American Family vs. Electric: Which Company is the Best Fit for You?

So, you're in the market for a new car insurance policy. You may have even narrowed down your search to American Family and Electric. But which of these two companies is the best one for you? Read on to find which company has the best prices and biggest discounts.
Newly insured car driving down the road
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Quick Facts

  • Based on national averages for insurance, American Family offers significantly cheaper rates than Electric
  • American Family offers less expensive average premiums for drivers who have less-than-stellar credit
  • Electric offers more affordable prices for residents in Connecticut, Kansas, Kentucky, Maine, Missouri, and Virginia


American Family vs. Electric: Which Company has the Cheapest Car Insurance?

Are you considering a new insurance policy? With so many ads from all sorts of companies offering big discounts, you're probably wondering exactly how much you might be able to save.

You might be considering American Family or Electric as potential options, but between the two, which one will save you the most?

American Family Electric
$140$266

As you can see, Electric is quite a bit more expensive than American Family, with premiums averaging $266 per month compared to just $140 with American Family when looking at the national average rates for auto insurance.

But that doesn't necessarily mean American Family will be the more affordable option for every single driver. Insurance companies use a variety of complex algorithms to calculate rates, so depending on how old you are or how good your credit score is (among many other factors), you could see wildly different premiums from the ones above.

Luckily, we've broken down average rates from both American Family and Electric by many different rate factors, so read on to find out which carrier is the best for you.

American Family or Electric: Average Car Insurance Rates by State

State American Family Electric
KS$124$221
MO$167$159

American Family and Electric only compete against each other in two states, with American Family offering less expensive prices to the average driver in all of them. If you live in Kansas, American Family is the more affordable of the two carriers when looking at the overall average premiums. Electric is the cheaper option in Missouri.

There are plenty of other factors that go into your car insurance payment than just the state you live in. Keep reading to find out more.


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Which is the Best Company For Young Drivers?

American Family Electric
18-year-old drivers$311$589
25-year-old drivers$121$274

Young drivers -- especially teens -- generally pay a lot for auto insurance compared to older drivers. It's normally 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 car insurance. For example, 18-year-old drivers pay an average of nearly $300 less a month by choosing American Family over Electric.

However, with both companies, you'll see your prices lower significantly by the time you turn 25. For example, average rates for American Family policyholders drop more than 60% and Electric's premiums reduce almost 55% over that time.

Which is the Best Company for Retired Drivers?

American Family Electric
65+-year-old drivers$107$178

Drivers around retirement age usually enjoy some of the cheapest insurance rates you'll ever see. After all, they've likely been driving for quite some time, which typically reduces their chances of accidents and other infractions that can increase prices.

When looking at American Family and Electric specifically, which company is best for retired drivers? American Family gets the edge, with premiums for drivers 65 and older $71 less expensive than the national average for Electric.

Which is the Best Company for Married Drivers?

American Family Electric
Single$166$313
Married$106$204

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

When it comes to relationship status, American Family is the clear winner for those who are single, with rates about $147 per month cheaper than Electric, on average. For married policyholders, the advantage is clear again - American Family has the edge when it comes to average premiums.

American Family vs. Electric: Average Rates by Gender

American Family Electric
Male$143$276
Female$138$257

Men are statistically more likely than women to get tickets and get into collisions, which means they'll usually end up paying more for insurance than women.

On average, women see rates around 3% a month less with American Family, and about 7% less with Electric when compared to their male counterparts.

Looking at the data for each carrier specifically, American Family offers the most affordable average prices for both men and women. On average, male drivers save about $133 per month and women save around $119 with American Family compared to the average Electric policyholder.


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American Family or Electric: Compare State Minimum vs. Full Coverage Rates

American Family Electric
State Minimum*$96$150
Full Coverage**$185$383

*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 auto insurance, but there are so many different terms and limits that it can be hard to find the right policy.

That being said, the most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers if you cause an accident) and full coverage (which normally refers to having comprehensive and collision coverages in addition to liability coverage).

If you're looking for state minimum liability insurance, American Family typically offers significantly more affordable rates of $96 compared to Electric's $150. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $200 a month less expensive than Electric, on average.

Is American Family or Electric Better for Drivers with Spotty Records?

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

It's no secret secret that at-fault collisions and tickets lead to higher prices, but which company -- American Family or Electric -- has the lowest premiums for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

American Family Electric
Clean Record$118$208
1 Speeding Ticket$147$237

American Family policyholders can expect their prices to go up an average of $29 per month if they get a ticket, while Electric usually raises premiums around $29 a month, on average.

However, American Family tends to offer the best prices for both drivers who have clean records and those with a recent speeding ticket -- their rates are around 43% more affordable for drivers with clean records and 38% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

American Family Electric
Clean Record$118$208
1 At-Fault Accident$138$236

American Family drivers who get in a collision can expect to see their rates rise by $20, while those who have insurance through Electric will see about a $30 increase.

Overall, American Family offers the most affordable prices for drivers with an at-fault accident on their records, with monthly rates averaging $138 compared to Electric Insurance Company's $236.

Which Company is Best for Drivers with a DUI?

American Family Electric
Clean Record$118$208
1 DUI$158$385

On average, a DUI offense is going to cost you much more than a single collision or ticket when it comes to your insurance bill. On average, Electric will increase your premiums around 46% after a DUI, while American Family's average prices climb by over 25%.

If you have a DUI on your record and are looking for more affordable premiums, American Family tends to be the much more affordable option with average rates of $158 a month compared to $385 from Electric.


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How does Credit Score Impact American Family and Electric Rates?

In many cases, your credit score can be used as one of the factors to determine your monthly car insurance premiums. This isn't always the case (California, for example, has banned the use of credit score as a rating factor) but it will come into play for a lot of policyholders.

The reasoning insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so generally, they'll be asked to pay more, while those with good credit will be rewarded with cheaper rates.

Looking at American Family and Electric specifically, which company has the best prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

American Family Electric
Excellent Credit Score$100$158
Good Credit Score$120$213

If you have solid credit, you'll usually find a better deal with American Family. Drivers with "excellent" credit can save more than 35% compared to Electric, and those with "good" scores can also expect to see savings -- about $93 or 44% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

American Family Electric
Fair Credit Score$141$267
Poor Credit Score$201$428

American Family typically offers lower premiums than Electric when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around $126 per month less with American Family compared to Electric, and those with "poor" scores normally save an average of about $227 per month.


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Is American Family or Electric Better for Drivers who Work from Home or Have Short Commutes?

American Family Electric
6,000 Annual Miles$138$250
12,000 Annual Miles$143$283

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. Typically, those who drive less will end up with more affordable prices since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure, American Family tends to be the less expensive option. Electric's average rates for drivers with 6,000 annual miles come in around 45% more expensive than American Family. Those who drive 12,000 miles yearly can expect to pay about 49% more with Electric over American Family.

American Family vs. Electric: 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 substantial impact as well. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for auto insurance, while the opposite is true for people in urban areas.

American Family Electric
Urban Areas$166$304
Suburban Areas$134$234
Rural Areas$121$262

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

In urban areas, American Family Insurance's average prices are around 45% less than Electric Insurance Company. Drivers in suburban ZIP codes pay about 43% less with American Family compared to Electric. If you live in a rural area, you can expect to save around 54% with American Family compared to Electric.

American Family vs. Electric Discounts

Regardless of why you might be in the market for a new car insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many insurance discounts as you can.

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

In the table below, we've compared all of the different discounts offered by American Family and Electric so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

American Family Electric
ABS Discount 
Advance Quote Discount
Anti-Theft Discount
Connect Partner Discount 
Covid-19 Relief Discount
Defensive Driver Discount
Distant Student Discount 
Driver Training Discount 
DRL Discount 
EFT Discount 
Electric Vehicle Discount 
ESC Discount 
Generational Discount 
Good Driving Discount 
Good Student Discount
Group Discount
Homeowner Discount 
Hybrid Vehicle Discount 
Marital Status Discount 
Multi-Car Discount 

Overall, American Family has the advantage when it comes to total number of discounts. Electric offers a grand total of 17 discounts, while American Family has 21.

A couple of those are overlapping for things like COVID-19 relief discount, discounts for being a defensive driver, and multi-policy discounts. American Family also offers connect partner discounts, distant student discounts, DRL discounts, and more that Electric does not.

On the flip side, Electric has a couple unique discounts of its own -- ABS discounts, discounts for getting driver training, electric vehicle discounts, and more.


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Final Thoughts: Is American Family or Electric Best for You?

You've seen the role certain variables have on your car insurance and the different discounts carriers offer. But, at the end of the day, which insurance carrier is the best one for you, your vehicle, and your wallet?

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

  • You want to save money on your auto insurance after a collision.
  • You want basic insurance coverage at the state minimum limits.
  • You're buying auto insurance for a teen and looking for a wallet-friendly option.


Electric might be best for you if...

  • You live in one of the following states: Connecticut, Kansas, Kentucky, Maine, Missouri, and Virginia.

We hope this guide has ben a valuable resource as you compare American Family and Electric and that it aids in making a more informed decision about your car 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 auto insurance -- comparing quotes from a handful of companies, not just American Family and Electric. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP code below and get free quotes from dozens of the top car insurance carriers in your area, all in just a few minutes.


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American Family vs. Electric FAQs

Is American Family or Electric cheaper?

Looking just at the national average premiums, American Family is the cheaper of the two companies, offering average rates of $140 a month compared to $266 for Electric. That being said, American Family won't necessarily be the most affordable company for each policyholder, since there are multiple different factors that are considered when it comes to your insurance bill.

Who is better, American Family or Electric?

Unfortunately, the only answer we can give you is "it depends.". No one carrier is necessarily "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do American Family and Electric offer me different rates?

Insurance carriers take a look at quite a few different variables when calculating the prices they charge policyholders. Factors like where you park your vehicle, where you live, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Electric calculate rates using different formulas, so each one will most likely offer different premiums. The only real way to see which company is the cheapest for you is by comparing personalized quotes from several different companies.

How do I know if American Family or Electric 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 free quotes from dozens of the best auto insurance companies in your area. With those, you can guarantee you're getting the best price. And who knows, the best company for you might not be American Family or Electric at all!


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.

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