American Select vs. Farmers: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for auto insurance, American Select offers less expensive premiums than Farmers
• American Select offers more affordable rates for single people who will be the only person on the car insurance policy
• Farmers may help you save more money -- they offer more discounts than American Select Insurance Company

American Select or Farmers: 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 hefty savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to American Select or Farmers for your next policy, but between the two, which company has cheaper premiums for insurance?

Looking at nationwide averages, Farmers is around $33 more a month than American Select.

Even so, that doesn't mean American Select will necessarily be more affordable than Farmers for every single driver. Auto insurance carriers use a variety of complex algorithms to determine prices, so depending on where you live or how good your credit score is (among a range of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of American Select or Farmers is really the best for you, keep reading to see average rates for each company broken down by a variety of different rate factors.

American Select vs. Farmers: Average Car Insurance Rates by State

American Select and Farmers compete against each other in four states, with American Select offering cheaper prices to the average driver in all of them. Michigan has the most noticable difference, where American Select rates are $401 more affordable than insurance prices at Farmers.

There's a lot more that goes into your auto insurance cost than just where you call home. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for car insurance compared to older drivers. That's typically because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

That being said, that doesn't mean that teen drivers have to just accept sky-high auto insurance premiums. For example, 18-year-old drivers pay an average of over 40% less per month by choosing American Select over Farmers.

However, both companies will drop rates by the time you turn 25. For example, average prices for American Select policyholders decrease more than 45% and Farmers's premiums lower over 70% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the lowest car insurance prices you'll ever find. After all, they've likely been driving for quite some time, which usually decreases their chances of collisions and other infractions that can raise premiums.

But who has the best rates for retired drivers between American Select and Farmers? In this case, American Select has the slight edge, with premiums about $7 a month less than Farmers. But the difference is only around 5%, so other variables will likely come into play when determining which carrier has the cheapest rates for you.

Which is the Best Company for Married Drivers?

Did you know that insurance prices are normally more expensive for single drivers than they are for married drivers? That's typically because married couples tend to own and insure more than one vehicle, which can often earn you a discount.

For single policyholders, the difference in average premiums between these two carriers is significant, with American Select prices coming in at a quarter less than Farmers's. But for married policyholders, that advantage is much less clear - American Select has the edge when it comes to average rates , but the difference is only $5.

American Select or Farmers: Average Rates by Gender

Did you know women usually pay less for auto insurance than men? This is because men are statistically more likely than women to get into a collision or get pulled over for speeding, which leads to increased risk for insurers and, therefore, higher prices.

On average, men see premiums about 1% per month higher with American Select, and around 3% with Farmers.

Looking at overall affordability, American Select offers the most affordable average rates for both men and women. On average, women save about $30 a month and men save about $36 with American Select compared to the average Farmers policyholder.

American Select vs. Farmers: 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. There are lots of different coverages that account for many different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies end up falling into two different types of coverage -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with a liability policy).

Looking specifically at state minimum limits for liability insurance, American Select has the significant edge, with average monthly premiums coming in at $90. If you want a full coverage policy with the same state minimum limits, American Select again has the edge, with policies averaging around $251 per month to Farmers's $281.

Is American Select or Farmers Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car 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 at-fault accidents and speeding tickets lead to higher prices, but which company -- American Select or Farmers -- has the cheapest premiums for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Select for their insurance can generally expect their monthly bill to go up about 21% after getting a speeding ticket. Farmers policyholders can expect a less drastic increase of around 21%.

However, American Select tends to offer the best prices for drivers both with clean records and with a ticket. With American Select Insurance Company, drivers with a clean record can save about $45 a month and drivers with a speeding ticket can save around $57 per month.

Which Company is Best for Drivers After an Accident?

Both carriers will increase prices pretty significantly if you get into an at-fault collision with Farmers climbing by about 28%. American Select has a less extreme climb, but you can still expect to pay more than 25% more than you were prior to your first accident.

At the end of the day, the less expensive rates come from American Select, with average prices coming in at $158 compared to Farmers Insurance's $224.

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 ticket when it comes to your auto insurance bill. American Select drivers usually see a 55% climb in their car insurance premiums after a DUI charge, while Farmers will usually raise rates by around 27%.

How does Credit Score Impact American Select and Farmers Rates?

You may not realized it, but your credit score can come into play when companies calculate your monthly bill. This isn't true for everyone (for example, Michigan and Hawaii are two states that ban the practice entirely), but it does affect a lot of drivers out there.

Auto insurance carriers argue that those with good credit scores are more likely to pay their bills on time every month, which reduces the risk involved on their end, while the opposite is true for those with bad credit.

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 Select or Farmers 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 your monthly rates. Generally, the more milage you put on your car each year, the more you can expect to pay for coverage.

In this case, neither American Select or Farmers report increasing premiums for drivers with higher annual mileage figures. American Select comes out as the most affordable for drivers at both intervals, whether they put 6,000 or 12,000 miles on their vehicle annually, with average rates of $170 a month for both.

American Select or Farmers: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can play a big role in how much you pay for car insurance. Typically, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders because of the small number of cars that are on the roads where they live.

American Select boasts the cheapest average prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

For drivers in urban ZIP codes, American Select Insurance Company's average premiums are about 18% less than Farmers Insurance. People who live in suburban areas pay around 21% less with American Select compared to Farmers. Those in rural areas can expect to save about 8% with American Select compared to Farmers.

American Select vs. Farmers Discounts

No matter why you might be in the market for a new insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many auto insurance discounts as possible.

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you're eligible for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Select and Farmers so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Farmers knocks American Select out of the park when it comes to the sheer number of discounts available, offering 28 different discounts to American Select's 28.

A couple of those are overlapping for things like advance quote discounts, discounts for being a defensive driver, distant student discounts, and group discounts. Farmers also offers discounts for alternative fuel, EFT, ESC, and more.

On the other hand, American Select has a few proprietary discounts of their own for things like account relationship discounts, agency transfer discounts, companion auto discounts, and more.

Final Thoughts: Is American Select or Farmers Best for You?

So, we've broken down the average rates for many of the factors insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but at the end of the day, which insurance company is the right carrier for you and your specific driver profile?

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

• You already have a great credit score.
• You want the most robust protection via a "full coverage" policy.
• You're married and plan to have both of your names on the vehicle's car insurance policy.

Farmers might be best for you if...

• You value the experience that comes with a large national insurance carrier.
• Your driving record includes a DUI charge.
• You're looking for discounts -- Farmers has the most.

Hopefully, this guide helps you get a better idea of the difference between American Select and Farmers. We also hope we've given you the information you need to make the best decision about your auto insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your car insurance policy is to compare quotes from multiple carriers, not just American Select and Farmers. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top insurance companies in your area, all in just a few minutes.

American Select vs. Farmers FAQs

Is American Select or Farmers cheaper?

American Select is the more affordable of the two carriers when looking at national average prices, with policies averaging $170 per month with American Select and $203 for Farmers. That being said, that doesn't mean American Select will be the most affordable company for each policyholder, since there are multiple different variables (things like age, driving record, gender, etc.) that play a role in how much you pay.

Who is better, American Select or Farmers?

Sadly, the answer truly is "it depends.". One carrier is not "better" for every policyholder -- it all depends on the makeup of your unique car insurance profile. For example, Farmers is cheaper for drivers who have less-than-stellar credit scores, while American Select offers less expensive rates for policyholders with an at-fault accident on their record.

Why do American Select and Farmers offer me different rates?

Auto insurance companies use several different factors when determining the prices they charge. Variables like where you park your vehicle, where you call home, gender, age, and sometimes even things like your credit score can all be taken into consideration. Both American Select and Farmers calculate premiums using different factors, so it's likely they'll offer different rates. The best way to determine which company is the lowest for you is by comparing personalized quotes from several different carriers.

How do I know if American Select or Farmers is right for me?

The only way to find the car insurance carrier that's right for you is by getting quotes from several companies 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 area information and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the best rate. And maybe you'll find that the best company for you isn't American Select or Farmers 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.