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

Quick Facts

• Based on national averages for insurance, American Family offers significantly less expensive rates than Key
• American Family offers cheaper average premiums for policyholders who have a short commute
• Key offers more affordable rates for residents in Nevada

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

So, you're thinking about switching your auto insurance. You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You might have narrowed it down to American Family or Key for your next policy, but which one has more affordable prices for auto insurance?

Looking at nationwide averages, Key is quite a bit more expensive than American Family, with rates averaging $285 per month compared to just $140 with American Family.

However, that doesn't necessarily mean American Family will be the cheaper option for every single driver. Insurance companies use a variety of complex algorithms to calculate prices, so depending on how good your credit score is or where you live (among lots of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of American Family or Key is really the best for you, keep reading to see average rates for each carrier broken down by a variety of different rate factors.

American Family or Key: Average Car Insurance Rates by State

American Family and Key only compete against each other in Nevada, where American Family offers the cheaper average prices. For Nevada residents, American Family offers car insurance for $280 per month on average. Key's average premiums come out to be more expensive, at $285 monthly.

But there's more to calculating auto insurance prices than just where you live. Read on to find out more.

Which is the Best Company For Young Drivers?

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

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. As you can see above, teens who use American Family save more than $350 a month compared to those who use Key. It's worth noting that American Family offers insurance in 16 different states compared to Key's one, which can skew the average prices a bit, but the difference here is still considerable.

Even so, with both carriers, you'll see your rates drop significantly by the time drivers turn 25. For example, average premiums for American Family policyholders reduce nearly $200 and Key's rates decrease about $450 over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest prices you'll ever find.

When looking at American Family and Key specifically, which company is best for retired drivers? American Family gets the edge here, with average premiums coming in at around $107 a month compared to Key's $223.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance prices tend to be more expensive for single policyholders than they are for married drivers. This usually boils down to married policyholders having more than one car on their policy -- something many insurance companies will reward with discounts.

When it comes to relationship status, American Family is the clear winner for single drivers, with rates about $179 per month less expensive than Key, on average. For married couples, the advantage is clear again - American Family has the edge when it comes to average premiums.

American Family vs. Key: Average Rates by Gender

Did you know women usually pay less for auto insurance than men? This is because women are less likely to get into accidents and get speeding tickets, which lowers the chances of an insurance claim.

Men generally pay around $5 a month more than women with American Family, while with Key, the difference is closer to $53 per month.

When it comes to the most affordable rates for each gender, American Family offers the lowest average prices for both men and women. On average, male drivers save about $168 a month and women save about $120 with American Family compared to the average Key policyholder.

American Family or Key: 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.

It's no secret that car insurance can be a complicated subject for most people. There are so many different terms and coverages that it can make it pretty confusing to find the right policy.

The two most common policies end up falling into two different types of coverage -- liability only (which provides property damage and bodily injury coverage for other drivers if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with liability coverage).

If you're looking for state minimum liability limits, American Family typically offers significantly cheaper premiums of $96 compared to Key's $196. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies around $200 per month less expensive than Key, on average.

Is American Family or Key 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.

Tickets and accidents will most likely raise your rates, but is American Family or Key more affordable for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers with Key insurance policies don't report seeing their prices increase after getting a ticket, but American Family policyholders can expect to see their monthly bill increase by about $30.

But American Family tends to offer the best prices for drivers both with a ticket and with a clean record. Drivers with a clean record can save around $92 a month with American Family Insurance, and the same can be said for those with a speeding ticket, too.

Which Company is Best for Drivers After an Accident?

Both carriers will increase premiums pretty significantly if you get into an at-fault accident with Key climbing by $25. American Family has a less extreme increase, but you can still expect to pay $20 more than you were prior to your first collision.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly rates averaging $138 compared to Key Insurance Company's $235.

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 auto insurance bill -- normally a lot more than a collision or ticket. Key drivers usually see a 57% increase in their insurance premiums after a DUI charge, while American Family will generally climb prices by about 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 one for Key, so the data may be skewed slightly.

How does Credit Score Impact American Family and Key Rates?

You may not realized it, but your credit score can be used as one of the factors to determine your monthly car insurance prices. Certain states and companies do not allow for credit score to be used as a rating factor, but it might come into play for several 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 normally be forced to pay more.

So, which carrier offers the best premiums for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, you'll usually find a better deal with American Family. Drivers with "excellent" credit can save just under 65% compared to Key, and those with "good" scores can also expect to see savings -- around $165 or 58% cheaper each month.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower rates than Key when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about $144 per month less with American Family compared to Key, and those with "poor" scores usually save an average of around $84 a month.

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

How much you drive can have a large impact on your monthly prices. Typically, those who drive fewer miles will end up with less expensive rates since there's less of a chance of getting into an accident and causing an insurance claim.

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

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

Where you call home can have a pretty big impact on your monthly car insurance bill. Normally, those who live in rural areas will pay less than policyholders in urban areas because there are a lot fewer cars on the roads in those areas.

When comparing these two companies side-by-side, American Family generally comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

In urban areas, American Family Insurance's average premiums are around $220 less than Key Insurance Company. Drivers in suburban ZIP codes pay about $100 less with American Family compared to Key. If you live in a rural area, you can expect to save around $113 with American Family compared to Key.

American Family vs. Key Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many car insurance discounts as you can.

The difficult part is finding all of the discounts you're eligible for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the section below, we've broken down all of the different discounts offered by both American Family and Key so that you can find the carrier that has the most discounts and, therefore, the biggest savings.

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

There are a couple discounts both carriers offer, but American Family also offers advance quote discounts, anti-theft discounts, connect partner discounts, and more that Key does not.

On the flip side, Key has a couple unique discounts of its own -- discounts for being a good driver and passive restraint discounts.

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

You've seen the role certain variables have on your insurance and the different discounts companies offer. But, at the end of the day, is American Family or Key the right company for you, your vehicle, and your wallet?

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

• You haven't received any speeding tickets or been in a collision in the last few years.
• You already have a great credit score.
• You live in an suburban area.

Key might be best for you if...

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

We hope this guide helps you get a better idea of the difference between American Family and Key. We also hope we've given you the information you need to make the best decision about your auto insurance.

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

American Family vs. Key FAQs

Is American Family or Key cheaper?

Looking just at the national average rates, American Family is the less expensive of the two carriers, offering average rates of $140 a month compared to $285 for Key. That being said, American Family won't necessarily be the lowest company for each driver, since there are multiple different factors (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Key?

Unfortunately, the answer truly is "it depends.". One carrier is not necessarily "better" for everyone -- it all comes down to what your unique auto insurance profile looks like.

Why do American Family and Key offer me different rates?

Insurance companies take a look at a lot of different variables when calculating the prices they charge drivers. Factors such as your driving record, gender, where you park your vehicle, age, and sometimes even things like your credit score can all come into play. Both American Family and Key calculate premiums using different variables, so each one will most likely offer different prices. The only real way to see which company is the cheapest for you is by comparing personalized quotes from several different carriers.

How do I know if American Family or Key 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 area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. With those, you can guarantee you're getting the lowest rate. And who knows, the best company for you might not be American Family or Key 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.