American Family vs. State Farm: Which Is the Best? (2024)

State Farm has a high IQ Score of 9.3 out of 10 and lower average rates than American Family, making it the better option for car insurance customers.

Angela Brown
Written byAngela Brown
Angela Brown
Angela Brown
  • 17+ years in insurance and personal finance writing

  • In-depth knowledge of home and real estate topics

Angela is an insurance and personal finance expert who uses her experience to create content that helps readers understand important and complex topics.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated December 19, 2024

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Choosing the right car insurance company for your coverage needs can feel overwhelming, especially when you’ve narrowed down your choice to two well-known insurers.

Unlike State Farm car insurance, American Family isn’t available nationwide. However, drivers in the 20 states the company serves could benefit from its good customer service. State Farm offers nationwide coverage and has a long history of trusted services but may fare lower in customer satisfaction rankings.

To make an informed decision about which car insurance company is the better choice for you, you should compare rates, customer service, claims satisfaction, discounts, and coverage options.

Quick Facts
  • By market share, State Farm is the largest U.S. car insurance company.[1]

  • American Family offers more discounts than State Farm.

  • State Farm and American Family both offer safe driving mobile apps.

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American Family vs. State Farm: The verdict

State Farm Insurance is the better pick overall based on its high Insurify Quality (IQ) Score of 9.3 out of 5, but American Family also has a high IQ Score of 9.1. State Farm operates in more states than American Family, and it has a higher average customer satisfaction score from J.D. Power and a higher financial strength rating from AM Best.

Despite operating in far fewer states, American Family offers nearly twice the number of discounts as State Farm. Some drivers in states where American Family operates may consider American Family a better option since it provides more discounts while maintaining similar ratings in other categories.

Here’s how the two car insurance companies stack up against each other.

Factor
American Family
State Farm
IQ Score9.19.3
Customer satisfaction score (J.D. Power)828833
Average monthly quote: liability only$72$54
Number of discounts1810
Number of states where it operates2050
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

American Family

Compare personalized, real-time quotes
User Reviews
3.4
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.1/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$72/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$160/mo

In business for more than 90 years, American Family sells car insurance in 19 states. Drivers who bundle their American Family car insurance policies with its homeowners insurance can save up to 23%. Safe drivers can benefit from American Family’s usage-based program, which gives an automatic 10% discount, while those who drive less than 7,500 miles per year may save with its low-mileage discount. American Family ranks second for customer satisfaction in the Central region, according to J.D. Power’s 2024 U.S. Auto Insurance Study.

Pros
  • High rates of customer satisfaction

  • Numerous discount and coverage options

Cons
  • Only available in 20 states

  • Rates are merely moderate compared to other insurers

Read more driver reviews of American Family
Kelley - December 2, 2024
Verified

They raise rates every two months. They handled an incident where my wife got rear-ended and then raised the rate.

They raise rates every two months. They handled an incident where my wife got rear-ended and then raised the rate.

Jim - November 30, 2024
Verified

Highway Robbery

I had no claims, yet my premiums are skyrocketing. The app for auto monitoring seems to be negatively skewed for those of us who drive very little. The agents are unresponsive and add no value.

Gene - November 25, 2024
Verified

Rates Keep Rising

Good service.

State Farm

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User Reviews
3.2
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$54/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$119/mo

State Farm is the largest U.S. auto insurer by market share and has operated for more than 100 years. Available in all 50 states, State Farm stands out for its customer service, extensive discounts, and optional coverages. The insurer ranked fifth for overall customer satisfaction in the 2023 J.D. Power U.S. Auto Claims Satisfaction Study. Safe drivers can enjoy many State Farm discounts, including ones for young motorists who complete an approved driver training course, for having a vehicle with certain safety equipment, and for going three years or longer without violations or at-fault accidents.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

  • Savings for bundling auto with home, renters, condo, or life insurance

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

  • Accident forgiveness limited to longtime customers with clean driving records

Read more driver reviews of State Farm
Al - December 19, 2024
Verified

My Opinion

Way too high premium.

Agnes - December 19, 2024
Verified

Best Insurance Company

I have been with them for a long time. Claims are handled quickly. I never had a problem, even when I had three teenagers driving.

Gabriel - December 18, 2024
Verified

My Experience with State Farm

Beware, some companies are more interested in making money than meeting the customers' needs. My wife had a medical issue while driving, and they covered it. A year later, there was a fender bender involving two moving vehicles. To me, it was no fault, but they considered it a second incident. We also had hail damage to our roof. They said there wasn't enough damage, yet my next-door neighbors received a new one. Now, they're canceling me for too much.

American Family’s KnowYourDrive vs. State Farm’s Drive Safe & Save

Drivers can benefit from safe driving programs with both companies.

American Family’s KnowYourDrive program allows drivers to pay auto insurance rates that correspond with their safe driving habits and driving frequency. Drivers can save up to 20% based on driving habits. KnowYourDrive uses a mobile app to monitor driving behavior, so drivers need to allow the app to use location and other phone permissions.[2]

State Farm’s Drive Safe & Save program allows safe drivers to save up to 30% on their car insurance policy based on driving behaviors and activity. The Drive Safe & Save program uses an app, but State Farm also sends a beacon to install in the car that helps provide more accurate readings.[3]

Both programs consider braking, turning, acceleration, distracted driving, and speeding when setting discounts.

American Family vs. State Farm: Which is the cheapest?

With average monthly rates of $54 per month for liability coverage and $119 for full-coverage insurance, State Farm has cheaper coverage nationwide than American Family. Policyholders with American Family pay average rates of $72 for liability coverage and $160 for full coverage.

The cost of your coverage from these insurers will vary based on several factors, including your age, driving record, credit history, and location.[4] In addition, drivers can save more money by working with the insurer that offers the best discounts for their needs. Drivers who opt for minimum coverage will pay the lowest average premiums from both companies.

State Farm: Cheapest for drivers with a clean driving record

Drivers with a clean driving record can save more money on coverage by choosing a policy from State Farm.

Driver Type
American Family
State Farm
Clean driving record$72$54
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with a speeding ticket

State Farm offers cheaper coverage for U.S. drivers with a speeding ticket on their record.

Driver Type
American Family
State Farm
Drivers with a speeding ticket$87$63
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for teen drivers

Young drivers typically pay higher rates than other drivers, but they can try to secure lower rates by qualifying for good student discounts, driving safely, and choosing coverage from the company that has cheaper average rates. State Farm also offers the cheapest coverage for teen drivers.

Driver Type
American Family
State Farm
18-year-old$127$95
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for drivers with bad credit

If you have poor credit, you’ll likely pay more expensive average rates than drivers with good or excellent credit. State Farm offers cheaper average coverage for U.S. drivers with bad credit.

Driver Type
American Family
State Farm
Drivers with bad credit$80$82
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

State Farm: Cheapest for senior drivers

Starting at age 70, older drivers may qualify as higher-risk drivers and pay increased rates due to aging-related risk factors. State Farm offers the cheapest coverage for senior drivers, on average.

Driver Type
American Family
State Farm
Senior drivers$54$39
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Compare coverages: American Family vs. State Farm

State Farm and American Family both offer a wide range of insurance products, including renters, home, and life insurance. Both companies provide typical auto insurance coverage options, like bodily injury and property damage liability, comprehensive, collision, personal injury protection, and uninsured/underinsured motorist coverage.

American Family provides two coverages State Farm doesn’t, including gap insurance. Drivers should also compare quotes by coverage amount when considering different pricing tiers.

Compare available coverages below.

Coverage
American Family
State Farm
Gap insuranceYesNo
Rideshare coverageYesYes
Roadside assistanceYesYes
Rental reimbursementYesYes
Accidental death and dismembermentYesNo

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Compare discounts: American Family vs. State Farm

Both companies have solid auto insurance discounts, though American Family has more than State Farm. The companies have some differences in discount options but comparable discount ranges. Some discounts can vary by state, so you should always make sure the company offers the discount where you live before you choose.

Compare discounts from the two companies below.

Discount
American Family
State Farm
Clean driving recordYesYes
Defensive driving courseYes (in some states)Yes
Multi-policyYesYes
Multi-carYesYes
Low mileageYesYes
Telematics (safe driving app)YesYes
Anti-theft deviceNoYes
New carNoNo
Military/affiliationNoNo
Good studentYesYes
LoyaltyYesYes
Auto payYesNo
Student away at schoolYesYes
HomeownerYesYes
Alternative fuelNoNo

American Family vs. State Farm FAQs

Choosing an insurance company is an important financial decision. The information below can help you navigate the process of finding the best coverage option and lowest rates for you, whether it’s American Family, State Farm, or another option.

  • Is American Family the same as State Farm?

    No. American Family and State Farm are separate auto insurance companies. Both insurers offer quality auto coverage, though American Family only sells coverage in 20 states and State Farm has nationwide coverage. State Farm has a higher IQ Score (9.3) than American Family (9.1), making it the better choice for car insurance.

  • Who is the No. 1 car insurance company in the U.S.?

    Based on market share, State Farm is the largest insurer in the United States. State Farm private passenger customers make up 16.84% of the market. American Family is the ninth-largest insurer, with customers making up 2.11% of the market.

  • Do State Farm insurance premiums depend on the agent?

    No. The company sets car insurance rates based on your driving record, age, credit history, gender, marital status, ZIP code, and chosen auto insurance products. State Farm agents can’t change rates, although some customers may qualify for discounts or lower rates based on their driving record.

  • Which is better, Progressive or State Farm?

    State Farm has cheaper coverage and a higher IQ Score than Progressive. State Farm also has a higher average customer satisfaction rating from J.D. Power and a better financial strength rating from AM Best.

    The national average cost of State Farm car insurance is $54 per month for liability coverage and $119 for full coverage. On average, Progressive charges $97 per month for liability coverage and $152 for full-coverage insurance.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

  1. National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2022 Top 25 Groups and Companies by Countrywide Premium."
  2. American Family Insurance. "Usage Based Car Insurance With KnowYourDrive® App."
  3. State Farm. "Be rewarded with Drive Safe & Save discounts."
  4. Insurance Information Institute. "What determines the price of an auto insurance policy?."
Angela Brown
Angela Brown

Angela Brown is a freelance writer with 17 years of professional writing and editing experience.
She specializes in finance, real estate, and insurance content. Angela uses her experience to
create easy-to-understand content that helps consumers understand tough topics better. When
she’s not working, she enjoys spending time with her family and planning vacations.

Angela has been a contributor at Insurify since October 2022.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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