American Family vs. State Farm: Best Auto Insurance for 2024

If you’re with us today, you’re probably looking for your next insurer. Comparison shopping can be a bit of a complicated process, so we’re going to focus only on American Family Insurance vs. State Farm.

You can also read our American Family car insurance review to learn specifics on American Family auto insurance’s rates, American Family discounts, American Family care insurance, etc.

So, State Farm vs. American Family: Which company is best? Let’s find out together.

Before we jump into our State Farm vs. American Family car insurance quotes comparison, type your ZIP code into our free and helpful tool above to find affordable auto insurance quotes in your area.

Comprehensive Overview of American Family Insurance

When considering American Family Insurance, several key factors come into play. The company holds a strong A.M. Best rating, underscoring its financial strength and reliability. This American Family A.M. Best rating is a critical element for evaluating their stability compared to other providers.

For those interested in American Family auto insurance, the company is a notable American Family auto insurance company offering competitive options. You can request American Family auto insurance quotes to get a sense of potential premiums. Reviewing American Family auto insurance reviews can provide insights into customer experiences, while various American Family car insurance discounts are available, including options like the good student discount and military discount. Additional American Family car insurance reviews reflect the customer feedback on their services.

Homeowners can benefit from American Family homeowners insurance, which is well-regarded in American Family home insurance reviews. The company’s homeowners insurance provides comprehensive coverage, and reading through American Family homeowners insurance reviews can give potential customers a clearer picture of service quality.

In terms of coverage, American Family Insurance offers gap coverage and roadside assistance. They provide competitive prices and flexible rates, and you can explore these through American Family Insurance quotes. For discounts, check out their American Family Insurance discount code and other available discounts.

When comparing American Family Insurance vs Allstate or American Family Insurance vs Progressive, it’s helpful to look at the differences in coverage, pricing, and customer satisfaction. Also, for those considering life insurance, American Family life insurance ratings can offer additional information on their offerings in this area.

Lastly, reviewing American Family Insurance reviews and American Family Insurance reviews on Consumer Reports can provide a comprehensive view of customer satisfaction and service quality.

Understanding State Farm Insurance Benefits

With State Farm’s A.M. Best rating reflecting strong financial stability and reliability, State Farm is well-regarded in the insurance industry. For those considering their auto insurance options, State Farm auto insurance reviews often highlight the company’s comprehensive coverage and responsive customer service.

One of the notable features is the variety of State Farm car insurance discounts. These include the State Farm accident-free discount for drivers with a clean record, the State Farm good student discount for students with high academic performance, and the State Farm low-mileage discount for those who drive less frequently. Additionally, State Farm provides a federal employee discount for those working in public service roles, and a State Farm loyalty discount for long-term customers.

Families can benefit from the State Farm car insurance family plan, which bundles multiple vehicles under one policy, leading to potential savings. Overall, State Farm’s array of discounts and plans aims to offer value and flexibility, ensuring customers can find options that best fit their needs.

American Family vs. State Farm: Which is cheaper?

Is State Farm cheaper than American Family? When comparing insurers it’s best to start with the most important factor: pricing. Let’s now take a look at a table that will show the average annual premiums not only for American Family and State Farm but for all of the main, big insurers.

Imported from Manual Input

Insurance Company	Average Annual Rates
	$2,539.87
	$3,213.97
	$3,269.80
	$3,544.37
	$3,449.80
	$4,018.46
	$4,166.22
	$4,462.02
	$4,896.81
	$6,058.57

Read more:

• Allstate vs. American Family: Best Auto Insurance
• American Family vs. USAA: Best Auto Insurance
• Nationwide vs. State Farm: Best Auto Insurance
• Progressive vs. State Farm: Best Auto Insurance
• State Farm vs. Travelers: Best Auto Insurance

As you can see, of the 10 insurers shown, American Family is cheaper than five: Progressive, Farmers, Travelers, Allstate, and Liberty Mutual.

How did State Farm insurance do? State Farm is about $300 cheaper than American Family annually. In total, it is cheaper than seven of its competitors: American Family, Nationwide, Progressive, Farmers, Travelers, Allstate, and Liberty Mutual.

So, while these two companies offer comparable prices, State Farm has the edge. Let’s now move on to what discounts are offered.

American Family vs. State Farm: Which offers better discounts?

The importance of discounts in auto insurance cannot be overstated. When you are assigned an agent be absolutely sure to inquire as to what discounts you can accrue that are applicable to your life. Let’s take a look at a table showing many of these discounts available from various large insurers.

Auto Insurance Discounts Available by Company and Discount Amount

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

As you can see, of the 63 discounts shown, American Family offers three. By comparison, State Farm offers a whopping 16 discounts. What’s great is a lot of these are as simple as typing in your State Farm login.

With this information, we can say that State Farm wins in terms of discounts. What’s great about these discounts offered by big insurers is the range. There are discounts for safety features (which are becoming increasingly common in newer vehicles), paying your bills on time, and driving accident-free.

American Family vs. State Farm: Which is more highly rated?

When comparing insurers, one last thing to look at is the ratings given to the companies by A.M. Best and the Better Business Bureau. These ratings can help reassure a consumer that a life insurance company is and will be financially strong.

A.M. Best’s rating scale goes from A++ down to D. Currently, American Family has a rating of A from A.M. Best rating scale. It turns out that the A.M. Best rating for State Farm is identical.

A.M. Best also has what is called Long-Term Issuer Credit Ratings (Long-Term ICR). Whereas their Financial Strength Ratings are about an insurer’s financial strength as well as its ability to meet ongoing policy and contractual obligations, a Long-Term ICR is focused on the future.  A Long-Term ICR can be issued on a long-term basis or short-term basis.

This scale goes from the high end of “aaa” (Exceptional) down to the low end of “c”.  It’s a little confusing, so the scale goes like this: “aaa”, “aa”, “a”, “bbb”, “bb”, “b”, “ccc”, “cc”, “c”.  A company can also score notches in their ratings, i.e. “aa+”.

American Family score an A.M. Best Long-Term Issuer Credit Rating of “a+”.  How did State Farm do in terms of A.M. Best’s Long-Term ICR? It turns out that recently they have been downgraded to a rating of “a” from a rating of “a+”.

The Better Business Bureau gave American Family a rating of A, and the company is currently unaccredited. State Farm has not only an identical rating, but they are also not BBB accredited.

Don’t let your comparison shopping stop with this article. Type your ZIP code into our free and helpful tool below to find affordable auto insurance quotes in your area. It’s certainly easier than calling up Jake from State Farm.