American Family Insurance vs State Farm: How Do They Compare on Price, Service & More?

American Family Insurance and State Farm are two of the largest and most recognized insurance providers in the United States. But how do they actually compare when it comes to pricing, customer service, types of insurance offered and more?

This comprehensive guide examines American Family vs State Farm to see which insurer comes out on top. We’ll analyze key factors like cost, discounts, financial strength, customer reviews and coverage options so you can make an informed decision on the right insurance provider for your needs.

American Family Insurance Overview

  • Headquarters in Madison, Wisconsin
  • Founded in 1927
  • Operates in 19 states
  • Specializes in auto, home, life, business insurance
  • A.M. Best rating of A (Excellent)

State Farm Overview

  • Headquarters in Bloomington, Illinois
  • Founded in 1922
  • Nationwide availability in 50 states
  • Specializes in auto, home, life, banking
  • A.M. Best rating of A++ (Superior)

American Family vs State Farm: Cost Comparison

Average Annual Premiums:

  • Minimum coverage: State Farm is cheaper ($929 vs $1,290 with American Family)
  • Full coverage: State Farm is cheaper ($1,566 vs $1,935 with American Family)

Factors impacting cost:

  • State Farm has lower base rates than American Family on average
  • Both offer a variety of discounts to reduce premiums
  • Your personal profile and location will impact quotes

While State Farm comes out lower on average, it’s important to get personalized quotes from both insurers as rates can vary widely based on your situation.

Discounts Offered

American Family Discounts:

  • Multi-policy
  • Multi-vehicle
  • Defensive driving
  • Good student
  • Teen driver
  • Accident-free
  • Pay in full

State Farm Discounts:

  • Safe driving
  • Good student
  • Defensive driving
  • Anti-theft devices
  • New car
  • Multiple vehicles
  • Multiple policies
  • Good payer

American Family offers 18 discounts vs 14 from State Farm, so they edge out State Farm in terms of number of ways to save.

Customer Satisfaction Ratings

J.D. Power: Both earned 4/5 stars for overall customer satisfaction

BBB: State Farm rated A+ vs A for American Family

WalletHub: State Farm rated higher by editors and users

NAIC Complaint Index: State Farm scored 1.18 vs 0.43 for American Family

While scores are fairly close, State Farm rates higher for customer satisfaction across the board.

Coverages Offered

American Family offers:

  • Auto
  • Home
  • Condo
  • Renters
  • Personal liability
  • Boat
  • Motorcycle
  • RV
  • Flood
  • Pet
  • Travel

State Farm offers:

  • Auto
  • Home
  • Condo
  • Renters
  • Personal liability
  • Boat
  • Motorcycle
  • RV
  • Flood
  • Pet
  • Travel

The companies offer nearly identical insurance products. State Farm also provides banking and life insurance.

Financial Strength Ratings

  • State Farm: A++ (Superior) from A.M. Best

  • American Family: A (Excellent) from A.M. Best

State Farm edges out American Family for the top financial strength rating from A.M. Best.

Geographical Availability

  • American Family: 19 states including Colorado, Georgia, Idaho, Illinois, Indiana, Iowa and more

  • State Farm: All 50 states

State Farm wins when it comes to national availability. American Family focuses on select states.

American Family Insurance vs State Farm: Which Is Best For You?

While State Farm wins out on a few key factors like pricing, ratings and nationwide access, American Family still offers competitive pricing and coverage options.

To determine which insurer is the right fit for you, get free quotes from both providers. Make sure you compare costs for the same exact coverage limits and deductibles. Also research discounts, claims processes and customer service reputation.

Weigh factors like price, financial ratings, types of policies offered and customer satisfaction scores specific to your state and situation to decide if American Family or State Farm better meets your insurance needs.

Frequently Asked Questions on American Family vs State Farm

Which is cheaper, American Family or State Farm?

On average, State Farm offers cheaper car insurance rates than American Family in most states. However, you’ll want to compare personalized quotes, as your exact rates may differ.

What insurance discounts do American Family and State Farm offer?

American Family offers 18 discounts including multi-policy, safe driver, teen driver and pay in full. State Farm offers 14 discounts including multi-vehicle, anti-theft device, good payer, defensive driving and more.

Is State Farm or American Family rated higher?

State Farm has slightly higher ratings for financial strength and customer satisfaction according to A.M. Best, J.D. Power, WalletHub and NAIC. But American Family also scores well.

Does American Family have usage-based insurance?

Yes, American Family offers usage-based insurance through its KnowYourDrive program. It uses an app or device to track mileage, braking and acceleration to provide discounts for safe driving habits. State Farm does not currently offer usage-based insurance.

What states does American Family operate in?

American Family sells insurance in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.

When choosing between American Family vs State Farm, there are good reasons to consider either insurer. Weigh their pros and cons, get quotes for your specific situation, and evaluate their customer service reputation in your state. This will lead you to the right insurance provider to protect your vehicles, home and family.

American Family Insurance Company Review – What you need to know


What is the #1 insurance in America?

P/C insurance company name
2022 Net premiums written (US $ 000)
State Farm Group
Berkshire Hathaway Ins
Progressive Ins Group
Allstate Ins Group

Who is State Farm insurance biggest competitor?

Considering State Farm and Geico are the two biggest auto insurance companies in the U.S., most drivers can find what they need from either company, whether that’s minimum or full coverage. However, there are a few key differences between State Farm vs. Geico when it comes to auto insurance options.

Who is the most trusted insurance company?

Insurance company
Best for
Bankrate Score
Best overall
4.4 Rating: 4.4 stars out of 5
Best overall
4.4 Rating: 4.4 stars out of 5
Best for military-focused coverage
4.3 Rating: 4.3 stars out of 5
Best for added perks
4.3 Rating: 4.3 stars out of 5

Leave a Comment