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

State Farm has a high IQ Score of 9.3 out of 5 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 June 20, 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.

FactorAmerican FamilyState Farm
IQ Score9.19.3
Customer satisfaction score (J.D. Power)828833
Average monthly quote: liability only$77$55
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-5 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 28,000 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
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
9.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
840
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.
$77/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.
$172/mo

Founded in 1927 in Madison, Wisconsin, American Family Insurance offers more than a dozen types of insurance in 18 states throughout the midwestern and western U.S. The company has an excellent rating from A.M. Best for both financial strength and credit. American Family stands out for its high rate of customer satisfaction, with largely positive online consumer reviews and a well below-average number of complaints in the National Association of Insurance Commissioners Consumer Complaint Index. American Family offers car insurance policyholders 16 different discounts to help lower their rates.

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 our American Family review
Jaci - June 20, 2024
Verified

Good Job

I'm very pleased.

Teresa - June 18, 2024
Verified

Premiums Keep Skyrocketing for Everyone, Not Just Those Experiencing Losses

It's too costly!

Andrew - June 17, 2024
Verified

Excellent

Excellent, thus far.

State Farm

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
842
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.
$55/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 has been in business for more than 100 years, and today sells auto and other vehicle insurance, homeowners, life, health, pet, disability, and small business insurance. Available in all 50 states, State Farm car insurance policies offer multiple ways to save, from customizing coverage types, to a robust list of discounts. The company has far fewer complaints than expected for the industry, according to the National Association of Insurance Commissioner’s Consumer Complaints Index. State Farm also ranks among the top 10 companies for customer satisfaction in every region on the J.D. Power Overall Customer Satisfaction Index.

Pros
  • High rates of customer satisfaction

  • Rideshare insurance available

Cons
  • No gap insurance offering

  • May not be the cheapest choice for drivers with violations

Read our State Farm review
Ronald - June 20, 2024
Verified

Excellent Outcome

They were professional, helpful, supportive, and knowledgeable.

Henry Crognale - June 20, 2024
Verified

Good

Excellent customer service.

Carole - June 20, 2024
Verified

Fair

It's too expensive for seniors.

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 $55 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 $77 for liability coverage and $172 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 TypeAmerican FamilyState Farm
Clean driving record$77$55
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 TypeAmerican FamilyState Farm
Drivers with a speeding ticket$90$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 TypeAmerican FamilyState Farm
18-year-old$131$88
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 TypeAmerican FamilyState Farm
Drivers with bad credit$86$81
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 TypeAmerican FamilyState Farm
Senior drivers$56$40
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.

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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.

DiscountAmerican FamilyState 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 $55 per month for liability coverage and $119 for full coverage. On average, Progressive charges $78 per month for liability coverage and $134 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.

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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