American Family is so expensive because of agent commissions and rising costs overall for insurance companies. At $903 per year, the average American Family car insurance policy is more expensive than the national average of $720 for a policy with minimum coverage.
American Family insurance is even more expensive for drivers with certain characteristics, including young drivers and drivers who have recently caused an accident. For example, teenagers pay an average of $4,111 for American Family insurance, compared to $989 for older drivers. Additionally, drivers who have recently had an at-fault accident pay an average of $1,121 for American Family coverage, which is 24% more than drivers with a clean record.
Factors That Can Make American Family Insurance More Expensive
- Commissions for agents
- Rising costs overall for insurance companies
- 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 struggling to afford your American Family policy, there are ways for you to lower your rate. For example, you can take advantage of American Family discounts or reduce your coverage. In some cases, it might be better to switch insurers altogether. It’s usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. 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 insurer.
To learn more, check out WalletHub’s American Family insurance review.
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