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American Family vs. Farmers: Which Car Insurance Is Cheaper?

Enter your zip code below to view companies that have cheap auto insurance rates.

Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: May 25, 2021

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Key Takeaways

  • Both American Family and Farmers have strong ratings from financial, government, and consumer agencies
  • You can save over $2,500 a year by choosing American Family for the young woman in your household
  • If you have a poor driving record, you can save between $400 and $1,000 per year by choosing American Family over Farmers
  • No matter your credit score, American Family is a better choice
  • Farmers has a wider variety of discounts than American Family

In this American Family vs. Farmers car insurance guide, we’ll analyze rates according to your unique qualities, like your age, gender, marital status, driving record, and credit score.

We also include external ratings from the most trustworthy agencies and compare American Family and Farmers car insurance discounts, coverage types, and usage-based insurance programs.

Which company will provide the best and cheapest car insurance for you? To see which one suits your needs best, we will look at the pros and cons of American Family vs. Farmers car insurance companies.

This review discusses Farmers Insurance and American Family Insurance, not American Family Care, which is an urgent care facility.

Keep reading to compare affordable American Family vs. Farmers car insurance quotes, or enter your ZIP code to compare multiple companies in your area.

American Family vs. Farmers car insurance: Which is cheaper based on age?

The older we get, the more practice we have with driving. In calculating car insurance rates, providers use age as one of the most significant variables.

In most states, it is legal to base car insurance premiums on marital status and gender as well, though some have banned this practice.

Let’s compare American Family vs. Farmers car insurance rates based on age, gender, and marital status.

American Family vs. Farmers Average Annual Car Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusAmerican Family Average Annual RatesFarmers Average Annual Rates
Single 17-year-old female$5,997$8,522
Single 17-year-old male$8,131$9,144
Single 25-year-old female$2,289$2,947
Single 25-year-old male$2,695$3,041
Married 35-year-old female$2,203$2,557
Married 35-year-old male$2,224$2,558
Married 60-year-old female$1,993$2,337
Married 60-year-old male$2,014$2,448
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American Family’s car insurance rates for teen drivers are about 27% cheaper than Farmers’. For drivers 25 and older, American Family is 19% cheaper than Farmers.

The real savings from American Family are found in car insurance for female teen drivers. You can save over $2,500 a year by choosing American Family for the young woman in your household.

American Family’s car insurance rates for those 25 and older are 31% cheaper than Farmers’. That’s certainly a big difference.

American Family vs. Farmers car insurance: Which is cheaper based on driving record?

No matter what insurer you use, speeding tickets, auto accidents, or DUIs on your driving record will increase your car insurance premium. These infractions make you look like a high-risk driver.

American Family vs. Farmers Average Annual Car Insurance Rates by Driving Record
InfractionAmerican Family Average Annual RatesFarmers Average Annual Rates
Clean record$2,694$3,461
With one speeding violation$3,026$4,079
With one accident$3,723$4,519
With one DUI$4,330$4,719
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By choosing American Family, you can save between $400 and $1,000 per year if you have a speeding ticket, accident, or DUI on your record.

It’s also important to take a closer look at how punitive each company is if you sign up with a clean driving record but then later get an infraction.

American Family will be a little easier on you and increase your car insurance rates by only 12% if you get a speeding ticket. For the same infraction, your Farmers car insurance rates will increase by 18%.

Alternatively, Farmers is less punitive with drivers that cause an accident and raise their rates by only 31%. American Family will raise your rates by 38% if you cause an accident.

Farmers will also be easier on you if you get a DUI, increasing your rates by only 36%. If you choose American Family, expect your rates to increase by 61% if you get a DUI.

American Family vs. Farmers car insurance: Which is cheaper based on credit score?

If you undergo some sort of financial trauma, such as incurring medical debt or going through a divorce, your good credit score will drop in a matter of months, even with the best auto insurance companies.

It is legal for car insurance providers to base premiums on your credit score in most states; however, some banned this practice along with gender and marital status dependent rates.

Car insurance providers justify using your credit score to decide your rates based on the premise that people with higher credit scores are more responsible and less likely to file a claim.

Let’s take a look at how American Family and Farmers might set your rates based on your credit score.

American Family vs. Farmers Average Annual Car Insurance Rates by Credit History
Credit ScoreAmerican Family Average Annual RatesFarmers Average Annual Rates
Good Credit (670-739)$2,692$3,677
Fair Credit Score (580-669)$3,170$3,899
Poor Credit Score (300-579)$4,468$4,864
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For any type of credit (good, fair, or poor), American Family is a better option.

Once you’re with American Family and your credit score drops, expect your car insurance rates to increase by up to 66%. If your credit drops while with Farmers, your rates will only increase by about 32%.

Some states have banned insurance companies from looking at your credit.

Before you judge the rates of these two companies based on credit score alone, look into your state’s car insurance laws and compare rates from multiple companies.

Be sure to check out our car insurance by state page for more information.

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Does American Family or Farmers have better car insurance discounts?

Discounts from car insurance providers vary widely. That’s why, particularly if you have a poor driving record or a low credit score, it pays to shop around. Discounts can help counter high costs.

American Family vs. Farmers Car Insurance Discounts
DiscountsAmerican Family Discounts Offered (Percentage)Farmers Discounts Offered (Percentage)
Adaptive HeadlightsN/AYes
Anti-lock BrakesYesYes
Anti-TheftYesYes
Claim FreeYesYes
Continuous CoverageYesYes
Daytime Running LightsN/AYes
Defensive Driver10Yes
Distant StudentN/AYes
Driving Device/App40Yes
Early SigningN/AYes
Emergency DeploymentYesYes
Engaged CoupleYesYes
Family LegacyYesYes
Family PlanYesYes
Farm VehicleYesYes
Fast 5YesN/A
Federal EmployeeYesYes
Further EducationYesN/A
Garaging/StoringYesYes
Good CreditN/AYes
Green VehicleN/A5
HomeownerYesYes
Life InsuranceN/AYes
LoyaltyYesYes
MarriedN/AYes
MilitaryYesYes
Military GaragingYesN/A
Multiple VehiclesN/AYes
New GraduateYesYes
Newer VehicleYesYes
Paperless DocumentsN/AYes
Passive Restraint30N/A
Recent RetireesYesYes
RenterYesYes
Roadside AssistanceYesYes
Stable ResidenceYesYes
Switching ProviderN/AYes
Vehicle RecoveryYesN/A
VIN EtchingYesYes
VolunteerYesN/A
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When comparing discounts offered by either company, American Family has a total of 29 car insurance discounts and Farmers has a total of 34 discounts.

American Family’s best car insurance discounts range from 10% to 40% for taking a defensive driving course, having airbags, or using the company’s driving app.

The discounts offered by car insurance providers also target particular categories of drivers, so be sure to ask if there are any extra discounts by calling American Family or Farmers customer service at the American Family or Farmers phone number.

What types of car insurance coverages are offered by American Family and Farmers?

Since American Family and Farmers are two of the 10 companies that make up the majority of the car insurance market share, they have the means to provide a broader range of coverages for car insurance beyond the six standard coverages mentioned below

Before buying each one, make sure you understand all of your car insurance coverage options.

  • Liability car insurance coverage (bodily injury and property damage)
  • Comprehensive car insurance coverage
  • Collision car insurance coverage
  • Uninsured/underinsured car insurance coverage
  • Medical payments (MedPay) car insurance coverage (particularly important in states that require no-fault car insurance)
  • Personal injury protection (PIP) car insurance coverage

Be sure to take a closer look at any specialty coverages you might need, such as rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and insurance for recreational vehicles such as ATVs or boats.

Does American Family or Farmers have better car insurance mobile apps?

In the last decade or so, usage-based car insurance has become an industry standard, and all of the larger car insurance providers have a telematic device you can install in your car or an app for your phone that will evaluate your driving in exchange for a discount.

If you choose the usage-based car insurance option with Farmers or American Family, care should be taken to drive safely because your rates may depend on it.

A more general app is also offered by major car insurance providers to allow you to access your policy, make adjustments, and pay your bill.

Usually, in both the general app and the driving app, your American Family insurance login or Farmers insurance login would be the same.

How do American Family and Farmers car insurance compare in financial strength and customer satisfaction?

Buying car insurance is a major financial commitment, so you want to be sure you’re choosing the right company that will have your back when you need it.

Before you make your decision, the financial strength of a company, consumer satisfaction with the claims process, and customer concerns should all be considered.

Insight into these factors is provided by the following three agencies:

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 of the American Family claims process and the Farmers claims process, step by step. In its 2017 survey, 27 insurance companies were rated, and scores ranged from 86 to 96.

The National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers vs. the total number of complaints.

In 2017, the national average complaint ratio was one. The lower the ratio, the better.

Let’s take a look at ratings from credible third-party agencies for American Family and Farmers.

American Family vs. Farmers Company Ratings
Rating AgencyAmerican FamilyFarmers
AM Best RatingAA
Consumer Reports8989
NAIC Company Complaint Ratio0.790.59
NAIC Total Complaints737
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Both American Family and Farmers are highly rated when it comes to customer satisfaction, the claims process, and financial stability. Both companies also manage their complaint ratios well.

Before you buy American Family vs. Farmers car insurance, enter your ZIP code to start comparing multiple car insurance companies in your local area.

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

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