Home » American Family vs. State Farm: Best Auto Insurance for 2023

Can't-Miss Facts

  • American Family Insurance is about $300 more expensive than State Farm annually.
  • State Farm offers many more discounts than American Family, based on available information.
  • Both companies have identical ratings from A.M. Best and the Better Business Bureau.

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 vs. State Farm.

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

So, State Farm vs. American Family: Which company is best in 2021? Let’s find out together.

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

American Family vs. State Farm: Which is cheaper?

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.

Average Annual Auto Insurance Rates by Company
CompanyAverage Annual Rates
USAA$2,539.87
Geico$3,213.97
State Farm$3,269.80
American Family$3,544.37
Nationwide$3,449.80
Progressive$4,018.46
Farmers$4,166.22
Travelers$4,462.02
Allstate$4,896.81
Liberty Mutual$6,058.57

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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
Discounts21st Century Discount AmountAAA Discount AmountAllstate Discount AmountAmerican Family Discount AmountAmeriprise Discount AmountAmica Discount AmountCountry Financial Discount AmountEsurance Discount AmountFarmers Discount AmountGeico Discount AmountLiberty Mutual Discount AmountMetLife Discount AmountNationwide Discount AmountProgressive Discount AmountSafe Auto Discount AmountSafeco Discount AmountState Farm Discount AmountThe General Discount AmountThe Hanover Discount AmountThe Hartford Discount AmountTravelers Discount AmountUSAA Discount Amount
Adaptive Cruise Control and/or Headlights----------5%--------3%--
Anti-lock Brakes--10%-3%5%-5%-5%5%5%5%-5%-5%8%5%3%--
Anti-Theft--10%-3%25%10%25%-25%20% off of comprehensive portion of policy.10% -- this discount factors in features such as VIN etching and vehicle recovery;
one anti-theft discount applies.		25%; combined with vehicle recovery discount.---15% discount off of comprehensive coverage; higher discount with "engine cut-off."8%; one total anti-theft discount applies; if vehicle recovery, a higher discount applies.5%3%--
Claim Free--35%----25%-26% for going five years without an accident.Awarded "accident free" on account for lower rating.20% if claim/violation free:
"Superior Driver"
3+ yrs=12%
"MetRewards"
5+ yrs 20%
AND
save $50 each claim-free year up to $250 (off deductible).		10%-10% if you go six months without filing a claim;
one safe driver/claim free discount applies.		20% "Safeco Safety Rewards" if you have no at-fault accidents in the last 36 months,
no more than 1 point on your license, and
no DUI in the last ten years; one safe driver/claim free discount applies.		15%; must have State Farm for at least three consecutive years without an accident.-15%-23%; must be accident and violation free to get the "Safe Driver" discount listed below;
must be accident and violation free to qualify:
23% - 5 years
10% - 3 years;
one safe driver/claim free discount applies.		12%; "Premier Driver Discount"
4%-12%, depending on driving record;
12% is for being accident and violation free for five years; one safe driver/claim free discount applies.
Not available in HI.
Continuous Coverage-----3%-------No gaps or cancellations;
discount depends on how long you have been consistently insured.		10% for going six or more months with no more than a 30-day coverage gap.7% if you have been with Safeco or previous provider for one year or longer; five or more years gets you the highest discount.--10%; discount applies at each renewal.-15%-
Daytime Running Lights--2%------1%5%5%5%-5%---5%3%--
Defensive Driver5%-10%10%-5%5%10%--10%7%5%10%10%5%5%8%5%10%10%3%
Distant Student--35%---------10%--15%--5%3%7%-
Driver's Ed--10%--5%10%---10%10%-10%10%5%15%8%5%3%8%3%
Driving Device/App--20%40%---25%--30%15%40%20%-30%50%--10%30%5%
Early Signing--10%---10%10%---15%8%--8%----10%12%
Electronic Stability Control--2%--5%----5%-----------
Emergency Deployment---------25%------------
Engaged Couple------10%---------------
Family Legacy-----5%---------------10%
Family Plan------25%-----25%------5%--
Farm Vehicle--10%-------------------
Fast 5-------5%--------------
Federal Employee---------8%10%-----------
Forward Collision Warning-----8%----5%--------3%--
Full Payment--10%--4%-10%--$5---5%15%-8%15%20%7.5%-
Further Education-------15%--10%-15%---------
Garaging/Storing---------------------90%
Good Credit------------"Financial Stability"
gets you a lower rate. You must also have stable residence.		-------
Good Student--20%--10%25%10%-15%22.5%15%10%-10%15%25%8%5%3%8%3%
Green Vehicle--10%-----5%-10%--------3%10%-
Homeowner-----5%12%----2%5%-10%10%3%5%5%-5%-
Lane Departure Warning-------------Safety features get automatic discounts applied when VIN entered in system. --------
Low Mileage-----10%-15%-------20%30%-----
Loyalty-----5%------5%--7%---5%--
Married--------------5%-------
Membership/Group-7%--15%-----10%-7%------20%--
Military-------25%-15%4%15%--25%-------
Military Garaging---------------------15%
Multiple Drivers-------------------5%--
Multiple Policies--10%--15%25%--10%20%10%10%12%-15%17%15%10%20%13%-
Multiple Vehicles-----15%15%--25%10%-20%10%15%15%20%15%5%5%8%-
New Address----------5%-----------
New Customer/New Plan-----------10%--10%-------
New Graduate----------5%-----------
Newer Vehicle--30%---10%---------40%--3%10%12%
Newly Licensed----------5%-----------
Newlyweds----------5%-----------
Occasional Operator---------------------Discount based on operator's individual driving record.
Occupation------10%---10%-15%------10%--
On Time Payments--5%-----------------15%-
Online Shopper-------11%-----7%--------
Paperless Documents- -10%--2%------5%$50-`-------
Paperless/Auto Billing-5%--2%-----25%$30-$410%$28%2%$53%3%
Passive Restraint--30%30%3%30%-33%-40%-5%20%-5%2%40%8%5%3%--
Recent Retiree----------4%--------3%--
Renter-----2%-30%--------------
Roadside Assistance-------5%--------------
Safe Driver--45%--15%-40%15%-12%35%31%10%20%15%---23%12%
Seat Belt Use---------15%------------
Senior Driver--10%--------10%-----5%5%---
Stable Residence-------------------5%--
Students and Alumni-------15%--10%-7%---------
Switching Provider-------5%--10%10%--10%--5%5%---
Utility Vehicle--15%-------------------
Vehicle Recovery--10%-5%10%-25%-25%35%10%25%---5%8%-3%--
VIN Etching----------5%10%----------
Young Driver------10%--------------$75

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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.

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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. It turns out that State Farm has an identical rating from A.M. Best.

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.