American Family vs. USAA Car Insurance (2021)

If you are comparing American Family vs. USAA, look at more than just price. Always inquire as to any and all discounts you can receive that are applicable to your life. With that being said, we're going to compare not just these two companies' prices, but also their discounts and how well-reviewed they are. Before you buy auto insurance from one of these or any other companies, compare quotes for the best deal.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Feb 6, 2021

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The Highlights

  • Both companies are well-reviewed by A.M. Best.
  • USAA offers more competitive pricing in most states.
  • Both companies offer discounts.

If you’re here, you’ve probably begun the process of finding your first, or next, insurer. To help simplify matters today, we’ll be comparing USAA Insurance and American Family Insurance. We’ll get into more details about American Family vs. USAA.

For instance, you may be wondering “what does USAA stand for?” Well, to answer that question, it stands for United Services Automobile Association. If you’d like to learn more about this company in particular, read our USAA Insurance Review.

Before we get into the details, feel free to use our easy and helpful tool above simply by typing in your ZIP code to find affordable auto insurance quotes in your area.

What can USAA do for you?

Let’s start with something that’s probably pretty important to you: pricing structure. Let’s take a look at a table that shows rates for the 10 main insurers in the country in each and every state.

State By State Average Annual Car Insurance Rates Comparison for Top 10 Companies
StateAllstate Average Annual RatesAmerican Family Average Annual RatesFarmers Average Annual RatesGeico Average Annual RatesLiberty Mutual Average Annual RatesNationwide Average Annual RatesProgressive Average Annual RatesState Farm Average Annual RatesTravelers Average Annual RatesUSAA Average Annual Rates
Alaska$3,145.31$4,153.07$2,879.96$5,295.55$3,062.85$2,228.12$2,454.21
Alabama$3,311.52$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Arkansas$5,150.03$4,257.87$3,484.63$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
Arizona$4,904.10$5,000.08$2,264.71$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
California$4,532.96$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77$3,338.87
Connecticut$5,831.60$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
District of Columbia$6,468.92$3,692.81$4,848.98$4,970.26$4,074.05$2,580.44
Delaware$6,316.06$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
Florida$7,440.46$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67$2,850.41
Georgia$4,210.70$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88$3,157.46
Hawaii$2,173.49$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28$1,189.35
Iowa$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Idaho$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19$1,867.96$3,226.29$1,877.61
Illinois$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35$3,898.00$2,408.94$3,393.75$1,630.86
Kansas$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Kentucky$7,143.92$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,998.79$6,154.60$7,471.10$4,579.12$4,353.12
Maine$3,675.59$2,770.15$2,823.05$4,331.39$3,643.59$2,198.68$2,252.97$1,930.79
Maryland$5,233.17$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87$2,744.14
Massachusetts$2,708.53$1,510.17$4,339.35$3,835.11$1,361.86$3,537.94$1,458.99
Michigan$22,902.59$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49$2,066.99$2,861.60
Missouri$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91$2,525.78
Mississippi$4,942.11$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
Montana$4,672.10$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74$2,031.89
North Carolina$7,190.43$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66
North Dakota$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53$2,006.80
Nebraska$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71$2,330.78
New Hampshire$2,725.01$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46$1,906.96
New Jersey$5,713.58$7,617.00$2,754.94$6,766.62$3,972.72$7,527.16$4,254.49
New Mexico$4,200.65$4,315.53$4,458.30$3,514.38$3,119.18$2,340.66$2,296.77
Nevada$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
New York$4,740.97$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
Ohio$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oklahoma$3,718.62$4,142.40$3,437.34$6,874.62$4,832.35$2,816.80$3,174.15
Oregon$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Pennsylvania$3,984.12$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$4,959.45$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
South Carolina$3,903.43$4,691.85$3,178.01$3,625.49$4,573.08$3,071.34$3,424.77
South Dakota$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23
Tennessee$4,828.85$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Texas$5,485.44$4,848.72$3,263.28$3,867.55$4,664.69$2,879.94$2,487.89
Utah$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83$2,491.10
Virginia$3,386.80$2,061.53$2,073.00$2,498.58$2,268.95$1,858.38
Vermont$3,190.38$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84$1,903.55
Washington$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78$2,262.16
West Virginia$3,820.68$2,120.80$2,924.39$2,126.32$1,984.62
Wisconsin$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53$2,975.74
Wyoming$4,373.93$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55$2,779.53
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Take note of the difference between American Family’s prices and USAA’s. Occasionally, USAA is more expensive than American Family, like in Kansas.

However, the vast majority of the states show that USAA is substantially cheaper than American Family as well as numerous other shown companies. For instance, look at Idaho, where USAA is about a whopping 50 percent cheaper than American Family.

Speaking of price, always accumulate as many special car insurance discounts as you can. In the age of COVID-19, you may be working from home. Inform your insurance agent of this and see if they have a program to lower your rates since you’ll be on the road less. Does USAA offer auto insurance discounts like this?

They do! USAA will give a discount on premiums based on the number of miles the insured drives in a given year. All you have to do is be age 29 or above and plug a USAA-provided device into your vehicle.

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What can American Family Insurance do for you?

Another way to analyze a company’s pricing structure is to compare its rates to the state average. Let’s take a look at a table to see if American Family Insurance‘s rates are better than your state’s average.

American Family Average Annual Car Insurance Rates Compared to State Average
StateAmerican Family Average Annual RatesState Average Annual RatesHigher/Lower ($) Than State Average Annual RatesHigher/Lower (%) Than State Average Annual Rates
Alaska$4,153.07$3,421.51$731.5517.61%
Colorado$3,733.02$3,876.39-$143.37-3.84%
Iowa$3,021.81$2,981.28$40.531.34%
Idaho$3,728.79$2,979.09$749.7020.11%
Illinois$3,815.31$3,305.48$509.8213.36%
Indiana$3,679.68$3,414.97$264.717.19%
Kansas$2,146.40$3,279.62-$1,133.22-52.80%
Minnesota$3,521.29$4,403.25-$881.97-25.05%
Missouri$3,286.90$3,328.93-$42.03-1.28%
North Dakota$3,812.40$4,165.84-$353.44-9.27%
Nebraska$2,215.13$3,283.68-$1,068.55-48.24%
Nevada$5,441.18$4,861.70$579.4810.65%
Ohio$1,515.17$2,709.71-$1,194.54-78.84%
Oregon$3,527.28$3,467.77$59.511.69%
South Dakota$4,047.47$3,982.27$65.201.61%
Texas$4,848.72$4,043.28$805.4416.61%
Utah$3,698.77$3,611.89$86.882.35%
Washington$3,713.02$3,059.32$653.7017.61%
Wisconsin$1,513.27$3,606.06-$2,092.80-138.30%
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All in all, it’s pretty hit or miss. On the plus side, however, in the states where American Family is cheaper than the state average, it can be much cheaper. Take a look at Wisconsin, where American Family is a staggering 138% cheaper than the state average.

Remember how we discussed accumulating discounts? One such discount from American Family is the Dreams Restored Program.

This program finds the cheapest auto body shop located within your area, should the need arise.

How are USAA and American Family rated?

When you’re trying to decide if a company is right for you, you want to know that they’re going to be around for the long haul.

A good way to know this is to look at the reviews given by A.M. Best and the Better Business Bureau. Let’s take a look at a table showing these ratings for American Family, including some consumer complaint data.

American Family Car Insurance Company Ratings
Ratings AgencyAmerican Family Ratings
A.M. BestA
Better Business BureauA
Moody'sN/A
S&PN/A
NAIC Complaint Index0.69
JD PowerClaims Satisfaction 3/5
Shopping Study 4/5
Consumer Reports89
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As you can see, both A.M. Best and the BBB gave American Family an A rating. Not too shabby, right? Let’s see how USAA measures up.

USAA Company Ratings
AgencyRatings
AM BestA++
Better Business Bureau (San Antonio Headquarters)B-
Moody'sAaa
S&PAA+
NAIC Complaint Index (2017)0.75 (below the national average of 1.0)
JD Power5 out of 5 stars for overall claims satisfaction
Consumer Reports95 out of 100
Consumer Affairs1 1/2 out of 5 stars based on 266 ratings
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As you can see, USAA scored a terrific A++ rating from A.M. Best. This is highly encouraging. However, the Better Business Bureau gave them a suboptimal rating of B-.

This all goes to show that you need to be thorough when comparing and contrasting companies. And, again, we want to stress how important it is that you ask questions about discounts. Any discount you think could apply to you, get.

Get a start on finding appealing auto insurance rates by typing your ZIP code into our free and helpful tool below. Which auto insurance company is for you? Find out now.

Are you looking for free insurance quotes?

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