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

Looking for car insurance and wondering if American Family or Farmers Automobile is the right company for you? If so, you're probably wondering which carrier has the most affordable premiums or the biggest discounts. Luckily, we've done the heavy lifting for you and compared the two companies to help you find the best deal on your next auto insurance policy.
Newly insured car driving down the road
Why You Can Trust Compare.com trust shield

At Compare.com, it's our mission to find simple ways to help our customers save money on the things they need. While we partner with some of the companies and brands we talk about in our articles, all of our content is written and reviewed by our independent editorial team and never influenced by our partnerships. Learn about how we make money, review our editorial standards, and reference our data methodology to learn more about why you can trust Compare.com.

Quick Facts

  • In general, Farmers Automobile offers cheaper prices than American Family
  • American Family offers more discounts than Farmers Automobile Insurance Association
  • Farmers Automobile has more affordable rates for policyholders who don't have any speeding tickets, DUIs, or at-fault accidents on their record


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

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering hefty discounts. But exactly how much can you save by switching?

You might have narrowed your search down to American Family or Farmers Automobile as your top options, but between the two, which one will save you the most?

American Family Farmers Automobile
$140$123

As you can see, American Family has average rates that are about 12% per month more expensive than those from Farmers Automobile when looking at the national average rates for insurance.

That being said, that doesn't mean Farmers Automobile will necessarily be less expensive than American Family for every single driver. Auto insurance companies vary their prices depending on things like how old you are, how good your credit score is, where you live, how clean your driving record is, and a ton of other factors, so premiums will differ quite a bit from person to person.

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

American Family or Farmers Automobile: Average Car Insurance Rates by State

State American Family Farmers Automobile
IA$114$90
IL$151$136
WI$109$142

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

There are plenty of other factors that go into your car insurance bill than just your home state. Continue reading to see how other factors will affect your rates.


Find your best rate in just a few minutes


Which is the Best Company For Young Drivers?

American Family Farmers Automobile
18-year-old drivers$311$274
25-year-old drivers$121$103

Teen drivers will almost always have the most expensive insurance premiums of any other group of drivers. It's typically because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

But that doesn't mean that teen drivers have to just accept sky-high car insurance rates. For example, 18-year-old drivers pay an average of more than $35 less a month by choosing Farmers Automobile over American Family. It's worth noting that American Family offers auto insurance in 16 different states compared to Farmers Automobile's three, which can skew the average prices a bit, but the difference here is still considerable.

However, both companies will decrease premiums once you turn 25. Farmers Automobile offers the steepest reduction, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. American Family's average prices drop over 60% during that same period.

Which is the Best Company for Retired Drivers?

American Family Farmers Automobile
65+-year-old drivers$107$96

Drivers around retirement age normally enjoy some of the cheapest insurance rates you can find. After all, they've likely been driving for quite some time, which generally lowers their chances of collisions and other infractions that can increase premiums.

When looking at American Family and Farmers Automobile specifically, which carrier is best for retired drivers? Farmers Automobile gets the edge, with rates for drivers 65 and older more than 10% more affordable than the national average for American Family.

Which is the Best Company for Married Drivers?

American Family Farmers Automobile
Single$166$144
Married$106$95

Married policyholders tend to get slightly less expensive car insurance premiums than single policyholders. That's because policies for married couples usually cover multiple cars, which quite a few carriers will offer you a discount for.

When it comes to relationship status, Farmers Automobile is the clear winner for those who are single, with prices around $22 per month cheaper than American Family, on average. For married drivers, the advantage is clear again - Farmers Automobile has the edge when it comes to average rates.

American Family vs. Farmers Automobile: Average Rates by Gender

American Family Farmers Automobile
Male$143$123
Female$138$122

Because men are more likely to get speeding tickets and get into collisions, they have an increased chance of filing a claim with insurance. Therefore, insurance companies will tend to offer men more expensive premiums.

Typically, women see prices about $5 a month less expensive with American Family, and around $1 less with Farmers Automobile.

When it comes to the lowest premiums for each gender, Farmers Automobile comes out on top for both men and women, with average rates 14% less for men and 12% cheaper for women.


Find your best rate in just a few minutes


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

American Family Farmers Automobile
State Minimum*$96$75
Full Coverage**$185$170

*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.

Auto insurance isn't the easiest topic to understand. Everyone needs insurance, but there are so many different coverages and terms that it can be hard to find the right policy.

Even so, the most common policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with a liability policy).

If you're looking for state minimum liability limits, Farmers Automobile typically offers more affordable prices of $75 compared to American Family's $96. When it comes to full coverage policies with similar limits, Farmers Automobile again has the edge, with policies about $15 per month cheaper than American Family, on average.

Is American Family or Farmers Automobile 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.

Accidents and tickets will most likely raise your rates, but is American Family or Farmers Automobile less expensive for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Family Farmers Automobile
Clean Record$118$87
1 Speeding Ticket$147$109

American Family policyholders can expect their premiums to go up an average of $29 a month if they get a ticket, while Farmers Automobile usually raises prices around $22 per month, on average.

That being said, Farmers Automobile has cheaper rates for drivers in both categories, offering premiums that are $31 and $38 more affordable, respectively, compared to American Family Insurance.

Which Company is Best for Drivers After an Accident?

American Family Farmers Automobile
Clean Record$118$87
1 At-Fault Accident$138$117

American Family drivers who get in a collision can expect to see their prices climb by $20, while those who have insurance through Farmers Automobile will see about a $30 increase.

Overall, the cheaper premiums come from Farmers Automobile, with monthly prices averaging $117 compared to American Family Insurance's $138.

Which Company is Best for Drivers with a DUI?

American Family Farmers Automobile
Clean Record$118$87
1 DUI$158$178

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your insurance bill. On average, Farmers Automobile will increase your rates around 51% after a DUI, while American Family's average prices increase by over 25%.

American Family has the overall cheapest premiums for drivers with a DUI on their records at $158 per month, but it's worth noting that American Family's average rates come from 16 states compared to just three for Farmers Automobile, so the data may be skewed slightly.


Find your best rate in just a few minutes


How does Credit Score Impact American Family and Farmers Automobile Rates?

Did you know that many car 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 does affect many policyholders out there.

Insurance carriers argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, drivers with bad credit will often be forced to pay more.

So, which company offers the most affordable prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

American Family Farmers Automobile
Excellent Credit Score$100$80
Good Credit Score$120$99

If you have solid credit, you'll usually find a better deal with Farmers Automobile. Drivers with "excellent" credit can save 20% compared to American Family, and those with "good" scores can also expect to see savings -- about $21 or 18% less expensive each month.

Which Company is Best for Drivers with Bad Credit?

American Family Farmers Automobile
Fair Credit Score$141$123
Poor Credit Score$201$189

Farmers Automobile typically offers lower rates than American Family when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around $18 a month less with Farmers Automobile compared to American Family, and those with "poor" scores normally save an average of about $12 monthly.


Find your best rate in just a few minutes


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

American Family Farmers Automobile
6,000 Annual Miles$138$112
12,000 Annual Miles$143$133

How much you drive can have a sizable impact on your monthly premiums. Generally, the more miles you put on your vehicle, the more you can expect to pay for auto insurance.

Farmers Automobile tends to be the more affordable option for both drivers who put 6,000 miles on their vehicles every year, as well as those who average twice that figure. American Family average rates for drivers with 6,000 annual miles come in around $26 more expensive than Farmers Automobile. Those who drive 12,000 miles annually can expect to pay about $10 more with American Family over Farmers Automobile.

American Family vs. Farmers Automobile: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a pretty big impact on your monthly car insurance payment. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers due to the number of cars that are on the roads in those areas.

American Family Farmers Automobile
Urban Areas$166$192
Suburban Areas$134$92
Rural Areas$121$84

When comparing these two companies side-by-side, Farmers Automobile normally comes out as the less expensive option for drivers in rural and suburban areas, while American Family wins in urban areas.

Those in rural areas can expect to pay around $84 a month with Farmers Automobile and $121 with American Family. Drivers in suburban ZIP codes pay about $92 with Farmers Automobile compared to American Family's $134 monthly. In urban areas, American Family's average prices are around $166 while Farmers Automobile offers premiums about $192.

American Family vs. Farmers Automobile Discounts

You want to save as much money as possible, right? 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 find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

Below, we've taken a look at all of the different discounts American Family and Farmers Automobile offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

American Family Farmers Automobile
Advance Quote Discount
Anti-Theft Discount
Connect Partner Discount 
Covid-19 Relief Discount 
Defensive Driver Discount
Distant Student Discount 
DRL Discount 
EFT Discount
ESC Discount 
Generational Discount 
Good Student Discount
Group Discount
Homeowner Discount 
Hybrid Vehicle Discount 
Multi-Car Discount
Multi-Policy Discount
Paid In Full Discount
Paperless Discount 
Renewal Discount 
Seat Belt Discount 

American Family blows Farmers Automobile away when it comes to the sheer amount of discounts available, offering 21 different discounts to Farmers Automobile's 11.

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

On the flip side, Farmers Automobile has a couple unique discounts of its own -- hybrid vehicle discounts and seat belt discounts.


Find your best rate in just a few minutes


Final Thoughts: Is American Family or Farmers Automobile Best for You?

You've seen the role certain variables have on your car insurance and the different discounts carriers offer. But, when it comes down to it, which company is the best company for you and your specific profile and needs?

Farmers Automobile might be best for you if....

  • You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
  • You already have a great credit score.
  • You have a short drive to work everyday.


American Family might be best for you if...

  • You have a DUI charge on your record.
  • You care about discounts (American Family offers the most).
  • Your neighborhood is in a city.

We hope this guide helps you get a better idea of the difference between American Family and Farmers Automobile and that it aids in making a more informed 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 car insurance -- comparing quotes from multiple companies, not just American Family and Farmers Automobile. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top insurance carriers in your area, all in just a few minutes.


Find your best rate in just a few minutes


American Family vs. Farmers Automobile FAQs

Is American Family or Farmers Automobile cheaper?

Looking just at the national average prices, Farmers Automobile is the cheaper of the two companies, offering average rates of $123 per month compared to $140 for American Family. Even so, Farmers Automobile won't necessarily be the lowest carrier for each policyholder, since there are multiple different factors that come into play when it comes to your auto insurance cost.

Who is better, American Family or Farmers Automobile?

Unfortunately, the answer truly is "it depends.". No single company is necessarily "better" for every driver -- it all boils down to your unique insurance profile. For example, American Family offers more affordable rates for drivers with a recent DUI, while Farmers Automobile is cheaper for drivers with excellent credit.

Why do American Family and Farmers Automobile offer me different rates?

Car insurance carriers take a look at several different variables when determining the premiums they charge policyholders. Things such as gender, your driving record, where you live, age, and sometimes even things like your credit score can all be used. Both American Family and Farmers Automobile calculate rates differently, so each one will most likely offer different premiums. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a bunch of different companies.

How do I know if American Family or Farmers Automobile 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, Compare.com makes it easy for you to do just that. Just enter your information once and you'll get free quotes from dozens of the best car insurance companies in your area. With those, you can guarantee you're getting the cheapest price. And who knows, the best carrier for you might not be American Family or Farmers Automobile 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.

About Compare.com

Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.

  • All of Compare.com's content is written and reviewed for accuracy by a team of experienced writers and editors who are experts on the topics they cover.
  • None of Compare.com's content is ever influenced by the companies and brands we partner with.
  • Compare.com's editorial team operates independently of any of the company's partnership or business development interests. We publish unbiased information strictly for the benefit of our readers.
  • All of the content you see on Compare.com is based on comprehensive analysis and all data is gathered and vetted from trustworthy sources.

Learn more about us, our team, and what makes us tick.

Find your best rate in just a few minutes