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

Quick Facts

• In general, American Family offers significantly cheaper rates than Farmers Union
• American Family offers more affordable premiums for policyholders who live in suburban areas
• Farmers Union has more affordable rates in CO, KS, MN, and UT

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

So, you're considering switching to a new insurance policy. With so many ads from all sorts of companies offering big savings, you're probably wondering exactly how much you might be able to save.

You might be considering American Family or Farmers Union for your next policy, but between the two, which company will save you the most?

As you can see, Farmers Union has average rates that are around 25% a month more expensive than those from American Family when looking at the national average rates for insurance.

However, American Family may not be the lowest or best option for every driver out there. Car insurance carriers use a variety of complex algorithms to determine prices, so depending on where you live or how old you are (among multiple other factors), you could see wildly different premiums from the ones above.

Luckily, we've broken down average rates from both American Family and Farmers Union by a variety of different rate factors, so read on to find out which company is the best for you.

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

American Family and Farmers Union compete against each other in four states, with American Family offering less expensive prices to the average driver in all of them. If you live in Utah, Farmers Union is the cheaper of the two companies when looking at the overall average rates. American Family is the more affordable option in Colorado, Kansas, and Minnesota.

But there's more to auto insurance than just your home state. As we mentioned above, there's a lot of things that go into how insurance carriers calculate your prices. Read on to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for auto insurance compared to older drivers. It's generally because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean teen drivers can't still save money on their insurance. Just look at the table above -- where 18-year-old drivers who have American Family for their car insurance pay almost 15% less than those who use Farmers Union.

That being said, with both companies, you'll see your premiums reduce significantly by the time you turn 25. For example, average prices for American Family policyholders decrease over 60% and Farmers Union's premiums drop nearly 55% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll usually enjoy the most affordable insurance rates you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

So, which carrier offers the best rates to retired drivers? American Family gets the edge, with prices for drivers 65 and older almost 30% less expensive than the national average for Farmers Union.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly more affordable auto insurance rates than those who are single. This usually boils down to married couples having multiple vehicles on their policy -- something several insurance carriers will reward with discounts.

For single policyholders, the difference in average premiums between these two companies is significant, with American Family prices coming in at a quarter less than Farmers Union's. The advantage for married policyholders with American Family is also obvious, where drivers save more than 30% per month.

American Family or Farmers Union: Average Rates by Gender

Men are statistically more likely than women to get into collisions and get speeding tickets, which means they'll normally end up paying more for auto insurance than women.

Generally, men see rates about $5 a month higher with American Family, and around $11 more with Farmers Union.

Looking at the data for each company specifically, American Family comes out on top for both men and women. On average, male drivers save about $52 per month and women save about $46 with American Family compared to the average Farmers Union policyholder.

American Family vs. Farmers Union: 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, car insurance can be pretty complicated. There are so many different terms and limits that it can make it pretty confusing to find the right policy for you.

But most policies that drivers look at fall into two categories -- liability coverage (which provides bodily injury and property damage coverage for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with liability).

Looking specifically at state minimum liability insurance, American Family has the edge, with average monthly premiums 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 Union's $271.

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

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

It's no secret secret that collisions and speeding tickets lead to higher premiums, but which carrier -- American Family or Farmers Union -- has the cheapest prices for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their insurance can usually expect their monthly bill to go up about 20% after getting a speeding ticket. Farmers Union policyholders can expect a bit more drastic of an increase of around 27%.

That being said, American Family tends to offer the best prices for both drivers who have clean records and those with a recent ticket, offering rates that are 14% and 22% less expensive, respectively, compared to Farmers Union Insurance.

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 Union will see about a $70 increase.

At the end of the day, American Family offers the most affordable rates for drivers with an at-fault collision on their records, with average premiums coming in at $138 compared to Farmers Union Insurance's $207.

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 -- generally a lot more than a collision or speeding ticket. For example, Farmers Union increases average prices by more than $85 per month -- that's nearly a 40% increase.

But if you end up with a DUI charge and are looking for more affordable premiums, American Family tends to be cheaper for the average driver, with monthly premiums coming in at around $158 to Farmers Union's $225.

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

You may not have known, but your credit score can come into play when companies determine your monthly bill. This isn't true for everyone (for example, Massachusetts and California are two states that ban the practice entirely), but it might come into play for lots of policyholders.

The reasoning auto insurance carriers use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will typically be forced to pay more.

So, which company offers the cheapest premiums for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, American Family will normally reward you the most. For drivers with "excellent" credit scores, American Family comes in just under 29.08 less expensive. Drivers with "good" credit scores usually save about 27% with American Family compared to average prices from Farmers Union.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower rates than Farmers Union when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around 26% a month less with American Family compared to Farmers Union, and those with "poor" scores generally save an average of about 23% monthly.

Is American Family or Farmers Union 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 milage you put on your car, the more likely you are to be in an accident and file an insurance claim.

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

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

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

American Family boasts the most affordable average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Those in rural areas can expect to pay about $121 a month with American Family and $170 with Farmers Union. Drivers in suburban ZIP codes pay a monthly rate of around $134 with American Family compared to $172 with Farmers Union. For drivers in urban ZIP codes, American Family's average premiums are about $166 while Farmers Union offers rates around $226.

American Family vs. Farmers Union Discounts

No matter 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 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 challenging to find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Farmers Union so that you can find the one that has the most discounts and, therefore, the largest savings.

American Family knocks Farmers Union out of the park when it comes to the sheer number of discounts available, offering 21 different discounts to Farmers Union's 11.

Both carriers offer many of the same discounts -- like discounts for being a good student, group discounts, and multi-policy discounts -- but American Family also offers discounts for advance quote, anti-theft, connect partner, and more.

On the other hand, Farmers Union has a few proprietary discounts of their own for things like farm discounts, good driving discounts, and minor child discounts.

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

So, we've broken down the average prices 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 Union the best carrier for you and your specific profile and needs?

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

• You will be the only person on the car insurance policy.
• You have above-average credit.
• You live in an suburban area.

Farmers Union might be best for you if...

• You like the personalized touch of a small, regional carrier.

Hopefully, this guide helps you get a good idea of the differences between American Family and Farmers Union. We also hope we've given you the information you need to make the best decision about your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from a handful of carriers, not just American Family and Farmers Union. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best insurance companies in your area, all for free.

American Family vs. Farmers Union FAQs

Is American Family or Farmers Union cheaper?

American Family is the more affordable of the two carriers when looking at national average rates, with policies averaging $140 per month with American Family and $189 for Farmers Union. Even so, that doesn't mean American Family will be the lowest company for each driver, since there are several different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Farmers Union?

Unfortunately, the only answer we can give you is "it depends.". One carrier is not necessarily "better" for every policyholder -- it all comes down to what your unique auto insurance profile looks like.

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

Car insurance companies use quite a few different variables when determining the prices they charge. Things like your driving record, gender, age, where you call home, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Farmers Union use different formulas, so it's likely they'll offer different premiums. The best way to determine which company is the cheapest for you is by comparing personalized quotes from a bunch of different carriers.

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

The only way to find the auto 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, Compare.com makes it easy for you to do just that. Just enter your ZIP code and you'll get quotes from dozens of your local top car insurance carriers for free. With those, you can guarantee you're getting the lowest premium. And maybe you'll find that the best company for you isn't American Family or Farmers Union 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.