American Family vs. Farmers: Pros & Cons (2021)

Our American Family vs. Farmers auto insurance guide will help you choose between two companies that both have very happy customers. We look at rates for both companies based on age, driving record, and credit score. American Family has cheaper rates for teen drivers, but Farmers is a better choice for those with a bad driving record or bad credit. Compare rates from American Family, Farmers, and other companies here.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jul 18, 2021

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What You Should Know

  • 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 bad 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

In our American Family vs. Farmers auto insurance guide, we examine rates by your particular characteristics: age, gender, marital status, driving record, and credit score. We also compare discounts and ratings from credible agencies that rate all of the best auto insurance companies.

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

Is American Family or Farmers auto insurance cheaper based on age?

The older we get, the more driving experience we have. Age is one of the most influential factors in determining your auto insurance rates.

It’s also legal to base auto insurance rates on marital status and gender in most states; however, some have outlawed it. Let’s compare American Family and Farmers auto insurance rates 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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Is American Family or Farmers auto insurance cheaper based on driving record?

Speeding tickets, accidents, or DUIs on your driving record will raise your auto insurance rates no matter the company because you become a higher risk driver for them to insure.

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 rate 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. Farmers 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.

Is American Family or Farmers auto insurance cheaper based on credit score?

A good credit score can drop in a matter of months if you experience some type of financial trauma such as medical debt or going through a divorce.

In most states it’s legal for auto insurance companies to base rates on your credit score; however, some are outlawing this along with basing rates on gender and marital status.

Based on the assumption that those with higher credit scores are more responsible and overall safer drivers less likely to file a claim, auto insurance companies justify using your credit score to determine your rates.

Let’s take a look at how American Family and Farmers each address rates for drivers with low credit scores.

American Family vs Farmers Average Annual Auto Insurance Rates by Credit History
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 these two companies’ rates based on credit score alone, read about your state auto insurance requirements in your state to see if your state still allows rates based on credit score, and examine rates from a variety of companies.

Hopefully, if you have bad credit, you live in a state that has outlawed this practice.

Does American Family or Farmers have better insurance discounts?

Auto insurance company discounts vary widely, and they are usually based on the company’s values and philosophy. That’s why it pays to shop around, especially if you have a bad driving record or low credit score. Discounts can help offset the high rates you’ll face with these.

One of the most common discounts is given for being active duty or a military veteran. Veteran auto insurance policies can be significantly cheaper and are often tailored to the unique needs of veterans.

Unfortunately, our sources only include a few discount values for both American Family and Farmers.

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 offered by auto insurance companies often target specific types of drivers, so be sure to review all discounts prior to making your choice.

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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 most of the market share, they have the means to offer a wider variety of auto insurance coverages that go beyond the standard six coverages which are listed below.

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

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?

Usage-based auto insurance has become an individualized trend in the last decade or so, and all of the bigger auto insurance companies have a driving app that uses your phone or a device installed into your car to track your driving.

Large auto insurance companies also provide a more general app to enable you to view your policy, make changes, and pay your bill. Usually, your American Family or Farmers insurance login will work with both the general app and the driving app.

Read our American Family KnowYourDrive review and our Farmers’ Signal review to decide if usage-based auto insurance is right for you.

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

Buying auto insurance is a big financial responsibility, so you want to make sure you’re choosing the right company that will be there for you when you need it.

A company’s financial strength, customer satisfaction with the claims process, and customer complaints should be examined before you make your decision.

The following three agencies provide insight into these factors:

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.

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 unsure which company to choose, you can always use our free comparison tool to compare auto insurance quotes from the companies in your area.

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