American Family vs. Farm Bureau Financial Services: Which Company is the Best Fit for You?

Quick Facts

• In general, American Family offers more affordable premiums than Farm Bureau Financial Services
• American Family offers more affordable rates for policyholders who are looking to purchase insurance with a spouse
• Farm Bureau Financial Services offers cheaper average premiums for drivers who have a speeding ticket on their driving record

American Family or Farm Bureau Financial Services: Which Company has the Cheapest Car Insurance?

Are you considering 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've maybe even narrowed it down to American Family or Farm Bureau Financial Services for your next policy, but between the two, which carrier will save you the most?

As you can see, American Family has average rates that are around 18% a month less expensive than those from Farm Bureau Financial Services when looking at the national average rates for insurance.

Even so, American Family may not be the most affordable or best option for each driver out there. Auto insurance carriers use a variety of complex algorithms to determine prices, so depending on how old you are or how clean your driving record is (among lots of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average premiums from both American Family and Farm Bureau Financial Services by multiple different rate factors, so read on to find out which company is the best for you.

American Family vs. Farm Bureau Financial Services: Average Car Insurance Rates by State

American Family and Farm Bureau Financial Services compete against each other in five states, with Farm Bureau Financial Services offering cheaper rates to the average driver in all of them. South Dakota has the most noticable difference, where American Family prices are $195 more affordable than car insurance rates at Farm Bureau Financial Services.

But there's more to calculating insurance premiums than just your home state. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers generally pay a lot more for car insurance than any group out there on the road. The reason is that teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. Just look at the table above -- where 18-year-old drivers who have American Family for their insurance pay over 7% less than those who use Farm Bureau Financial Services.

However, both companies will offer you dramatically lower rates once you turn 25. For example, average prices for American Family policyholders reduce about $200 and Farm Bureau Financial Services's premiums lower almost $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age typically enjoy some of the lowest car insurance prices you'll ever see. After all, they've likely been driving for quite some time, which normally lowers their chances of collisions and other infractions that can raise premiums.

When looking at American Family and Farm Bureau Financial Services specifically, which carrier is best for retired drivers? American Family gets the edge, with rates for drivers 65 and older $20 less expensive than the national average for Farm Bureau Financial Services.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance premiums tend to be cheaper for married drivers than they are for those who are single. That's because policies for married couples usually cover more than one vehicle, which several carriers will give you a discount for.

For single drivers, the difference in average rates between these two companies is significant, with American Family prices coming in at around 15% less than Farm Bureau Financial Services's. The advantage is also clear for married policyholders - American Family offers the cheapest average premiums.

American Family or Farm Bureau Financial Services: Average Rates by Gender

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

Women typically pay about 3% per month less than men with American Family, but surprisingly, with Farm Bureau Financial Services, women usually pay around 3% more a month than men.

Looking at the data for each company specifically, American Family offers the lowest average prices for both men and women. On average, male drivers save about $25 per month and women save about $35 with American Family compared to the average Farm Bureau Financial Services policyholder.

American Family vs. Farm Bureau Financial Services: 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 so many different limits and terms that it can make it pretty confusing to find the right policy for you.

That being said, the most common policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, alongside liability).

When it comes to state minimum liability limits, Farm Bureau Financial Services has the edge, while American Family offers the cheapest average rates for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $10 with Farm Bureau Financial Services, while full coverage comes out to be around $70 less expensive with American Family Insurance.

Is American Family or Farm Bureau Financial Services Better for Drivers with Spotty Records?

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

It's no secret secret that speeding tickets and at-fault accidents lead to higher premiums, but which carrier -- American Family or Farm Bureau Financial Services -- has the most affordable prices for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use American Family for their car insurance can normally expect their monthly bill to go up about 20% after getting a speeding ticket. Farm Bureau Financial Services policyholders can expect a less drastic increase of around 17%.

If you have gotten a ticket, Farm Bureau Financial Services tends to offer the best rates at about 1% more affordable, while American Family has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

Both carriers will increase premiums pretty significantly if you get into an at-fault collision with Farm Bureau Financial Services increasing by around 35%. American Family has a less extreme increase, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, drivers who use American Family end up with the cheaper prices after an accident, with average prices coming in at $138 compared to Farm Bureau Financial Services's $187.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your insurance bill. On average, Farm Bureau Financial Services will increase your premiums about 46% after a DUI, while American Family's average prices rise by more than 25%.

But if you end up with a DUI charge and are looking for more affordable rates, American Family tends to be less expensive for the average driver, with monthly premiums coming in at around $158 to Farm Bureau Financial Services's $226.

How does Credit Score Impact American Family and Farm Bureau Financial Services Rates?

You may not have known, but your credit score can be used as one of the factors to calculate your monthly auto insurance prices. This isn't true for everyone (for example, California and Michigan are two states that ban the practice entirely), but it does affect many policyholders out there.

The reasoning car insurance companies 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 more affordable premiums.

Looking at American Family and Farm Bureau Financial Services specifically, which company has the lowest rates for policyholders 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 Farm Bureau Financial Services Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a big impact on your monthly auto insurance cost. Usually, those who drive fewer miles will end up with cheaper premiums 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 more affordable option. American Family's average prices for drivers with 6,000 annual miles come in over 15% cheaper than Farm Bureau Financial Services. Those who drive 12,000 miles every year can expect to pay just under 20% less with American Family over Farm Bureau Financial Services.

American Family or Farm Bureau Financial Services: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your vehicle can have a sizable impact on your monthly insurance payment. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders since there are a lot more cars on the roads where they live.

American Family tends to offer the cheapest rates for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, American Family Insurance's average premiums are about $30 less than Farm Bureau Financial Services. People who live in suburban areas pay around $25 less with American Family compared to Farm Bureau Financial Services. Those in rural areas can expect to save about $34 with American Family compared to Farm Bureau Financial Services.

American Family vs. Farm Bureau Financial Services Discounts

No matter 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 you can. That's where auto insurance discounts comes into play.

But where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you qualify for.

Luckily, we did the hard work for you and compared all of the different discounts offered by American Family and Farm Bureau Financial Services so that you can find the one that has the most discounts and, therefore, the largest savings.

American Family blows Farm Bureau Financial Services away when it comes to the sheer amount of discounts available, offering 12 more discounts than Farm Bureau Financial Services.

A couple of those are overlapping for things like anti-theft discounts, discounts for being a good student, and paid in full discounts. American Family also offers discounts for advance quote, connect partner, COVID-19 relief, and more.

On the other hand, Farm Bureau Financial Services has a few proprietary discounts of their own for things like good driving discounts, life policy discounts, safe young driver discounts, and more.

Final Thoughts: Is American Family or Farm Bureau Financial Services Best for You?

So, you've seen how different variables can affect your car insurance rates. We've shown you all the discounts each company offers, too. That's all well and good, but when it comes down to it, is American Family or Farm Bureau Financial Services the right company for you, your vehicle, and your wallet?

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

• Your credit is less-than-stellar.
• You live in an urban area.
• You want to save money while purchasing insurance for a teenager.

Farm Bureau Financial Services might be best for you if...

• You've received a ticket for speeding recently and don't want to see your prices climb.
• You're looking for the best rates on liability only coverage.

Hopefully, this guide helps you get a good idea of the differences between American Family and Farm Bureau Financial Services and that you can now make a more informed decision when it comes to 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 several carriers, not just American Family and Farm Bureau Financial Services. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

American Family vs. Farm Bureau Financial Services FAQs

Is American Family or Farm Bureau Financial Services cheaper?

American Family is the less expensive of the two carriers when looking at national average premiums, with policies averaging $140 a month with American Family and $170 for Farm Bureau Financial Services. Even so, that doesn't mean American Family will be the most affordable carrier for each driver, since there are a range of different factors that are considered when it comes to your car insurance bill.

Who is better, American Family or Farm Bureau Financial Services?

Sadly, the real answer is "it depends.". No one company is "better" for every policyholder -- it all comes down to what your unique insurance profile looks like.

Why do American Family and Farm Bureau Financial Services offer me different rates?

Auto insurance companies use a lot of different variables when determining the prices they charge. Things like age, where you call home, your driving record, gender, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Farm Bureau Financial Services calculate rates using different formulas, 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 many different carriers.

How do I know if American Family or Farm Bureau Financial Services is right for me?

The only way to find the insurance company that's right for you is by getting quotes from multiple companies 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 carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't American Family or Farm Bureau Financial Services 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.