American Family vs. State Farm: Which Is the Best? (2025)
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.
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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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Data reviewed byKonstantin Halachev
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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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Table of contents
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 9.3. 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 Score | 9.3 | 9.3 |
| Customer satisfaction score (J.D. Power) | 828 | 833 |
| Average monthly quote: liability only | $81 | $56 |
| Number of discounts | 18 | 10 |
| Number of states where it operates | 20 | 50 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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
| User Reviews | 4.5 |
|---|---|
| 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. | $81/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. | $150/mo |
4.5
Best choiceBased on 518 verified guest reviews and ratings
How drivers feel about American Family
Drivers appreciate the fast claims processing and good initial rates but dislike the consistent rate increases and poor communication from agents.
AI-generated from the text of verified reviews collected by Insurify
Best For
Outstanding customer service
Flexible coverage options
Families with young drivers
How drivers feel about American Family
Drivers appreciate the fast claims processing and good initial rates but dislike the consistent rate increases and poor communication from agents.
AI-generated from the text of verified reviews collected by Insurify
Best For
Outstanding customer service
Flexible coverage options
Families with young drivers
Reviews (248)
Holly
Verified Review
Our Family
Reviewed in Ohio on October 2025
Wonderful and easy-to-use claims.
Janice
Verified Review
Excellent
Reviewed in Georgia on October 2025
So far, so good. I've never had to file a claim.
Charles Gary
Verified Review
Good service
Reviewed in Georgia on October 2025
Good, but rates are starting to skyrocket!
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.47A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
AWhy we picked this company
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
State Farm
| User Reviews | 4.1 |
|---|---|
| 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. | $56/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. | $108/mo |
4.1
Best choiceBased on 12,747 verified guest reviews and ratings
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (6,567)
Betty
Verified Review
Stiffed by State Farm
Reviewed in Texas on December 2025
The insurance claim was handled poorly. I had to get a claim estimate from the dealer and refused the offer from the insurance company. I am very disgusted with the whole procedure. It took way too long to pay on the claim.
Joseph
Verified Review
Great Insurance Company
Reviewed in Florida on December 2025
Never had a problem.
Lawrence
Verified Review
Expect to be jerked around
Reviewed in Kansas on December 2025
I initially really liked State Farm. Then I bought a new truck and they gave me a quote which changed 3 times. It went from approximately $1K per year to over $5K. They said it had to be classified as a commercial vehicle when it's clearly personal. The DMV even has it as personal.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
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
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 $56 per month for liability coverage and $108 for full-coverage insurance, State Farm has cheaper coverage nationwide than American Family. Policyholders with American Family pay average rates of $81 for liability coverage and $150 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 | $81 | $56 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $107 | $71 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $158 | $114 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $92 | $90 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 | $60 | $40 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ 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 insurance | Yes | No |
| Rideshare coverage | Yes | Yes |
| Roadside assistance | Yes | Yes |
| Rental reimbursement | Yes | Yes |
| Accidental death and dismemberment | Yes | No |
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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 record | Yes | Yes |
| Defensive driving course | Yes (in some states) | Yes |
| Multi-policy | Yes | Yes |
| Multi-car | Yes | Yes |
| Low mileage | Yes | Yes |
| Telematics (safe driving app) | Yes | Yes |
| Anti-theft device | No | Yes |
| New car | No | No |
| Military/affiliation | No | No |
| Good student | Yes | Yes |
| Loyalty | Yes | Yes |
| Auto pay | Yes | No |
| Student away at school | Yes | Yes |
| Homeowner | Yes | Yes |
| Alternative fuel | No | No |
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 (9.3), 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 $56 per month for liability coverage and $108 for full coverage. On average, Progressive charges $97 per month for liability coverage and $172 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 500+ 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
- 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.
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Sources
- National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2022 Top 25 Groups and Companies by Countrywide Premium."
- American Family Insurance. "Usage Based Car Insurance With KnowYourDrive® App."
- State Farm. "Be rewarded with Drive Safe & Save discounts."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
)
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.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
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
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.