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

Quick Facts

• In general, American Family offers more affordable rates than Travelers
• American Family has cheaper prices for policyholders who live in rural neighborhoods
• Travelers may help you save more money -- they offer more discounts than American Family Insurance

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

Are you in the market for a new insurance policy? After all, you've seen ads from all sorts of companies offering hefty savings. But exactly how much can you save by switching?

You might have narrowed it down to American Family or Travelers, but which one will save you the most?

Looking at nationwide averages, American Family has average rates that are around 16% a month less expensive than those from Travelers.

That being said, American Family may not be the lowest or best option for every driver out there. Auto insurance carriers vary their rates depending on things like where you live, how clean your driving record is, how good your credit score is, how old you are, and a variety of other factors, so premiums could vary drastically from person to person.

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

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

American Family and Travelers compete against each other in 12 states, with Travelers offering cheaper premiums to the average driver in all of them. If you live in, undefined is the more affordable of the two companies when looking at the overall average prices, but Travelers 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 find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- typically pay a lot for auto insurance compared to older drivers. It's normally because teen 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. For example, 18-year-old drivers pay an average of over 10% less per month by choosing American Family over Travelers.

Even so, with both carriers, you'll see your rates drop significantly once you turn 25. For example, average prices for American Family policyholders lower about $200 and Travelers's premiums reduce around $200 over that time.

Which is the Best Company for Retired Drivers?

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

But who has the best prices for retired drivers between American Family and Travelers? American Family gets the edge, with rates for drivers 65 and older almost 20% less expensive than the national average for Travelers.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance prices tend to be more affordable for married couples than they are for single drivers. That's generally because married drivers tend to own and insure more than one vehicle, which can often earn you a discount.

For those who are single, the difference in average premiums between these two companies is significant, with American Family rates coming in at about 15% less than Travelers's. For married policyholders, the advantage is clear again - American Family has the edge when it comes to average prices.

American Family or Travelers: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to car insurance men will normally end up paying a little more.

Men usually pay around 3% more a month than women with American Family, and about 6% more with Travelers.

Looking at overall affordability, American Family comes out as the most affordable option for both genders, with average premiums $29 less for men and $23 cheaper for women.

American Family vs. Travelers: 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. There are so many different terms and coverages that it can make it pretty confusing to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- liability coverage (which covers the other party's property damage and injuries if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with liability coverage).

Looking specifically at state minimum liability insurance, American Family has the 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 Travelers's $225.

Is American Family or Travelers 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.

It's no secret secret that speeding tickets and accidents lead to higher premiums, but which company -- American Family or Travelers -- has the lowest rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their auto insurance can typically expect their monthly bill to go up about 20% after getting a speeding ticket. Travelers policyholders can expect a bit more drastic of an increase of around 20%.

But American Family is generally the less expensive option for drivers both with clean records and with a ticket -- their rates are around 8% cheaper for drivers with clean records and 8% less expensive for those with a ticket.

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% -- rise in their auto insurance prices. Drivers who use Travelers for their insurance will see a monthly bill about $45 (or 26%) more expensive after reporting an accident to their car insurance carrier.

At the end of the day, drivers who use American Family end up with the cheaper prices after an accident, with average rates coming in at $138 compared to Travelers's $173.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your insurance bill. On average, Travelers will increase your premiums around 38% after a DUI, while American Family's average prices rise by more than 25%.

How does Credit Score Impact American Family and Travelers Rates?

Often times, your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as an insurance factor, but it does affect several drivers out there.

The reasoning auto insurance carriers use is that policyholders with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with more affordable premiums.

So, which company offers the best rates 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 Travelers Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a sizable impact on how much car insurance companies will charge for coverage? Usually, the more milage you put on your car each year, the more you can expect to pay for auto insurance.

For both remote workers and those taking short commutes, American Family tends to be the cheaper option. American Family's average prices for drivers with 6,000 annual miles come in about 16% more affordable than Travelers. Those who drive 12,000 miles annually can expect to pay around 15% less with American Family over Travelers.

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

Where your home is can play a considerable role in how much you pay for insurance. Normally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers since there are a lot fewer vehicles on the road where they live, which decreases the chances of an accident.

American Family tends to offer the lowest rates for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For policyholders in urban ZIP codes, American Family Insurance's average prices are about $38 less than Travelers. People who live in suburban areas pay around $26 less with American Family compared to Travelers. Those in rural areas can expect to save about $15 with American Family compared to Travelers.

American Family vs. Travelers 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.

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

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Travelers so that you can see which company can save you the most money each month.

Overall, Travelers comes out ahead with 25 discounts to American Family's 21.

Both carriers offer lots of the same discounts -- like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and discounts for being a good student -- but Travelers also offers discounts for ABS, alternative fuel, continuous insurance, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, ESC discounts, generational discounts, and more.

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

So, we've broken down the average rates for many of the variables insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but when it comes down to it, is American Family or Travelers the right one for you and your specific driver profile?

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

• You've received a ticket for speeding recently and don't want to see your premiums increase.
• You're looking for the best prices on liability only coverage.
• You have a short commute.

Travelers might be best for you if...

• You value the experience that comes with a large national auto insurance company.
• You want to save extra money with discounts.

Hopefully, this guide helps you get a good idea of the differences between American Family and Travelers. We also hope we've given you the information you need to make the best decision about your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from several carriers, not just American Family and Travelers. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance companies in your area, all in just a few minutes.

American Family vs. Travelers FAQs

Is American Family or Travelers cheaper?

American Family is the less expensive of the two carriers when looking at national average premiums, with policies averaging $140 a month with American Family and $167 for Travelers. Even so, that doesn't mean American Family will be the cheapest carrier for every driver, since there are a range of different factors that are considered when it comes to your car insurance payment.

Who is better, American Family or Travelers?

Sadly, the only answer we can give you is "it depends.". Neither company is "better" for each policyholder -- it all comes down to what your unique auto insurance profile looks like.

Why do American Family and Travelers offer me different rates?

Car insurance companies use quite a few different variables when determining the prices they charge. Things like your driving record, gender, where you park your car, age, and sometimes even things like your credit score can all come into play. Both American Family and Travelers calculate rates differently, so it's likely they'll offer different prices. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from multiple different carriers.

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

The only way to find the insurance company 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 ZIP code and you'll get quotes from dozens of your local top car insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't American Family or Travelers 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.