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

Quick Facts

• Based on national averages for auto insurance, American Family offers significantly less expensive prices than Encompass
• American Family offers more affordable rates for policyholders who live in urban areas
• Encompass may help you save more money -- they offer more discounts than American Family Insurance

American Family or Encompass: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching to a new insurance policy. With so many ads from all sorts of companies offering large savings, you're probably wondering exactly how much you might be able to save.

You might have narrowed it down to American Family or Encompass as your top options, but which carrier has more affordable prices for car insurance?

Looking at nationwide averages, American Family has average rates that are around 70% a month cheaper than those from Encompass.

But American Family may not be the most affordable or best option for every driver out there. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like where you call home, your credit score, your driving record, or even your age (among other things). So, at the end of the day, rates from each company will differ quite a bit from person to person.

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

American Family vs. Encompass: Average Car Insurance Rates by State

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

That being said, there's a lot more that goes into your insurance cost than just where you call home. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for car insurance compared to older drivers. Generally, that's because teen drivers are statistically much more likely to get into accidents since they have less experience on the roads.

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance premiums. As you can see above, teens who use American Family save over 75% per month compared to those who use Encompass.

Even so, with both carriers, you'll see your rates decrease significantly by the time drivers turn 25. Encompass offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, American Family still has the cheapest premiums at $121 monthly.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices you'll ever find.

So, which company offers the best rates to retired drivers? American Family gets the edge, with premiums for drivers 65 and older almost 70% cheaper than the national average for Encompass.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are usually more affordable for married drivers than they are for single drivers? That's because policies for married policyholders typically cover more than one vehicle, which many companies will give you a discount for.

For those who are single, the difference in average rates between these two carriers is significant, with American Family prices coming in at about 70% less than Encompass's. The advantage is also clear for married couples - American Family offers the most affordable average premiums.

American Family or Encompass: Average Rates by Gender

Men are statistically more likely than women to get into collisions and file an insurance claim. That means when it comes to insurance men will normally end up paying a little more.

With American Family, women typically pay around $5 a month less than men, and about $25 with Encompass.

When it comes to the lowest rates for each gender, American Family comes out as the cheapest option for both genders. On average, women save about $316 per month and men save around $334 with American Family compared to the average Encompass policyholder.

American Family vs. Encompass: 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 a bunch of different coverages that account for lots of different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

The two most common policies that drivers look at fall into two categories -- liability coverage (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 -- collision and comprehensive -- in addition to what you get with liability coverage).

Looking specifically at state minimum limits for liability insurance, American Family has the significant edge, with average monthly prices 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 Encompass's $629.

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

It's no secret -- drivers with good records end up getting the best deals on their car insurance. But that's not to say you can't save money if you don't have the best driving record, either.

At-fault accidents and speeding tickets will most likely raise your premiums, but is American Family or Encompass 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 insurance can usually expect their monthly bill to go up around 20% after getting a speeding ticket. Encompass policyholders can expect a bit more drastic of an increase of about 21%.

However, American Family tends to offer the best prices for drivers both with a ticket and with a clean record, offering prices that are 48% and 49% cheaper, respectively, compared to Encompass Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will raise rates pretty significantly if you get into an at-fault collision with Encompass climbing by around 31%. American Family has a less extreme climb, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, the less expensive premiums come from American Family, with average prices coming in at $138 compared to Encompass Insurance's $328.

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, Encompass will climb your rates about 78% after a DUI, while American Family's average premiums increase by more than 25%.

How does Credit Score Impact American Family and Encompass Rates?

You may not have known, but your credit score can come into play when carriers determine your monthly bill. This isn't true for everyone (for example, Michigan and California are two states that ban the practice entirely), but it does affect several drivers out there.

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

So, which carrier offers the best premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

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

Did you know that the amount of time you spend in your car have a big impact on how much insurance carriers will charge for coverage? That's because the fewer miles you put on your car, the less likely you are to be in an accident and file an insurance claim.

American Family tends to be the cheaper option for both remote workers and those taking short commutes. Encompass's average rates for drivers with 6,000 annual miles come in over 70% more expensive than American Family. Those who drive 12,000 miles every year can expect to pay just under 70% more with Encompass over American Family.

American Family or Encompass: 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 considerable impact as well. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers since there are a lot more vehicles on the road where they live, which increases the chances of an accident.

American Family tends to offer the most affordable rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, American Family Insurance's average premiums are around 70% less than Encompass Insurance. People who live in suburban areas pay about 69% less with American Family compared to Encompass. Those in rural areas can expect to save around 70% with American Family compared to Encompass.

American Family vs. Encompass 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 taking advantage of as many insurance discounts as possible.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Encompass so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Looking at the total number of discounts, Encompass comes out ahead with 26 discounts to American Family's 21.

Both companies offer several of the same discounts -- like anti-theft discounts, distant student discounts, DRL discounts, and group discounts -- but Encompass also offers discounts for ABS, driver training, employee discount, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, COVID-19 relief discount, ESC discounts, and more.

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

So, we've broken down the average prices for many of the factors car insurance carriers look at, and we've shown you all the discounts each company offers. But, when it comes down to it, which insurance carrier is the right company for you and your specific needs?

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

• You have an at-fault collision on your record.
• You're looking for the best rates on liability only coverage.
• You're married and plan to have both of your names on the vehicle's auto insurance policy.

Encompass might be best for you if...

• You're planning on moving to another state soon -- undefined is only available to residents.
• You're looking for discounts -- Encompass has the most.

Hopefully, this guide has ben a valuable resource as you compare American Family and Encompass and that it aids in making a more informed decision about your 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 several companies, not just American Family and Encompass. 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 car insurance carriers in your area, all for free.

American Family vs. Encompass FAQs

Is American Family or Encompass cheaper?

American Family is the more affordable of the two companies when looking at national average prices, with policies averaging $140 per month with American Family and $466 for Encompass. That being said, that doesn't mean American Family will be the cheapest company for each policyholder, since there are multiple different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Encompass?

Sadly, the only answer we can give you is "it depends.". Neither carrier is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do American Family and Encompass offer me different rates?

Insurance carriers use a lot of different factors when determining the rates they charge. Variables like gender, where you live, age, your driving record, and sometimes even things like your credit score can all be used. Both American Family and Encompass calculate premiums differently, so it's likely they'll offer different prices. The best way to determine which company is the lowest for you is by comparing personalized quotes from a range of different companies.

How do I know if American Family or Encompass 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 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 most affordable price. And maybe you'll find that the best company for you isn't American Family or Encompass 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.