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

Quick Facts

• In general, American Family offers significantly cheaper rates than Farmers
• American Family has less expensive prices for policyholders who don't have any speeding tickets, DUIs, or at-fault collisions on their record
• Farmers may help you save more money -- they offer more discounts than American Family Insurance

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

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering huge savings, but exactly how much money can you save by switching?

You might have narrowed it down to American Family or Farmers for your next policy, but between the two, which company will offer you more affordable rates?

As you can see, Farmers is quite a bit more expensive than American Family, with premiums averaging $203 a month compared to just $140 with American Family when looking at the national average rates for insurance.

Even so, American Family may not be the cheapest or best option for every driver out there. Auto insurance carriers vary their prices depending on things like how good your credit score is, how old you are, where you live, how clean your driving record is, and all sorts of other factors, so rates will change quite a bit from person to person.

So, if you want to find out which of American Family or Farmers is really the best for you, keep reading to see average prices for each company broken down by several different rate factors.

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

American Family and Farmers compete against each other in 14 states, with American Family offering cheaper premiums to the average driver in all of them. If you live in, undefined is the more affordable of the two companies when looking at the overall average rates, but Farmers is the cheaper option in most of the others.

But there's more to car insurance than just where you live. As we mentioned above, there's a lot of things that go into how auto insurance carriers determine your premiums. Continue reading to see 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 insurance than any group on the road. That's typically because teen 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 prices, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have American Family for their car insurance pay over 40% less than those who use Farmers.

That being said, both companies will offer you dramatically lower rates once you turn 25. For example, average prices for American Family policyholders drop around $200 and Farmers's premiums decrease almost $400 over that time.

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 rates you'll ever see.

So, which carrier offers the best premiums to retired drivers? American Family gets the edge here, with average prices coming in at about $107 per month compared to Farmers's $143.

Which is the Best Company for Married Drivers?

Single drivers tend to get offered slightly more expensive auto insurance rates than married couples. This usually boils down to married drivers having more than one vehicle on their policy -- something lots of car insurance carriers will reward with discounts.

For those who are single, the difference in average premiums between these two companies is significant, with American Family prices coming in at a third less than Farmers's. For married policyholders, the advantage is clear again - American Family has the edge when it comes to average rates.

American Family or Farmers: Average Rates by Gender

You may not know, but auto insurance is usually more expensive for men than for women. That's because men are more likely to get tickets and get into collisions, which increases the chances of filing a claim with insurance.

On average, women see premiums around 3% per month less with American Family, but with Farmers, the difference is closer to 3% a month.

When it comes to the most affordable prices for each gender, American Family offers the cheapest average premiums for both men and women. On average, male drivers save about $64 per month and women save about $62 with American Family compared to the average Farmers policyholder.

American Family vs. Farmers: 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.

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 property damage and bodily injury 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).

Looking specifically at state minimum liability limits, American Family has the edge, with average monthly rates 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 around $185 a month to Farmers's $281.

Is American Family or Farmers 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.

You'll probably end up paying more with speeding tickets and accidents on your record, but which of these two carriers offers the most affordable prices to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their auto insurance can normally expect their monthly bill to go up about 20% after getting a speeding ticket. Farmers policyholders can expect a bit more drastic of an increase of around 21%.

But American Family is generally the less expensive option for drivers both with clean records and with a ticket. With American Family Insurance, drivers with a clean record can save about $44 per month and drivers with a speeding ticket can save around $59 a month.

Which Company is Best for Drivers After an Accident?

American Family drivers who get in an accident can expect to see their rates increase by just under 15%, while those who have insurance through Farmers will see about a 30% increase.

At the end of the day, the cheaper prices come from American Family, with average premiums coming in at $138 compared to Farmers Insurance's $224.

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 insurance bill -- normally a lot more than a collision or ticket. Farmers drivers usually see a 27% increase in their car insurance rates after a DUI charge, while American Family will typically raise premiums by around 25%.

How does Credit Score Impact American Family and Farmers Rates?

Often times, your credit score can be used as one of the factors to calculate your monthly auto insurance prices. Certain states and companies do not allow for credit score to be used as a car insurance factor, but it might come into play for many policyholders.

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

Looking at American Family and Farmers specifically, which one has the lowest premiums for drivers 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 Farmers Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a substantial impact on your monthly auto insurance bill. Usually, the more milage you put on your vehicle each year, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Farmers charges. However, there's a small difference in monthly rates for American Family, with drivers who put 6,000 miles on their car annually paying about $5 less each month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, American Family is the less expensive company.

American Family or Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

Where you call home can have a pretty big impact on your monthly car insurance payment. Typically, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers since there are a lot fewer vehicles on the road where they live, which decreases the chances of an accident.

When comparing these two companies side-by-side, American Family normally comes out as the cheapest option 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 prices are around 34% less than Farmers Insurance. People who live in suburban areas pay about 29% less with American Family compared to Farmers. Those in rural areas can expect to save around 29% with American Family compared to Farmers.

American Family vs. Farmers 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, and the best way to do that is by utilizing as many car insurance discounts as possible.

But with what seems like a million different discounts out there, it can be difficult 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 looked at all of the different discounts American Family and Farmers offer their customers so that you can see which carrier can save you the most money each month.

Farmers knocks American Family out of the park when it comes to the sheer number of discounts available, offering 28 different discounts to American Family's 28.

There are a couple discounts both carriers offer, but Farmers also offers discounts for ABS, alternative fuel, driver training, 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, DRL discounts, and more.

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

So, we've broken down the average rates for many of the variables insurance companies look at, and walked through the different discounts each company offers, too. But, at the end of the day, is American Family or Farmers the best company for you, your vehicle, and your wallet?

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

• You have below-average credit.
• You already have a great credit score.
• You are purchasing your auto insurance with a spouse.

Farmers might be best for you if...

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

Hopefully, this guide helps you get a good idea of the differences between American Family and Farmers and that you can now make a more informed decision when it comes to your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your insurance policy is to compare quotes from several carriers, not just American Family and Farmers. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP code below and get free quotes from dozens of the top auto insurance companies in your area, all in just a few minutes.

American Family vs. Farmers FAQs

Is American Family or Farmers cheaper?

American Family is the more affordable of the two carriers when looking at national average premiums, with policies averaging $140 per month with American Family and $203 for Farmers. However, that doesn't mean American Family will be the lowest company for everyone, since there are a variety of different factors (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or Farmers?

Unfortunately, the only answer we can give you is "it depends.". No single carrier is necessarily "better" for every policyholder -- it all comes down to what your unique car insurance profile looks like.

Why do American Family and Farmers offer me different rates?

Insurance companies use several different variables when determining the prices they charge. Things like age, where you live, your driving record, gender, and sometimes even things like your credit score can all come into play. Both American Family and Farmers use different formulas, so it's likely they'll offer different rates. The best way to determine which company is the most affordable for you is by comparing personalized quotes from a range of different carriers.

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

The only way to find the car insurance carrier 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 do all the hard work for you. Just enter your information once 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 company for you isn't American Family or Farmers 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.