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

Quick Facts

• Looking at the national averages for auto insurance, American National offers significantly more affordable rates than State Farm
• American National offers cheaper average prices for policyholders who drive a short distance to work everyday
• State Farm offers more discounts than American National Insurance Company

American National vs. State Farm: 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 large discounts. But exactly how much can you save by switching?

You might be considering American National or State Farm for your next policy, but between the two, which carrier will save you the most?

Looking at the national average rates for both companies, State Farm has average rates that are about 45% per month more expensive than those from American National.

Even so, that doesn't necessarily mean American National will be the less expensive option for each driver. Insurance carriers vary their premiums depending on things like how good your credit score is, how clean your driving record is, where you live, how old you are, and a variety of other factors, so rates could vary drastically from person to person.

So, if you want to find out which of American National or State Farm is really the best for you, keep reading to see average prices for each company broken down by several different rate factors.

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

American National and State Farm compete against each other in seven states, with American National offering more affordable premiums to the average driver in all of them. Nebraska has the most noticable difference, where American National rates are over 70% cheaper than auto insurance prices at State Farm.

That being said, there are plenty of other factors that go into your car insurance bill than just where you live. Keep reading to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for auto insurance than any other group of drivers. Typically, that's 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 insurance rates. Just look at the table above -- where 18-year-old drivers who have American National for their car insurance pay more than $150 less than those who use State Farm.

That being said, both companies will offer you dramatically lower premiums by the time you turn 25. For example, average prices for American National policyholders drop over 60% and State Farm's rates lower nearly 60% over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the most affordable prices you can find.

When looking at American National and State Farm specifically, which carrier is best for retired drivers? American National gets the edge here, with average premiums coming in at around $66 monthly compared to State Farm's $111.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly less expensive car insurance prices than single drivers. This usually boils down to married drivers having multiple cars on their policy -- something quite a few auto insurance carriers will reward with discounts.

When it comes to relationship status, American National is the clear winner for those who are single, with premiums about $78 a month cheaper than State Farm, on average. The advantage for married couples with American National is also obvious, where drivers save around $60 per month.

American National vs. State Farm: Average Rates by Gender

Did you know men normally 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.

Usually, women see premiums about 1% a month less with American National, and around 7% less with State Farm.

Looking at the data for each company specifically, American National offers the lowest average prices for both men and women. On average, women save about $65 per month and men save about $76 with American National compared to the average State Farm policyholder.

American National 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.

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

But most policies end up falling into two different types of coverage -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause a collision) and full coverage (which generally refers to having comprehensive and collision coverages in addition to liability coverage).

If you're looking for state minimum liability insurance, American National usually offers significantly more affordable rates of $52 compared to State Farm's $99. When it comes to full coverage policies with similar limits, American National again has the edge, with policies around $95 a month less expensive than State Farm, on average.

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

It's no big secret that drivers who are accident-free get better deals on their auto insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

It's no secret secret that tickets and at-fault accidents lead to higher prices, but which carrier -- American National or State Farm -- has the most affordable rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American National policyholders can expect their premiums to go up an average of $17 per month if they get a ticket, while State Farm generally raises prices about $21 a month, on average.

That being said, American National has cheaper premiums for drivers in both categories, offering rates that are 50% and 46% less expensive, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

American National drivers who get in an accident can expect to see their premiums rise by just under $30, while those who have insurance through State Farm will see around a $30 increase.

Overall, drivers who use American National end up with the cheaper prices after an accident, with monthly rates averaging $95 compared to State Farm's $163.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- normally a lot more than a collision or speeding ticket. For example, State Farm increases average prices by $45 per month -- that's over a 25% increase.

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

Often times, your credit score can come into play when companies calculate your monthly bill. 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 a lot of policyholders.

The reasoning insurance carriers use is that drivers with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will typically be forced to pay more.

Looking specifically at American National and State Farm, which one has the best rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American National 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 auto insurance companies will charge for coverage. That's because the more miles you put on your vehicle each year, the more 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, American National tends to be the more affordable option. State Farm average prices for drivers with 6,000 annual miles come in about $68 more expensive than American National. Those who drive 12,000 miles annually can expect to pay around $72 more with State Farm over American National.

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

Where your home is can play a big role in how much you pay for car insurance. Normally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders due to the small number of cars that are on the roads in those areas.

When comparing these two carriers side-by-side, American National generally comes out as the cheapest option 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 companies, but American National comes out on top with average prices about $73 a month. American National also has less expensive average premiums for policyholders in urban and suburban ZIP codes -- a 44% and 47% a month respective difference when compared to State Farm drivers in similar areas.

American National vs. State Farm 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.

But where do you even start? With what seems like a million different discounts out there, it may be difficult to find all the ones you can take advantage of.

In the section below, we've taken a look at all of the different discounts American National and State Farm offer their customers so that you can see which company offers the most discounts and see which ones you might be able to take advantage of.

State Farm knocks American National out of the park when it comes to the sheer number of discounts available, offering nine more discounts than American National.

Both carriers offer quite a few 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 National does not.

On the flip side, American National has a couple unique discounts of its own -- claim free discounts, COVID-19 relief discount, excess vehicle discounts, and more.

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

So, you've seen how different factors can affect your auto insurance rates. We've shown you all the discounts each carrier offers, too. That's all well and good, but at the end of the day, which insurance company is the right one for you and your specific profile and needs?

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

• Your driving record contains an at-fault accident.
• You want basic car insurance coverage at the state minimum limits.
• Your neighborhood is in a rural area.

State Farm might be best for you if...

• You already have plans to move to another state -- undefined only offers policies in.
• You're looking for the carrier with the most discounts.

We hope this guide helps you get a better idea of the difference between American National and State Farm. We also hope we've given you the information you need to make the best decision about 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 a handful of companies, not just American National and State Farm. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get multiple free quotes from some of the best car insurance carriers in your area, all in just a few minutes.

American National vs. State Farm FAQs

Is American National or State Farm cheaper?

Looking just at the national average prices, American National is the more affordable of the two companies, offering average rates of $87 per month compared to $158 for State Farm. However, American National won't necessarily be the most affordable company for every driver, since there are multiple different variables that come into play when it comes to your insurance payment.

Who is better, American National or State Farm?

Sadly, the only answer we can give you is "it depends.". No single carrier is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

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

Car insurance carriers take a look at many different factors when calculating the premiums they charge policyholders. Variables such as age, your driving record, gender, where you call home, and sometimes even things like your credit score can all come into play. Both American National and State Farm calculate rates using different formulas, so each one will most likely offer different prices. The only real way to see which company is the cheapest for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the insurance carrier that's right for you is by getting quotes from multiple 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 best premium. And who knows, the best company for you might not be American National 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.