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

Quick Facts

• Based on national averages for car insurance, Pekin offers significantly more affordable prices than American Family
• American Family may help you save more money -- they offer more discounts than Pekin Insurance
• Pekin tends to be a much cheaper option for policyholders who live in suburban areas

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

Are you considering 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 have narrowed it down to American Family or Pekin as potential options, but which one will save you the most?

As you can see, American Family has average rates that are around 45% a month more expensive than those from Pekin when looking at the national average rates for insurance.

Even so, Pekin may not be the cheapest or best option for each driver out there. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like your credit score, your age, your driving record, or even where you call home (among other things). So, at the end of the day, premiums from each company will differ quite a bit from person to person.

Luckily, we've broken down average prices from both American Family and Pekin by many different rate factors, so read on to find out which carrier is the best for you.

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

American Family and Pekin only compete against each other in Indiana, where Pekin offers the cheaper average rates. Pekin drivers tend to pay about $47 per month less on average compared to drivers who use American Family for their car insurance.

That being said, there's a lot more that goes into your auto insurance payment than just the state you live in. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for car insurance than any group out there on the road. 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.

However, 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 Pekin for their auto insurance pay almost 45% less than those who use American Family. It's worth noting that American Family offers insurance in 16 different states compared to Pekin's one, which can skew the average premiums a bit, but the difference here is still considerable.

That being said, with both companies, you'll see your prices lower significantly by the time drivers turn 25. For example, average premiums for American Family policyholders drop over 60% and Pekin's rates decrease nearly 65% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the most affordable car insurance prices you can find. After all, they've likely been driving for quite some time, which typically reduces their chances of collisions and other infractions that can raise premiums.

But who has the best rates for retired drivers between American Family and Pekin? Pekin gets the edge, with premiums for drivers 65 and older more than 45% less expensive than the national average for American Family.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance rates tend to be more affordable for married policyholders than they are for single policyholders. That's because policies for married couples normally cover multiple vehicles, which a lot of carriers will give you a discount for.

For those who are single, the difference in average prices between these two companies is significant, with Pekin premiums coming in at about half of American Family's. The advantage is also clear for married drivers - Pekin offers the lowest average prices.

American Family or Pekin: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into a collision. That means when it comes to car insurance men will generally end up paying a little more.

Men normally pay around 3% more a month than women with American Family, and about 1% with Pekin.

Looking at overall affordability, Pekin comes out as the most affordable option for both genders, with average rates $68 less for men and $64 cheaper for women.

American Family vs. Pekin: 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.

Insurance isn't the easiest topic to understand. Everyone needs auto insurance, but there are so many different coverages and limits that it can be hard to find the right policy for you.

The two most common policies end up falling into two different types of coverage -- liability coverage (which covers the other party's property damage and injuries if you cause an accident) 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, Pekin has the significant edge, with average monthly premiums coming in at $46. If you want a full coverage policy with the same state minimum limits, Pekin again has the edge, with policies averaging around $103 per month to American Family's $185.

Is American Family or Pekin Better for Drivers with Spotty Records?

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

At-fault accidents and speeding tickets will most likely raise your prices, but is American Family or Pekin less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their car insurance can typically expect their monthly bill to go up about 20% after getting a speeding ticket. Pekin policyholders can expect a less drastic increase of around 19%.

But Pekin has cheaper premiums for drivers in both categories, offering prices that are 54% and 54% more affordable, respectively, compared to American Family Insurance.

Which Company is Best for Drivers After an Accident?

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

At the end of the day, Pekin offers the cheapest prices for drivers with an at-fault collision on their records, with average rates coming in at $73 compared to American Family Insurance's $138.

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. On average, Pekin will raise your premiums around 48% after a DUI, while American Family's average prices climb by more than 25%.

Pekin has the overall lowest rates for drivers with a DUI on their records at $104 monthly, but it's worth noting that American Family's average rates come from 16 states compared to just one for Pekin, so the data may be skewed slightly.

How does Credit Score Impact American Family and Pekin Rates?

Did you know many insurance companies take your credit score into account when determining premiums? This isn't true for everyone (for example, California and Hawaii are two states that ban the practice entirely), but it will come into play for several policyholders.

Car insurance carriers 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.

Looking specifically at American Family and Pekin, which carrier has the most affordable rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, Pekin will usually reward you the most. For policyholders with "excellent" credit scores, Pekin comes in over 52 cheaper. Drivers with "good" credit scores generally save about 50% with Pekin compared to average prices from American Family.

Which Company is Best for Drivers with Bad Credit?

Pekin typically offers lower premiums than American Family when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 46% a month less with Pekin compared to American Family, and those with "poor" scores normally save an average of about 43% per month.

Is American Family or Pekin 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 auto insurance companies will charge for coverage. Usually, those who drive less will end up with less expensive prices 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, Pekin offers more affordable rates than American Family. Pekin's average premiums for drivers with 6,000 annual miles come in around 51% less expensive than American Family. Those who drive 12,000 miles yearly can expect to pay about 43% less with Pekin over American Family.

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

We've already mentioned how your home state can play a role in how much you pay for insurance, but the type of area you live in can have a pretty big impact as well. Typically, those who live in urban areas will pay more than drivers in rural areas since there are a lot more cars on the road where they live, which increases the chances of an accident.

Pekin tends to offer the cheapest rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, Pekin Insurance's average prices are around $81 less than American Family Insurance. People who live in suburban areas pay about $66 less with Pekin compared to American Family. Those in rural areas can expect to save around $51 with Pekin compared to American Family.

American Family vs. Pekin 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 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 Pekin so that you can easily see which company offers the most discounts and, therefore, the largest savings.

American Family knocks Pekin out of the park when it comes to the sheer number of discounts available, offering 11 more discounts than Pekin.

Both carriers offer quite a few of the same discounts -- like advance quote discounts, discounts for being a defensive driver, discounts for being a good student, and multi-policy discounts -- but American Family also offers discounts for connect partner, COVID-19 relief, distant student, and more.

On the other hand, Pekin has a proprietary discount of their own -- a hybrid vehicle discounts.

Final Thoughts: Is American Family or Pekin 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 company offers. That's all well and good, but at the end of the day, which insurance carrier is the best company for you and your specific needs?

Pekin might be best for you if....

• You live in one of the following states: Indiana.
• Your credit score is high.
• Your neighborhood is in a rural area.

American Family might be best for you if...

• You already have plans to move to another state -- Pekin Insurance is only available in Indiana.
• You're looking for the company with the most discounts.

Hopefully, this guide helps you get a good idea of the differences between American Family and Pekin. We also hope we've given you the information you need to make the best decision when it comes to 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 insurance -- comparing quotes from a handful of carriers, not just American Family and Pekin. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best auto insurance companies in your area, all for free.

American Family vs. Pekin FAQs

Is American Family or Pekin cheaper?

Pekin is the cheaper of the two carriers when looking at national average rates, with policies averaging $74 per month with Pekin and $140 for American Family. Even so, that doesn't mean Pekin will be the most affordable carrier for each driver, since there are a bunch of different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Pekin?

Sadly, the real answer is "it depends.". One company is not "better" for everyone -- it all depends on the makeup of your unique insurance profile.

Why do American Family and Pekin offer me different rates?

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

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

The only way to find the auto insurance company 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 does all the hard work for you. Just enter your area information and you'll get quotes from dozens of your local top insurance carriers for free. That way, you can guarantee you're getting the cheapest rate. And maybe you'll find that the best carrier for you isn't American Family or Pekin 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.