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

Quick Facts

• Based on national averages for car insurance, American Family offers slightly less expensive rates than Erie
• American Family offers more affordable premiums for drivers with a DUI
• Erie has more affordable prices for policyholders who live in rural neighborhoods

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

Are you in the market for 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 might be considering American Family or Erie as your top options, but which one will offer you cheaper rates?

Looking at nationwide averages, Erie is around $13 more a month than American Family.

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

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

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

American Family and Erie only compete against each other in three states, with Erie offering less expensive premiums to the average driver in all of them. If you live in Ohio, American Family is the cheaper of the two companies when looking at the overall average rates. Erie is the more affordable option in Illinois and Wisconsin.

There's a lot more that goes into your insurance cost than just where you live. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

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

Even so, that doesn't mean that teen drivers have to just accept sky-high insurance prices. For example, 18-year-old drivers pay an average of 1% less per month by choosing American Family over Erie.

That being said, both carriers will lower premiums by the time drivers turn 25. Erie offers the steepest decrease, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, American Family still has the cheapest rates at $121 a month.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the lowest car insurance premiums you'll ever find. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for auto insurance.

When looking at American Family and Erie specifically, which company is best for retired drivers? American Family gets the slight edge, with rates for drivers 65 and older $9 less expensive than the national average for Erie.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are generally more expensive for single policyholders than they are for married couples? That's because policies for married policyholders usually cover more than one vehicle, which lots of companies will give you a discount for.

For single drivers, the difference in average prices between these two carriers is not very significant, with American Family rates coming in at about 6% less than Erie's. But for married drivers, the advantage is clear - American Family has the edge when it comes to average premiums.

American Family or Erie: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents, which means they'll normally end up paying more for car insurance than women.

Men typically pay around $5 a month more than women with American Family, and about $10 with Erie.

Looking at overall affordability, American Family comes out as the most affordable option for both genders. On average, women save about $9 per month and men save around $15 with American Family compared to the average Erie policyholder.

American Family vs. Erie: 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.

It's no secret that auto insurance can be a complicated subject for most people. There are so many different coverages and terms that it can make it pretty confusing to find the right policy for you.

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 a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability).

When it comes to state minimum limits for liability insurance, Erie has the edge, while American Family offers the cheapest average prices for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $5 with Erie Insurance, while full coverage comes out to be about $30 cheaper with American Family Insurance.

Is American Family or Erie 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 at-fault collisions will most likely raise your premiums, but is American Family or Erie more affordable for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use American Family for their auto insurance can generally expect their monthly bill to go up around 20% after getting a speeding ticket. Erie policyholders can expect a less drastic increase of about 13%.

If you have gotten a ticket, Erie tends to offer the best prices at around 7% less expensive, while American Family has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

American Family policyholders who get in an accident can expect to see their rates climb by $20, while those who have insurance through Erie will see about a $40 increase.

At the end of the day, American Family offers the lowest prices for drivers with an at-fault collision on their records, with average rates coming in at $138 compared to Erie Insurance's $157.

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. For example, Erie increases average premiums by nearly $80 a month -- that's nearly a 40% increase.

But if you end up with a DUI charge and are looking for more affordable prices, American Family tends to be cheaper for the average driver, with monthly premiums coming in at around $158 to Erie's $198.

How does Credit Score Impact American Family and Erie Rates?

Did you know many car insurance carriers take into account your credit score when determining rates? This isn't true for everyone (for example, Michigan and Hawaii are two states that ban the practice entirely), but it will come into play for quite a few drivers.

Insurance companies 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.

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

Which Company is Best for Drivers with Good Credit?

If you have a great credit score, Erie will typically reward you the most. For policyholders with "excellent" credit scores, Erie comes in just under NaN more affordable. Drivers with "good" credit scores usually save about 8% with Erie compared to average prices from American Family.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower premiums than Erie when it comes to drivers with bad credit. Drivers with "fair" credit pay around 6% per month less with American Family compared to Erie, and those with "poor" scores normally save an average of about 22% monthly.

Is American Family or Erie 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 sizable impact on how much car insurance carriers will charge for coverage? That's because the more milage you put on your car each year, the more likely you are to be in an accident and file an insurance claim.

For both remote workers and those taking short commutes, American Family offers less expensive rates than Erie. American Family's average prices for drivers with 6,000 annual miles come in around $9 more affordable than Erie. Those who drive 12,000 miles yearly can expect to pay about $15 less with American Family over Erie.

American Family or Erie: 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 auto insurance, but the type of area you live in can have a large impact as well. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders since there are a lot fewer vehicles on the roads where they live.

American Family tends to offer the lowest option for drivers in urban and suburban areas, while Erie wins in rural areas.

Those in rural areas can expect to save around 5% with Erie compared to American Family. People who live in suburban areas pay about 8% less with American Family compared to Erie. For drivers in urban ZIP codes, American Family Insurance's average prices are around 14% less than Erie Insurance.

American Family vs. Erie Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can. That's where car insurance discounts comes into play.

But where do you even start? With so many discounts out there, it may seem difficult to find all the of the ones you can take advantage of.

Luckily, we did the hard work for you and compared all of the different discounts offered by American Family and Erie so that you can see which company can save you the most money each month.

Both companies offer excellent discounts like advance quote discounts, COVID-19 relief discount, distant student discounts, and multi-policy discounts.

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

So, we've broken down the average rates for many of the factors auto insurance carriers look at, and walked through the different discounts each carrier offers, too. That's all well and good, but at the end of the day, which insurance company is the best fit for you?

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

• You want to save money on your insurance after a collision.
• Your home is located in the suburbs.
• You and your spouse are buying car insurance together.

Erie might be best for you if...

• Your credit score is high.
• You're looking for the best premiums on liability only coverage.
• Your neighborhood is in a rural area.

Hopefully, this guide has ben a valuable resource as you compare American Family and Erie. 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 Erie. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best auto insurance carriers in your area, all for free.

American Family vs. Erie FAQs

Is American Family or Erie cheaper?

American Family is the cheaper of the two companies when looking at national average prices, with policies averaging $140 a month with American Family and $153 for Erie. But that doesn't mean American Family will be the cheapest carrier for every policyholder, since there are a bunch of different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Erie?

Unfortunately, the answer truly is "it depends.". No single company is "better" for everyone -- it all depends on what your unique car insurance profile looks like. For example, Erie is less expensive for drivers with excellent credit, while American Family offers more affordable rates for drivers with a recent DUI.

Why do American Family and Erie offer me different rates?

Insurance carriers use several different factors when calculating the premiums they charge. Things like your driving record, gender, where you park your car, age, and sometimes even things like your credit score can all be used. Both American Family and Erie calculate prices differently, so it's likely they'll offer different premiums. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from a variety of different companies.

How do I know if American Family or Erie is right for me?

The only way to find the auto insurance company 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 do all the hard work for you. Just enter your area information and you'll get quotes from dozens of your local top car insurance companies for free. That way, 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 Erie 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.