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

Quick Facts

• Looking at the national averages for car insurance, American Family offers less expensive premiums than State Farm
• American Family offers more affordable prices for people who are single and purchasing insurance by yourself
• State Farm offers more discounts than American Family Insurance

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

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering big discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to American Family or State Farm, but between the two, which one has cheaper rates for car insurance?

Looking at nationwide averages, State Farm has average rates that are about 11% per month more expensive than those from American Family.

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

Wanting to know if American Family or State Farm is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

American Family or State Farm: Average Car Insurance Rates by State

American Family and State Farm compete against each other in 16 states, with State Farm offering more affordable rates to the average driver in all of them. If you live in, undefined is the cheaper of the two carriers when looking at the overall average premiums, but State Farm is the cheaper option in most of the others.

There are plenty of other factors that go into your insurance bill than just your home state. Read on to learn more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance prices 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. For example, 18-year-old drivers pay an average of more than $40 less a month by choosing American Family over State Farm.

But both companies will decrease prices by the time you turn 25. For example, average rates for American Family policyholders lower nearly $200 and State Farm's premiums reduce over $200 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest auto insurance prices you can find. After all, they've likely been driving for quite some time, which typically lowers their chances of accidents and other infractions that can increase rates.

So, which company offers the best prices to retired drivers? American Family gets the slight edge here, with average premiums coming in at around $107 a month compared to State Farm's $111. However, the difference is only about 5%, so other factors (such as where you live or your credit score) will likely come into play when determining which carrier has the lowest rates for you.

Which is the Best Company for Married Drivers?

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

When it comes to relationship status, the two companies are comparable for those who are single, with prices only differing around $17 per month, on average. The advantage for married couples is more obvious, where drivers who use American Family save almost 15% a month.

American Family vs. State Farm: Average Rates by Gender

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

Men generally pay about $5 per month more than women with American Family, and around $12 more with State Farm.

Looking at overall affordability, American Family offers the most affordable average rates for both men and women, with average premiums 13% less for men and 9% cheaper for women.

American Family or State Farm: 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.

For most people, car insurance isn't the easiest topic to understand. 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 property damage and bodily injury coverage for other drivers and passengers if you cause a collision) and full coverage (which typically refers to having comprehensive and collision coverages in addition to what you get with liability).

If you're looking for state minimum liability limits, American Family usually offers slightly less expensive prices of $96 compared to State Farm's $99. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $30 a month cheaper than State Farm, on average.

Is American Family or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto 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.

Tickets and at-fault collisions will most likely raise your prices, but is American Family or State Farm less expensive for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their rates to go up an average of $29 per month if they get a ticket, while State Farm normally raises premiums around $21 a month, on average.

That being said, American Family is generally the more affordable option for drivers both with clean records and with a speeding ticket. Drivers with a clean record can save about $16 per month and drivers with a ticket can save around $8 a month with American Family Insurance.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through American Family can expect to see about an $20 -- or around 14% -- increase in their car insurance prices. Drivers who use State Farm for their insurance will see a monthly bill about $29 (or 18%) more expensive after reporting an accident to their auto insurance company.

Overall, American Family offers the cheapest rates for drivers with an at-fault accident on their records, with monthly premiums averaging $138 compared to State Farm's $163.

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 speeding ticket or even a collision. For example, State Farm increases average prices by $45 per month -- that's over a 25% increase.

How does Credit Score Impact American Family and State Farm Rates?

Often times, your credit score can be used as one of the variables to calculate your monthly car insurance rates. This isn't always the case (for example, California and Michigan are two states that ban the practice entirely), but it will come into play for a lot of drivers.

Auto insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or State Farm 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 carriers will charge for coverage. Typically, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, American Family tends to be the cheaper option. American Family's average rates for drivers with 6,000 annual miles come in just under 10% more affordable than State Farm. Those who drive 12,000 miles yearly can expect to pay nearly 15% less with American Family over State Farm.

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

Where you call home can have a sizable impact on your monthly auto insurance cost. Normally, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

American Family tends to offer the most affordable rates for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the cheapest prices from both companies, but American Family comes out on top with average premiums around $121 monthly. American Family also has less expensive average rates for drivers in urban and suburban ZIP codes -- a $19 and $27 a month respective difference when compared to State Farm policyholders in similar areas.

American Family vs. State Farm 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 auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be hard to find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

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

Overall, State Farm comes out ahead with 23 discounts to American Family's 21.

Both carriers offer several of the same discounts -- like anti-theft discounts, distant student discounts, discounts for being a good student, and multi-policy discounts -- but State Farm also offers ABS discounts, annual mileage discounts, drive safe & save discounts, and more that American Family does not.

On the flip side, American Family has a couple unique discounts of its own -- advance quote discounts, connect partner discounts, COVID-19 relief discount, and more.

Final Thoughts: Is American Family or State Farm Best for You?

So, we've broken down the average premiums for many of the factors insurance companies look at, and walked through the different discounts each company offers, too. But, when it comes down to it, which carrier is the right carrier for you and your specific needs?

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

• You have a DUI charge on your record.
• You want basic car insurance coverage at the state minimum limits.
• You and your spouse are buying insurance together.

State Farm might be best for you if...

• You value the experience that comes with a large national auto insurance company.
• Your credit score is high.
• You're looking for discounts -- State Farm has the most.

We hope this guide helps you get a good idea of the differences between American Family and State Farm and that it aids in making a more informed decision about your car 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 multiple carriers, not just American Family and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

American Family vs. State Farm FAQs

Is American Family or State Farm cheaper?

Looking just at the national average prices, American Family is the more affordable of the two carriers, offering average rates of $140 per month compared to $158 for State Farm. Even so, American Family won't necessarily be the most affordable carrier for everyone, since there are many different variables that come into play when it comes to your car insurance payment.

Who is better, American Family or State Farm?

Sadly, the real answer is "it depends.". No single company is "better" for every driver -- it all comes down to what your unique auto insurance profile looks like. For example, American Family offers less expensive premiums for drivers with a recent DUI, while State Farm is cheaper for drivers with excellent credit.

Why do American Family and State Farm offer me different rates?

Insurance companies take a look at lots of different factors when calculating the prices they charge drivers. Variables like your driving record, gender, age, where you live, and sometimes even things like your credit score can all be taken into consideration. Both American Family and State Farm calculate rates differently, so each one will most likely offer different premiums. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from a variety of different carriers.

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

The only way to find the car insurance company 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, sites like Compare.com make it easy for you to do just that. Just enter your area information and you'll get free quotes from dozens of the best insurance carriers in your area. With those, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be American Family or State Farm 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.