American Family vs. State Farm: Which Is the Best? (2025)
State Farm has a high IQ Score of 9.3 out of 10 and lower average rates than American Family, making it the better option for car insurance customers.
Secure. Free. Easy-to-use.
Excellent
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Choosing the right car insurance company for your coverage needs can feel overwhelming, especially when you’ve narrowed down your choice to two well-known insurers.
Unlike State Farm car insurance, American Family isn’t available nationwide. However, drivers in the 20 states the company serves could benefit from its good customer service. State Farm offers nationwide coverage and has a long history of trusted services but may fare lower in customer satisfaction rankings.
To make an informed decision about which car insurance company is the better choice for you, you should compare rates, customer service, claims satisfaction, discounts, and coverage options.
Quick Facts
By market share, State Farm is the largest U.S. car insurance company.[?]
American Family offers more discounts than State Farm.
State Farm and American Family both offer safe driving mobile apps.
Find Cheap Car Insurance
Insurify partners with 120+ top insurers for real-time quotes
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
American Family vs. State Farm: The verdict
State Farm Insurance is the better pick overall based on its high Insurify Quality (IQ) Score of 9.3 out of 5, but American Family also has a high IQ Score of 9.3. State Farm operates in more states than American Family, and it has a higher average customer satisfaction score from J.D. Power and a higher financial strength rating from AM Best.
Despite operating in far fewer states, American Family offers nearly twice the number of discounts as State Farm. Some drivers in states where American Family operates may consider American Family a better option since it provides more discounts while maintaining similar ratings in other categories.
Here’s how the two car insurance companies stack up against each other.
Factor  | American Family | State Farm |
|---|---|---|
| IQ Score | 9.3 | 9.3 |
| Customer satisfaction score (J.D. Power) | 828 | 833 |
| Average monthly quote: liability only | $79 | $56 |
| Number of discounts | 18 | 10 |
| Number of states where it operates | 20 | 50 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
- Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
- Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
- Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
- Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
- Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
American Family
State Farm
American Family’s KnowYourDrive vs. State Farm’s Drive Safe & Save
Drivers can benefit from safe driving programs with both companies.
American Family’s KnowYourDrive program allows drivers to pay auto insurance rates that correspond with their safe driving habits and driving frequency. Drivers can save up to 20% based on driving habits. KnowYourDrive uses a mobile app to monitor driving behavior, so drivers need to allow the app to use location and other phone permissions.[?]
State Farm’s Drive Safe & Save program allows safe drivers to save up to 30% on their car insurance policy based on driving behaviors and activity. The Drive Safe & Save program uses an app, but State Farm also sends a beacon to install in the car that helps provide more accurate readings.[?]
Both programs consider braking, turning, acceleration, distracted driving, and speeding when setting discounts.
American Family vs. State Farm: Which is the cheapest?
With average monthly rates of $56 per month for liability coverage and $109 for full-coverage insurance, State Farm has cheaper coverage nationwide than American Family. Policyholders with American Family pay average rates of $79 for liability coverage and $148 for full coverage.
The cost of your coverage from these insurers will vary based on several factors, including your age, driving record, credit history, and location.[?] In addition, drivers can save more money by working with the insurer that offers the best discounts for their needs. Drivers who opt for minimum coverage will pay the lowest average premiums from both companies.
State Farm: Cheapest for drivers with a clean driving record
Drivers with a clean driving record can save more money on coverage by choosing a policy from State Farm.
Driver Type | American Family | State Farm |
|---|---|---|
| Clean driving record | $79 | $56 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for drivers with a speeding ticket
State Farm offers cheaper coverage for U.S. drivers with a speeding ticket on their record.
Driver Type | American Family | State Farm |
|---|---|---|
| Drivers with a speeding ticket | $103 | $70 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for teen drivers
Young drivers typically pay higher rates than other drivers, but they can try to secure lower rates by qualifying for good student discounts, driving safely, and choosing coverage from the company that has cheaper average rates. State Farm also offers the cheapest coverage for teen drivers.
Driver Type | American Family | State Farm |
|---|---|---|
| 18-year-old | $154 | $114 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for drivers with bad credit
If you have poor credit, you’ll likely pay more expensive average rates than drivers with good or excellent credit. State Farm offers cheaper average coverage for U.S. drivers with bad credit.
Driver Type | American Family | State Farm |
|---|---|---|
| Drivers with bad credit | $90 | $90 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
State Farm: Cheapest for senior drivers
Starting at age 70, older drivers may qualify as higher-risk drivers and pay increased rates due to aging-related risk factors. State Farm offers the cheapest coverage for senior drivers, on average.
Driver Type | American Family | State Farm |
|---|---|---|
| Senior drivers | $59 | $40 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Compare coverages: American Family vs. State Farm
State Farm and American Family both offer a wide range of insurance products, including renters, home, and life insurance. Both companies provide typical auto insurance coverage options, like bodily injury and property damage liability, comprehensive, collision, personal injury protection, and uninsured/underinsured motorist coverage.
American Family provides two coverages State Farm doesn’t, including gap insurance. Drivers should also compare quotes by coverage amount when considering different pricing tiers.
Compare available coverages below.
Coverage | American Family | State Farm |
|---|---|---|
| Gap insurance | Yes | No |
| Rideshare coverage | Yes | Yes |
| Roadside assistance | Yes | Yes |
| Rental reimbursement | Yes | Yes |
| Accidental death and dismemberment | Yes | No |
Shop for Car Insurance
Insurify partners with 120+ top insurers for real-time quotes
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
Compare discounts: American Family vs. State Farm
Both companies have solid auto insurance discounts, though American Family has more than State Farm. The companies have some differences in discount options but comparable discount ranges. Some discounts can vary by state, so you should always make sure the company offers the discount where you live before you choose.
Compare discounts from the two companies below.
Discount | American Family | State Farm |
|---|---|---|
| Clean driving record | Yes | Yes |
| Defensive driving course | Yes (in some states) | Yes |
| Multi-policy | Yes | Yes |
| Multi-car | Yes | Yes |
| Low mileage | Yes | Yes |
| Telematics (safe driving app) | Yes | Yes |
| Anti-theft device | No | Yes |
| New car | No | No |
| Military/affiliation | No | No |
| Good student | Yes | Yes |
| Loyalty | Yes | Yes |
| Auto pay | Yes | No |
| Student away at school | Yes | Yes |
| Homeowner | Yes | Yes |
| Alternative fuel | No | No |
American Family vs. State Farm FAQs
Choosing an insurance company is an important financial decision. The information below can help you navigate the process of finding the best coverage option and lowest rates for you, whether it’s American Family, State Farm, or another option.
Is American Family the same as State Farm?
No. American Family and State Farm are separate auto insurance companies. Both insurers offer quality auto coverage, though American Family only sells coverage in 20 states and State Farm has nationwide coverage. State Farm has a higher IQ Score (9.3) than American Family (9.3), making it the better choice for car insurance.
Who is the No. 1 car insurance company in the U.S.?
Based on market share, State Farm is the largest insurer in the United States. State Farm private passenger customers make up 16.84% of the market. American Family is the ninth-largest insurer, with customers making up 2.11% of the market.
Do State Farm insurance premiums depend on the agent?
No. The company sets car insurance rates based on your driving record, age, credit history, gender, marital status, ZIP code, and chosen auto insurance products. State Farm agents can’t change rates, although some customers may qualify for discounts or lower rates based on their driving record.
Which is better, Progressive or State Farm?
State Farm has cheaper coverage and a higher IQ Score than Progressive. State Farm also has a higher average customer satisfaction rating from J.D. Power and a better financial strength rating from AM Best.
The national average cost of State Farm car insurance is $56 per month for liability coverage and $109 for full coverage. On average, Progressive charges $101 per month for liability coverage and $173 for full-coverage insurance.
)
)
)
){kind=small}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
)
)