverage policies with similar limits, Nationwide again has the edge, with policies around $50 per month more affordable than Farmers, on average.

Is Farmers or Nationwide Better for Drivers with Spotty Records?

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

You'll probably end up paying more with tickets and at-fault accidents on your record, but which of these two carriers offers the lowest premiums to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Farmers policyholders can expect their prices to go up an average of $44 a month if they get a ticket, while Nationwide typically raises premiums about $24 per month, on average.

That being said, Nationwide tends to offer the best prices for drivers both with a speeding ticket and with a clean record, offering rates that are 23% and 28% cheaper, respectively, compared to Farmers Insurance.

Which Company is Best for Drivers After an Accident?

Farmers drivers who get in a collision can expect to see their premiums rise by over $60, while those who have insurance through Nationwide will see around a $55 increase.

Overall, drivers who use Nationwide end up with the cheaper prices after an accident, with monthly rates averaging $178 compared to Farmers Insurance's $224.

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 ticket or even an accident. For example, Nationwide increases average prices by over $100 a month -- that's over a 45% increase.

If you have a DUI on your record and are looking for more affordable premiums, Farmers tends to be the much more affordable option with average rates of $221 a month compared to $230 from Nationwide.

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How does Credit Score Impact Farmers and Nationwide Rates?

Often times, your credit score can be used as one of the factors to determine your monthly insurance prices. Certain states and companies do not allow for credit score to be used as a rating factor, but it will come into play for lots of policyholders.

The reasoning auto insurance carriers use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will generally be forced to pay more.

Looking specifically at Nationwide and Farmers, which company has the cheapest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with Nationwide. Drivers with "excellent" credit can save just under 20% compared to Farmers, and those with "good" scores can also expect to see savings -- about $32 or 17% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

Nationwide typically offers lower rates than Farmers when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around $30 per month less with Nationwide compared to Farmers, and those with "poor" scores usually save an average of about $41 per month.

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Is Farmers or Nationwide Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a sizable impact on your monthly premiums. Normally, the more miles you drive, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a small difference in monthly rates for Nationwide, with policyholders who drive 6,000 miles yearly paying around $1 less every month compared to those who drive 12,000 miles annually. Still, Nationwide is the cheaper option for drivers in both categories.

Farmers vs. Nationwide: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a pretty big impact as well. Generally, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because there are a lot more vehicles on the roads in those areas.

Nationwide boasts the lowest average rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, Nationwide offers prices about $199 monthly compared to Farmers's $251. People who live in suburban ZIP codes can expect to pay around $159 a month for Nationwide and $189 for Farmers. Lastly, those in rural areas tend to get the most affordable premiums from both companies, with average monthly rates coming in at $151 and $170 for Nationwide and Farmers respectively.

Farmers vs. Nationwide Discounts

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

But with what seems like a million different discounts out there, it can be difficult to find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

Below, we've taken a look at all of the different discounts Farmers and Nationwide offer their customers so that you can see which carrier can save you the most money each month.

Farmers blows Nationwide away when it comes to the sheer amount of discounts available, offering six more discounts than Nationwide.

Both carriers offer several of the same discounts -- like anti-theft discounts, distant student discounts, discounts for getting driver training, and discounts for being a good student -- but Farmers also offers ABS discounts, alternative fuel discounts, ESC discounts, and more that Nationwide does not.

On the flip side, Nationwide has a couple unique discounts of its own -- agency transfer discounts, employee discounts, intra-agency transfer discounts, and more.

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Final Thoughts: Is Farmers or Nationwide Best for You?

So, you've seen how different variables can affect your auto insurance prices. We've shown you all the discounts each company offers, too. But, when it comes down to it, which insurance carrier is the right one for you and your specific driver profile?

Nationwide might be best for you if....

• You want to save money on your car insurance after a collision.
• You're looking for more protection with "full coverage" insurance.
• You drive often but have a short commute.

Farmers might be best for you if...

• You have a DUI charge on your record.
• You care about discounts (Farmers offers the most).

We hope this guide has ben a valuable resource as you compare Farmers and Nationwide and that it aids in making a more informed decision about your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from several companies, not just Farmers and Nationwide. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance carriers in your area, all in just a few minutes.

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Farmers vs. Nationwide FAQs

Is Farmers or Nationwide cheaper?

Looking just at the national average premiums, Nationwide is the less expensive of the two companies, offering average rates of $170 per month compared to $203 for Farmers. Even so, Nationwide won't necessarily be the cheapest company for everyone, since there are several different factors that come into play when it comes to your car insurance cost.

Who is better, Farmers or Nationwide?

Unfortunately, the only answer we can give you is "it depends.". No one carrier is "better" for each driver -- it all comes down to what your unique auto insurance profile looks like. For example, Farmers offers cheaper rates for drivers with a recent DUI, while Nationwide is more affordable for drivers with excellent credit.

Why do Farmers and Nationwide offer me different rates?

Insurance carriers take a look at a lot of different variables when calculating the prices they charge drivers. Factors such as age, gender, where you call home, your driving record, and sometimes even things like your credit score can all come into play. Both Farmers and Nationwide calculate premiums using different variables, so each one will most likely offer different prices. The only real way to see which company is the lowest for you is by comparing personalized quotes from a bunch of different companies.

How do I know if Farmers or Nationwide 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, sites like Compare.com make it easy for you to do just that. Just enter your information once and you'll get free quotes from dozens of the best insurance companies in your area. With those, you can guarantee you're getting the best premium. And who knows, the best company for you might not be Farmers or Nationwide 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.