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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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 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.

Average Annual Auto Insurance Rates by Company
CompanyAverage Annual Auto Insurance Rates
Allstate$4,533
American Family$3,699
Farmers$3,910
GEICO$3,074
Liberty Mutual$5,296
Nationwide$3,187
Progressive$3,935
State Farm$2,731
Travelers$3,729
USAA$2,489
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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.

Allstate vs. American Family Average Annual Auto Insurance Rates by State
StateAllstate Average Annual RatesAmerican Family Average Annual Rates
Alaska$3,145.31$4,153.07
Alabama$3,311.52Data Not Available
Arkansas$5,150.03Data Not Available
Arizona$4,904.10Data Not Available
California$4,532.96Data Not Available
Colorado$5,537.17$3,733.02
Connecticut$5,831.60Data Not Available
District of Columbia$6,468.92Data Not Available
Delaware$6,316.06Data Not Available
Florida$7,440.46Data Not Available
Georgia$4,210.70Data Not Available
Hawaii$2,173.49Data Not Available
Iowa$2,965.86$3,021.81
Idaho$4,088.76$3,728.79
Illinois$5,204.41$3,815.31
Indiana$3,978.81$3,679.68
Kansas$4,010.23$2,146.40
Kentucky$7,143.92Data Not Available
Louisiana$5,998.79Data Not Available
Maine$3,675.59Data Not Available
Maryland$5,233.17Data Not Available
Massachusetts$2,708.53Data Not Available
Michigan$22,902.59Data Not Available
Minnesota$4,532.01$3,521.29
Missouri$4,096.15$3,521.29
Mississippi$4,942.11Data Not Available
Montana$4,672.10Data Not Available
North Carolina$7,190.43Data Not Available
North Dakota$4,669.31$3,812.40
Nebraska$3,198.83$2,215.13
New Hampshire$2,725.01Data Not Available
New Jersey$5,713.58Data Not Available
New Mexico$4,200.65Data Not Available
Nevada$5,371.62$5,441.18
New York$4,740.97Data Not Available
Ohio$3,197.22$1,515.17
Oklahoma$3,718.62Data Not Available
Oregon$4,765.95$3,527.28
Pennsylvania$3,984.12Data Not Available
Rhode Island$4,959.45Data Not Available
South Carolina$3,903.43Data Not Available
South Dakota$4,723.72$4,047.47
Tennessee$4,828.85Data Not Available
Texas$5,485.44$4,848.72
Utah$3,566.42$3,698.77
Virginia$3,386.80Data Not Available
Vermont$3,190.38Data Not Available
Washington$3,540.52$3,713.02
West Virginia$3,820.68Data Not Available
Wisconsin$4,854.41$1,513.27
Wyoming$4,373.93Data Not Available
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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.

Allstate vs. American Family Financial Ratings
Ratings WebsiteAllstate RatingsAmerican Family Ratings
Consumer Reports8889
Better Business BureauA+A
AM BestA+ (Superior)A (Excellent)
S&PA-A
Moody'sAa3A1
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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.

Discounts Provided by Major Auto Insurance Companies
CompaniesEmergency DeploymentFederal EmployeeForward Collision WarningMembership/GroupMilitaryMilitary GaragingOccupationRecent Retirees
21st Century
AAAx
Allstatexx
American Family
Ameriprisex
Amicax
Country Financialxx
Esurancexxx
Farmersxxx
GEICOxxxxx
Liberty Mutualxxxxxx
MetLifexxxxx
Nationwidexxx
Progressivex
Safe Autox
Safecoxxx
State Farmx
The Generalx
The Hanoverxx
The Hartfordxxxx
Travelersxx
USAAxx
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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.

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