State Farm vs. American Family: Which provider should you choose?

State Farm vs. American Family: Which provider should you choose?

State Farm vs. American Family

Choosing between State Farm and American Family Insurance? The well-known State Farm has been around since the 1920s, and although American Family has been around for nearly as long, it isn’t a household name.

But don’t let that scare you off. If you live in one of the 19 states it services, American Family aims to gain the trust of its customers through top-notch customer service and protection. Like StateFarm, American Family gets a B+ from the Better Business Bureau. And both companies provide affordable auto insurance via their many discounts.

So which one should you choose? Take a look at our comparison of the two companies below, and you’ll be able to make an informed decision.

State FarmState FarmAmerican FamilyAmerican Family
AboutFounded in 1922, State Farm ranks as one of the top companies where cars and homes are insured. State Farm stands by its customers by striving to offer the best products and prices. The company is no stranger to the Fortune 500 list.For 90 years, American Family has worked hard to give quality rates and services. In addition to auto insurance, it offers home, life, business, and farm and ranch insurance with a strong commitment to protect its customers.
PricePolicy costs depend your personal situation. Visit StateFarm for a quote based on your specific needs.Policy costs depend your personal situation. Visit American Family for a quote based on your specific needs.
States servedAll 50 states19
User satisfaction*B+B+
J.D. Power ratings**3/5 on overall claims satisfaction4/5 on overall claims satisfaction
Driver discountsView driver discounts
Vehicle discountsView vehicle discounts

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* Based on Better Business Bureau’s company rating ** Based on the 2016 U.S Auto Claims Satisfaction Study


Driver discounts

State FarmState FarmAmerican FamilyAmerican Family
Good studentUp to 25% (under 25). Additional discount if student is away from home and only using the car when back home.Varies. Teen Safe Driver Discount + Generational Discount (18-24 with a parent who is an American Family customer)
Defensive driverYes5-10% (55+, completed defensive driving course)
Good driverYes (3 years no moving violations or at-fault accidents)Yes
Pay in full discountNoNo
Multi carUp to 20% (two or more vehicles in household)Yes
MilitaryNoNo
HomeownerNoNo
Other discounts
  • Driving training – Varies (all operators under 21 complete approved drivers education)
  • Drive Safe & Safe – Enroll in the State Farm app
  • Loyalty discount Early-bird discount
  • Steer into Savings discount
  • Low mileage discount – Drive less than 7,500 miles per year
  • Teen Safe Driver discount – Enroll teen in free program
  • Young volunteer discount – Under 25, 40+ hours per year volunteering for non-profit
  • Generational discount – 18-24 with a parent who is an American Family customer
  • KnowYourDrive discount – Up to 40% on your car insurance (based on evaluation during KnowYourDrive periods)

Vehicle discounts

State FarmState FarmAmerican FamilyAmerican Family
Anti-theft deviceYesNo
Anti-lock brakeNoNo
Passive restraintsUp to 40% (medical-related coverage, vehicle made in 1994 or later)No
Air bagYesYes
Other discounts
  • Vehicle safety discount – Up to 40% (medical-related coverage, vehicle made in 1994 or later)
  • Auto safety equipment – 10-30%

Bottom line

American Family comes out slightly ahead in terms of the number of discounts they offer. But if you don’t live in one of the 19 states the provider covers, it’s not even an option for you. Keep your personal situation in mind when deciding between the two, and you’ll make the right decision.

Compare 7+ car insurance quotes at once

Enter your ZIP code below and click Compare Now to start comparing and finding the best rate near you.

Your information is secure.

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