AAA vs. American Family: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, American Family offers significantly more affordable rates than AAA
• AAA offers more discounts than American Family Insurance
• American Family offers more affordable premiums for policyholders who have a clean record

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AAA vs. American Family: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? With so many ads from all sorts of companies offering big discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed it down to AAA or American Family for your next policy, but which one will save you the most?

Looking at the national average rates for both companies, American Family is quite a bit cheaper than AAA, with prices averaging $140 per month compared to $314 with AAA.

But that doesn't necessarily mean American Family will be the less expensive option for every driver. After all, auto insurance carriers can offer drastically different rates to each driver depending on rating factors like your driving record, your credit score, where you call home, or even your age (among other things), so rates will vary quite a bit from person to person.

So, if you want to find out which of AAA or American Family is really the best for you, keep reading to see average premiums for each carrier broken down by multiple different rate factors.

AAA or American Family: Average Car Insurance Rates by State

AAA and American Family compete against each other in four states, with American Family offering cheaper rates to the average driver in all of them. If you live in Nevada, AAA is the less expensive of the two companies when looking at the overall average prices. American Family is the more affordable option in Illinois, Missouri, and Wisconsin.

There's a lot more that goes into your insurance cost than just your home state. Continue reading to learn more about how other factors will affect your rates.

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Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive car insurance premiums of any other group of drivers. Generally, that's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

However, that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. As you can see above, teens who use American Family save nearly $400 a month compared to those who use AAA.

That being said, both carriers will reduce rates by the time drivers turn 25. For example, average premiums for AAA policyholders decrease more than $400 and American Family's prices drop almost $200 over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the most affordable insurance rates you'll ever see. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

But who has the best prices for retired drivers between AAA and American Family? American Family gets the edge here, with average premiums coming in at about $107 monthly compared to AAA's $238.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance rates tend to be less expensive for married policyholders than they are for single drivers. That's because policies for married drivers typically cover multiple cars, which many companies will offer you a discount for.

When it comes to relationship status, American Family is the clear winner for single policyholders, with prices around $203 per month cheaper than AAA, on average. The advantage is also clear for married couples - American Family offers the cheapest average rates.

AAA vs. American Family: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to insurance men will usually end up paying a little more.

Typically, women see premiums over 10% a month less with AAA, and about 3% less with American Family when compared to their male counterparts.

When it comes to the lowest rates for each gender, American Family comes out on top for both men and women. On average, women save about $159 per month and men save around $188 with American Family compared to the average AAA policyholder.

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AAA or American Family: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, auto insurance isn't the easiest topic to understand. There are a variety of different coverages that account for many different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

Even so, most policies end up falling into two different types of coverage -- liability only (that covers property damage and bodily injury for other drivers and their passengers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with a liability policy).

If you're looking for state minimum limits for liability insurance, American Family normally offers significantly more affordable premiums of $96 compared to AAA's $169. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $250 a month less expensive than AAA, on average.

Is AAA or American Family Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with at-fault accidents and tickets on your record, but which of these two carriers offers the most affordable prices to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

AAA policyholders can expect their rates to go up an average of $86 per month if they get a ticket, while American Family usually raises prices around $29 a month, on average.

That being said, American Family is generally the cheaper option for drivers both with clean records and with a speeding ticket, offering premiums that are $95 and $152 more affordable, respectively, compared to AAA Insurance.

Which Company is Best for Drivers After an Accident?

Both companies will increase prices pretty significantly if you get into an at-fault accident with AAA climbing by just under $150. American Family has a less extreme increase, but you can still expect to pay $20 more than you were prior to your first collision.

Overall, the less expensive rates come from American Family, with monthly premiums averaging $138 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly insurance bill -- typically a lot more than an accident or ticket. On average, AAA will climb your prices about 47% after a DUI, while American Family's average rates climb by over 25%.

If you have a DUI on your record and are looking for more affordable premiums, American Family tends to be the much cheaper option with average prices of $158 per month compared to $403 from AAA.

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How does Credit Score Impact AAA and American Family Rates?

You may not have known, but your credit score can come into play when carriers calculate your monthly bill. This isn't always the case (Michigan, for example, has banned the use of credit score as a rating factor) but it might come into play for a lot of drivers.

Car insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with more affordable rates.

So, which company offers the cheapest premiums for drivers with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, you'll usually find a better deal with American Family. Policyholders with "excellent" credit can save more than 45% compared to AAA, and those with "good" scores can also expect to see savings -- around $127 or 51% less expensive every month.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower prices than AAA when it comes to drivers with bad credit. Drivers with "fair" credit pay about $163 per month less with American Family compared to AAA, and those with "poor" scores usually save an average of around $338 a month.

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Is AAA or American Family Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a pretty big impact on your monthly rates. Generally, the more miles you put on your car, the more you can expect to pay for coverage.

For both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure, American Family offers cheaper premiums than AAA. AAA's average rates for drivers with 6,000 annual miles come in over 55% more expensive than American Family. Those who drive 12,000 miles annually can expect to pay more than 55% more with AAA over American Family.

AAA vs. American Family: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for auto insurance, but the type of area you live in can have a substantial impact as well. Normally, if you live in an urban area with more cars on the road, you'll pay a little more for car insurance, while the opposite is true for people in rural areas.

American Family tends to offer the most affordable prices for drivers in all areas, regardless of if they're urban, suburban, or rural.

Drivers in rural ZIP codes see the cheapest rates from both carriers, but American Family comes out on top with average premiums about $121 per month. American Family also has more affordable average prices for policyholders in urban and suburban ZIP codes -- a $218 and $167 a month respective difference when compared to AAA drivers in similar areas.

AAA vs. American Family Discounts

You want to save as much money as possible, right? The best way to do that is by utilizing as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be challenging to nail down the company that has the most discounts for your unique driver profile and to find all the discounts you can take advantage of.

In the section below, we've compared all of the different discounts offered by AAA and American Family so that you can see which company can save you the most money each month.

AAA blows American Family away when it comes to the sheer amount of discounts available, offering 33 different discounts to American Family's 21.

A couple of those are overlapping for things like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and group discounts. AAA also offers AAA discounts, academic discounts, driver training discounts, and more that American Family does not.

On the flip side, American Family has a couple unique discounts of its own -- connect partner discounts, DRL discounts, ESC discounts, and more.

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Final Thoughts: Is AAA or American Family Best for You?

So, we've broken down the average rates for many of the variables insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but when it comes down to it, which insurance company is the best carrier for you and your specific needs?

American Family might be best for you if....

• You're single and purchasing car insurance by yourself.
• You want basic insurance coverage at the state minimum limits.
• Your neighborhood is in a rural area.

AAA might be best for you if...

• You want to save extra money with discounts.

We hope this guide has ben a valuable resource as you compare AAA and American Family. We also hope we've given you the information you need to make the best decision about your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from a handful of carriers, not just AAA and American Family. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

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AAA vs. American Family FAQs

Is AAA or American Family cheaper?

Looking just at the national average premiums, American Family is the cheaper of the two carriers, offering average rates of $140 per month compared to $314 for AAA. However, American Family won't necessarily be the lowest carrier for everyone, since there are lots of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, AAA or American Family?

Unfortunately, the answer truly is "it depends.". One company is not "better" for each driver -- it all depends on the makeup of your unique auto insurance profile.

Why do AAA and American Family offer me different rates?

Insurance companies take a look at several different variables when calculating the prices they charge policyholders. Factors like where you live, where your home is, gender, age, and sometimes even things like your credit score can all be used. Both AAA and American Family calculate premiums using different variables, so each one will most likely offer different rates. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a range of different carriers.

How do I know if AAA or American Family is right for me?

The only way to find the car insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the cheapest price. And who knows, the best carrier for you might not be AAA or American Family at all!

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Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.