American Family vs. Farmers: Best Auto Insurance for 2021

In our American Family vs. Farmers auto insurance guide, we compare the two companies' average rates based on age, driving record, and credit score. American Family has cheaper auto insurance rates for teen drivers, but Farmers is a better choice for those with a bad driving record or bad credit. Read now to compare rates from multiple auto insurance companies close to home.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and Cinncinati.com. ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Mar 3, 2021

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Can't-Miss Facts

  • Both American Family and Farmers have strong ratings from financial, government, and consumer agencies
  • You can save over $2,500 a year by choosing American Family for the young woman in your household
  • If you have a poor driving record, you can save between $400 and $1000 per year by choosing American Family over Farmers
  • No matter your credit score, American Family is a better choice
  • Farmers has a wider variety of discounts than American Family

This American Family vs. Farmers auto insurance guide will provide a wide variety of auto insurance coverage options when analyzing rates according to your unique qualities like your age, gender, marital status, driving record, and credit score.

We also include external ratings from the most trustworthy agencies and compare American Family and Farmers auto insurance discounts, coverage types, and usage-based insurance programs.

This review discusses Farmers Insurance and American Family Insurance, not American Family Care, which is an urgent care facility.

Continue reading to compare American Family insurance and Farmers insurance, or enter your ZIP code to find affordable auto insurance rates from local companies in your area.

American Family vs Farmers Auto Insurance: which is cheaper based on age?

The older we get, the more practice we have while driving. In calculating auto insurance rates, providers use age as one of the most significant variables.

In most states, it is legal to base auto insurance premiums on marital status and gender; some have banned it, however.

Let's compare auto insurance rates for American Family and Farmers based on age, gender, and marital status.

American Family vs. Farmers Average Annual Auto Insurance Rates by Age, Gender, and Marital Status
Age, Gender, and Marital StatusAmerican Family Average Annual RatesFarmers Average Annual Rates
Single 17-year-old female$5,997$8,522
Single 17-year-old male$8,131$9,144
Single 25-year-old female$2,289$2,947
Single 25-year-old male$2,695$3,041
Married 35-year-old female$2,203$2,557
Married 35-year-old male$2,224$2,558
Married 60-year-old female$1,993$2,337
Married 60-year-old male$2,014$2,448
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American Family's auto insurance rates for teen drivers are about 27 percent cheaper than Farmers. For drivers 25 and older, American Family is 19 percent cheaper than Farmers.

The real savings from American Family are in auto insurance for female teen drivers. You can save over $2,500 a year by choosing American Family for the young woman in your household.

American Family's auto insurance rates for 25 and older are 31 percent cheaper than Farmers. That's certainly a bigger difference.

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American Family vs Farmers Auto Insurance: which is cheaper based on driving record?

No matter what insurer you use, speeding tickets, auto accidents, or DUIs on your driving record will increase your auto insurance premiums and you become a higher risk driver.

American Family vs. Farmers Average Annual Auto Insurance Rates by Driving Record
InfractionAmerican Family Average Annual RatesFarmers Average Annual Rates
Clean record$2,694$3,461
With one speeding violation$3,026$4,079
With one accident$3,723$4,519
With one DUI$4,330$4,719
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By choosing American Family you can save between $400 and $1000 per year if you have a speeding ticket, accident, or DUI on your record.

It's also important to take a closer look at how punitive each company is if you sign up with a clean driving record but then later get an infraction.

American Family will be a little easier on you and increase your auto insurance rates by only 12 percent if you get a speeding ticket. For the same infraction, your Farmers auto insurance rates will increase by 18 percent.

Alternatively, Farmers is less punitive with drivers that cause an accident and raise their rates by only 31 percent. American Family will raise your rates by 38 percent if you cause an accident.

Farmers will also be easier on you if you get a DUI. They will increase your auto insurance rates by only 36 percent. If you choose American Family, expect your rates to increase by 61 percent if you get a DUI.

American Family vs Farmers Auto Insurance: which is cheaper based on credit score?

If you undergo some sort of financial trauma, such as incurring medical debt or going through a divorce, a good credit score will drop in a matter of months. It is legal for auto insurance providers to base premiums on your credit score in most states; however, some outlaw it along with gender and marital status dependent rates.

Auto insurance providers justify using your credit score to decide your rates because of the premise that people with higher credit scores are more responsible and that, overall, are less likely to file a claim.

Let's take a look at how American Family and Farmers consider your rates based on your credit score.

American Family vs. Farmers Average Annual Auto Insurance Rates by Credit Score
Credit ScoreAmerican Family Average Annual RatesFarmers Average Annual Rates
Good Credit (670-739)$2,692$3,677
Fair Credit Score (580-669)$3,170$3,899
Poor Credit Score (300-579)$4,468$4,864
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For any type of credit (good, fair, or poor), American Family is a better option.

Once you are with American Family, and your credit score drops, expect your auto insurance rates to increase by up to 66 percent as compared to Farmers, which will increase your rates by only 32 percent.

Before you judge the rates of these two companies based on credit score alone, learn about the specifications of your state's minimum car insurance requirements and compare rates from a number of companies.

Hopefully, if you have bad credit, you live in a state that has outlawed basing rates on credit scores.

Does American Family or Farmers have better auto insurance discounts?

Discounts from car insurance providers vary widely, and they are typically focused on the principles and ideology of a company. That's why, particularly if you have a poor driving record or a low credit score, it pays to shop around. Discounts can help counter high costs.

American Family vs. Farmers Auto Insurance Discounts
DiscountsAmerican Family Discounts Offered (Percentage)Farmers Discounts Offered (Percentage)
Adaptive HeadlightsN/AYes
Anti-lock BrakesYesYes
Anti-TheftYesYes
Claim FreeYesYes
Continuous CoverageYesYes
Daytime Running LightsN/AYes
Defensive Driver10Yes
Distant StudentN/AYes
Driving Device/App40Yes
Early SigningN/AYes
Emergency DeploymentYesYes
Engaged CoupleYesYes
Family LegacyYesYes
Family PlanYesYes
Farm VehicleYesYes
Fast 5YesN/A
Federal EmployeeYesYes
Further EducationYesN/A
Garaging/StoringYesYes
Good CreditN/AYes
Green VehicleN/A5
HomeownerYesYes
Life InsuranceN/AYes
LoyaltyYesYes
MarriedN/AYes
MilitaryYesYes
Military GaragingYesN/A
Multiple VehiclesN/AYes
New GraduateYesYes
Newer VehicleYesYes
Paperless DocumentsN/AYes
Passive Restraint30N/A
Recent RetireesYesYes
RenterYesYes
Roadside AssistanceYesYes
Stable ResidenceYesYes
Switching ProviderN/AYes
Vehicle RecoveryYesN/A
VIN EtchingYesYes
VolunteerYesN/A
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When comparing discounts offered by either company, American Family has a total of 29 auto insurance discounts and Farmers has a total of 34 discounts.

American Family's best auto insurance discounts range from 10 to 40 percent for taking a defensive driving course, having airbags, or using their driving app.

The discounts provided by auto insurance providers also target particular categories of drivers, so be sure to inquire if there are any extra discounts by calling American Family or Farmers customer service at the American Family or Farmers phone number.

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What types of auto insurance coverages are offered by American Family and Farmers?

Since both American Family and Farmers are two of the 10 companies that make up the majority of the auto insurance market share, they have the means to provide a broader range of coverages for auto insurance that go beyond the six standard coverages mentioned below. Before buying each one, make sure you understand your options in auto insurance coverage.

  • Liability auto insurance coverage - bodily injury and property damage
  • Comprehensive auto insurance coverage
  • Collision auto insurance coverage
  • Uninsured/Underinsured auto insurance coverage
  • Medical Payments (MedPay) auto insurance coverage - particularly important in states that require no-fault auto insurance
  • Personal Injury Protection (PIP) auto insurance coverage

Be sure to take a closer look at any specialty coverages such as rental reimbursement, roadside assistance, guaranteed auto protection (GAP), mechanical breakdown, and recreational vehicles such as ATVs or boats.

Does American Family or Farmers have better auto insurance mobile apps?

In the last decade or so, usage-based auto insurance has become an individualized standard, and all of the larger auto insurance providers have a driving app you can install into your car or uses telematic mechanisms in your smartphone.

If you choose the usage-based auto insurance option with Farmers or American Family, care should be taken in driving safely because your rates may depend on it.

A more general app is also offered by major auto insurance providers to allow you to access your policy, make adjustments, and pay your bill. Usually, in both the general app and the driving app, your American Family insurance login or Farmers insurance login would be the same.

Read more about each of these companies' usage-based auto insurance programs in our American Family auto insurance review and our Farmers auto insurance review.

How does American Family and Farmers auto insurance compare in financial strength and customer satisfaction?

It is a major financial commitment to buy car insurance, so you want to be sure you are choosing the right company that will have your back when you need it.

Before you make your decision, the financial strength of a company, consumer satisfaction with the claims process, and customer concerns should all be considered.

Insight into these factors is provided by the following three agencies:

A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.

Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the American Family claims process and the Farmers claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.

And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.

Let's take a closer look at ratings from credible third-party agencies for American Family and Farmers.

American Family vs. Farmers Company Ratings
Rating AgencyAmerican FamilyFarmers
AM Best RatingAA
Consumer Reports8989
NAIC Company Complaint Ratio0.790.59
NAIC Total Complaints737
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Both American Family and Farmers are highly rated when it comes to customer satisfaction, the claims process, and financial stability. Both companies also manage their complaint ratios well.

Ready to buy auto insurance? When you're not sure which company to choose, you can always use our FREE comparison tool to compare auto insurance quotes from the auto insurance companies in your area.

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