American Family vs. USAA: Pros & Cons (2021)
Today we will be covering American Family vs. USAA. These two companies offer a wide array of discounts, but USAA offers more. Which of these two companies offers the cheaper rates depends, partially, on the state where you live. Furthermore, both companies are very well-reviewed by A.M. Best and the Better Business Bureau.
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UPDATED: Jul 18, 2021
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- Both American Family and USAA are well-reviewed by A.M. Best
- Both American Family and USAA offer a wide array of auto insurance discounts
- USAA offers more competitive average auto insurance pricing
If you’re reading this today, you’re most likely looking for your next, or perhaps first, auto insurer. To help expedite this process, we’re going to be primarily comparing American Family vs. USAA auto insurance companies.
How do you get auto insurance quotes? You could visit different insurance companies, talk to multiple agents, or simply find a quote online by using a quote tool to compare companies’ auto insurance rates.
All you have to do is type your ZIP code into our free and helpful tool above to find affordable auto insurance quotes in your area.
American Family and USAA Rates
The best place to start when comparing insurers and understanding auto insurance is to compare USAA vs. American Family auto insurance rates. Let’s take a look at a table now that compares the average rates for American Family Insurance, USAA, and several other large insurers.
|Company||Average Annual Auto Insurance Rates|
As you can see, American Family (not American Family Care, which is a different company for health insurance) costs 1.5 times more than what USAA charges.
Let’s now look at a table that compares American Family’s rates with another company’s (in the case of this table, Allstate) rates in each of the states where they operate.
|State||Allstate Average Annual Rates||American Family Average Annual Rates|
|Alabama||$3,311.52||Data Not Available|
|Arkansas||$5,150.03||Data Not Available|
|Arizona||$4,904.10||Data Not Available|
|California||$4,532.96||Data Not Available|
|Connecticut||$5,831.60||Data Not Available|
|District of Columbia||$6,468.92||Data Not Available|
|Delaware||$6,316.06||Data Not Available|
|Florida||$7,440.46||Data Not Available|
|Georgia||$4,210.70||Data Not Available|
|Hawaii||$2,173.49||Data Not Available|
|Kentucky||$7,143.92||Data Not Available|
|Louisiana||$5,998.79||Data Not Available|
|Maine||$3,675.59||Data Not Available|
|Maryland||$5,233.17||Data Not Available|
|Massachusetts||$2,708.53||Data Not Available|
|Michigan||$22,902.59||Data Not Available|
|Mississippi||$4,942.11||Data Not Available|
|Montana||$4,672.10||Data Not Available|
|North Carolina||$7,190.43||Data Not Available|
|New Hampshire||$2,725.01||Data Not Available|
|New Jersey||$5,713.58||Data Not Available|
|New Mexico||$4,200.65||Data Not Available|
|New York||$4,740.97||Data Not Available|
|Oklahoma||$3,718.62||Data Not Available|
|Pennsylvania||$3,984.12||Data Not Available|
|Rhode Island||$4,959.45||Data Not Available|
|South Carolina||$3,903.43||Data Not Available|
|Tennessee||$4,828.85||Data Not Available|
|Virginia||$3,386.80||Data Not Available|
|Vermont||$3,190.38||Data Not Available|
|West Virginia||$3,820.68||Data Not Available|
|Wyoming||$4,373.93||Data Not Available|
As you can see, information is available for American Family in only 19 states. In these areas, it’s fairly hit or miss as to which company is more expensive. Usually, American Family is less expensive, with the exception of only five states.
It might seem like these two tables counteract each other, but auto insurers charge different prices in different states pushing you to be a savvy comparison shopper.
For example, in Washington, American Family’s rates are going to be marginally better than USAA. However, you’re moving to Wisconsin and you might think that American Family is more expensive. In reality, American Family is a third of the price of USAA in Wisconsin, so it pays to be thorough when price shopping for auto insurance.
Let’s move on to how American Family and USAA are rated.
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How are American Family and USAA rated?
We’re now going to go into how these two companies are rated. When it comes to organizations that rate companies, you need to look at Better Business Bureau and A.M. Best ratings.
Let’s go through a table that shows how these two companies and others reviewed USAA and American Family. Look in the second column for American Family ratings. We’ll cover USAA insurance ratings directly after.
|Ratings Website||Allstate Ratings||American Family Ratings|
|Better Business Bureau||A+||A|
|AM Best||A+ (Superior)||A (Excellent)|
As you can see, American Family received high marks from both the Better Business Bureau and A.M. Best. USAA’s Better Business Bureau rating is ever so slightly lower than American Family at A-. However, USAA has a rating from A.M. Best of A++ whereas American Family stands at an A.
We’re now going to move on and wrap up with discounts offered by each company.
What are USAA and American Family discounts?
We’ve seen that American Family and USAA’s ratings and rates aren’t exact matches, but they’re pretty close. Let’s look at the discounts offered by each company to their customers.
|Companies||Emergency Deployment||Federal Employee||Forward Collision Warning||Membership/Group||Military||Military Garaging||Occupation||Recent Retirees|
As you can see, there are 8 total discounts listed. Before we tally up, we need to stress the importance of inquiring as to which discounts you can accumulate no matter which insurer you end up choosing. What’s even better is a lot of these are as simply accessible as, say, typing in your USAA login.
Of the eight common discounts shown, American Family doesn’t offer any. However, they do offer some discounts exclusive only to American Family.
One such discount is called the Dreams Restored Program, which locates cheap and reputable auto body shops in your local area should the need arise.
So, all in all, you have two great choices here. Continue being thorough when comparison shopping in your state and, again, ask about discounts.
Ready to buy auto insurance? Get a start on finding affordable auto insurance quotes today by simply typing your ZIP code into our free and helpful tool below.