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

Quick Facts

• Looking at the national averages for car insurance, Farmers Mutual offers significantly less expensive prices than American Family
• American Family offers more discounts than Farmers Mutual
• Farmers Mutual has cheaper rates for policyholders who don't have any speeding tickets, DUIs, or at-fault accidents on their record

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

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering hefty discounts, but exactly how much money can you save by switching?

You might have narrowed your search down to American Family or Farmers Mutual, but between the two, which company will offer you more affordable prices?

As you can see, American Family has average rates that are about 35% per month more expensive than those from Farmers Mutual when looking at the national average rates for auto insurance.

Even so, that doesn't mean Farmers Mutual will necessarily be less expensive than American Family for every driver. Insurance companies vary their rates depending on things like how clean your driving record is, how old you are, where you live, how good your credit score is, and a variety of other factors, so premiums could differ drastically from person to person.

Wanting to know if American Family or Farmers Mutual is really the right carrier 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 Mutual: Average Car Insurance Rates by State

American Family and Farmers Mutual only compete against each other in one states, with Farmers Mutual offering more affordable premiums to the average driver in all of them. South Dakota has the most noticable difference, where Farmers Mutual prices are cheaper than car insurance rates at American Family.

But there's more to calculating auto insurance premiums than just where you call home. 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 insurance prices of any other group of drivers. It's because young, inexperienced drivers are statistically much more likely to get into accidents since they have less experience on the roads.

However, that doesn't mean teen drivers can't still save money on their car insurance. As you can see above, teens who use Farmers Mutual save nearly $150 a month compared to those who use American Family. It's worth noting that American Family offers insurance in 16 different states compared to Farmers Mutual's two, which can skew the average rates a bit, but the difference here is still considerable.

But both carriers will offer you dramatically lower prices by the time you turn 25. Farmers Mutual offers the steepest decrease, with 25-year-olds paying less than half what 18-year-old drivers are charged. American Family's average premiums lower more than 60% during that same period.

Which is the Best Company for Retired Drivers?

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

So, which company offers the best premiums to retired drivers? Farmers Mutual gets the edge, with prices for drivers 65 and older $46 more affordable than the national average for American Family.

Which is the Best Company for Married Drivers?

Did you know that car insurance premiums are usually more expensive for single drivers than they are for married policyholders? That's generally because married couples tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, Farmers Mutual is the clear winner for those who are single, with rates around $62 per month less expensive than American Family, on average. The advantage for married drivers with Farmers Mutual is also obvious, where drivers save about $35 a month.

American Family vs. Farmers Mutual: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into an accident, which means they'll typically end up paying more for auto insurance than women.

On average, men see premiums around 3% per month higher with American Family, and about 9% more with Farmers Mutual.

When it comes to the most affordable prices for each gender, Farmers Mutual comes out as the lowest option for both genders. On average, women save about $52 a month and men save around $49 with Farmers Mutual compared to the average American Family policyholder.

American Family or Farmers Mutual: 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, insurance isn't the easiest topic to understand. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with liability).

If you're looking for state minimum limits for liability insurance, Farmers Mutual generally offers significantly cheaper rates of $32 compared to American Family's $96. When it comes to full coverage policies with similar limits, Farmers Mutual again has the edge, with policies about $40 per month less expensive than American Family, on average.

Is American Family or Farmers Mutual Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance companies offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with tickets and at-fault collisions on your record, but which of these two carriers offers the most affordable premiums to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their rates to go up an average of $29 a month if they get a ticket, while Farmers Mutual normally raises premiums around $6 per month, on average.

That being said, Farmers Mutual is usually the more affordable option for both drivers who have clean records and those with a recent speeding ticket -- their rates are around 41% cheaper for drivers with clean records and 48% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

American Family drivers who get in an accident can expect to see their prices rise by $20, while those who have insurance through Farmers Mutual will see about a $15 increase.

Overall, Farmers Mutual offers the cheapest rates for drivers with an at-fault accident on their records, with monthly premiums averaging $86 compared to American Family Insurance's $138.

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 ticket when it comes to your auto insurance bill. For example, Farmers Mutual increases average prices by just under $60 a month -- that's over a 45% increase.

Farmers Mutual has the overall lowest rates for drivers with a DUI on their records at $128 monthly, but it's worth noting that American Family's average rates come from 16 states compared to just two for Farmers Mutual, so the data may be skewed slightly.

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

In many cases, your credit score can come into play when companies calculate your monthly bill. This isn't always the case (Massachusetts, for example, has banned the use of credit score as a rating factor) but it will come into play for a lot of policyholders.

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

So, which carrier offers the most affordable 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, you'll usually find a better deal with Farmers Mutual. Policyholders with "excellent" credit can save just under 20% compared to American Family, and those with "good" scores can also expect to see savings -- around $35 or 29% less expensive every month.

Which Company is Best for Drivers with Bad Credit?

Farmers Mutual typically offers lower prices than American Family when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay about $51 per month less with Farmers Mutual compared to American Family, and those with "poor" scores typically save an average of around $98 a month.

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

The amount of time you spend behind the wheel of your car plays a big role in how much car insurance companies will charge for coverage. That's because the more miles you drive, the more likely you are to get into a collision and cause an insurance claim.

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

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

Where you live can play a big role in how much you pay for insurance. Usually, those who live in urban areas will pay more than drivers in rural areas because there are a lot more cars on the roads in those areas.

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

In urban areas, Farmers Mutual's average prices are around 44% less than American Family Insurance. Drivers in suburban ZIP codes pay about 35% less with Farmers Mutual compared to American Family. If you live in a rural area, you can expect to save around 26% with Farmers Mutual compared to American Family.

American Family vs. Farmers Mutual Discounts

You want to save as much money as possible, right? The best way to do that is by utilizing as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to find all the ones you can take advantage of or to nail down the company that has the most discounts for your unique driver profile.

Below, we've compared all of the different discounts offered by American Family and Farmers Mutual 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 blows Farmers Mutual away when it comes to the sheer amount of discounts available, offering 14 more discounts than Farmers Mutual.

Both companies offer quite a few of the same discounts -- like discounts for being a good student, multi-policy discounts, and paid in full discounts -- but American Family also offers advance quote discounts, anti-theft discounts, connect partner discounts, and more that Farmers Mutual does not.

On the flip side, Farmers Mutual has a couple unique discounts of its own -- discounts for getting driver training, passive restraint discounts, and secondary vehicle discounts.

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

So, we've broken down the average rates for many of the variables 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, is American Family or Farmers Mutual the best fit for you?

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

• You're single and purchasing car insurance by yourself.
• You're worried about the impact your credit score will have on your premiums.
• You and your spouse are buying auto insurance together.

American Family might be best for you if...

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

We hope this guide has ben a valuable resource as you compare American Family and Farmers Mutual. We also hope we've given you the information you need to make the best decision when it comes to 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 Mutual. Luckily, Compare.com does all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

American Family vs. Farmers Mutual FAQs

Is American Family or Farmers Mutual cheaper?

Looking just at the national average rates, Farmers Mutual is the more affordable of the two companies, offering average rates of $90 a month compared to $140 for American Family. But Farmers Mutual won't necessarily be the cheapest company for each driver, since there are a bunch of different factors that come into play when it comes to your insurance cost.

Who is better, American Family or Farmers Mutual?

Sadly, the real answer is "it depends.". Neither carrier is "better" for everyone -- it all depends on the makeup of your unique car insurance profile.

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

Insurance carriers take a look at many different variables when calculating the premiums they charge policyholders. Factors like age, your driving record, gender, where your home is, and sometimes even things like your credit score can all come into play. Both American Family and Farmers Mutual calculate prices using different formulas, so each one will most likely offer different rates. The only real way to see which company is the lowest for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the auto 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, 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. That way, you can guarantee you're getting the most affordable price. And who knows, the best company for you might not be American Family or Farmers Mutual 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.