American Family vs. Auto-owners: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, American Family offers significantly more affordable prices than Auto-owners
• American Family has cheaper rates for policyholders who live in suburban areas
• Auto-owners may help you save more money -- they offer more discounts than American Family Insurance

American Family or Auto-owners: 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 huge savings. But exactly how much can you save by switching?

You might have narrowed your search down to American Family or Auto-owners, but which carrier will save you the most?

As you can see, Auto-owners has average rates that are around 22% a month more expensive than those from American Family when looking at the national average rates for insurance.

But American Family may not be the lowest or best option for every single driver out there. Auto insurance carriers use a ton of complex algorithms to determine premiums, so depending on how clean your driving record is or how old you are (among an array of other factors), you could see wildly different prices from the ones above.

So, if you want to find out which of American Family or Auto-owners is really the best for you, keep reading to see average premiums for each company broken down by a bunch of different rate factors.

American Family vs. Auto-owners: Average Car Insurance Rates by State

American Family and Auto-owners compete against each other in 12 states, with American Family offering less expensive rates to the average driver in all of them. If you live in, undefined is the more affordable of the two companies when looking at the overall average prices, but Auto-owners is the cheaper option in most of the others.

That being said, there are plenty of other factors that go into your car insurance payment than just where you live. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance premiums of any group on the road. The reason is that teen 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 car insurance. For example, 18-year-old drivers pay an average of over 20% less per month by choosing American Family over Auto-owners.

However, both carriers will offer you dramatically lower prices by the time you turn 25. For example, average rates for American Family policyholders reduce more than 60% and Auto-owners's prices drop almost 60% over that time.

Which is the Best Company for Retired Drivers?

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

When looking at American Family and Auto-owners specifically, which carrier is best for retired drivers? American Family gets the edge, with premiums for drivers 65 and older $26 less expensive than the national average for Auto-owners.

Which is the Best Company for Married Drivers?

Did you know that auto insurance rates are normally more expensive for those who are single than they are for married policyholders? That's usually because married couples tend to own and insure more than one vehicle, which can often earn you a discount.

For single drivers, the difference in average prices between these two companies is significant, with American Family premiums coming in at a quarter less than Auto-owners's. The advantage for married drivers with American Family is also obvious, where drivers save nearly 25% a month.

American Family or Auto-owners: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to insurance men will generally end up paying a little more.

Typically, women see prices about $5 per month cheaper with American Family, and around $11 less with Auto-owners.

Looking at overall affordability, American Family offers the cheapest average rates for both men and women, with average prices 23% less for men and 21% cheaper for women.

American Family vs. Auto-owners: 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 isn't the easiest topic to understand. Everyone needs insurance, but there are so many different terms and limits that it can be hard to find the right policy for you.

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

Looking specifically at state minimum limits for liability insurance, American Family has the slight edge, with average monthly premiums coming in at $96. If you want a full coverage policy with the same state minimum limits, American Family again has the edge, with policies averaging about $185 a month to Auto-owners's $260.

Is American Family or Auto-owners Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto 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.

Speeding tickets and accidents will most likely raise your premiums, but is American Family or Auto-owners less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their car insurance can typically expect their monthly bill to go up around 20% after getting a speeding ticket. Auto-owners policyholders can expect a bit more drastic of an increase of about 27%.

Even so, American Family tends to offer the best prices for drivers both with a ticket and with a clean record -- their rates are around 2% more affordable for drivers with clean records and 11% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their auto insurance through American Family can expect to see around an $20 -- or about 14% -- rise in their insurance prices. Drivers who use Auto-owners for their car insurance will see a monthly bill around $47 (or 28%) more expensive after reporting an accident to their insurance company.

At the end of the day, American Family offers the most affordable rates for drivers with an at-fault collision on their records, with average prices coming in at $138 compared to Auto-Owners Insurance's $168.

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 speeding ticket or even a collision. On average, Auto-owners will climb your premiums about 54% after a DUI, while American Family's average rates climb by more than 25%.

How does Credit Score Impact American Family and Auto-owners Rates?

Did you know many auto insurance companies take into account your credit score when determining premiums? This isn't true for everyone (for example, Hawaii and Massachusetts are two states that ban the practice entirely), but it does affect quite a few drivers out there.

Car 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 American Family and Auto-owners specifically, which company has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or Auto-owners 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. Usually, those who drive fewer miles will end up with more affordable prices since there's less of a chance of causing an accident and filing an insurance claim.

For both remote workers and those taking short commutes, American Family tends to be the cheaper option. American Family average premiums for drivers with 6,000 annual miles come in more than $40 less expensive than Auto-owners. Those who drive 12,000 miles every year can expect to pay over $35 less with American Family over Auto-owners.

American Family or Auto-owners: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can play a large role in how much you pay for car insurance. Normally, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

American Family tends to offer the cheapest prices for drivers in all areas, regardless of if they're urban, suburban, or rural.

Those in rural areas can expect to save around 26% with American Family compared to Auto-owners. People who live in suburban areas pay about 21% less with American Family compared to Auto-owners. For policyholders in urban ZIP codes, American Family Insurance's average rates are around 19% less than Auto-Owners Insurance.

American Family vs. Auto-owners Discounts

No matter 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 you can, and the best way to do that is by utilizing as many car insurance discounts as possible.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Auto-owners so that you can find the one that has the most discounts and, therefore, the largest savings.

Overall, Auto-owners comes out ahead with 24 discounts to American Family's 21.

A couple of those are overlapping for things like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a homeowner. Auto-owners also offers discounts for ABS, company car, driver training, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, DRL discounts, EFT discounts, and more.

Final Thoughts: Is American Family or Auto-owners Best for You?

You've seen the role certain factors have on your insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, is American Family or Auto-owners the best carrier for you and your specific driver profile?

American Family might be best for you if....

• Your driving record contains an at-fault accident.
• You want the most robust protection via a "full coverage" policy.
• You want to save money while purchasing car insurance for a teenager.

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

• You're planning on moving to another state soon -- undefined is only available in.
• You want to save extra money with discounts.

Hopefully, this guide helps you get a good idea of the differences between American Family and Auto-owners. We also hope we've given you the information you need to make the best decision about your auto 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 insurance -- comparing quotes from multiple companies, not just American Family and Auto-owners. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get multiple free quotes from some of the best car insurance carriers in your area, all in just a few minutes.

American Family vs. Auto-owners FAQs

Is American Family or Auto-owners cheaper?

American Family is the more affordable of the two companies when looking at national average premiums, with policies averaging $140 per month with American Family and $179 for Auto-owners. That being said, that doesn't mean American Family will be the lowest carrier for everyone, since there are many different variables that are considered when it comes to your auto insurance bill.

Who is better, American Family or Auto-owners?

Unfortunately, the answer truly is "it depends.". No one company is necessarily "better" for each policyholder -- it all depends on what your unique insurance profile looks like. For example, Auto-owners is less expensive for drivers with excellent credit, while American Family offers cheaper prices for drivers with a recent DUI.

Why do American Family and Auto-owners offer me different rates?

Auto insurance carriers use lots of different factors when calculating the rates they charge. Things like where you park your car, age, gender, where your home is, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Auto-owners calculate premiums differently, so it's likely they'll offer different prices. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from lots of different companies.

How do I know if American Family or Auto-owners is right for me?

The only way to find the car insurance company 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 make it easy for you to do just that. Just enter your information once and you'll get quotes from dozens of your local top insurance companies for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best carrier for you isn't American Family or Auto-owners at all, but another you hadn't even thought of!

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.