Compare AAA vs. American Family: Quotes, Discounts (2023)

AAA vs. American Family: A Summary

AAA and American Family are two car insurance companies you might consider if you’re looking to compare car insurance coverage for your vehicle. Keep in mind that AAA is not a direct insurer in some states, and American Family isn’t available everywhere, either. Here’s how these two insurance providers compare in terms of average monthly premium and Insurify Composite Score.

ICS Score Explanation:

The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

AAA

Known for its roadside assistance memberships, which cover services like towing and come with other perks, the AAA auto club group also offers car insurance policies in many states. Note that in some states, AAA acts as a broker, connecting customers with other insurers.

You don’t need to be a AAA member to get help from a AAA insurance agent, but membership does earn you a discount on your policy. In addition to auto insurance, AAA offers other insurance products, such as home insurance and life insurance. The insurer offers a variety of coverage options, including rental reimbursement, gap insurance, and rideshare coverage.

You can take advantage of a variety of insurance discounts with AAA. Adding a AAA membership also gets you roadside service and discounts on car repair. AAA has excellent financial strength ratings, but J.D. Power ratings vary by region. Some regional clubs have above-average rankings, while others are ranked below average.

American Family

American Family was founded in 1927 and offers a variety of types of insurance, including homeowners insurance, life insurance, and renters insurance, in addition to car insurance. American Family Insurance has excellent financial strength ratings and offers affordable car insurance rates that fall below the nationwide average.

The insurer also offers a variety of discounts, including a usage-based telematics program. American Family offers standard coverage options and a variety of unique add-ons, including classic car coverage, OEM coverage, rideshare coverage, and even commercial auto insurance. Accident forgiveness can be purchased or earned.

Furthermore, American Family was the top-rated midsize insurer in J.D. Power’s 2021 U.S. Insurance Shopping Study and was ranked above average in J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study. The auto insurance company also had far fewer complaints than expected with the NAIC in 2020 given the company’s size.

The Best Car Insurance Companies in 2022

AAA and American Family are both reputable insurance companies. American Family stands out as being one of the best insurers we reviewed because of its superb customer satisfaction rankings and excellent financial strength ratings.

Compare AAA vs. American Family: Which Is Cheaper?

American Family is cheaper than AAA for all types of drivers. Drivers of all ages and with all types of violations on their records pay cheaper premiums at American Family on average than at AAA. In fact, AAA charges nearly double the monthly premium that American Family charges for certain subsets of drivers.

The Cheapest Car Insurance Companies in 2022

American Family is one of the cheapest insurance companies we reviewed, with rates that consistently beat the industry average. AAA, on the other hand, charges relatively expensive premiums when compared to the industry average.

Compare AAA vs. American Family Car Insurance by Age

Car insurance companies charge young drivers the highest rates because they have the least experience on the road. Research shows that teens are more likely to be in a car accident than any other age group. Policyholders in their 50s and 60s tend to pay the lowest rates. Here are the average premiums you can expect from AAA and American Family based on your age.

Both companies charge higher rates to teen drivers, but American Family is cheaper than AAA for all age groups. American Family’s rates also beat the industry average.

Compare AAA vs. American Family Car Insurance by Gender

In most states, car insurance companies consider your gender when underwriting your car insurance policy. This is largely due to a difference in crash rates between teen males and females. There can be a significant rate difference between genders at this age, but women also tend to pay just slightly less for car insurance over the course of their lives.

Here’s what AAA and American Family charge men and women on average.

Both insurers offer cheaper rates to women, but American Family is cheaper than AAA for both genders.

Which is cheapest for men?

American Family charges cheaper rates to men on average than both AAA and the national average.

Which is cheapest for women?

On average, American Family charges cheaper rates to women than AAA. AAA also came in over the national average of $78.

Compare AAA vs. American Family Car Insurance by Mileage

Car insurance companies request your estimated mileage when you apply for a policy. That factors into your rates but typically has a minimal impact. Still, low-mileage drivers often pay slightly less. Note that it’s possible to realize greater savings from low-mileage driving if you enroll in one of the usage-based programs offered by AAA or American Family.

Which is cheapest for drivers with high mileage?

While neither price changes between mileage levels, American Family is cheaper than AAA for high-mileage drivers. The insurer’s premiums also beat the industry average.

Which is cheapest for drivers with low mileage?

American Family offers cheaper premiums than AAA and beats the industry average rate for both low-mileage milestones. The rates only change slightly between 5,000 and 10,000 miles, making American Family a great choice for people with low yearly mileage.

Compare AAA vs. American Family Car Insurance by Credit Score

In most states, auto insurers consider your credit-based insurance score when setting your premiums. That’s because several studies have found a correlation between poor credit and filing more insurance claims. However, some states, such as California, prohibit this practice.

In most states, people with poor credit pay the highest rates, while drivers with excellent credit get the lowest rates. Here’s what you can expect AAA and American Family to charge based on your credit tier.

Which is cheapest for good credit?

Drivers with good or excellent credit pay cheaper rates on average at American Family than they do at AAA. American Family’s premiums also beat the industry average for creditworthy policyholders.

Which is cheapest for bad credit?

American Family offers much cheaper rates than AAA for drivers with poor and average credit. AAA’s average premium for poor credit is especially steep. American Family’s rates, on the other hand, beat the industry average.

Compare AAA vs. American Family Car Insurance by Driving Record

Car insurance companies review your driving record to determine the risk to insure you. If you have infractions like speeding tickets or DUIs on your record, they’re going to think you’re not a safe driver and charge you higher rates for car insurance. Drivers with a clean record pay the lowest rates. Here’s what you can expect from each company based on your driving history.

Which is cheapest for good drivers?

The average premium that drivers with a clean record pay at American Family is half what drivers with a clean record pay at AAA. American Family’s rates are also less than the industry average.

Which is cheapest after a speeding ticket?

American Family offers much more generous rates than AAA to drivers with speeding tickets on their records. American Family’s average premium also beats the industry average by $10.

Which is cheapest after an accident?

Both companies hike their rates for drivers who have caused crashes, but American Family charges these drivers significantly less than AAA. American Family’s average rate is also slightly less than the industry average.

Which is cheapest after a DUI?

A DUI can have the largest impact on your monthly car insurance payment. American Family is much more lenient on average with DUI drivers than AAA, charging less than one-third what AAA charges. American Family even charges less than the industry average for DUI drivers.

AAA vs. American Family Car Insurance: What discounts does each offer?

AAA Discounts

• Multi-policy

• Multi-car

• Paperless

• Paid in full

• Autopay

• Telematics program

• Defensive driver

• Young driver

• Good student

• Student away

• Safety equipment

• Anti-theft device

• New car

American Family Discounts

• Multi-policy

• Multi-car

• Loyalty

• Early bird

• Switch from competitor

• Safety equipment

• Defensive driver

• Good driver

• Telematics program

• Low mileage

• Good student

• Student away

• Young volunteer

• Generational

• Autopay

• Paid in full

• Paperless

Our Methodology and How We Compared AAA and American Family

The car insurance quotes provided in Insurify’s insurance company comparison guides are based on the analysis of over 50 thousand insurance quotes from 500 ZIP codes nationwide. Insurify’s data science team performs a comprehensive analysis of factors car insurance providers weigh to calculate rates, including driver demographics, driving record, credit score, desired coverage level, and more to give representative samples.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating calculated by weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers a window into how insurance providers compare to one another in terms of both cost and quality.

Frequently Asked Questions