American Family vs. GEICO: Which Car Insurance Is Cheaper?
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UPDATED: May 20, 2021
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- Both American Family and GEICO have great customer satisfaction and low customer complaint ratios.
- GEICO has the highest possible financial strength rating from A.M. Best, and American Family has better rates for drivers with a poor driving record.
- GEICO has cheaper car insurance rates overall than American Family — but not by much.
- American Family premiums decrease at a slower rate than GEICO’s based on credit history.
- GEICO offers more discounts than American Family, though American Family has lower car insurance rates across the board.
American Family, abbreviated as AmFam, and GEICO are both reputable companies with stable financial strength. Which company will provide the best and cheapest car insurance for you?
Overall rates between the two companies don’t differ much; however, penalties for a bad driving record or poor credit score vary greatly. GEICO gives you a break on the normally high rates for young male drivers.
In our American Family vs. GEICO car insurance guide, we compare rates by age, driving record, and credit score. We also compare available discounts and ratings from agencies with a credible and trustworthy view of car insurance companies.
Continue reading to compare affordable American Family vs. GEICO car insurance quotes, or enter your ZIP code to get quotes from multiple car insurance companies in your area.
Is American Family car insurance or GEICO car insurance cheaper based on age?
Age is one of the biggest factors in determining your car insurance rates, and rightfully so — as we age, we drive more, so we become more practiced, aware, and safe on the road.
Take a look at a comparison of American Family vs. GEICO car insurance rates based on age, gender, and marital status.
|Age, Gender, and Marital Status||American Family Average Annual Rates||Geico Average Annual Rates|
|Single 17-year-old female||$5,997||$5,654|
|Single 17-year-old male||$8,131||$6,279|
|Single 25-year-old female||$2,289||$2,379|
|Single 25-year-old male||$2,695||$2,263|
|Married 35-year-old female||$2,203||$2,303|
|Married 35-year-old male||$2,224||$2,312|
|Married 60-year-old female||$2,203||$2,303|
|Married 60-year-old male||$2,224||$2,312|
The majority of car insurance companies will charge more for male drivers, especially teens, but GEICO seems to have carved a niche for insuring younger drivers.
At GEICO, rates for teen males are 23% cheaper and rates for teen females are 6% cheaper than American Family insurance rates.
Car insurance rates for single 25-year-old males are also 16% cheaper than American Family rates.
GEICO is definitely an excellent choice over American Family if you have a teen (especially male) driver in your household.
Is American Family car insurance or GEICO car insurance cheaper based on driving record?
If you have a record of infractions such as speeding tickets, accidents, or DUIs, it doesn’t matter what company you choose — you will always pay higher rates than drivers with a clean record.
Be sure to look into discounts to offset your high rates.
|Driving Record||American Family Average Annual Rates||Geico Average Annual Rates|
|With one speeding violation||$3,026||$2,645|
|With one accident||$3,723||$3,193|
|With one DUI||$4,330||$4,876|
American Family car insurance rates are around $500 higher than GEICO’s car insurance rates for a speeding ticket or accident. However, American Family is more forgiving for drivers that incur a DUI.
Your GEICO quotes will increase more dramatically as you have more serious infractions.
When compared to a driver with a clean record, GEICO penalizes drivers that cause an accident with a 50% increase in rates, and drivers with GEICO that get a DUI will pay well over double that of a driver with a clean record.
Is American Family car insurance or GEICO car insurance cheaper based on credit score?
If your finances take a hit due to a divorce or unexpected medical bills, your credit score can plummet in no time. And the lower your credit score, the higher your car insurance rates will be.
Unfortunately, car insurance companies make the assumption that drivers with bad credit are less responsible, more likely to file a claim, and overall higher-risk drivers.
The good news is that several states have passed bills making it illegal for car insurance companies to base rates on credit score. More may follow suit in the future.
Let’s take a look at how American Family and GEICO handle drivers with good, fair, and poor credit scores.
|Credit History Summary||American Family Average Annual Rates||Geico Average Annual Rates|
|Good Credit (670-739)||$2,692||$2,435|
|Fair Credit Score (580-669)||$3,170||$2,987|
|Poor Credit Score (300-579)||$4,468||$4,260|
Overall, GEICO car insurance rates are cheaper than American Family car insurance rates based on credit score. However, GEICO is harsher when it comes to the difference in rates for a driver with fair vs. poor credit.
American Family rates increase by 18%-66% for drivers with less than solid credit scores. Alternatively, GEICO rates increase by 23%-75% for those with a fair or poor credit score.
No matter what your credit score is, GEICO is a better option overall. But, if you choose GEICO and you experience financial trauma, expect your rates to skyrocket. If that happens, it may be a good idea to change companies.
Be sure to check out our car insurance by state page before judging American Family vs. GEICO car insurance rates based on credit score alone.
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Does American Family or GEICO have better car insurance discounts?
Our data source shows only three discounts offered by American Family. GEICO offers 14 discounts and gives a bigger discount for having airbags, which is the only discount American Family and GEICO share.
Take a closer look at American Family vs. GEICO car insurance discounts.
|Daytime Running Lights||N/A||1|
|Seat Belt Use||N/A||15|
If you’re considering GEICO and have a bad driving record or a poor credit score, you should rely heavily on some of GEICO’s discounts.
Some of GEICO’s highest discounts are on anti-theft devices, vehicle recovery, being claim-free, insuring multiple vehicles, and being in the military and urgently deployed.
There are two discounts American Family has that GEICO does not: discounts for completing a defensive driving course and a discount for using their mobile driving app or device to track your driving habits.
Comparing American Family vs. GEICO car insurance companies should include an analysis of their discounts.
Car insurance discounts target particular categories of drivers, so ask if there are any extra discounts available by calling American Family or GEICO customer service at the American Family or GEICO insurance phone number.
Does American Family or GEICO have better car insurance mobile apps?
Most of the bigger car insurance companies have two different types of apps. One is a general app used to show electronic verification of coverage, pay your bill, or adjust your coverage levels.
The second is a driving app that may be installed on your mobile phone to record your driving habits. Alternatively, the company may request that you install a device into your car.
This is called usage-based car insurance, and it is a very hot topic in the car insurance industry.
One thing to note: GEICO was the last of the top 10 car insurance companies to design and implement a usage-based driving app, so be aware that there may still be some kinks in the system.
The more general app offered by major car insurance providers allows you 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 GEICO login would likely be the same.
How do American Family and GEICO car insurance compare in financial strength and customer satisfaction?
Getting the best car insurance rates is something worth celebrating, especially if you get to take advantage of a discount that applies to your individual situation.
Finding discounts is great. But it’s just as critical to learn about a company’s financial strength, customer satisfaction with the claims process, and customer complaints.
The following three credible and trustworthy agencies feature GEICO vs. American Family insurance ratings:
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 are Superior A++.
Consumer Reports collects annual data from its subscribers regarding customer satisfaction with the claims process.
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.
|Agencies||American Family Ratings||Geico Ratings|
|AM Best||A (Excellent)||A++ (Superior)|
|NAIC Complaint Ratio||0.79 (total of 73 complaints)||0.68 (total of 333 complaints)|
Both American Family and GEICO have positive feedback from customers that go through the claims process and do well with managing customer complaints.
Additionally, the financial future of both companies is strong, but GEICO carries the highest rating possible from A.M. Best.
If you’re ready to buy American Family vs. GEICO car insurance, it’s time to shop around and compare.
Now that you’ve finished this American Family vs. GEICO car insurance guide, use our FREE comparison tool to get free car insurance quotes from local companies today.
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