American Family Insurance vs. Farmers Car Insurance: Expert Recommended (2024)
This comprehensive comparison delves into American Family and Farmers Car Insurance, revealing standout features and key differences to guide your informed decision-making process.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Feb 5, 2024
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Feb 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Unveiling the Insurance Rate Landscape: A Comparative Analysis Between American Family and Farmers. Delve into this breakdown of insurance rates tailored for different customer profiles. Revealing the impact of factors like credit score, driving record, mileage, and coverage level on insurance premiums, discover how American Family shines for safe drivers, boasting lower rates across multiple profiles. Meanwhile, Farmers offers competitive rates for specific scenarios, harnessing discounts like good student and senior driver benefits. Let this snapshot guide you to the most advantageous rates tailored to your unique circumstances.
| Factor | American Family | Farmers |
|---|---|---|
| Clean Record | $117 | $139 |
| 1+ Ticket | $136 | $173 |
| 1+ Accident | $176 | $198 |
| DUI | $194 | $193 |
| Poor Credit | $201 | $239 |
*monthly rates are based on an average of minimum and full coverage for a 45-year-old male driver
| Discount | American Family | Farmers |
|---|---|---|
| Anti Theft | 15% | 15% |
| Good Student | 20% | 10% |
| Low Mileage | 10% | 10% |
| Paperless | 5% | 10% |
| Safe Driver | 45% | 5% |
| Senior Driver | 10% | 15% |
American Family Car Insurance
Pros:
- Pricing: American Family offers competitive pricing, being cheaper than state averages in several states.
- Dreams Restored Program: American Family provides a unique program that helps find the cheapest auto body shops for repairs.
- Claims Handling: Both American Family and Farmers offer convenient online and phone options for filing claims, ensuring a hassle-free experience.
- Mobile App: American Family’s mobile app provides convenient tools for policyholders, including easy access to policy information and claims tracking.
Cons:
- State Averages: While generally competitive, American Family may not be the cheapest option in every state.
- Limited Discounts: Compared to Farmers’ Signal program, American Family’s discount options may be more limited.
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Farmers Car Insurance
Pros:
- Company Ratings: Farmers scores well with an A+ from the Better Business Bureau and an A from A.M. Best.
- Signal Program: Farmers offers the Signal program, utilizing an app that tracks driving behavior and provides corresponding discounts.
- Claim Resolutions: Positive customer feedback highlights fair and prompt resolutions, transparent communication, and reliable payouts.
- Pricing Stability: Farmers’ pricing structure remains relatively stable, with minimal variations for different commute levels.
Cons:
- Pricing: Farmers’ auto insurance is cheaper than state averages in fewer states compared to American Family.
- Limited State Availability: The Signal program may not be available in all states, limiting the accessibility of certain discounts.
The Verdict on American Family vs. Farmers Car Insurance
After a thorough examination of both American Family and Farmers Car Insurance, a decisive conclusion can be drawn regarding the superior choice for most consumers. American Family Insurance emerges as the preferred option overall.
Competitive Pricing: American Family consistently offers more competitive pricing, being cheaper than state averages in various states. While Farmers has competitive rates, American Family’s affordability across a broader range of locations is noteworthy.
Innovative Programs: American Family’s Dreams Restored program sets it apart by assisting policyholders in finding the most affordable auto body shops for necessary repairs. This unique offering demonstrates a commitment to customer satisfaction beyond traditional coverage.
Ease of Claims Handling: Both companies offer convenient options for filing claims, but American Family’s streamlined process, coupled with positive customer feedback, reflects a commitment to efficient and hassle-free claims resolution.
Mobile App Functionality: American Family’s mobile app provides policyholders with a user-friendly experience, offering easy access to policy information and claims tracking. This reflects a commitment to leveraging technology for enhanced customer experience.
Varied Discounts: While Farmers has its Signal program, American Family’s broader range of discounts, including the Dreams Restored program, provides policyholders with more options for potential savings.
Considering factors such as pricing, innovative programs, claims handling, and digital offerings, American Family Insurance emerges as the best overall choice for car insurance. Policyholders seeking a combination of affordability, unique benefits, and a streamlined customer experience would likely find American Family Insurance to be the more advantageous option.
American Family
Founded in 1927 by Herman Wittwer, American Family Insurance has a rich history rooted in the American Midwest. Originally known as Farmers Mutual Automobile Insurance Company, the company began as a single-line auto insurer serving Wisconsin farmers.
Over the decades, it expanded its offerings and geographic reach, becoming American Family Mutual Insurance Company in 1963. The company’s commitment to protecting families and individuals has driven its growth, making it one of the largest mutual insurers in the United States.
American Family has consistently evolved to meet the changing needs of its policyholders, emphasizing innovation and community engagement. With a focus on personalized service and a wide range of insurance products, American Family Insurance has become a trusted name in the industry.
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Farmers
Established in 1928 by John C. Tyler and Thomas E. Leavey, Farmers Insurance initially targeted rural drivers and farmers, hence the name. The company aimed to provide affordable insurance options for these underserved communities.
Over the years, Farmers expanded its services beyond auto insurance to offer a comprehensive suite of insurance products, including home, life, and business coverage. Known for its commitment to customer service and innovative offerings, Farmers Insurance has grown into one of the largest and most recognizable insurance providers in the country.
The company’s iconic “We Are Farmers” jingle and commitment to a diverse range of coverage options reflect its dedication to meeting the evolving needs of policyholders across the nation.
What can Farmers insurance do for you?
One of the best ways to see if an insurer is right for you is to analyze their pricing structure. Let’s take a look at Farmers’ rates in comparison to state averages.
Farmers Average Monthly Rates by State
| State | Farmers Average Monthly Car Insurance Rates | Higher/Lower Than State's Average Monthly Rates ($) | Higher/Lower Than State's Average Monthly Rates (%) |
|---|---|---|---|
| Alabama | $348.82 | $51.57 | 1.23% |
| Arkansas | $354.82 | $11.07 | 0.26% |
| Arizona | $416.67 | $102.43 | 2.05% |
| California | $416.57 | $109.15 | 2.18% |
| Colorado | $440.85 | $117.82 | 2.23% |
| Hawaii | $396.99 | $184.02 | 3.86% |
| Iowa | $202.98 | -$45.46 | -1.87% |
| Idaho | $264.02 | $15.77 | 0.50% |
| Illinois | $383.77 | $108.31 | 2.35% |
| Indiana | $286.46 | $1.88 | 0.06% |
| Kansas | $308.65 | $35.35 | 0.95% |
| Maine | $230.85 | -$15.26 | -0.55% |
| Michigan | $708.63 | -$166.25 | -1.96% |
| Minnesota | $261.45 | -$105.48 | -3.36% |
| Missouri | $359.35 | $81.94 | 1.90% |
| Montana | $325.63 | $57.23 | 1.46% |
| North Dakota | $257.71 | -$89.45 | -2.89% |
| Nebraska | $333.11 | $59.47 | 1.49% |
| New Jersey | $634.75 | $175.15 | 2.30% |
| New Mexico | $359.63 | $70.99 | 1.65% |
| Nevada | $466.30 | $61.16 | 1.09% |
| Ohio | $285.25 | $59.44 | 1.74% |
| Oklahoma | $345.20 | $0.01 | 0.00% |
| Oregon | $312.79 | $23.81 | 0.63% |
| South Carolina | $390.99 | $75.89 | 1.62% |
| South Dakota | $314.07 | -$17.79 | -0.47% |
| Tennessee | $285.84 | -$19.24 | -0.56% |
| Utah | $325.67 | $24.68 | 0.63% |
| Washington | $246.83 | -$8.11 | -0.27% |
| Wisconsin | $314.79 | $14.29 | 0.38% |
| Wyoming | $255.78 | -$10.89 | -0.36% |
As you can see, out of the 32 shown states, Farmers auto insurance is cheaper in only nine.
It’s logical that the more you’re on the road (i.e. longer commutes) the higher your premium will be. Let’s take a look at Farmers’ prices for different commute levels.
Farmers Average Monthly Car Insurance Rates by Commute Length
| Commute Length | Farmers Average Monthly Rates |
|---|---|
| 10-mile, 500 miles monthly | $348.27 |
| 25-mile, 1,000 miles monthly | $350.76 |
As you can see, surprising as it is, their pricing structure for varying commutes is negligible. In fact, the difference is just under $30 a month.
Farmers’ primary discount is through an app called Signal. This tracks driving behavior and allots a corresponding discount for safe driving behavior.
https://www.youtube.com/watch?v=a3qyaVhLg04&feature=emb_logo
This program offers a variety of discounts. On top of your monthly discount, you also get a five percent discount just for having the app installed.
Let’s move on by comparing American Family with what we’ve read about Farmers Insurance.
What can American Family insurance do for you?
Let’s start here the same way we started with Farmers, by looking at the price. Take a look at the following table to see American Family’s rates in comparison to state averages. You can also take a look at our American Family Insurance Review to learn even more about this company.
American Family Average Monthly Car Insurance Rates Compared to State Average
| State | American Family Average Monthly Rates | State Average Monthly Rates | Higher/Lower ($) Than State Average Monthly Rates | Higher/Lower (%) Than State Average Monthly Rates |
|---|---|---|---|---|
| Alaska | $346.09 | $285.13 | $60.96 | 1.47% |
| Colorado | $311.09 | $323.03 | -$11.95 | -0.32% |
| Iowa | $251.82 | $248.44 | $3.38 | 0.11% |
| Idaho | $310.73 | $248.26 | $62.48 | 1.68% |
| Illinois | $317.94 | $275.46 | $42.49 | 1.11% |
| Indiana | $306.64 | $284.58 | $22.06 | 0.60% |
| Kansas | $178.87 | $273.30 | -$94.44 | -4.40% |
| Minnesota | $293.44 | $366.94 | -$73.50 | -2.09% |
| Missouri | $273.91 | $277.41 | -$3.50 | -0.11% |
| North Dakota | $317.70 | $347.15 | -$29.45 | -0.77% |
| Nebraska | $184.59 | $273.64 | -$89.05 | -4.02% |
| Nevada | $453.43 | $405.14 | $48.29 | 0.89% |
| Ohio | $126.26 | $225.81 | -$99.55 | -6.57% |
| Oregon | $293.94 | $288.98 | $4.96 | 0.14% |
| South Dakota | $337.29 | $331.86 | $5.43 | 0.13% |
| Texas | $404.06 | $336.94 | $67.12 | 1.38% |
| Utah | $308.23 | $300.99 | $7.24 | 0.20% |
| Washington | $309.42 | $254.94 | $54.48 | 1.47% |
| Wisconsin | $126.11 | $300.51 | -$174.40 | -11.53% |
Compared to Farmers, American Family is cheaper than quite a few more state averages. In some states, the differential is far more substantial. For instance, American Family is 138% cheaper than the state average in Wisconsin.
Just as we analyzed Farmers’ Signal program, let’s look at American Family’s Dreams Restored program.
This finds the cheapest auto body shops in your area, should you find yourself in a position where your vehicle requires repairs.
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Assessing Claims Handling: American Family Insurance Compared to Farmers Car Insurance
Ease of Filing a Claim
When it comes to filing a claim with American Family Insurance and Farmers Car Insurance, both companies offer multiple convenient options. Policyholders can file claims online through the respective websites of these insurers, providing a hassle-free and user-friendly experience.
Alternatively, they can opt to report claims over the phone, speaking directly with claims representatives for personalized assistance. For those who prefer mobile accessibility, both American Family Insurance and Farmers Car Insurance offer mobile apps that streamline the claims reporting process, making it quick and easy to initiate a claim from the convenience of a smartphone.
Average Claim Processing Time
Claim processing time is a crucial factor in assessing an insurance company’s efficiency and responsiveness. The actual processing time may vary depending on the nature and complexity of the claim, but both American Family Insurance and Farmers Car Insurance prioritize swift and efficient claims handling.
To obtain accurate and up-to-date information on average claim processing times, policyholders are encouraged to reach out to each insurer directly for specific details and expectations.
Customer Feedback on Claim Resolutions and Payouts
Customer feedback serves as a valuable indicator of how well an insurance company handles claims. Both American Family Insurance and Farmers Car Insurance have received reviews from their policyholders regarding claim resolutions and payouts. Positive feedback often highlights the fair and prompt resolution of claims, transparent communication throughout the process, and reliable payouts.
While these reviews provide valuable insights, individual experiences may vary, so it is advisable to explore customer feedback and engage with the insurers directly to gain a comprehensive understanding of their claim resolution procedures.
Comparing the Technological Offerings of American Family Insurance and Farmers Car Insurance
Mobile App Features and Functionality
In today’s digital age, mobile apps play a pivotal role in enhancing the insurance experience. American Family Insurance and Farmers Car Insurance understand this and offer dedicated mobile apps designed to empower policyholders with convenient tools and features.
These apps typically provide easy access to policy information, seamless bill payments, the ability to report and track claims, and even additional functionalities such as locating nearby service providers. Evaluating the features and user feedback of these mobile apps can help policyholders choose the one that aligns with their preferences for managing their insurance needs on the go.
Online Account Management Capabilities
Efficiently managing insurance policies online is essential for modern policyholders. Both American Family Insurance and Farmers Car Insurance recognize this need and provide online account management platforms to cater to it.
These platforms enable policyholders to perform various actions related to their policies, including updating personal information, making payments, reviewing policy details, and obtaining digital ID cards. Assessing the online account management features offered by both insurers is essential to ensure they align with policyholders’ requirements for seamless policy management.
Digital Tools and Resources
Beyond mobile apps and online account management, American Family Insurance and Farmers Car Insurance may offer additional digital tools and resources designed to assist policyholders. These resources can include online calculators to estimate coverage needs, educational materials covering topics like safe driving, and comprehensive FAQs addressing common insurance-related inquiries.
Exploring the digital resources available from each insurer can assist policyholders in making informed decisions based on their preferences for additional support and information.
How do Farmers and American Family ratings compare?
Let’s look at one final element to compare these companies: their ratings. This table shows the ratings from A.M. Best and the BBB, amongst others.
Farmers Car Insurance Ratings
| Ratings Agency | Farmers Ratings |
|---|---|
| A.M. Best | A |
| Better Business Bureau | A+ |
| Moody's | A2 |
| S&P | A |
| NAIC Complaint Index | 0.79 |
| JD Power | Claims Satisfaction 4/5 Shopping Study 3/5 |
| Consumer Reports | 89 |
An A from A.M. Best and A+ from the Better Business Bureau are pretty terrific. Now, let’s see how American Family measures up.
American Family Car Insurance Company Ratings
| Ratings Agency | American Family Ratings |
|---|---|
| A.M. Best | A |
| Better Business Bureau | A |
| Moody's | N/A |
| S&P | N/A |
| NAIC Complaint Index | 0.69 |
| JD Power | Claims Satisfaction 3/5 Shopping Study 4/5 |
| Consumer Reports | 89 |
As you can see, their ratings are fairly comparable, though Farmers scored a bit better with the BBB.
In closing, these are all factors to analyze. Even still, don’t consider yourself relegated to these two companies. Comparison shop thoroughly. Make the insurers sell you on why they should be your choice. Furthermore, be sure to take advantage of any and every discount that suits your needs.
Are you ready to buy car insurance? Get a start on finding your next insurer by typing your ZIP code into our free and helpful tool below to get car insurance quotes in your area. Which car insurance company is best for you? Find out now.
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Frequently Asked Questions
What is American Family Insurance?
American Family Insurance is a mutual insurance company that provides a range of insurance products, including car insurance, home insurance, life insurance, and business insurance.
What is Farmers Car Insurance?
Farmers Car Insurance is a subsidiary of the Farmers Insurance Group, which provides auto insurance, home insurance, business insurance, and other types of insurance products.
How do American Family Insurance and Farmers Car Insurance compare?
Both American Family Insurance and Farmers Car Insurance are reputable insurance companies that offer a range of insurance products. However, the best choice for an individual will depend on their specific insurance needs and preferences.
Which insurance company is better: American Family Insurance or Farmers Car Insurance?
Some people may prefer American Family Insurance for its personalized service and strong customer support, while others may prefer Farmers Car Insurance for its wide range of coverage options and competitive pricing. Ultimately, the best choice will depend on an individual’s specific insurance needs and preferences.
What factors should I consider when choosing between American Family Insurance and Farmers Car Insurance?
Some factors to consider when choosing between American Family Insurance and Farmers Car Insurance include:
- The types of coverage available
- The cost of insurance premiums
- The quality of customer service
- The level of financial stability
- Additional benefits or discounts offered by each company.
Can I get a quote from both American Family Insurance and Farmers Car Insurance?
Yes, you can obtain quotes from both American Family Insurance and Farmers Car Insurance by visiting their websites or contacting a representative from each company.
How do I choose the best insurance company for me?
To choose the best insurance company for you, consider your specific insurance needs, research and compare insurance providers, read customer reviews, and ask for recommendations from friends or family members who have experience with these companies. It’s also important to review and understand the terms and conditions of each policy before making a final decision.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.