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

Quick Facts

• Looking at the national averages for auto insurance, American Family offers significantly more affordable premiums than Memberselect
• American Family offers cheaper average rates for drivers who have below-average credit
• Memberselect has less expensive prices in MN

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

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

You might have narrowed your search down to American Family or Memberselect as your top options, but between the two, which company will save you the most?

Looking at nationwide averages, Memberselect is quite a bit more expensive than American Family, with premiums averaging $274 a month compared to just $140 with American Family.

However, that doesn't mean American Family will necessarily be cheaper than Memberselect for every driver. Insurance carriers vary their rates depending on things like where you live, how old you are, how good your credit score is, how clean your driving record is, and all sorts of other factors, so prices could vary drastically from person to person.

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

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

American Family and Memberselect only compete against each other in Minnesota, where American Family offers the cheaper average rates. American Family drivers tend to pay about $115 per month less on average compared to drivers who use Memberselect for their auto insurance.

That being said, there are plenty of other factors that go into your car insurance cost than just where you live. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for insurance compared to older drivers. It's because teen drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance premiums. As you can see above, teens who use American Family save almost 30% a month compared to those who use Memberselect. It's worth noting that American Family offers car insurance in 16 different states compared to Memberselect's one, which can skew the average rates a bit, but the difference here is still considerable.

But both companies will decrease prices by the time drivers turn 25. For example, average premiums for American Family policyholders drop over 60% and Memberselect's rates lower nearly 40% 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 cheapest prices you'll ever see.

But who has the best rates for retired drivers between American Family and Memberselect? American Family gets the edge here, with average prices coming in at around $107 a month compared to Memberselect's $238.

Which is the Best Company for Married Drivers?

Did you know that auto insurance premiums are usually less expensive for married drivers than they are for those who are single? That's typically because married couples tend to own and insure several vehicles, which can often earn you a discount.

For single drivers, the difference in average rates between these two carriers is significant, with American Family premiums coming in at about half of Memberselect's. The advantage for married policyholders with American Family is also obvious, where drivers save almost 55% per month.

American Family or Memberselect: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents, which means they'll normally end up paying more for car insurance than women.

With American Family, women typically pay around $5 a month less than men, and about $11 less with Memberselect.

Looking at the data for each carrier specifically, American Family comes out as the most affordable option for both genders, with average prices $137 less for men and $131 cheaper for women.

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

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

Looking specifically at state minimum liability limits, American Family has the significant 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 per month to Memberselect's $366.

Is American Family or Memberselect 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.

Speeding tickets and at-fault collisions will most likely raise your premiums, but is American Family or Memberselect more affordable 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 generally expect their monthly bill to go up about 20% after getting a speeding ticket. Memberselect policyholders can expect a bit more drastic of an increase of around 24%.

But American Family has cheaper prices for drivers in both categories, offering premiums that are $61 and $90 more affordable, respectively, compared to MemberSelect Insurance Company.

Which Company is Best for Drivers After an Accident?

Both companies will raise prices pretty significantly if you get into an at-fault collision with Memberselect climbing by about 17%. American Family has a less extreme increase, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, American Family offers the lowest rates for drivers with an at-fault collision on their records, with average prices coming in at $138 compared to MemberSelect Insurance Company's $216.

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, Memberselect increases average rates by nearly $300 a month -- that's more than a 60% increase.

American Family has the overall cheapest premiums for drivers with a DUI on their records at $158 monthly, but it's worth noting that American Family's average rates come from 16 states compared to just one for Memberselect, so the data may be skewed slightly.

How does Credit Score Impact American Family and Memberselect Rates?

Did you know many auto insurance carriers take into account your credit score when determining 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 drivers.

Car insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which reduces the risk involved on their end, while the opposite is true for those with bad credit.

Looking at American Family and Memberselect specifically, which one has the best premiums for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, American Family will normally reward you the most. For drivers with "excellent" credit scores, American Family comes in over 46.24 less expensive. Drivers with "good" credit scores usually save around 45% with American Family compared to average rates from Memberselect.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower prices than Memberselect when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 47% per month less with American Family compared to Memberselect, and those with "poor" scores typically save an average of around 53% per month.

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

How much you drive can have a large impact on your monthly insurance bill. That's because the more milage you put on your vehicle each year, the more likely you are to be in a collision and file an insurance claim.

For both remote workers and those taking short commutes, American Family tends to be the cheaper option. American Family average premiums for drivers with 6,000 annual miles come in just under $150 more affordable than Memberselect. Those who drive 12,000 miles yearly can expect to pay nearly $150 less with American Family over Memberselect.

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

Where you park your car can play a substantial role in how much you pay for car insurance. Usually, policyholders who live in heavily-populated urban areas will pay quite a bit more than rural drivers because of the number of vehicles that are on the roads where they live.

American Family boasts the most affordable average premiums for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to pay about $121 monthly with American Family compared to Memberselect's $228. Drivers in suburban ZIP codes pay a monthly price of around $134 with American Family compared to $302 with Memberselect. For drivers in urban ZIP codes, American Family's average rates are about $166 while Memberselect offers premiums around $294.

American Family vs. Memberselect Discounts

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

The challenging part is finding all of the discounts you can take advantage of, since it can feel sometimes like every carrier has different discounts and each one is advertised differently.

Luckily, we did the hard work for you and compared all of the different discounts offered by American Family and Memberselect so that you can see which carrier can save you the most money each month.

American Family knocks Memberselect out of the park when it comes to the sheer number of discounts available, offering 21 different discounts to Memberselect's 13.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, EFT discounts, and multi-policy discounts. American Family also offers discounts for connect partner, COVID-19 relief, DRL, and more.

On the other hand, Memberselect has a few proprietary discounts of their own for things like AAA discounts, good driving discounts, prior carrier discounts, and more.

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

So, we've broken down the average rates for many of the variables auto insurance companies look at, and walked through the different discounts each company offers, too. But, at the end of the day, which insurance carrier is the best fit for you?

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

• You've been pulled over for speeding recently.
• You're looking for the company with the most discounts.
• You have a short drive to work everyday.

Memberselect 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 Memberselect and that it aids in making a more informed decision about your car 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 Memberselect. Luckily, sites like Compare.com make it easy for you to do just that. Simply 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. Memberselect FAQs

Is American Family or Memberselect cheaper?

American Family is the less expensive of the two carriers when looking at national average prices, with policies averaging $140 a month with American Family and $274 for Memberselect. Even so, that doesn't mean American Family will be the cheapest company for each policyholder, since there are many different factors that are considered when it comes to your car insurance payment.

Who is better, American Family or Memberselect?

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

Why do American Family and Memberselect offer me different rates?

Insurance companies use quite a few different variables when calculating the premiums they charge. Factors such as where your home is, gender, age, where you call home, and sometimes even things like your credit score can all be used. Both American Family and Memberselect calculate rates using different variables, 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 multiple different carriers.

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

The only way to find the auto insurance carrier that's right for you is by getting quotes from several 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 information once and you'll get quotes from dozens of your local top insurance carriers for free. That way, you can guarantee you're getting the best premium. And maybe you'll find that the best company for you isn't American Family or Memberselect 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.