American Family vs. State Farm: Best Car Insurance for 2021
American Family and State Farm are excellent insurance companies. American Family vs. State Farm car insurance rates has a $15 difference. American Family is limited to 19 states, but State Farm is available across the United States. Although American Family has fewer complaints, State Farm has a better A.M. Best rating. To determine which is cheapest, compare American Family vs. State car insurance quotes based on car insurance factors.
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UPDATED: Aug 5, 2021
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- State Farm Insurance has the largest market share in the car insurance industry
- American Family is only available in 19 states
- American Family Insurance is cheaper for shoppers with poor credit
- You can bundle other services like American Family Care with your car insurance policy
- State Farm is rated highly in financial strength, but American Family has fewer complaints, according to the NAIC
You’ve narrowed your car insurance shopping list to American Family and State Farm. Now it’s time to compare American Family vs. State Farm car insurance rates, coverage, discounts, and other aspects that put these car insurance companies on the top list in the car insurance industry.
Our American Family vs. State Farm car insurance guide explores everything you need to know about American Family and State Farm before making a final decision on which company is best for you.
Before learning more about American Family vs. State Farm, enter your ZIP code in the free comparison tool above to find affordable car insurance quotes for you.
American Family vs. State Farm Car Insurance: Which company is more affordable?
Before you go into which company is cheaper, let’s compare American Family and State Farm summaries to see which company has better stats.
|Summary||American Family Car Insurance Stats||State Farm Car Insurance Stats|
|Headquarters||6000 American Parkway, Madison, WI 53783||One State Farm Plaza Bloomington, IL 61710|
|Available in how many states?||19 States||All States|
|Direct Premiums||$5.8 Billion||$41.1 Billion|
|National Average Car Insurance||$287||$272|
State Farm’s direct premiums are about $35 billion more than American Family’s premiums. This may be due to American Family’s limited availability in the United States.
Which is less expensive by driving record?
Did you know auto insurance companies can access your driving record and insurance history? Car insurance providers can access the Comprehensive Loss Underwriting Exchange (C. L. U. E.) and determine if you’re a high risk.
If you have a clean driving record and an outstanding insurance history, you’ll qualify for cheaper rates. However, accidents, DUI convictions, and other traffic violations can increase your monthly rates.
Let’s compare the cost of American Family and State Farm car insurance based on driving record.
|Driving Record Summary||American Family Monthly Car Insurance Rates||State Farm Monthly Car Insurance Rates|
|Clean Driving Record||$224||$235|
|With One Speeding Violation||$252||$266|
|With One Accident||$310||$283|
|With One DUI||$361||$303|
Clean driving records generate the lowest rates at both companies. However, State Farm is slightly less expensive than American Family.
Which is cheapest by credit score?
Some car insurance companies provide a massive discount for customers who have good credit. Why? Credit scores correlate to risk.
Therefore, a good credit score translates to lower chances of filing claims, but a poor credit score could alert the car insurance company that the customer has a higher chance of filing a claim.
How do American Family and State Farm calculate auto insurance rates based on credit? Let’s find out.
|Credit Score Summary||American Family Monthly Car Insurance Rates||State Farm Monthly Car Insurance Rates|
|Good Credit (670-739)||$224||$181|
|Fair Credit Score (580-669)||$264||$238|
|Poor Credit Score (300-579)||$372||$413|
State Farm provides less expensive rates than American Family unless you have a poor credit score. American Family is $41 cheaper than State Farm if you have lower credit.
Which is cheapest by age, gender, and marital status?
If you plan on getting auto insurance for a teen driver, expect higher than average car insurance rates. Sometimes, teen auto insurance is considered a non-standard policy.
This is because teen and young adult drivers – regardless of gender – take more risks behind the wheel. Car insurance companies issue higher rates than usual to offset risk.
Let’s compare how age, gender, and even marital status impact American Family and State Farm car insurance rates.
|Age, Gender, and Marital Status||American Family Monthly Car Insurance Rates||State Farm Monthly Car Insurance Rates|
|Married 60-year-old female||$166||$156|
|Married 60-year-old male||$168||$156|
|Married 35-year-old female||$184||$173|
|Married 35-year-old male||$185||$173|
|Single 25-year-old female||$191||$195|
|Single 25-year-old male||$225||$213|
|Single 17-year-old female||$500||$496|
|Single 17-year-old male||$678||$610|
Overall, State Farm car insurance rates are cheaper. While teens are connected to expensive car insurance, any driver aged 25 and older pay more affordable rates.
Which is cost-effective by commute mileage?
The less you drive, the more you’re you’ll save on car insurance. Some auto insurance companies produce less expensive policies when you drive less. You’re only reducing the chances of getting in an accident and filing a claim.
Car insurance companies usually separate estimated mileage into two categories. Let’s see how American Family and State Farm generate costs based on commute mileage.
|Estimated Commute Mileage||American Family Monthly Car Insurance Rates||State Farm Monthly Car Insurance Rates|
|10 Miles Commute (6,000 miles/yr)||$283||$265|
|25 Miles Commute (12,000 miles/yr)||$290||$279|
State Farm has won the battle as the more affordable company compared to American Family. There’s not a massive increase if you decide to drive more during the policy at either company.
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American Family vs. State Farm Car Insurance Coverages
Before you buy car insurance, determine which car insurance you need. Most of the time, the minimum required car insurance is fine, but some circumstances may require more coverage.
Compare American Family and State Farm auto insurance coverage below to see if they have what you need.
|American Family Car Insurance Coverages||State Farm Car Insurance Coverages|
|Comprehensive||Bodily Injury Liability|
|Collision||Property Damage Liability|
|Gap/Lease & Loan||Medical Payments coverage|
|Uninsured Motorist||Comprehensive Coverage|
|Bodily Injury||Uninsured & Underinsured Motorist Coverage|
|Medical Payments||Personal Injury Protection|
|24/7 Emergency Roadside Assistance||GAP Coverage|
|Accident Forgiveness||Rental Car Reimbursement|
|Classic Car||Roadside Assistance|
|Commercial Auto Insurance||Accident Forgiveness|
|Rental Car Reimbursement Coverage|
American Family has more coverage options, which may be the reason why auto insurance rates are higher than State Farm’s.
Other American Family and State Farm Insurance Products
Add a little more to your car insurance company and save more money per month. American Family and State Farm are big insurance companies that sell more than auto insurance. Let’s compare other insurance products that are available at both companies.
|Other Insurance Products||American Family Availability||State Farm Availability|
|Travel Trailer Insurance||✔||✘|
|Mobile Home Insurance||✔||✔|
State Farm is a great auto insurance company, but it doesn’t have the same insurance products as American Family Insurance.
American Family vs. State Farm Car Insurance: Who has more discounts?
Jake from State Farm may not be able to get you cheaper auto insurance, but State Farm discounts can lower policy premiums per year. If you want to know which companies are available to you, check out this comparison between American Family and State Farm discounts.
|Car Insurance Discounts||American Family Availability||State Farm Availability|
|Adaptive Cruise Control||✘||✘|
|Daytime Running Lights||✔||✘|
|Electronic Stability Control||✔||✘|
|Lane Departure Warning||✘||✘|
|Forward Collision Warning||✘||✘|
|New Customer/New Plan||✘||✘|
|Seat Belt Use||✘||✘|
|Students & Alumni||✔||✘|
American Family has more discounts, making it a strong competitor even if State Farm has the largest market share. If you’re eligible for more than one discount, you may be able to get car insurance that’s cheaper than State Farm’s average monthly rate.
Financial Strength and Customer Satisfaction Ratings
Car insurance rates and coverage options don’t tell the full story of a company’s reliability. Therefore, financial strength and credit rating agencies fill in the gaps you may miss when buying auto insurance.
We researched a few ratings to see how well American Family and State Farm manages money and how customers see these companies. Let’s check out the summaries below.
|Agencies||American Family Ratings||State Farm Ratings|
|NAIC Complaint Index||0.89||0.98|
|J.D. Power - Power Circle Ratings||About Average||Better Than Most|
|Apple App Store (iOS) Ratings||5 stars||3 stars|
|Google Play Store (Android) Ratings||4 stars||4 stars|
AM Best, Moody’s, and S&P are financial strength rating agencies that investigate companies’ financial outlook. According to our research, State Farm’s ratings are better than American Family’s ratings.
The NAIC Complaint Index, J.D. Power Ratings, and Consumer Reports reflect the latest customer satisfaction scores. American Family has fewer complaints under the NAIC, but J.D. Power rated State Farm as the better company.
Finally, the mobile app ratings are from customer reviews on iOS and Android app stores. American Family appears to outshine State Farm on the Apple App Store.
To access your policy online or a mobile app, create an American Family login or a State Farm login to check your policy and other important information.
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American Family vs. State Farm Car Insurance: The Bottom Line
Overall, State Farm has cheaper rates, better ratings, and has the number one market share in the auto insurance industry. However, American Family is less expensive for customers with poor credit and provides more discounts.
Both companies are good at providing affordable car insurance, but State Farm has better availability. Ultimately, you should find the car insurance quotes that work best for you.
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!
If our American Family vs. State Farm car insurance review doesn’t have what you’re looking for, use our free online quote tool to find car insurance in your local area.