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

Quick Facts

• In general, American Family offers significantly less expensive premiums than Kemper
• American Family has more affordable rates for policyholders whose driving record contains an at-fault collision
• Kemper may help you save more money -- they offer more discounts than American Family Insurance

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

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering hefty savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to American Family or Kemper as potential options, but which one has cheaper prices for car insurance?

Looking at the national average rates for both carriers, American Family is quite a bit cheaper than Kemper, with rates averaging $140 a month compared to $235 with Kemper.

Even so, that doesn't mean American Family will necessarily be less expensive than Kemper for every single driver. Auto insurance companies use a ton of complex algorithms to determine premiums, so depending on where you live or how clean your driving record is (among lots of other factors), you could see wildly different prices from the ones above.

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

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

American Family and Kemper compete against each other in eight states, with American Family offering cheaper rates to the average driver in all of them. Wisconsin has the most noticable difference, where American Family premiums are $83 more affordable than car insurance prices at Kemper.

There are plenty of other factors that go into your insurance payment than just the state you live in. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- normally pay a lot for auto insurance compared to older drivers. That's generally because teen 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 insurance rates. For example, 18-year-old drivers pay an average of almost 35% less per month by choosing American Family over Kemper.

However, with both carriers, you'll see your premiums lower significantly by the time you turn 25. For example, average prices for American Family policyholders decrease over 60% and Kemper's rates reduce more than 55% over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll typically enjoy the most affordable car insurance premiums 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 carrier offers the best prices to retired drivers? American Family gets the edge, with premiums for drivers 65 and older $72 less expensive than the national average for Kemper.

Which is the Best Company for Married Drivers?

Did you know that car insurance prices are usually more affordable for married policyholders than they are for single policyholders? That's because policies for married drivers typically cover more than one vehicle, which lots of companies will give you a discount for.

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

American Family or Kemper: Average Rates by Gender

You may not know, but insurance is usually more expensive for men than for women. This is because men are statistically more likely than women to get into collisions and file an insurance claim, which leads to increased risk for insurers and, therefore, higher prices.

Women generally pay around 3% a month less than men with American Family, and nearly 10% less with Kemper when compared to their male counterparts.

Looking at the data for each company specifically, American Family offers the cheapest average rates for both men and women. On average, male drivers save about $101 per month and women save about $87 with American Family compared to the average Kemper policyholder.

American Family vs. Kemper: 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.

Car insurance isn't the easiest topic to understand. There are a range of different coverages that account for many different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

That being said, the most common policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers and passengers if you cause an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability).

Looking specifically at state minimum liability insurance, American Family has the significant edge, with average monthly prices 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 Kemper's $331.

Is American Family or Kemper 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.

You'll probably end up paying more with accidents and speeding tickets on your record, but which of these two companies offers the lowest premiums to drivers with less-than-ideal driving 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. Kemper policyholders can expect a bit more drastic of an increase of around 21%.

But American Family has cheaper prices for drivers in both categories, offering premiums that are 32% and 33% less expensive, respectively, compared to Kemper.

Which Company is Best for Drivers After an Accident?

American Family drivers who get in a collision can expect to see their rates climb by $20, while those who have insurance through Kemper will see about a $85 increase.

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 Kemper's $259.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple ticket or even an accident. For example, Kemper increases average rates by more than $100 per month -- that's nearly a 40% increase.

How does Credit Score Impact American Family and Kemper Rates?

Did you know many insurance carriers take into account your credit score when determining premiums? This isn't true for everyone (for example, Massachusetts and Michigan are two states that ban the practice entirely), but it does affect quite a few policyholders out there.

Auto insurance companies 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.

So, which carrier offers the best prices for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or Kemper 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 your monthly car insurance cost. Typically, those who drive less will end up with cheaper premiums since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, American Family offers more affordable rates than Kemper. American Family's average prices for drivers with 6,000 annual miles come in around $96 less expensive than Kemper. Those who drive 12,000 miles each year can expect to pay about $92 less with American Family over Kemper.

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

Where you live can play a big role in how much you pay for insurance. Generally, those who live in rural areas will pay less than policyholders in urban areas because of the small number of cars that are on the roads where they live.

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

For drivers in urban ZIP codes, American Family Insurance's average prices are around $130 less than Kemper. People who live in suburban areas pay about $92 less with American Family compared to Kemper. Those in rural areas can expect to save around $61 with American Family compared to Kemper.

American Family vs. Kemper Discounts

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

But where do you even start? With so many discounts out there, it may seem hard to find all the of the ones you can take advantage of.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Kemper so that you can easily see which company offers the most discounts and, therefore, the largest savings.

Looking at the total number of discounts, Kemper has advantage when it comes to total number of discounts. American Family offers a grand total of 21 discounts, while Kemper has 24.

Both carriers offer quite a few of the same discounts -- like anti-theft discounts, distant student discounts, DRL discounts, and discounts for being a good student -- but Kemper also offers discounts for AAA, ABS, continuous insurance, 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, generational discounts, and more.

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

So, we've broken down the average premiums for many of the factors auto insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but when it comes down to it, is American Family or Kemper the right carrier for you and your specific profile and needs?

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

• You're worried about the impact your credit score will have on your rates.
• Your home is located in the suburbs.
• You're of retirement age and want to take advantage of lower premiums.

Kemper might be best for you if...

• You already have plans to move to another state -- undefined is only available in.
• You want to save extra money with discounts.

Hopefully, this guide helps you get a good idea of the differences between American Family and Kemper. We also hope we've given you the information you need to make the best decision when it comes to your 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 multiple carriers, not just American Family and Kemper. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

American Family vs. Kemper FAQs

Is American Family or Kemper cheaper?

American Family is the more affordable of the two carriers when looking at national average prices, with policies averaging $140 a month with American Family and $235 for Kemper. Even so, that doesn't mean American Family will be the cheapest company for every policyholder, since there are multiple different variables that come into play when it comes to your insurance bill.

Who is better, American Family or Kemper?

Sadly, the real answer is "it depends.". No single carrier is necessarily "better" for each policyholder -- it all depends on what your unique car insurance profile looks like.

Why do American Family and Kemper offer me different rates?

Auto insurance companies use a lot of different factors when calculating the rates they charge. Variables such as age, gender, where you call home, your driving record, and sometimes even things like your credit score can all be used. Both American Family and Kemper calculate premiums using different formulas, so it's likely they'll offer different prices. The best way to determine which company is the lowest for you is by comparing personalized quotes from a variety of different carriers.

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

The only way to find the insurance carrier that's right for you is by getting quotes from a handful of companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get quotes from dozens of your local top auto insurance carriers for free. With those, you can guarantee you're getting the most affordable premium. And maybe you'll find that the best company for you isn't American Family or Kemper 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.