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

Quick Facts

• Based on national averages for car insurance, American Family offers significantly cheaper prices than Esurance
• American Family offers more affordable premiums for policyholders who have a clean record
• Esurance offers more discounts than American Family Insurance

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

So, you're considering switching your auto insurance. You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You've maybe even narrowed it down to American Family or Esurance as potential options, but which company will save you the most?

As you can see, American Family has average rates that are about 55% per month less expensive than those from Esurance when looking at the national average rates for insurance.

However, that doesn't mean American Family will necessarily be more affordable than Esurance for every driver. After all, auto insurance companies can offer drastically different rates to each driver depending on rating factors like where you call home, your age, your driving record, or even your credit score (among other things), so rates will vary quite a bit from person to person.

Wanting to know if American Family or Esurance 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 or Esurance: Average Car Insurance Rates by State

American Family and Esurance only compete against each other in three states, with American Family offering cheaper prices to the average driver in all of them. Ohio has the most noticable difference, where American Family rates are over 70% more affordable than car insurance prices at Esurance.

But there's more to calculating insurance premiums than just where you live. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance rates of any other group of 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.

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 American Family save $400 a month compared to those who use Esurance.

Even so, both carriers will offer you dramatically lower prices once you turn 25. For example, average rates for American Family policyholders lower nearly $200 and Esurance's prices decrease around $500 over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest premiums you can find.

So, which company offers the best rates to retired drivers? American Family gets the edge here, with average premiums coming in at about $107 per month compared to Esurance's $232.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are typically more expensive for single drivers than they are for married drivers? That's because policies for married couples generally cover more than one car, which many companies will offer you a discount for.

When it comes to relationship status, American Family is the clear winner for single policyholders, with rates around $195 per month less expensive than Esurance, on average. For married policyholders, the advantage is clear again - American Family has the edge when it comes to average premiums.

American Family vs. Esurance: Average Rates by Gender

Did you know women tend to pay less for insurance than men? This is because men are statistically more likely than women to get into accidents and get tickets, which leads to increased risk for insurers and, therefore, higher prices.

Typically, women see rates about $5 a month cheaper with American Family, while with Esurance, the difference is closer to $21 per month.

When it comes to the most affordable premiums for each gender, American Family comes out on top for both men and women. On average, women save about $150 a month and men save around $166 with American Family compared to the average Esurance policyholder.

American Family or Esurance: 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 isn't the easiest topic to understand. Everyone needs car insurance, but there are so many different coverages and limits that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides property damage and bodily injury coverage for other drivers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- alongside liability).

If you're looking for state minimum limits for liability insurance, American Family usually offers significantly less expensive prices of $96 compared to Esurance's $201. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $200 per month more affordable than Esurance, on average.

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

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

At-fault accidents and tickets will most likely raise your rates, but is American Family or Esurance cheaper for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their prices to go up an average of $29 a month if they get a ticket, while Esurance normally raises premiums around $45 per month, on average.

But American Family has more affordable prices for drivers in both categories, offering premiums that are $124 and $140 less expensive, respectively, compared to Esurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through American Family can expect to see about an $20 -- or around 14% -- increase in their car insurance rates. Drivers who use Esurance for their insurance will see a monthly bill about $122 (or 34%) more expensive after reporting a collision to their auto insurance carrier.

Overall, the cheaper prices come from American Family, with monthly premiums averaging $138 compared to Esurance's $364.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- typically a lot more than an accident or speeding ticket. Esurance drivers usually see a 20% increase in their auto insurance rates after a DUI charge, while American Family will generally climb prices by around 25%.

How does Credit Score Impact American Family and Esurance Rates?

Did you know that many insurance carriers take your credit score into account when calculating rates? Certain states and companies do not allow for credit score to be used as a rating factor, but it might come into play for quite a few drivers.

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

So, which company offers the lowest premiums for policyholders 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 Esurance Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a substantial impact on your monthly rates. That's because the fewer miles you drive, the less likely you are to get into a collision and cause an insurance claim.

American Family tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure. American Family average prices for drivers with 6,000 annual miles come in over $150 more affordable than Esurance. Those who drive 12,000 miles each year can expect to pay more than $150 less with American Family over Esurance.

American Family vs. Esurance: 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 large impact as well. Usually, those who live in urban areas will pay more than drivers in rural areas because of the number of vehicles that are on the roads in those areas.

When comparing these two companies side-by-side, American Family generally comes out as the lowest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

For policyholders in urban ZIP codes, American Family offers premiums about $166 a month compared to Esurance's $396. People who live in suburban ZIP codes can expect to pay around $134 a month for American Family and $288 for Esurance. Lastly, those in rural areas tend to get the most affordable prices from both carriers, with average monthly rates coming in at $121 and $211 for American Family and Esurance respectively.

American Family vs. Esurance Discounts

Regardless of 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 possible, and the best way to do that is by utilizing as many car insurance discounts as you can.

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're eligible for.

In the section below, we've taken a look at all of the different discounts American Family and Esurance offer their customers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Overall, Esurance comes out ahead with 24 discounts to American Family's 21.

There are a couple discounts both companies offer, but Esurance also offers ABS discounts, agency transfer discounts, education discounts, and more that American Family does not.

On the flip side, American Family has a couple unique discounts of its own -- connect partner discounts, COVID-19 relief discount, distant student discounts, and more.

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

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

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

• You haven't received any speeding tickets or been in an accident in the last few years.
• You already have a great credit score.
• You are purchasing your insurance with a spouse.

Esurance might be best for you if...

• You value the experience that comes with a large national car insurance company.
• You're looking for the carrier with the most discounts.

We hope this guide helps you get a better idea of the difference between American Family and Esurance. We also hope we've given you the information you need to make the best decision when it comes to your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from several companies, not just American Family and Esurance. Luckily, Compare.com does all the hard work for you. Just 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.

American Family vs. Esurance FAQs

Is American Family or Esurance cheaper?

Looking just at the national average premiums, American Family is the cheaper of the two companies, offering average rates of $140 per month compared to $299 for Esurance. That being said, American Family won't necessarily be the cheapest company for everyone, since there are multiple different factors that come into play when it comes to your auto insurance cost.

Who is better, American Family or Esurance?

Unfortunately, the real answer is "it depends.". No one carrier is "better" for everyone -- it all depends on what your unique insurance profile looks like.

Why do American Family and Esurance offer me different rates?

Car insurance carriers take a look at a lot of different variables when determining the rates they charge drivers. Things like your driving record, age, where you park your car, gender, and sometimes even things like your credit score can all come into play. Both American Family and Esurance calculate premiums using different factors, so each one will most likely offer different prices. The only real way to see which company is the lowest for you is by comparing personalized quotes from many different companies.

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

The only way to find the 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 information once and you'll get free quotes from dozens of the best auto insurance companies in your area. That way, you can guarantee you're getting the most affordable rate. And who knows, the best company for you might not be American Family or Esurance 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.