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American Family vs. State Farm: Which Car Insurance Is Cheaper?

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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

  • 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
  • Car insurance rates with American Family and State Farm are similar; however, State Farm has lower car 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

In our American Family vs. State Farm car insurance guide, we compare car insurance rates by age, driving record, and credit score. Which company will provide the best and cheapest car insurance for you?

We also compare available discounts and ratings from agencies with a credible and trustworthy view of car insurance companies.

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

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

The more we drive, the safer and more aware we are behind the wheel. For this reason, car insurance companies use age as one of the most influential factors in quoting your car insurance rates.

Let’s compare American Family (AmFam for short) car insurance rates and State Farm car insurance rates based on age, gender, and marital status.

American Family vs. State Farm Average Annual Car Insurance Rates by Age, Gender, and Marital Status
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.

It’s worth pointing out that State Farm’s rates for young male drivers — the most expensive demographic to insure — are significantly lower than American Family’s.

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

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

American Family vs. State Farm Average Annual Car 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.

American Family rates for having a speeding ticket, accident, or DUI on your record are 12%-61% higher than rates for drivers with a clean record.

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 car insurance or State Farm car insurance cheaper based on credit score?

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

Car 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 Car 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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Car insurance rates with State Farm are generally lower than American Family 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.

You may live in a state where basing car insurance on credit score is illegal. Be sure to check out our car insurance by state page before judging American Family vs. State Farm car insurance rates based on credit score alone.

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

If you have a bad driving record or a low credit score, getting good discounts can offset your high rates.

Unfortunately, our source lists only three American Family car insurance discounts: the discount for taking a defensive driver course, the discount for having airbags, and the discount for using the driving device or app.

American Family vs. State Farm Car 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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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.

You may also have the option to save more by bundling with your life insurance policy or home insurance policy.

The discounts provided by car 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.

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

Usage-based car insurance has become a hot trend in the car insurance industry in the last decade or so.

All of the larger car insurance companies have an app that uses your mobile phone or a device installed in your vehicle to evaluate your driving, usually in exchange for a discount.

A more general app is also offered by major car insurance providers 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 AmFam login or State Farm login would likely be the same.

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

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

Before making a decision on whether to buy American Family vs. State Farm car insurance, check out their ratings.

Purchasing car insurance is an important financial responsibility, so you want to make sure you’re selecting the right 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 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 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.

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.

Now that you’ve compared American Family vs. State Farm car insurance, enter your ZIP code to see quotes from multiple companies in your area.

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