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

Quick Facts

• In general, Pemco offers significantly more affordable prices than American Family
• American Family offers more discounts than PEMCO Insurance
• Pemco offers more affordable rates for policyholders who drive a short distance to work everyday

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

Are you considering a new insurance policy? After all, you've seen ads from all sorts of companies offering pretty big discounts. But exactly how much can you save by switching?

You might be considering American Family or Pemco as potential options, but which carrier has cheaper premiums for car insurance?

Looking at nationwide averages, American Family is about $33 more per month than Pemco.

Even so, Pemco may not be the lowest or best option for each driver out there. Auto insurance companies use all sorts of complex algorithms to calculate prices, so depending on how good your credit score is or where you live (among multiple other factors), you could see wildly different rates from the ones above.

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

American Family or Pemco: Average Car Insurance Rates by State

American Family and Pemco only compete against each other in Washington, where Pemco offers the cheaper average prices. For Washington residents, Pemco offers insurance for $107 a month on average. American Family's average rates come out to be over 20% more expensive, at $133 per month.

But there's more to car insurance than just the state you live in. As we mentioned above, there's a lot of things that go into how auto insurance carriers determine your premiums. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for insurance than any other group of drivers out there on the road. It's because young, inexperienced drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

However, that doesn't mean teen drivers can't still save money on their car insurance. Just look at the table above -- where 18-year-old drivers who have Pemco for their auto insurance pay more than $95 less than those who use American Family. It's worth noting that American Family offers car insurance in 16 different states compared to Pemco's one, which can skew the average prices a bit, but the difference here is still considerable.

That being said, with both companies, you'll see your rates drop significantly once you turn 25. For example, average premiums for American Family policyholders reduce nearly $200 and Pemco's rates decrease over $100 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the most affordable insurance prices you'll ever see. After all, they've likely been driving for quite some time, which usually lowers their chances of accidents and other infractions that can increase rates.

So, which company offers the best premiums to retired drivers? Pemco gets the edge, with prices for drivers 65 and older $16 less expensive than the national average for American Family.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance rates tend to be cheaper for married couples than they are for single drivers. This usually boils down to married drivers having more than one car on their policy -- something several auto insurance carriers will reward with discounts.

When it comes to relationship status, Pemco is the clear winner for single policyholders, with prices around $43 a month more affordable than American Family, on average. For married policyholders, the advantage is clear again - Pemco has the edge when it comes to average premiums.

American Family vs. Pemco: Average Rates by Gender

Men tend to pay more for insurance than women. This is because men are statistically more likely than women to get pulled over for speeding or get into an accident, which leads to increased risk for insurers and, therefore, higher rates.

Typically, women see premiums about $5 per month less expensive with American Family, while with Pemco, the difference is closer to $4 a month.

Looking at the data for each carrier specifically, Pemco comes out on top for both men and women, with average prices 24% less for men and 24% cheaper for women.

American Family or Pemco: 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 coverages and terms that it can make it pretty confusing to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (which provides bodily injury and property damage coverage for other drivers and passengers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability coverage).

If you're looking for state minimum liability limits, Pemco normally offers significantly more affordable premiums of $62 compared to American Family's $96. When it comes to full coverage policies with similar limits, Pemco again has the edge, with policies around $35 per month less expensive than American Family, on average.

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

You've probably seen plenty of commercials from insurance companies offering great rates 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 tickets and collisions lead to higher prices, but which company -- American Family or Pemco -- has the cheapest rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their premiums to go up an average of $29 a month if they get a ticket, while Pemco generally raises prices about $16 per month, on average.

But Pemco is normally the cheaper option for drivers both with clean records and with a speeding ticket, offering premiums that are $33 and $46 more affordable, respectively, compared to American Family Insurance.

Which Company is Best for Drivers After an Accident?

Both carriers will raise prices pretty significantly if you get into an at-fault accident with Pemco raising by over $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, the less expensive rates come from Pemco, with monthly premiums averaging $111 compared to American Family Insurance's $138.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your auto insurance bill. For example, Pemco increases average prices by more than $45 a month -- that's over a 35% increase.

Pemco has the overall lowest rates for drivers with a DUI on their records at $131 monthly, but it's worth noting that American Family's average rates come from 16 states compared to just one for Pemco, so the data may be skewed slightly.

How does Credit Score Impact American Family and Pemco Rates?

Did you know that many car insurance companies take into account your credit score when calculating premiums? This isn't always the case (for example, Massachusetts and California are two states that ban the practice entirely), but it does affect quite a few drivers out there.

Auto insurance carriers argue that those with poor credit scores are less likely to pay their bills on time each month, which increases the risk involved on their end, while the opposite is true for those with good credit.

Looking at American Family and Pemco specifically, which one has the most affordable prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, you'll usually find a better deal with Pemco. Drivers with "excellent" credit can save more than 35% compared to American Family, and those with "good" scores can also expect to see savings -- around $38 or 32% cheaper every month.

Which Company is Best for Drivers with Bad Credit?

Pemco typically offers lower rates than American Family when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about $35 per month less with Pemco compared to American Family, and those with "poor" scores typically save an average of around $23 per month.

Is American Family or Pemco 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 insurance companies will charge for coverage. That's because the fewer miles you drive, the less likely you are to get into an accident and cause an insurance claim.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, Pemco tends to be the more affordable option. American Family average premiums for drivers with 6,000 annual miles come in about $34 more expensive than Pemco. Those who drive 12,000 miles annually can expect to pay around $33 more with American Family over Pemco.

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

Where you live can play a big role in how much you pay for auto insurance. Usually, 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 in those areas.

Pemco boasts the cheapest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the lowest rates from both carriers, but Pemco comes out on top with average premiums about $88 a month. Pemco also has less expensive average rates for policyholders in urban and suburban ZIP codes -- a $51 and $15 a month respective difference when compared to American Family drivers in similar areas.

American Family vs. Pemco Discounts

Regardless of why you might be in the market for a new car 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 insurance discounts as you can.

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

In the table below, we've broken down all of the different discounts offered by both American Family and Pemco so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

American Family knocks Pemco out of the park when it comes to the sheer number of discounts available, offering 21 different discounts to Pemco's 12.

There are a couple discounts both companies offer, but American Family also offers connect partner discounts, COVID-19 relief discount, DRL discounts, and more that Pemco does not.

On the flip side, Pemco has a couple unique discounts of its own -- employee discounts, low mileage discounts, and passive restraint discounts.

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

So, we've broken down the average prices for many of the variables car insurance carriers look at, and we've shown you all the discounts each company offers. But, at the end of the day, is American Family or Pemco the best fit for you?

Pemco might be best for you if....

• You're looking for the best rates in WA.
• You're worried about the impact your credit score will have on your rates.
• You live in a rural neighborhood.

American Family might be best for you if...

• You value the experience that comes with a large national auto insurance carrier.
• You're looking for the company with the most discounts.

We hope this guide helps you get a better idea of the difference between American Family and Pemco and that you can now make a more informed decision when it comes to 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 several companies, not just American Family and Pemco. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

American Family vs. Pemco FAQs

Is American Family or Pemco cheaper?

Looking just at the national average premiums, Pemco is the cheaper of the two companies, offering average rates of $107 per month compared to $140 for American Family. Even so, Pemco won't necessarily be the most affordable carrier for every driver, since there are lots of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or Pemco?

Sadly, the only answer we can give you is "it depends.". No single company is necessarily "better" for everyone -- it all depends on the makeup of your unique car insurance profile.

Why do American Family and Pemco offer me different rates?

Auto insurance carriers take a look at many different variables when determining the prices they charge policyholders. Things such as your driving record, where you call home, age, gender, and sometimes even things like your credit score can all come into play. Both American Family and Pemco calculate rates using different factors, so each one will most likely offer different prices. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from a variety of different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from a handful of carriers 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 ZIP code and you'll get free quotes from dozens of the best car insurance companies in your area. With those, you can guarantee you're getting the lowest premium. And who knows, the best carrier for you might not be American Family or Pemco 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.