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

Quick Facts

• In general, American Family offers significantly cheaper premiums than Allstate
• Allstate offers more discounts than American Family Insurance
• American Family tends to be a much less expensive option for residents of suburban areas

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

So, you're thinking about switching your auto insurance. You've probably seen commercials and billboards from companies offering hefty discounts, but exactly how much money can you save by switching?

You've maybe even narrowed it down to Allstate or American Family as potential options, but which carrier has more affordable rates for auto insurance?

Looking at nationwide averages, American Family is quite a bit cheaper than Allstate, with prices averaging $140 per month compared to $199 with Allstate.

That being said, American Family may not be the cheapest or best option for each driver out there. Car insurance companies vary their premiums depending on things like how clean your driving record is, how old you are, how good your credit score is, where you live, and tons of other factors, so rates could change drastically from person to person.

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

Allstate or American Family: Average Car Insurance Rates by State

Allstate and American Family compete against each other in 16 states, with American Family offering cheaper prices to the average driver in all but one of them. If you live in Nevada, Allstate is the less expensive of the two carriers when looking at the overall average rates, but American Family is the cheaper option in most of the others.

That being said, there's a lot more that goes into your auto insurance bill than just where you call home. Read on to find out more.

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Which is the Best Company For Young Drivers?

You might already know that teen drivers normally pay a lot more for insurance than any group on the road. 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.

But that doesn't mean teen drivers can't still save money on their auto insurance. For example, 18-year-old drivers pay an average of nearly $150 less a month by choosing American Family over Allstate.

However, both companies will offer you dramatically lower prices once you turn 25. For example, average premiums for Allstate policyholders decrease almost $300 and American Family's rates reduce about $200 over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest prices out there.

So, which company offers the best premiums to retired drivers? American Family gets the edge here, with average rates coming in at around $107 a month compared to Allstate's $152.

Which is the Best Company for Married Drivers?

You may not be aware, but car insurance premiums tend to be more affordable for married drivers than they are for those who are single. This usually boils down to married policyholders having several cars on their policy -- something a lot of auto insurance carriers will reward with discounts.

When it comes to relationship status, American Family is the clear winner for single drivers, with prices about $65 per month cheaper than Allstate, on average. The advantage for married couples with American Family is also obvious, where drivers save more than 30% a month.

Allstate vs. American Family: Average Rates by Gender

Men are statistically more likely than women to get pulled over for speeding or get into an accident, which means they'll typically end up paying more for car insurance than women.

With Allstate, men usually pay around 4% more per month than women., while with American Family, the difference is closer to 3% a month.

When it comes to the most affordable premiums for each gender, American Family offers the lowest average prices for both men and women, with average rates 30% less for men and 29% cheaper for women.

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Allstate 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, insurance isn't the easiest topic to understand. There are multiple different coverages that account for several different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause a collision.

Even so, most policies end up falling into two different types of coverage -- liability only (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability).

If you're looking for state minimum liability limits, American Family normally offers more affordable premiums of $96 compared to Allstate's $108. When it comes to full coverage policies with similar limits, American Family again has the edge, with policies about $100 per month less expensive than Allstate, on average.

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

You've probably seen plenty of commercials from auto insurance companies offering great rates for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that at-fault accidents and tickets lead to higher prices, but which carrier -- Allstate or American Family -- has the most affordable premiums for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Allstate policyholders can expect their rates to go up an average of $27 a month if they get a ticket, while American Family usually raises prices around $29 per month, on average.

That being said, American Family is typically the more affordable option for both drivers who have clean records and those with a recent speeding ticket, offering premiums that are 24% and 20% less expensive, respectively, compared to Allstate.

Which Company is Best for Drivers After an Accident?

Allstate drivers who get in a collision can expect to see their rates increase by over 30%, while those who have insurance through American Family will see about a 15% increase.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly prices averaging $138 compared to Allstate's $229.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your car insurance bill. Allstate drivers usually see a 31% raise in their insurance rates after a DUI charge, while American Family will generally increase prices by around 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 rates of $158 per month compared to $227 from Allstate.

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How does Credit Score Impact Allstate and American Family Rates?

Did you know that many auto insurance carriers take your credit score into account when calculating prices? This isn't always the case (for example, Massachusetts and Hawaii are two states that ban the practice entirely), but it might come into play for lots of policyholders.

The reasoning car insurance companies use is that drivers with bad credit will be less likely to pay their bills on time; so usually, they'll be asked to pay more, while those with good credit will be rewarded with more affordable premiums.

So, which company offers the best rates for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with American Family. Drivers with "excellent" credit can save over 30% compared to Allstate, and those with "good" scores can also expect to see savings -- about $52 or 30% cheaper each month.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower premiums than Allstate when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay around $62 a month less with American Family compared to Allstate, and those with "poor" scores typically save an average of about $74 monthly.

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

The amount of time you spend behind the wheel of your car plays a big role in how much insurance carriers will charge for coverage. Generally, those who drive less will end up with less expensive prices since there's less of a chance of getting into an accident and causing an insurance claim.

American Family tends to be the more affordable option for both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure. Allstate's average rates for drivers with 6,000 annual miles come in just under $60 more expensive than American Family. Those who drive 12,000 miles yearly can expect to pay over $55 more with Allstate over American Family.

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

Where you live can have a substantial impact on your monthly car insurance cost. Normally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers due to the small number of cars that are on the roads in those areas.

American Family boasts the cheapest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest premiums from both companies, but American Family comes out on top with average rates around $121 a month. American Family also has cheaper average prices for drivers in urban and suburban ZIP codes -- a 25% and 33% per month respective difference when compared to Allstate policyholders in similar areas.

Allstate vs. American Family Discounts

Regardless of why you might be in the market for a new insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to find all the ones you're eligible for or to nail down the carrier that has the most discounts for your unique driver profile.

Below, we've taken a look at all of the different discounts Allstate and American Family offer their customers so that you can see which one can save you the most money each month.

Allstate blows American Family away when it comes to the sheer amount of discounts available, offering 40 different discounts to American Family's 21.

Both carriers offer a lot of the same discounts -- like anti-theft discounts, discounts for being a defensive driver, distant student discounts, and ESC discounts -- but Allstate also offers ABS discounts, agency transfer discounts, alert driving 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, generational discounts, group discounts, and more.

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

You've seen the effect certain factors have on your car insurance and the different discounts companies offer. But, when it comes down to it, which company is the best company for you and your specific needs?

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

• You don't have any speeding tickets, DUIs, or at-fault collisions on your record.
• You're looking for more protection with "full coverage" insurance.
• You and your spouse are buying auto insurance together.

Allstate might be best for you if...

• You're looking for the carrier with the most discounts.

We hope this guide helps you get a good idea of the differences between Allstate and American Family and that it aids in making a more informed decision about your car insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple carriers, not just Allstate and American Family. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

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Allstate vs. American Family FAQs

Is Allstate or American Family cheaper?

Looking just at the national average premiums, American Family is the less expensive of the two carriers, offering average rates of $140 a month compared to $199 for Allstate. However, American Family won't necessarily be the cheapest company for every driver, since there are a variety of different variables that come into play when it comes to your car insurance payment.

Who is better, Allstate or American Family?

Unfortunately, the real answer is "it depends.". Neither carrier is necessarily "better" for each driver -- it all depends on what your unique insurance profile looks like.

Why do Allstate and American Family offer me different rates?

Auto insurance companies take a look at quite a few different factors when determining the rates they charge drivers. Things such as gender, your driving record, age, where you park your vehicle, and sometimes even things like your credit score can all come into play. Both Allstate and American Family calculate premiums using different variables, so each one will most likely offer different prices. The only real way to see which company is the most affordable for you is by comparing personalized quotes from many different carriers.

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

The only way to find the car insurance carrier that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once and you'll get free quotes from dozens of the best insurance carriers in your area. With those, you can guarantee you're getting the best rate. And who knows, the best company for you might not be Allstate 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.