American Family vs. State Farm Auto Insurance (2021)

Read our comparison of American Family vs. State Farm auto insurance rates based on age, driving record, and credit score. American Family Insurance has cheaper rates for those with a low credit score, but State Farm is a better choice for teen drivers and those with a bad driving record. Both companies have strong financial futures with A.M. Best ratings of A or better.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jun 21, 2021

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Things to Remember

  • American Family and State Farm are competitive when it comes to customer satisfaction with the claims process
  • State Farm has a lower customer complaint ratio than American Family
  • Auto insurance rates with American Family and State Farm are similar; however, State Farm has lower auto insurance rates overall, especially for male teen drivers
  • State Farm has the highest financial stability rating from A.M. Best and offers higher discounts than American Family
  • American Family has better rates for drivers with a low credit score, but if you have a bad driving record, State Farm is a good option

Purchasing an auto insurance policy often requires a lot of time and energy. There are so many auto insurance companies and policies on the market, and finding the right one for you can be overwhelming.

To ease the process for you, we compared two of the best auto insurance companies: American Family vs. State Farm. American Family Insurance specializes in property, casualty, and auto insurance, while State Farm Insurance focuses mainly on auto insurance.

In our American Family vs. State Farm auto insurance guide, we compare rates by age, driving record, credit score, and other factors that affect the cost of auto insurance.

While you shop for affordable American Family vs. State Farm auto insurance, enter your ZIP code above to start comparing car insurance quotes from the top companies in your area.

Is American Family auto insurance or State Farm auto insurance cheaper based on age?

The more we drive, the safer and more aware we become when behind the wheel. For this reason, American Family and State Farm use age as one of the most influential factors in quoting your auto insurance rates.

Let’s compare American Family vs. State Farm auto insurance rates based on age, gender, and marital status.

American Family vs. State Farm Average Annual Auto Insurance Rates by Age
DemographicAmerican Family Average Annual RatesState Farm Average Annual Rates
Single 17-year-old female$5,997$5,954
Single 17-year-old male$8,131$7,324
Single 25-year-old female$2,289$2,336
Single 25-year-old male$2,695$2,555
Married 35-year-old female$2,203$2,082
Married 35-year-old male$2,224$2,082
Married 60-year-old female$1,993$1,874
Married 60-year-old male$2,014$1,874
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American Family Insurance and State Farm Insurance have fairly competitive rates. State Farm rates are up to 10% cheaper than American Family rates, and State Farm gives young male drivers a break, charging this demographic lower rates than American Family.

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Is American Family auto insurance or State Farm auto insurance cheaper based on driving record?

Speeding tickets, accidents, or DUIs on your driving record will raise your auto insurance rates no matter what company you pick because these infractions increase the likelihood you will file a claim.

American Family vs. State Farm Average Annual Auto Insurance Rates by Driving Record
InfractionAmerican Family Average Annual RatesState Farm Average Annual Rates
Clean record$2,694$2,821
With one speeding violation$3,026$3,186
With one accident$3,723$3,396
With one DUI$4,330$3,637
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State Farm has slightly higher rates for drivers with a speeding ticket but lower rates than American Family if you have an accident or DUI on your record.

Compared to a driver with a clean record, American Family rates for having a speeding ticket, accident, or DUI on your record will increase by 12%-61%.

State Farm, however, is more forgiving when drivers have infractions added to their driving record. Drivers that get a speeding ticket, cause an accident, or get a DUI will see their rates increase by only 13%-29% in comparison to a driver with a clean record.

In general, if you have any infractions on your driving record, State Farm is the best option for you.

Is American Family auto insurance or State Farm auto insurance cheaper based on credit score?

In most states, it’s legal for auto insurance companies to factor in your credit score when determining your rates; however, some are banning this practice along with factoring in gender and marital status.

Auto insurance companies justify using your credit score to determine your rates based on the assumption that those with higher credit scores are more responsible and less likely to file a claim.

Let’s take a look at how American Family and State Farm set rates for drivers with different credit scores.

American Family vs. State Farm Average Annual Auto Insurance Rates by Credit History
Credit HistoryAmerican Family Average Annual RatesState Farm Average Annual Rates
Good Credit (670-739)$2,692$2,174
Fair Credit Score (580-669)$3,170$2,853
Poor Credit Score (300-579)$4,468$4,951
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Auto insurance rates with State Farm are generally lower than American Family rates unless you have poor credit — then you will pay more.

However, American Family is a little more lenient than State Farm when it comes to credit scores that drop over time. Drivers with State Farm that have poor credit will pay over twice as much as a driver with good credit.

If you have a bad credit history, State Farm is a better choice initially; but, if you anticipate your credit score dropping, you may want to consider changing companies.

Does American Family or State Farm have better auto insurance discounts?

An auto insurance company often determines discounts based on its philosophy and values. If you have a bad driving record or a low credit score, getting good discounts can offset your high rates.

Because both of these companies are so diverse in their offerings, the auto insurance discounts offered are also diverse. Below is a list of the different deals offered by American Family and State Farm.

American Family vs. State Farm Auto Insurance Discounts
DiscountsAmerican FamilyState Farm
Adaptive Cruise Controln/an/a
Adaptive Headlightsn/an/a
Anti-lock Brakesyes5
Anti-Theftyes15
Claim Freeyes15
Continuous Coverageyesn/a
Daytime Running Lightsn/an/a
Defensive Driver105
Distant Studentn/an/a
Driver's Edn/a15
Driving Device/App4050
Early Signingn/an/a
Electronic Stability Controln/an/a
Emergency Deploymentyesn/a
Engaged Coupleyesn/a
Family Legacyyesn/a
Family Planyesn/a
Farm Vehicleyesn/a
Fast 5yesn/a
Federal Employeeyesn/a
Forward Collision Warningn/an/a
Full Paymentn/an/a
Further Educationyesn/a
Garaging/Storingyesn/a
Good Creditn/an/a
Good Studentn/a25
Green Vehiclen/an/a
Homeowneryes3
Lane Departure Warningn/an/a
Life Insurancen/an/a
Low Mileagen/a30
Loyaltyyesn/a
Marriedn/an/a
Membership/Groupn/an/a
Militaryyesn/a
Military Garagingyesn/a
Multiple Driversn/an/a
Multiple Policiesn/a17
Multiple Vehiclesn/a20
New Addressn/an/a
New Customer/New Plann/an/a
New Graduateyesn/a
Newer Vehicleyes40
Newly Licensedn/an/a
Newlywedsn/an/a
Non-Smoker/Non-Drinkern/an/a
Occasional Operatorn/an/a
Occupationn/an/a
On Time Paymentsn/an/a
Online Shoppern/an/a
Paperless Documentsn/an/a
Paperless/Auto Billingn/a$2
Passive Restraint3040
Recent Retireesyesn/a
Renteryesn/a
Roadside Assistanceyesn/a
Safe Drivern/a15
Seat Belt Usen/an/a
Senior Drivern/an/a
Stable Residenceyesn/a
Students & Alumnin/an/a
Switching Providern/an/a
Utility Vehiclen/an/a
Vehicle Recoveryyes5
VIN Etchingyesn/a
Volunteeryesn/a
Young Drivern/an/a
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Unfortunately, our source lists only three American Family auto insurance discounts: the defensive driver discount, the discount for having airbags, and the discount for using the driving device or app.

But with State Farm, you can save 30%-50% by having a short commute, driving a newer vehicle, having airbags, or using the driving app or device.

The discounts provided by auto insurance companies also target particular categories of drivers, so be sure to ask about any extra discounts by calling American Family or State Farm customer service at the American Family or State Farm phone number.

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Does American Family or State Farm have better auto insurance mobile apps?

Usage-based auto insurance has become a hot trend in the auto insurance industry in the last decade or so, and all of the larger auto insurance companies have a driving app that uses your mobile phone or a device installed in your vehicle.

A more general app is also offered by major auto insurance companies which you can use to access your policy, make adjustments, and pay your bill. Usually, in both the general app and the driving app, your American Family login or State Farm login would likely be the same.

But if you really prefer talking to someone about your auto insurance needs, call the company directly. Who knows? Maybe Jake from State Farm will answer.

How do American Family and State Farm auto insurance compare in financial strength and customer satisfaction?

Purchasing auto insurance is an important financial responsibility, so you want to make sure you’re selecting the appropriate company that will be there for you when you need it most.

A company’s financial strength, customer satisfaction with the claims process, and customer complaints should be reviewed prior to making your decision. The quality of the American Family vs. State Farm claims departments is a big part of customer satisfaction.

The following three agencies provide insight into these factors:

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations, such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction with the American Family and State Farm claims processes. The National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers vs. the total number of complaints. The lower the ratio, the better.

American Family vs. State Farm Company Ratings
Rating AgencyAmerican FamilyState Farm
AM Best RatingAA++
Consumer Reports8989
NAIC Company Complaint Ratio0.790.44
NAIC Total Complaints731482
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Both companies have a strong financial future, but State Farm carries the highest rating from A.M. Best. Additionally, both the State Farm and American Family insurance claims processes are competitively rated when it comes to customer satisfaction.

However, State Farm has a slightly lower customer complaint ratio, which indicates its customers are more satisfied.

Before you buy American Family vs. State Farm auto insurance, enter your ZIP code into our free online tool for instant auto insurance quotes from companies in your area.

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