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

Quick Facts

• In general, Pemco offers significantly less expensive prices than State Farm
• Pemco has more affordable premiums for policyholders who may not have much of a commute
• State Farm offers more discounts than PEMCO Insurance

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

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

You've maybe even narrowed your search down to Pemco or State Farm as potential options, but which carrier has cheaper prices for auto insurance?

Looking at nationwide averages, State Farm is quite a bit more expensive than Pemco, with premiums averaging $158 per month compared to just $107 with Pemco.

But Pemco may not be the cheapest or best option for every driver out there. Insurance companies use a ton of complex algorithms to calculate rates, so depending on where you live or how old you are (among a multitude of other factors), you could see wildly different prices from the ones above.

Wanting to know if Pemco 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.

Pemco or State Farm: Average Car Insurance Rates by State

Pemco and State Farm only compete against each other in Washington, where State Farm offers the cheaper average rates. For Washington residents, State Farm offers auto insurance for $89 monthly on average. Pemco's average premiums come out to be over 15% more expensive, at $107 per month.

That being said, there's a lot more that goes into your car insurance payment than just where you live. Keep reading to learn 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 auto insurance than any other group of drivers. That's typically 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.

That being said, that doesn't mean teen drivers can't still save money on their insurance. For example, 18-year-old drivers pay an average of nearly $150 less a month by choosing Pemco over State Farm.

Even so, with both carriers, you'll see your prices decrease significantly by the time you turn 25. For example, average rates for Pemco policyholders lower more than 55% and State Farm's premiums drop almost 60% over that time.

Which is the Best Company for Retired Drivers?

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

So, which carrier offers the best premiums to retired drivers? Pemco gets the edge, with rates for drivers 65 and older nearly 20% less expensive than the national average for State Farm.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be more expensive for those who are single than they are for married policyholders. That's typically because married couples tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, Pemco is the clear winner for single drivers, with premiums about $60 per month more affordable than State Farm, on average. The advantage is also clear for married drivers - Pemco offers the cheapest average rates.

Pemco vs. State Farm: Average Rates by Gender

Because men are more likely to get into accidents and get speeding tickets, they raise the chances of filing a claim with insurance. Therefore, insurance companies will tend to offer men more expensive prices.

Generally, women see premiums around $4 a month cheaper with Pemco, and over $10 cheaper with State Farm when compared to their male counterparts.

When it comes to the most affordable rates for each gender, Pemco offers the lowest average prices for both men and women, with average premiums $55 less for men and $47 cheaper for women.

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Pemco 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.

Car insurance can be a complicated subject for most people. There are so many different limits and coverages 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 provides bodily injury and property damage 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 liability).

If you're looking for state minimum liability insurance, Pemco usually offers significantly more affordable prices of $62 compared to State Farm's $99. When it comes to full coverage policies with similar limits, Pemco again has the edge, with policies about $65 per month less expensive than State Farm, on average.

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

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

Collisions and tickets will most likely raise your prices, but is Pemco or State Farm cheaper for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Pemco policyholders can expect their rates to go up an average of $16 a month if they get a ticket, while State Farm generally raises premiums around $21 per month, on average.

However, Pemco tends to offer the best prices for drivers both with a speeding ticket and with a clean record, offering prices that are $49 and $54 more affordable, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Pemco drivers who get in a collision can expect to see their premiums climb by just under 25%, while those who have insurance through State Farm will see about a 20% increase.

Overall, drivers who use Pemco end up with the cheaper prices after an accident, with monthly rates averaging $111 compared to State Farm's $163.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your car insurance bill. For example, Pemco increases average premiums by over $45 a month -- that's over a 35% increase.

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How does Credit Score Impact Pemco and State Farm Rates?

Often times, your credit score can be used as one of the factors to determine your monthly insurance prices. This isn't always the case (for example, are two states that ban the practice entirely), but it will come into play for lots of policyholders.

Auto insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with cheaper rates.

Looking specifically at Pemco and State Farm, which company has the best premiums for policyholders 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 Pemco 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 your monthly rates. Normally, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, Pemco offers less expensive prices than State Farm. State Farm's average rates for drivers with 6,000 annual miles come in more than $45 more expensive than Pemco. Those who drive 12,000 miles annually can expect to pay just under $55 more with State Farm over Pemco.

Pemco vs. State Farm: 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 insurance, but the type of area you live in can have a considerable impact as well. Typically, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders due to the number of cars that are on the roads in those areas.

Pemco boasts the lowest average premiums for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Pemco offers prices around $115 a month compared to State Farm's $185. People who live in suburban ZIP codes can expect to pay about $119 per month for Pemco and $161 for State Farm. Lastly, those in rural areas tend to get the cheapest premiums from both carriers, with average monthly rates coming in at $88 and $127 for Pemco and State Farm respectively.

Pemco vs. State Farm Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible. That's where car insurance discounts comes into play.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you qualify for.

In the table below, we've broken down all of the different discounts offered by both Pemco and State Farm so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

State Farm knocks Pemco out of the park when it comes to the sheer number of discounts available, offering 23 different discounts to Pemco's 23.

Both companies offer a lot of the same discounts -- like discounts for being a defensive driver, discounts for being a good student, and discounts for being a homeowner -- but State Farm also offers ABS discounts, annual mileage discounts, drive safe & save discounts, and more that Pemco does not.

On the flip side, Pemco has a couple unique discounts of its own -- advance quote discounts, employee discounts, group discounts, and more.

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

You've seen the effect certain variables have on your insurance and the different discounts carriers offer. That's all well and good, but at the end of the day, which carrier is the right carrier for you, your vehicle, and your wallet?

Pemco might be best for you if....

• You have a DUI charge on your record.
• You and your spouse are buying auto insurance together.

State Farm might be best for you if...

• You're planning on moving to another state soon -- undefined only offers policies in.
• You care about discounts (State Farm offers the most).

We hope this guide helps you get a better idea of the difference between Pemco and State Farm and that it aids in making a more informed decision about your car 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 a handful of companies, not just Pemco and State Farm. 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.

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Pemco vs. State Farm FAQs

Is Pemco or State Farm cheaper?

Looking just at the national average prices, Pemco is the more affordable of the two companies, offering average rates of $107 a month compared to $158 for State Farm. That being said, Pemco won't necessarily be the most affordable company for every driver, since there are multiple different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, Pemco or State Farm?

Unfortunately, the answer truly is "it depends.". No one carrier is "better" for each driver -- it all boils down to your unique car insurance profile.

Why do Pemco and State Farm offer me different rates?

Auto insurance carriers take a look at several different variables when calculating the premiums they charge policyholders. Factors like age, gender, where you call home, your driving record, and sometimes even things like your credit score can all come into play. Both Pemco and State Farm calculate rates using different variables, so each one will most likely offer different premiums. 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 Pemco or State Farm is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code 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 rate. And who knows, the best company for you might not be Pemco 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.