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

How do American Select and State Farm compare when it comes to insurance prices and discounts? If you want to find out which company has the best premiums for your unique profile, check out our latest guide below.
Newly insured car driving down the road
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Quick Facts

  • Looking at the national averages for car insurance, State Farm offers slightly more affordable rates than American Select
  • American Select offers more affordable premiums for drivers who have received a ticket within the last few years
  • State Farm offers less expensive average rates for people who are single and purchasing auto insurance by yourself


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

So, you're considering switching your auto insurance. After all, you've seen ads from all sorts of companies offering big discounts. But exactly how much can you save by switching?

You've maybe even narrowed your search down to American Select or State Farm, but which carrier will offer you cheaper prices?

American Select State Farm
$170$158

As you can see, State Farm is about $12 per month less expensive than American Select when looking at the national average rates for insurance.

But State Farm may not be the lowest or best option for every driver out there. Car insurance companies vary their premiums depending on things like where you live, how good your credit score is, how old you are, how clean your driving record is, and tons of other factors. So, at the end of the day, rates from each carrier will differ quite a bit from person to person.

Luckily, we've broken down average prices from both American Select and State Farm by a variety of different rate factors, so read on to find out which company is the best for you.

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

State American Select State Farm
IN$122$103
KY$253$113
MI$213$611
OH$122$76
PA$180$144
TN$133$140

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

There are plenty of other factors that go into your auto insurance cost than just the state you live in. Continue reading to learn more about how other factors will affect your rates.


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Which is the Best Company For Young Drivers?

American Select State Farm
18-year-old drivers$311$353
25-year-old drivers$165$142

Teen drivers will almost always have the most expensive car insurance rates of any group on the road. It'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.

Even so, 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 more than $40 less a month by choosing American Select over State Farm.

That being said, both carriers will decrease prices by the time you turn 25. For example, average premiums for American Select policyholders drop over 45% and State Farm's prices reduce nearly 60% over that time.

Which is the Best Company for Retired Drivers?

American Select State Farm
65+-year-old drivers$136$111

Once you approach retirement age, you'll usually enjoy the cheapest car insurance rates you'll ever find. You've been on the road for years, and all that experience pays off when it comes to your monthly prices for insurance.

When looking at American Select and State Farm specifically, which carrier is best for retired drivers? State Farm gets the edge, with rates for drivers 65 and older $25 more affordable than the national average for American Select.

Which is the Best Company for Married Drivers?

American Select State Farm
Single$191$183
Married$143$124

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

When it comes to relationship status, the two companies are comparable for those who are single, with rates only differing around $8 per month, on average. The advantage for married drivers is more obvious, where drivers who use State Farm save almost 15% a month.

American Select vs. State Farm: Average Rates by Gender

American Select State Farm
Male$171$164
Female$170$152

Because men are more likely to get into collisions and get tickets, they run a larger risk of filing a claim with insurance. Therefore, insurance carriers will often charge men more than women.

With American Select, men generally pay about $1 per month more than women, while with State Farm, the difference is closer to $12 a month.

Looking at the data for each company specifically, State Farm comes out on top for both men and women. On average, women save about $18 per month and men save around $7 with State Farm compared to the average American Select policyholder.


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American Select or State Farm: Compare State Minimum vs. Full Coverage Rates

American Select State Farm
State Minimum*$90$99
Full Coverage**$251$216

*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.

Car 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.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers and passengers if you cause an accident) and full coverage (which typically refers to having comprehensive and collision coverages alongside what you get with a liability policy).

In this case, American Select offers the most affordable average premiums for state minimum liability limits, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $10 with American Select Insurance Company, while full coverage comes out to be about $35 less expensive with State Farm.

Is American Select 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 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 accidents lead to higher prices, but which carrier -- American Select or State Farm -- has the cheapest rates for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

American Select State Farm
Clean Record$117$134
1 Speeding Ticket$149$155

American Select policyholders can expect their premiums to go up an average of $32 a month if they get a ticket, while State Farm usually raises prices around $21 per month, on average.

However, American Select is generally the more affordable option for drivers both with a speeding ticket and with a clean record -- their rates are around 13% cheaper for drivers with clean records and 4% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

American Select State Farm
Clean Record$117$134
1 At-Fault Accident$158$163

After an accident, drivers who have their auto insurance through American Select can expect to see about an $41 -- or around 26% -- increase in their car insurance premiums. Drivers who use State Farm for their insurance will see a monthly bill about $29 (or 18%) more expensive after reporting a collision to their car insurance company.

Overall, drivers who use American Select end up with the cheaper prices after an accident, with monthly prices averaging $158 compared to State Farm's $163.

Which Company is Best for Drivers with a DUI?

American Select State Farm
Clean Record$117$134
1 DUI$258$179

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your auto insurance bill. For example, American Select increases average rates by just under $150 a month -- that's just under a 55% increase.


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

Did you know that many insurance companies take into account your credit score when calculating premiums? Certain states and carriers do not allow for credit score to be used as a rating factor, but it does affect a lot of policyholders out there.

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

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

Which Company is Best for Drivers with Good Credit?

American Select State Farm
Excellent Credit Score$107$80
Good Credit Score$133$105

Which Company is Best for Drivers with Bad Credit?

American Select State Farm
Fair Credit Score$169$148
Poor Credit Score$273$300

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Is American Select or State Farm Better for Drivers who Work from Home or Have Short Commutes?

American Select State Farm
6,000 Annual Miles$170$151
12,000 Annual Miles$170$164

How much you drive can have a pretty big impact on how much insurance carriers 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.

As you can see in the table above, annual mileage doesn't have much of an impact on how much American Select charges. However, there's a small difference in monthly rates for State Farm, with policyholders who drive 6,000 miles each year paying around $13 less every month compared to those who drive 12,000 miles annually. Still, State Farm is the more affordable option for drivers in both categories.

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

Where you call home can play a big role in how much you pay for car insurance. Typically, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

American Select State Farm
Urban Areas$205$185
Suburban Areas$150$161
Rural Areas$156$127

Looking at these companies side-by-side, State Farm normally comes out as the cheaper option for drivers in rural and urban areas, while American Select wins in suburban areas.

If you live in a rural area, you can expect to save about 19% with State Farm compared to American Select. Drivers in suburban ZIP codes pay around 7% less with American Select compared to State Farm. In urban areas, State Farm's average premiums are about 10% less than American Select Insurance Company.

American Select 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. That's where auto insurance discounts comes into play.

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're eligible for.

In the table below, we've broken down all of the different discounts offered by both American Select and State Farm so that you can find the one that has the most discounts and, therefore, the biggest savings.

American Select State Farm
ABS Discount
Account Relationship Discount 
Advance Quote Discount 
Agency Transfer Discount 
Annual Mileage Discount 
Anti-Theft Discount
Companion Auto Discount 
Company Car Discount 
Defensive Driver Discount
Distant Student Discount
Drive Safe & Save Discount 
Driver Training Discount
DRL Discount 
Family Discount 
Farm Discount 
Good Driving Discount 
Good Student Discount
Goverment Employee Discount 
Group Discount 
Homeowner Discount 

Overall, State Farm comes out ahead with 23 discounts to American Select's 20.

Both carriers offer lots of the same discounts -- like ABS discounts, discounts for being a defensive driver, discounts for getting driver training, and passive restraint discounts -- but State Farm also offers annual mileage discounts, drive safe & save discounts, DRL discounts, and more that American Select does not.

On the flip side, American Select has a couple unique discounts of its own -- account relationship discounts, advance quote discounts, agency transfer discounts, and more.


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

So, you've seen how different variables can affect your car insurance rates. We've shown you all the discounts each carrier offers, too. But, at the end of the day, is American Select or State Farm the right company for you and your specific needs?

State Farm might be best for you if....

  • You already have a great credit score.
  • You care about discounts (State Farm offers the most).
  • You are purchasing your auto insurance with a spouse.


American Select might be best for you if...

  • You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
  • You want to save money on your insurance after a collision.
  • Your neighborhood is in the suburbs.

We hope this guide helps you get a good idea of the differences between American Select 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 a handful of companies, not just American Select and State Farm. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get free quotes from dozens of top insurance carriers in your area, all in just a few minutes.


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American Select vs. State Farm FAQs

Is American Select or State Farm cheaper?

Looking just at the national average premiums, State Farm is the less expensive of the two companies, offering average rates of $158 per month compared to $170 for American Select. But State Farm won't necessarily be the most affordable company for each driver, since there are lots of different factors that come into play when it comes to your auto insurance bill.

Who is better, American Select or State Farm?

Sadly, the answer truly is "it depends.". No one carrier is "better" for every driver -- it all depends on the makeup of your unique insurance profile.

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

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

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

The only way to find the auto 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, Compare.com does all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best 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 Select 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.

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