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

Quick Facts

• Based on national averages for auto insurance, American Family offers significantly less expensive rates than The General
• American Family tends to be a much more affordable option for drivers who have received a ticket within the last few years
• American Family offers more affordable prices for policyholders who have a clean driving record, free of accidents, tickets, or DUIs

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

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering large 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 The General as potential options, but between the two, which one will save you the most?

Looking at the national average rates for both companies, American Family has average rates that are about 40% per month cheaper than those from The General.

But American Family may not be the most affordable or best option for every single driver out there. Insurance carriers use tons of complex algorithms to calculate premiums, so depending on where you live or how clean your driving record is (among a range of other factors), you could see wildly different rates from the ones above.

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

American Family or The General: Average Car Insurance Rates by State

American Family and The General only compete against each other in two states, with American Family offering less expensive premiums to the average driver in all of them. Missouri has the most noticable difference, where American Family rates are over 70% more affordable than auto insurance prices at The General.

There are plenty of other factors that go into your car insurance cost than just your home state. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for auto insurance than any other group of drivers. That's normally because young, inexperienced 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 that teen drivers have to just accept sky-high car insurance premiums. As you can see above, teens who use American Family save nearly $150 a month compared to those who use The General.

That being said, both companies will lower rates by the time you turn 25. The General offers the steepest reduction, with 25-year-olds paying less than half what 18-year-old drivers are charged. That being said, American Family still has the cheapest prices at $121 monthly.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest insurance premiums out there. After all, they've likely been driving for quite some time, which usually decreases their chances of collisions and other infractions that can increase prices.

But who has the best rates for retired drivers between American Family and The General? American Family gets the edge, with prices for drivers 65 and older more than 45% cheaper than the national average for The General.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance premiums tend to be more expensive for single policyholders than they are for married couples. That's normally because married policyholders tend to own and insure several cars, which can often earn you a discount.

When it comes to relationship status, American Family is the clear winner for those who are single, with rates around $113 per month more affordable than The General, on average. The advantage for married drivers with American Family is also obvious, where drivers save almost 45% a month.

American Family vs. The General: Average Rates by Gender

Women tend to pay less for car insurance than men. This is because women are less likely to get speeding tickets and get into accidents, which lowers the chances of an insurance claim.

With American Family, women generally pay about 3% per month less than men, and around 12% less with The General.

Looking at the data for each company specifically, American Family offers the most affordable average prices for both men and women, with average premiums 44% less for men and 39% cheaper for women.

American Family or The General: 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, insurance can be pretty complicated. Everyone needs auto insurance, but there are so many different coverages and terms that it can be hard 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 their passengers if you cause an accident) and full coverage (which usually refers to having comprehensive and collision coverages alongside liability).

If you're looking for state minimum liability insurance, American Family typically offers significantly less expensive rates of $96 compared to The General's $154. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $150 a month cheaper than The General, on average.

Is American Family or The General Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car 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 at-fault accidents will most likely raise your premiums, but is American Family or The General less expensive for drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their prices to go up an average of $29 per month if they get a ticket, while The General usually raises rates around $48 a month, on average.

Even so, American Family tends to offer the best prices for both drivers who have clean records and those with a recent speeding ticket, offering prices that are $74 and $93 cheaper, respectively, compared to The General.

Which Company is Best for Drivers After an Accident?

American Family drivers who get in a collision can expect to see their rates climb by just under 15%, while those who have insurance through The General will see about a 30% increase.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly premiums averaging $138 compared to The General's $279.

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 insurance bill. For example, The General increases average prices by over $60 per month -- that's just under a 25% increase.

If you have a DUI on your record and are looking for more affordable premiums, American Family tends to be the much more affordable option with average rates of $158 per month compared to $254 from The General.

How does Credit Score Impact American Family and The General Rates?

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

The reasoning car insurance companies 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 typically be forced to pay more.

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

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or The General 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. Generally, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much The General charges. However, there's a small difference in monthly premiums for American Family, with policyholders who drive the least paying around $5 less each month compared to those who drive 12,000 miles yearly. Still, American Family is the less expensive option for drivers in both categories.

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

Where you live can play a large role in how much you pay for auto insurance. Normally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders because there are a lot more cars on the roads in those areas.

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

Drivers in rural ZIP codes see the lowest premiums from both companies, but American Family comes out on top with average rates about $121 a month. American Family also has more affordable average prices for policyholders in urban and suburban ZIP codes -- a 46% and 40% a month respective difference when compared to The General drivers in similar areas.

American Family vs. The General Discounts

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

The challenging 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 section below, we've broken down all of the different discounts offered by both American Family and The General so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

American Family knocks The General out of the park when it comes to the sheer number of discounts available, offering 15 more discounts than The General.

Both carriers offer a lot of the same discounts -- like discounts for being a defensive driver, discounts for being a homeowner, and paid in full discounts -- but American Family also offers advance quote discounts, anti-theft discounts, connect partner discounts, and more that The General does not.

On the flip side, The General has a couple unique discounts of its own -- liability only discounts and star level discounts.

Final Thoughts: Is American Family or The General Best for You?

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

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

• Your driving record contains an at-fault collision.
• Your neighborhood is in the suburbs.
• You drive often but have a short commute.

The General might be best for you if...

• You have a more unique driver profile than those we mentioned above.

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

American Family vs. The General FAQs

Is American Family or The General cheaper?

Looking just at the national average rates, American Family is the cheaper of the two carriers, offering average rates of $140 per month compared to $241 for The General. That being said, American Family won't necessarily be the cheapest company for every policyholder, since there are several different variables (things like gender, age, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or The General?

Unfortunately, the answer truly is "it depends.". One carrier is not necessarily "better" for each driver -- it all depends on the makeup of your unique insurance profile.

Why do American Family and The General offer me different rates?

Auto insurance companies take a look at several different factors when determining the prices they charge policyholders. Variables such as your driving record, where you park your vehicle, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both American Family and The General calculate premiums using different factors, so each one will most likely offer different prices. The only real way to see which company is the most affordable for you is by comparing personalized quotes from a range of different carriers.

How do I know if American Family or The General 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, Compare.com makes it easy for you to do just that. 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 premium. And who knows, the best company for you might not be American Family or The General 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.