Compare American Family vs. Farmers: Quotes, Discounts (2023)

American Family vs. Farmers: A Summary

Two auto insurance companies you may consider when comparing car insurance are Farmers and American Family. We’ll go over how these two companies compare in terms of coverage options, ratings, and discounts. But first, here’s how American Family and Farmers compare in terms of average monthly cost and Insurify Composite Score.

ICS Score Explanation:

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

American Family

Founded in 1927, American Family provides insurance products like auto insurance and homeowners insurance to residents in 19 states. The company offers a variety of coverage options in addition to liability and full-coverage insurance, including roadside assistance, gap coverage, rental reimbursement coverage, rideshare coverage, and accident forgiveness.

American Family offers a variety of discounts, so ask your local agent what you may be eligible for. You can get significant savings from a multi-policy discount or enroll in KnowYourDrive, their usage-based telematics program. This can save you money on top of the company’s already low rates.

American Family has excellent financial strength ratings from A.M. Best and S&P and is the top-ranked insurer in the J.D. Power 2021 U.S. Insurance Shopping Study. The company also had fewer complaints with the NAIC in 2021 than expected, given the company’s size. And you can manage your policy or file a claim with the American Family mobile app.

Farmers

Founded in 1928, Farmers serves 19 million policyholders nationwide. In addition to car insurance, Farmers also offers home insurance, renters insurance, life insurance, and more. Coverage add-ons include towing and roadside assistance, rideshare coverage, guaranteed value coverage, new car replacement coverage, and rental car reimbursement.

Farmers has excellent financial strength ratings. The insurer ranks below average in the J.D. Power 2021 U.S. Insurance Shopping Study but ranks above average for insurance claims satisfaction. Complaints about the company to the NAIC were about average.

Farmers insurance premiums are higher than the industry average, but the company offers a variety of insurance discounts, including a bundling discount and the Signal telematics program, which can reduce your car insurance rates. Farmers also has a well-rated mobile app you can use to manage your insurance policy and file a claim.

The Best Car Insurance Companies in 2022

American Family is one of the best companies we reviewed based on a variety of data. While Farmers doesn’t rank as highly, it’s still a reputable company that offers some coverage options not available at American Family.

Compare American Family vs. Farmers: Which Is Cheaper?

American Family is cheaper than Farmers for all types of drivers. Regardless of your driving history, age, and credit score, you’ll likely find cheaper insurance coverage from American Family. However, American Family is not the cheapest insurer in the industry.

The Cheapest Car Insurance Companies in 2022

While American Family is one of the cheapest insurance companies we reviewed, it may not offer the lowest rates for you. In fact, several other companies, including GEICO, State Farm, and USAA, consistently offer lower average rates than American Family. Farmers auto insurance rates are more costly than the industry average.

Compare American Family vs. Farmers Car Insurance by Age

Because teen drivers are more likely to be in an accident than any other age group, young drivers tend to pay more for car insurance. Most car insurance companies offer their cheapest rates to drivers in their 50s and 60s. Here’s what you can expect, on average, from American Family and Farmers based on your age.

American Family is significantly cheaper than Farmers for all age groups, but especially for younger drivers. Drivers in their teens and 20s will find much lower rates from American Family.

Compare American Family vs. Farmers Car Insurance by Gender

Most car insurance companies consider your gender when underwriting your insurance policy. Women tend to pay slightly less than men over the course of their lives. The difference is especially significant between teen males and females since teen males are more than twice as likely to die in a crash as teen females.

However, on average, women will typically only pay a few dollars per month less than men at the same insurance company. Here’s what you can expect from American Family and Farmers.

Which is cheapest for men?

American Family is cheaper than Farmers for men. AmFam also beats the industry average rate for male drivers.

Which is cheapest for women?

American Family offers cheaper premiums to women than Farmers. AmFam’s premiums are also less than the industry average rate for female drivers.

Compare American Family vs. Farmers Car Insurance by Mileage

Your estimated annual mileage can affect your car insurance rate, although not significantly. Low-mileage drivers tend to pay just slightly lower rates than high-mileage drivers based on the estimated mileage they provide when applying.

Enrolling in a usage-based program, like Farmer’s Signal program or American Family’s KnowYourDrive program, can result in greater savings for low-mileage drivers, so consider enrolling if you drive infrequently. Below are the average rates that American Family and Farmers charge drivers based on their mileage.

Which is cheapest for drivers with high mileage?

American Family offers cheaper rates to high-mileage drivers than Farmers. American Family’s rates also beat the industry average, while Farmers premiums do not.

Which is cheapest for drivers with low mileage?

American Family offers cheaper auto insurance rates to low-mileage drivers than Farmers. Though Farmers offers a significant discount for low-mileage drivers, its rates are still higher than the industry average. American Family, on the other hand, is cheaper than the industry average.

Compare American Family vs. Farmers Car Insurance by Credit Score

In most states, car insurance companies consider your credit-based insurance score, which is based on information in your credit report, when setting your premiums. They’re not worried about you paying your bill but rather the frequency of your claims. Several studies have found a link between bad credit and high claims-filing, so bad credit drivers pay higher rates.

Keep in mind this practice is prohibited in some states, such as California. But typically, the higher you can raise your credit score, the less you’ll pay for car insurance. Here are the average rates that American Family and Farmers charge drivers in each credit tier.

Which is cheapest for good credit?

American Family is cheaper than Farmers for drivers with good and excellent credit. Farmers’ rates are definitely lower for drivers with excellent credit, but they still don’t beat the industry average. American Family is cheaper than average for good credit drivers.

Which is cheapest for bad credit?

American Family offers lower rates to bad credit drivers than Farmers. American Family premiums also beat the industry average rate for drivers with poor credit.

Compare American Family vs. Farmers Car Insurance by Driving Record

Your driving history is an important factor in determining your car insurance premiums. Car insurance companies use your driving record to evaluate the risk to insure you. Having an accident or speeding ticket in your driving history can raise your rate significantly.

Usage-based programs can be a way to demonstrate safe driving behavior, and the discounts provided by these programs can partially offset a price increase from the violations on your record. But drivers with a clean record will still pay the lowest rates. Here’s what you can expect from American Family and Farmers based on your driving history.

Which is cheapest for good drivers?

Good drivers without any infractions on their records pay cheaper premiums at American Family on average than at Farmers. AmFam’s average rates also beat the industry average by $10.

Which is cheapest after a speeding ticket?

American Family offers cheaper rates on average to drivers with speeding tickets than Farmers. AmFam is also cheaper than the industry average. If you have a speeding ticket on your record, ask your insurance agent about options for driving courses in your state.

Which is cheapest after an accident?

American Family charges higher rates to drivers who have been in crashes, but the average premium still beats Farmers and the industry average.

Which is cheapest after a DUI?

A DUI on your record requires your insurer to file an SR-22 on your behalf in most states. So rates are understandably higher for DUI drivers. But American Family offers generous rates considering the violation, beating both Farmers and the industry average.

American Family vs. Farmers Car Insurance: What discounts does each offer?

Our Methodology and How We Compared American Family and Farmers

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.