Candace Baker, Car Insurance Writer
@candacebaker
American Family is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $665 per year, the average American Family car insurance premium is actually about the same as the national average of $671 per year.
Even though American Family offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. For example, teenagers pay an average of $2,610 per year for American Family insurance, compared to $722 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $788 per year for American Family coverage, which is 18% more than drivers with a clean record.
Factors That Can Make American Family Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you’re having trouble affording your American Family insurance, there are ways for you to lower your premium. For example, you can take advantage of American Family discounts or reduce your coverage.
Sometimes, it might be a good idea to switch insurers altogether. To see if you can find a better deal elsewhere, you should compare quotes from at least three different insurers. Each insurer uses its own algorithm to calculate premiums, so even if American Family is charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub’s American Family insurance review.
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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.
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