Get Cheap Car Insurance Quotes in Your Area

Get great auto insurance coverage at an even better price.

If you’ve ever been perplexed by the process of shopping for car insurance, you’re not alone. Auto insurance companies use complicated formulas to figure out what to charge each customer, and they’re in no hurry to share that information with consumers. Some of the factors that determine your car insurance rates are in your control and some are not. To help you find the best car insurance for you, we’ll look at State Farm and American Family specifically and provide some context as to how these two companies stack up against their biggest rivals.

State Farm vs. American Family: Which Is Cheaper?

When it comes to cost, most consumers will find that State Farm is a better bet than American Family. State Farm has a national average rate of $3,260, which is among the lowest of the 10 insurance companies in our survey. Only USAA and Geico are cheaper, and it should be noted that USAA is available exclusively for members of the military, veterans, and some of their family members. With a national average rate of $3,443, American Family comes in just after State Farm in the overall price rankings, so it’s also on the cheaper side.

How We Did This Comparison

U.S. News worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. The rates are based on profiles for both male and female drivers aged 17, 25, 35, and 60. Vehicles used include the 2018 Honda Civic, 2018 Toyota RAV4, 2018 Ford F-150, 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage of 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations. The rates shown here are for comparative purposes only. Individual rates will differ.

We also surveyed 2,799 consumers who filed a car insurance claim in the last five years, asking questions about their car insurance company. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies ranking and this head-to-head comparison.

State Farm

  • Great overall satisfaction among customers
  • High overall ranking among biggest auto insurers
  • Generally low average rates
  • Communication during claims process could be improved
  • Higher rates than American Family for customers with poor credit
  • Higher rates than American Family for customers with a speeding ticket

American Family

  • Low rates overall compared to most rivals
  • Customers are generally happy with customer service
  • Lower rates than State Farm for drivers with a clean record
  • Customers cite low satisfaction with filing a claim
  • Customers want better communication during claims process
  • Ranked last in our study based on customer feedback

State Farm Auto Insurance Information

State Farm has nearly 100 years of experience in providing auto insurance. The company was founded in 1922, wrote its millionth auto insurance policy in 1944, and now offers most common types of personal insurance policies, not just car insurance.

Feedback from State Farm’s customers helped the company take the third spot in our ranking of auto insurance companies, just behind USAA and Travelers. According to survey respondents, State Farm’s strong customer service helps the company stand out from the crowd, and respondents who filed claims reported satisfying resolutions. Customers say there is some room for improvement, however. State Farm customers would prefer better communication during the claims process and say that the company could improve the value it provides. Overall, State Farm customers are among the most satisfied in the industry.

American Family Auto Insurance Information

American Family also has decades of experience in the auto insurance industry. The company was founded in 1927 as Farmers Mutual Insurance Company to provide insurance to Wisconsin farmers. Over time, the company expanded its geographical reach as well as its product portfolio, adding other common types of personal and commercial insurance policies to its list of offerings. In the 1960s, the company was rechristened as American Family to better reflect its broader product offerings.

American Family’s very competitive rates across all demographics are a definite point in the company’s favor, but in our study, American Family’s customers expressed plenty of concerns. That’s why American Family lands at the bottom of our rankings of the largest national car insurance companies. American Family had the highest number of respondents who said they’re unlikely to recommend the company and unlikely to renew their policy. According to our survey questions, most customers’ dissatisfaction stems from American Family’s claims process and inability to provide a satisfying resolution to claims.

State Farm and American Family Car Insurance: Which Is Cheapest for Teens?

Company

Single 17-year-old female

Single 17-year-old male

American Family

$5,996.50

$8,130.50

State Farm

$5,953.88

$7,324.34

If you have a teen driver in your household, you’ll likely pay some of the highest in the auto insurance industry, though rates go down drastically as teens get older and gain experience behind the wheel. Still, that doesn’t necessarily mean that adding a teen to your auto insurance policy will bust the entire household budget. Our data show that even though rates are high across the board, there is a lot of variation from company to company, and some relatively affordable options are out there. Let’s see which of these companies is cheaper for two groups of customers: 17-year-old males and 17-year-old females.

In general, teen males pay more than teen females. State Farm customers in this group pay a national average rate of $7,324, which is among the lower rates in the study. American Family customers in this demographic pay a national average rate of $8,131.

When it comes to teen women, both companies are a good choice. State Farm charges an average rate of $5,954, while American Family comes in slightly higher at $5,997.

In addition to shopping around for the best rates, teens and their parents should also check for car insurance discounts. State Farm and American Family both offer savings to students who maintain a good grade point average. American Family offers more discounts for students who live away from home or who volunteer for charity, and State Farm offers a discount for using an app-based safe driving course to customers under age 25 who maintain a clean driving record.

State Farm and American Family Car Insurance: Which Is Cheapest for Men?

Company

Single 25-year-old male

Married 35-year-old male

Married 60-year-old male

American Family

$2,694.72

$2,224.31

$2,014.38

State Farm

$2,554.56

$2,081.72

$1,873.89

Even though you have no control over your age, it plays a big role in the rates you pay for car insurance. Typically, rates are lower for older, more experienced drivers. State Farm has lower rates across the board for 25-, 35-, and 60-year-old men, though both companies offer competitive rates overall.

At age 25, men pay an average of $2,555 with State Farm, while American Family customers in this age group pay $2,695. For 35-year-old men, State Farm’s nationwide average rate comes in at $2,082, while American Family charges an average of $2,224. Next up is 60-year-old men, who can expect to pay about $1,874 with State Farm and around $2,014 with American Family.

State Farm and American Family Car Insurance: Which Is Cheapest for Women?

Company

Single 25-year-old female

Married 35-year-old female

Married 60-year-old female

American Family

$2,288.65

$2,202.70

$1,992.92

State Farm

$2,335.96

$2,081.72

$1,873.89

Next, we’ll look at rates for women in those same three age groups: 25, 35, and 60. Typically, auto insurance companies offer lower rates to older customers, and our data show that State Farm and American Family both follow that trend.

American Family has a lower rate than State Farm for 25-year-old women, at $2,289. State Farm’s average rate for that group is $2,336. Rates go down for 35-year-old women. With State Farm, rates drop to $2,082, while American Family’s lowers to $2,203. After reaching age 60, women will see their rates with State Farm drop to $1,874. With American Family, rates drop to $1,993. Across the board, State Farm and American Family both offer some of the lowest rates available for these groups.

State Farm and American Family Car Insurance: Which Is Cheapest for High Mileage?

Company

12,000 miles annually

American Family

$3,484.88

State Farm

$3,344.01

The number of miles you drive in a year can also affect the rates you pay for car insurance. Customers were broken down into two groups: high-mileage drivers and low-mileage drivers. Let’s look first at high-mileage drivers, defined as those who drive 12,000 miles annually. State Farm has the advantage here, with a nationwide average rate of $3,344. American Family’s rate of $3,484 is a little higher but still good compared to most rivals.

State Farm and American Family Car Insurance: Which Is Cheapest for Low Mileage?

Company

6,000 miles annually

American Family

$3,401.30

State Farm

$3,175.98

The study also examined national average rates for low-mileage drivers, defined as those who drive 6,000 miles a year. Most customers will save a little money if they drive less, but the savings aren’t that significant. Between the two insurance companies in this comparison, State Farm has the lower national average rate, coming in at $3,176. That’s a savings of about $150 compared to those who drive twice as many miles. American Family’s rate for this group is $3,401. That’s on the low side compared to the other insurance companies in the study, but it represents a savings of only about $60 compared to the higher-mileage group of customers.

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State Farm and American Family Car Insurance: Which Is Cheapest for Good Credit?

Company

Good Credit

American Family

$2,691.74

State Farm

$2,174.26

You might not realize it, but your credit history and credit score are among the factors that play a role in car insurance rates. Customers with good credit pay lower rates than those with mediocre or poor credit. According to our survey, customers with good credit are probably better off using State Farm than American Family. State Farm’s average national rate for this group is $2,174, which is the lowest in the study after USAA. American Family's rate for this group is $2,692, which is more than State Farm but cheaper than many of its largest competitors.

State Farm and American Family Car Insurance: Which Is Cheapest for Bad Credit?

Company

Bad Credit

American Family

$4,467.98

State Farm

$4,951.20

If you have a less-than-stellar credit history, you should expect to pay higher rates for auto insurance than the examples you saw above. That’s because most car insurance companies think drivers with a low credit score pose a higher risk, and therefore charge more to those customers. In this case, you should look at American Family before State Farm. American Family’s national average rate of $4,468 is among the cheaper options for this group of customers, while State Farm comes in on the high side with an average national rate of $4,951.

State Farm and American Family Car Insurance: Which Is Cheapest for Good Drivers?

Company

Clean driving record

American Family

$2,693.61

State Farm

$2,821.18

Good drivers – those without any accidents or offenses on their record – can generally expect to pay the best rates available. Our study looked at the national average rates charged by the top insurance companies to drivers with a clean record, as well as rates for customers with a single speeding ticket, with a single accident, and with a DUI. This enables us to get an idea of which companies are better for each group, as well as how each of those offenses affects rates.

When we compare these two insurance companies’ rates for good drivers, American Family comes out on top. American Family charges $2,694 on average, which is the third-cheapest rate for this group. State Farm’s rate is $2,821, which places in the middle of the pack.

State Farm and American Family Car Insurance: Which Is Cheapest After a Speeding Ticket?

Company

With 1 speeding violation

American Family

$3,025.74

State Farm

$3,186.01

If you want to keep your car insurance costs down, keep an eye on the speedometer. Speeding tickets cost you money in the form of fees and fines, and they also make your car insurance costs go up. Drivers with one speeding violation on their record are almost certainly going to pay higher premiums. However, if you’re a member of this group, State Farm and American Family are both among the better choices for auto insurance. American Family has an average national rate of $3,026 for drivers with one speeding violation, while State Farm comes in at $3,186.

State Farm and American Family Car Insurance: Which Is Cheapest After an Accident?

Company

With 1 accident

American Family

$3,722.75

State Farm

$3,396.01

A car accident is another incident that’s almost sure to make your car insurance costs go up. If you’re shopping around for car insurance and you find that your past accident makes insurance too expensive, take a look at State Farm. State Farm’s national average rate for customers in this group is $3,396, among the lowest in the study. American Family’s national average rate for customers with one accident is $3,723.

State Farm and American Family Car Insurance: Which Is Cheapest After a DUI?

Company

With 1 DUI

American Family

$4,330.24

State Farm

$3,636.80

Drivers with a single incident of driving under the influence, or DUI, on their record are probably better off with State Farm than American Family. State Farm customers can expect to pay about $3,637, which is one of the lowest rates of all major auto insurers for this group. Only USAA is cheaper. American Family’s rate for this group comes in at $4,330, which is about midpack among the companies in our study.

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The Best Car Insurance Companies

This head-to-head comparison looks mainly at cost. For more information, check out our full ranking of the best car insurance companies and learn about what real customers say about State Farm, American Family, and their competitors.

Our Car Insurance Ranking:

  1. USAA
  2. Travelers
  3. State Farm
  4. Geico
  5. Farmers
  6. Nationwide
  7. Progressive
  8. Allstate
  9. Liberty Mutual
  10. American Family

The Cheapest Car Insurance Companies

For more information, check out our full list of the cheapest car insurance companies.

Average Annual Rates:

  1. USAA: $2,537.30
  2. Geico: $3,215.01
  3. State Farm: $3,260.00
  4. American Family: $3,443.09
  5. Nationwide: $3,450.00
  6. Progressive: $4,035.52
  7. Farmers: $4,194.27
  8. Travelers: $4,434.91
  9. Allstate: $4,887.95

Liberty Mutual car insurance rates are not currently available.