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

Quick Facts

• Based on national averages for insurance, State Farm offers significantly more affordable prices than Shelter
• State Farm has less expensive premiums for policyholders who drive a short distance to work everyday
• State Farm offers cheaper average prices for single people who will be the only person on the auto insurance policy

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Shelter or State Farm: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering big savings. But exactly how much can you save by switching?

You've maybe even narrowed it down to Shelter or State Farm as your top options, but between the two, which carrier has more affordable rates for insurance?

Looking at nationwide averages, Shelter has average rates that are around 24% a month more expensive than those from State Farm.

That being said, that doesn't necessarily mean State Farm will be the less expensive option for each driver. Car insurance carriers use all sorts of complex algorithms to determine premiums, so depending on how good your credit score is or how clean your driving record is (among a whole range of other factors), you could see wildly different prices from the ones above.

So, if you want to find out which of Shelter or State Farm is really the best for you, keep reading to see average rates for each company broken down by many different rate factors.

Shelter vs. State Farm: Average Car Insurance Rates by State

Shelter and State Farm compete against each other in seven states, with Shelter offering cheaper prices to the average driver in all of them. Kentucky has the most noticable difference, where State Farm premiums are $244 less expensive than auto insurance rates at Shelter.

That being said, there's a lot more that goes into your insurance cost than just your home state. Keep reading 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 other group of drivers out there on the road. It's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

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 State Farm save over 20% per month compared to those who use Shelter.

Even so, both companies will decrease prices once you turn 25. State Farm offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. Shelter's average rates reduce more than 55% during that same period.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest insurance premiums out there. After all, they've likely been driving for quite some time, which usually reduces their chances of collisions and other infractions that can raise prices.

When looking at Shelter and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge, with rates for drivers 65 and older $30 more affordable than the national average for Shelter.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are normally cheaper for married couples than they are for single drivers? That's typically because married policyholders tend to own and insure several vehicles, which can often earn you a discount.

For those who are single, the difference in average prices between these two carriers is significant, with State Farm rates coming in at a quarter less than Shelter's. For married drivers, the advantage is clear again - State Farm has the edge when it comes to average premiums.

Shelter or State Farm: Average Rates by Gender

Men are statistically more likely than women to get into a collision or get pulled over for speeding, which means they'll generally end up paying more for car insurance than women.

With Shelter, men normally pay about $25 a month more than women, and around $12 more with State Farm.

Looking at the data for each company specifically, State Farm offers the most affordable average prices for both men and women, with average rates $57 less for men and $44 cheaper for women.

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Shelter vs. 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, auto insurance can be pretty complicated. There are so many different coverages and limits that it can make it pretty confusing to find the right policy for you.

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

Looking specifically at state minimum liability insurance, State Farm has the edge, with average monthly prices coming in at $99. If you want a full coverage policy with the same state minimum limits, State Farm again has the edge, with policies averaging about $216 per month to Shelter's $288.

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

You've probably seen plenty of commercials from 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.

Speeding tickets and accidents will most likely raise your premiums, but is Shelter or State Farm more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use Shelter for their car insurance can usually expect their monthly bill to go up around 22% after getting a speeding ticket. State Farm policyholders can expect a less drastic increase of about 14%.

However, State Farm tends to offer the best prices for drivers both with a ticket and with a clean record. With State Farm, drivers with a clean record can save around $8 a month and drivers with a speeding ticket can save about $26 per month.

Which Company is Best for Drivers After an Accident?

Both carriers will increase prices pretty significantly if you get into an at-fault collision with Shelter climbing by around 39%. State Farm has a less extreme raise, but you can still expect to pay nearly 20% more than you were prior to your first accident.

At the end of the day, drivers who use State Farm end up with the cheaper prices after an accident, with average rates coming in at $163 compared to Shelter Insurance's $234.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or ticket when it comes to your auto insurance bill. Shelter drivers usually see a 49% climb in their insurance premiums after a DUI charge, while State Farm will generally increase rates by about 25%.

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How does Credit Score Impact Shelter and State Farm Rates?

In many cases, your credit score can be used as one of the variables to calculate your monthly car insurance premiums. This isn't true for everyone (for example, Hawaii and Michigan are two states that ban the practice entirely), but it will come into play for many drivers.

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

Looking at Shelter and State Farm specifically, which one has the cheapest prices 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 Shelter or State Farm Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a sizable impact on how much insurance carriers will charge for coverage. Typically, those who drive fewer miles will end up with less expensive premiums since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, State Farm offers cheaper prices than Shelter. Shelter average rates for drivers with 6,000 annual miles come in around $52 more expensive than State Farm. Those who drive 12,000 miles each year can expect to pay about $50 more with Shelter over State Farm.

Shelter or State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a pretty big impact on your monthly car insurance bill. Normally, those who live in rural areas will pay less than drivers in urban areas due to the small number of cars that are on the roads where they live.

State Farm boasts the most affordable average prices for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, State Farm's average rates are around 21% less than Shelter Insurance. People who live in suburban areas pay about 14% less with State Farm compared to Shelter. Those in rural areas can expect to save around 37% with State Farm compared to Shelter.

Shelter vs. State Farm Discounts

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

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.

Luckily, we did the hard work for you and compared all of the different discounts offered by Shelter and State Farm so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

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

Both companies offer many of the same discounts -- like discounts for getting driver training, discounts for being a good driver, and multi-policy discounts -- but State Farm also offers discounts for ABS, annual mileage, distant student, and more.

On the other hand, Shelter has a few proprietary discounts of their own like advance quote discounts and paid in full discounts.

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

So, we've broken down the average prices for many of the factors insurance carriers look at, and we've shown you all the discounts each company offers. But, at the end of the day, which insurance carrier is the best company for you, your vehicle, and your wallet?

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

• You are considering moving to another state -- undefined only offers policies to residents.
• You have above-average credit.
• You're of retirement age and want to take advantage of lower premiums.

Shelter might be best for you if...

• You have a more unique driver profile than those we mentioned above.

Hopefully, this guide helps you get a better idea of the difference between Shelter 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 insurance policy is to compare quotes from a handful of companies, not just Shelter and State Farm. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance carriers in your area, all in just a few minutes.

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Shelter vs. State Farm FAQs

Is Shelter or State Farm cheaper?

State Farm is the more affordable of the two companies when looking at national average rates, with policies averaging $158 a month with State Farm and $208 for Shelter. That being said, that doesn't mean State Farm will be the cheapest company for every policyholder, since there are a bunch of different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, Shelter or State Farm?

Sadly, the real answer is "it depends.". No one carrier is necessarily "better" for each policyholder -- it all boils down to your unique auto insurance profile. For example, Shelter is less expensive for drivers who have less-than-stellar credit scores, while State Farm offers cheaper premiums for drivers with an at-fault accident on their record.

Why do Shelter and State Farm offer me different rates?

Insurance carriers use a lot of different factors when determining the prices they charge. Things like age, your driving record, gender, where you park your vehicle, and sometimes even things like your credit score can all be taken into consideration. Both Shelter and State Farm calculate rates differently, so it's likely they'll offer different premiums. The best way to determine which company is the lowest for you is by comparing personalized quotes from lots of different companies.

How do I know if Shelter 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 multiple 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 quotes from dozens of your local top auto insurance companies for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't Shelter or State Farm at all, but another you hadn't even thought of!

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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.