No, American Family insurance rates are not competitive for most drivers. American Family car insurance costs an average of $903 annually, or $75 per month.
American Family’s car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.
Sample American Family Car Insurance Rates
Average Annual Cost of Minimum Coverage
These sample quotes are representative of American Family’s insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete American Family car insurance review.
American Family insurance rates go up by an average of 24% after an accident. Drivers who have American Family accident forgiveness will not see their car insurance rates go up at all after their first accident in 1-5 years, depending on whether the accident forgiveness was earned or purchased. Even if the accident can’t be forgiven, it will only affect your insurance rate for … read full answer3-5 years, depending on your state.
The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder’s driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.
The cost of car insurance typically goes down the most between the ages of 18 and 19, when rates drop by about 25% on average. Car insurance premiums generally continue to go down each year until age 25, when rates begin to level off for the next few decades. When drivers turn 25 years old, they can expect a discount of about 14%.… read full answer
Note: The table above shows average annual rates for minimum coverage across all 50 states.
Around middle age, rates may begin to creep back up. This is because middle-aged drivers tend to insure newer, nicer cars and begin to add their children to the policy, increasing the average rate for this age range overall. Individual rates also start to go up again between the ages of 65 and 75 because senior drivers have a higher risk of accidents than middle-aged drivers.
Why Age Affects Car Insurance
Age affects car insurance rates because it’s an indicator of a driver’s risk to an insurance company. Young drivers are statistically more likely to get into a car accident than older, more experienced drivers. As a result, they’re considered high-risk and are more expensive to insure.
The risk for the insurer and the cost for the insured then generally decline as drivers age and gain experience. Once drivers pass the age of 65, however, their risk starts to go up again. Not only are senior drivers more likely to get into an accident than middle-aged drivers, but they’re also more likely to be injured as a result.
States Where Age Does Not Affect Rates
Although most people in the U.S. will find their prices change according to this timeline, there are a few states in which insurers can’t use age to determine your rate. In California, Hawaii, and Massachusetts, age won’t have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.
You can lower your American Family car insurance costs by taking advantage of American Family discounts, opting for a higher deductible, and reducing your coverage, among other things. American Family considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.… read full answer
How to Lower the Cost of Car Insurance from American Family
Use American Family’s auto insurance discounts
American Family offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 10% if their teen completes 3,000 miles or one year in the Teen Safe Driver program . Or you can save up to 29% on your premium if you bundle your home and auto policies with American Family.
Raise your car insurance deductible
Opting for a higher deductible on any of your insurance policies from American Family can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.
Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.
Improve your driving record
Practicing save driving habits and avoiding moving violations can help you qualify for lower American Family insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. American Family even offers a discount to drivers who take an approved defensive driving course. However, this discount is only available to drivers who are at least 55 years old.
Build and improve your credit
Because your credit history is correlated with your likelihood of filing an insurance claim, American Family uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.
Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your American Family premium.
Drive an insurance-friendly car
Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from American Family to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.
Sign up for KnowYourDrive
KnowYourDrive, the American Family telematics program miles driven, speed, acceleration, braking, distracted driving, and the time of day that you drive, rewards you for good driving with a discounted premium. Specifically, KnowYourDrive tracks miles driven, speed, acceleration, braking, distracted driving, and the time of day that you drive. By using KnowYourDrive, drivers can save up to 20% on their rate.
Finally, if you’re still struggling to afford your American Family policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.
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