Which Is Better in 2022?

Christel Deskins

Allstate Pros & Cons Pros: Ranks higher for claims handling than American Family Offers a wide selection of policy discounts Cons: Rates are relatively high Ranks poorly for customer service and customer loyalty American Family Pros & Cons Pros: Ranks well for customer loyalty and likelihood to recommend Has lower […]

Pros:

  • Ranks higher for claims handling than American Family

  • Offers a wide selection of policy discounts

Cons:

  • Rates are relatively high

  • Ranks poorly for customer service and customer loyalty

Pros:

  • Ranks well for customer loyalty and likelihood to recommend

  • Has lower rates after a DUI than the national average

  • Offers a wide array of discounts

Cons:

  • Rates are higher than the national average

  • Few customers were “very satisfied” with the company’s claims handling process

Allstate

American Family

Overall, American Family ranks better than Allstate when it comes to car insurance. In fact, based on the available data, it’s a cheaper option for both the average driver and every demographic we looked at — including those with a DUI. American Family’s car insurance also ranked higher, in general, for customer satisfaction than Allstate. However, it’s worth calling out that Allstate’s auto insurance does have better scores when it comes to claims handling, and very few of the respondents said they were “very satisfied” with the claims process at American Family.

Despite American Family’s lower rates, it still generally charges more than the national average in most cases. The exception here is for those who have a DUI on their driving record. In that case, drivers could stand to save more by going with American Family which offers rates that are below the national average.

That said, both companies have a wide variety of discount options available to help control costs. Because rates can vary widely depending on many factors, like the age, driving history, and location of the driver, as well as desired coverage amounts, it’s always best to get a quote to best understand your individual options.

American Family Is Better for Customer Service

Overall, American Family scored higher for customer service than Allstate. For example, when you look at those who had filed a claim, 56% gave a ranking of five — indicating that they were completely satisfied — for the customer service they received with Allstate. Meanwhile, 59% gave the same ranking to American Family. Interestingly, the margin is much closer when you look at the ease of filing a claim. Approximately 58% said they were completely satisfied with the ease of filing with Allstate, while 59% said the same for American Family.

Allstate Is Better for Claims Handling

Allstate scores higher than American Family when it comes to the claims process. For example, about 53% of respondents said they were completely satisfied with how Allstate resolved their auto insurance claim while just 6.9% gave the same rating to American Family. Allstate also scored better when it comes to updates received during the claims handling process. About 45% said they were completely satisfied with American Family’s updates while 49% gave that rating to Allstate.

American Family Is Better for Customer Loyalty

American Family greatly outranks Allstate when it comes to customer loyalty for car insurance. For instance, among the top eight companies, Allstate ranked last for customer loyalty and the likelihood of being recommended, but American Family ranked third in both categories. About 55% of those who had filed a claim with American Family said they were very likely to renew their auto insurance policy, but just 40% who had a policy with Allstate said the same.

American Family has a lower average rate ($1,451) for auto insurance than Allstate ($1,788). However, it’s important to note that both of those figures are above the national average cost of car insurance, which is $1,321. Auto insurance premiums can vary depending on the driver’s unique situation. For example, your zip code, driving record, and age can all impact how much you pay for coverage. So these average figures may not directly reflect what you end up paying for car insurance.

American Family Is Cheaper for Teen Drivers

Company 17-Year-Old Females 17-Year-Old Males
Allstate $5,785 $6,612
American Family $4,043 $4,487
National Average $4,516 $5,140

For teen drivers, American Family tends to be the less expensive option. In fact, you’ll find better rates with this company than the national average rate for this demographic.

American Family Is Cheaper for Young Adults

Company 25-Year-Old Females 25-Year-Old Males
Allstate $1,920 $1,994
American Family $1,659 $1,760
National Average $1,488 $1,555

Although American Family’s rates for young adults are cheaper than those you’ll find with Allstate, they are still above the national average. For context, American Family’s rates for 25-year-old drivers are on the high end among the top eight ranking car insurance companies, while Allstate has the highest rates of all for this demographic.

American Family Is Cheaper for Adults

Company 35-year-old Females 35-year-old Males
Allstate $1,760 $1,740
American Family $1,354 $1,393
National Average $1,274 $1,278

Both American Family and Allstate have rates that are higher than the national average for 35-year-old drivers. Out of the two companies, American Family’s rates are more affordable, and Allstate’s rates for this demographic are the most expensive out of the top insurance companies.

American Family Is Cheaper for Seniors

Company 60-year-old Females 60-year-old Males
Allstate $1,635 $1,680
American Family $1,272 $1,273
National Average $1,150 $1,183

Senior drivers tend to have the lowest rates for car insurance coverage. But, compared to the national average, both American Family and Allstate charge more to insure these drivers. However, American Family’s rates are closer to the average, and therefore are more affordable in general.

American Family Is Cheaper for Drivers With Poor Credit

Company Average Annual Rate
Allstate $2,774
American Family $2,349
National Average $2,228

Drivers with poor credit who are insured through either American Family or Allstate tend to pay above the national average rate. Again, though, Allstate’s rates are substantially higher than the ones you’d find with both American Family and the other top-ranking insurance companies.

American Family Is Cheaper for Good Drivers

Company Average Annual Rate
Allstate $1,788
American Family $1,452
National Average $1,321

If you have a clean driving record, you’d stand to save more money by going with American Family’s car insurance over Allstate. Allstate will charge more, on average, than any other top-ranking auto insurance company.

American Family Is Cheaper for Drivers With a Speeding Ticket

Company Average Annual Rate
Allstate $2,035
American Family $1,628
National Average $1,604

American Family charges less for those who have a speeding ticket on their driving record than Allstate. The former’s rates are also more comparable to the national average rate for this demographic.

American Family Is Cheaper After an Accident

Company Average Annual Rate
Allstate $2,514
American Family $1,657
National Average $1,873

Diverging from the pattern, American Family’s rates for car insurance among those who have an accident on their driving record are lower than the national average. Allstate is the most expensive option for these drivers, as compared to the other top-ranking companies.

American Family Is Cheaper After a DUI

Company Average Annual Rate
Allstate $2,625
American Family $1,716
National Average $2,112

While a DUI will increase your car insurance rates, American Family’s rates for this demographic are below both the rates you’ll find with Allstate and the national average. For context, American Family’s rates for those with a DUI are slightly lower than Allstate’s rates for those with a clean driving record.

American Family Is Cheaper for High Coverage

Company Average Annual Rate
Allstate $1,892
American Family $1,462
National Average $1,397

While American Family’s rates for high coverage are lower than you’d find with Allstate, they’re still above the national average. Allstate charges the highest rate for this kind of coverage out of the top-ranking companies.

American Family Is Cheaper for Minimum Coverage

Company Average Annual Rate
Allstate $1,683
American Family $1,403
National Average $1,248

Allstate charges more for minimum coverage than American Family, but both companies’ rates exceed the national average. For context, some of the companies which charge the least for this type of coverage have rates that hover around just $1,000.

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Both Allstate and American Family offer a wide variety of car insurance discounts. For example, you can find multi-policy discounts, good or safe driving discounts — for those with a clean driving record — and good student discounts with both companies. Those with American Family auto insurance who enroll in the Know Your Drive program can save up to 20% of coverage. About 37% of those with Allstate said they were completely satisfied with the discounts offered by Allstate, and about 44% of those with American Family gave the same rating.

This table shows the discounts offered by each company. Some discounts may not be offered in every state. The easiest way to figure out which discounts you qualify for is by completing an online quote or speaking with an insurance agent.

Discount Type Allstate American Family
Customer Loyalty No Yes
Student/Good Student Yes Yes
Student Away From Home/Storage Yes Yes
Bundling/Multi-policy Yes Yes
Multi-vehicle Yes Yes
Good Driver/Clean Record Yes Yes
Defensive Driving Course Yes Yes
Employer/Affinity Group No Yes
Teacher No No
Military Yes Yes
New car/Safety/Anti-theft Equipment Yes Yes
Low Mileage No Yes
Paperless/Online Billing Yes Yes
Auto-pay/Pay-up-front Yes Yes
Tracking Device Program Yes Yes

Regardless of the company you go with, you’ll be able to find options with at least the minimum coverages required by your state. Depending on where you live, that may include liability coverage to help pay for potential damages to another driver if they are injured during an accident involving your vehicle. Those who go with American Family auto insurance have coverage options suitable for the average driver as well as teen drivers and those with classic cars. But the options are slightly wider with Allstate insurance, which also has policies designed for those driving to Mexico. The best car insurance policy for you will depend on your coverage needs.

Can I Buy Allstate and American Family Car Insurance Online?

Both Allstate and American Family auto insurance let you get a rate quote online. Once you’ve decided on an insurance company, you may have to get in touch with an agent to finalize your policy, which can generally be done via email. Both companies also offer an app where you can manage your car insurance policy.

How Do Allstate and American Family Compare to Other Car Insurance Companies?

Both Allstate and American Family auto insurance had lower scores than most of the best car insurance companies when it comes to customer service, and their annual rates tend to cost more than the national average. Allstate is the most expensive option compared to the cheapest car insurance companies, while American Family was the third-highest cost option. However, American Family did rank well when it comes to the likelihood to renew, another indication of customer satisfaction. It landed the second-best spot on our list while Allstate ranked last.

Who Should Get Allstate Car Insurance?

If you can take advantage of Allstate’s multi-policy discount and strongly value the claims handling process, the company may be a good option for you. It may also be a solid option if you’re planning a road trip to Mexico sometime soon.

Who Should Get American Family Car Insurance?

High-risk drivers, like those with an accident or DUI on their driving record, may benefit from a car insurance policy with American Family as the company’s rates for those demographics are below the national average. That’s especially true if you have other insurance policies with the company and can take advantage of the multi-policy discount.

What Other Types of Insurance Does Allstate Offer?

What Other Types of Insurance Does American Family Offer?

In addition to car insurance, American Family also has renters, umbrella, life, business, RV, ATV, health, travel, and homeowners insurance options available for purchase, among other policy types. So there are more options available with American Family than you’d find with Allstate.

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Best Car Insurance Rankings.

We surveyed 4,806 consumers who filed a car insurance claim or started a new auto insurance policy in the last five years, asking questions about their car insurance company. Of the survey respondents, 180 filed a claim with Allstate and 197 started a policy with Allstate, while 70 filed a claim with American Family and 91 started a policy with American Family. These questions covered satisfaction with the ease of filing a claim, customer service, claim status communication, claim resolution, and overall value. In general, questions for consumers who have filed a claim were given more weight than questions for consumers who have only opened a policy. We also asked whether they’d recommend the company and if they planned to renew their policy. We used their responses to build our Best Car Insurance Companies Rankings, as well as our subrankings for best customer service, claims handling, and customer loyalty, and this head-to-head comparison.

Our Study Rates

To get comparative insurance rates for this study, U.S. News also worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes.

To get the study rates shown here, we computed the mean rate for male and female drivers aged 17, 25, 35, and 60 who drive 12,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.

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