American Family vs. Geico: Best Car Insurance for 2024
Comparing the car insurance giants, our guide dissects American Family and Geico to determine the superior choice for your coverage needs, scrutinizing factors such as age, driving record, credit score, and discounts to help you make an informed decision.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Nov 13, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 13, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Choosing the right provider can significantly impact your financial well-being. Our comprehensive analysis of American Family and Geico delves into the intricate details of rates, dissecting factors such as credit score, mileage, coverage level, and driving record. The ensuing subheadings succinctly reveal key insights, guiding readers to discern which company emerges as the most cost-effective option tailored to diverse customer profiles. Whether you’re scrutinizing rates based on credit history or seeking optimal coverage for varying driving records, our data-driven guide is your compass in navigating the nuanced realm of car insurance.
| Factor | American Family | Geico |
|---|---|---|
| Clean Record | $117 | $80 |
| 1+ Ticket | $136 | $106 |
| 1+ Accident | $176 | $132 |
| DUI | $194 | $216 |
| Poor Credit | $201 | $138 |
*monthly rates are based on an average of minimum and full coverage for a 45-year-old male driver
| Discount | American Family | Geico |
|---|---|---|
| Anti Theft | 15% | 15% |
| Good Student | 20% | 12% |
| Low Mileage | 10% | 23% |
| Paperless | 5% | 8% |
| Safe Driver | 45% | 10% |
| Senior Driver | 10% | 22% |
American Family:
Pros:
- Competitive Rates for Drivers with Speeding Tickets and Accidents
- Leniency towards DUI Offenses
- Favorable Rates for Older Drivers
Cons:
- Higher Rates for Drivers with Poor Credit
- Limited Discounts Compared to Geico
- Potentially Higher Premiums for Younger Drivers
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Geico:
Pros:
- Affordable Rates for Young Drivers
- Extensive Discount Options, Including Military and Anti-Theft
- Competitive Rates for Clean Driving Records
Cons:
- Higher Rate Increases for Serious Driving Offenses
- Less Leniency for DUI Offenses Compared to American Family
- Potential Rate Hikes for Drivers with Poor Credit
Conclusion: Geico Stands Out as the Top Choice
After a meticulous examination of both American Family and Geico, it is evident that Geico emerges as the superior choice when considering various factors such as rates, coverage options, and customer satisfaction.
Geico’s Competitive Edge in Rates: Geico consistently offers more competitive rates across different demographics. Notably, for young drivers, Geico’s rates are substantially lower, making it a clear winner for families with teen drivers. The advantage extends to individuals with speeding tickets or accidents on their record, where Geico outshines American Family with lower rates.
Geico’s Flexible and Generous Discounts: In the realm of discounts, Geico takes the lead with an extensive array of offerings, including those for anti-theft devices, vehicle recovery, military deployment, and more. While American Family provides some discounts, Geico’s variety and generosity give policyholders more opportunities to save on their premiums.
Geico’s Tech-Savvy Approach and Usage-Based Apps: Geico showcases innovation with its usage-based driving app, a feature that American Family lacks. This technological advancement not only provides a potential avenue for additional discounts but also reflects Geico’s commitment to staying at the forefront of the industry.
Financial Strength and Customer Satisfaction: Both companies exhibit commendable financial strength, with Geico earning the highest rating possible from A.M. Best. However, when considering customer satisfaction and complaint ratios, Geico maintains an edge, indicating a smoother claims process and higher overall customer contentment.
While American Family has its merits, Geico’s consistently competitive rates, extensive discounts, technological innovation, and positive customer feedback position it as the best overall choice. Geico stands out as the insurance provider that not only meets but exceeds expectations across various criteria, making it the top recommendation for individuals seeking reliable and cost-effective car insurance coverage.
Read more: Farmers vs. Geico: Best Car Insurance
Is American Family or Geico car insurance cheaper based on age?
Age is one of the most important factors in determining your car insurance rates. As we age, we drive more, so we become more practiced, aware, and safer.
In some states, it is legal to also use gender and marital status to determine the lowest car insurance rates, but other states have outlawed it. Take a look at the comparison of American Family and Geico insurance rates based on age, gender, and marital status.
American Family vs. Geico Average Annual Car Insurance Rates by Age, Gender, and Marital Status
| Age, Gender, and Marital Status | American Family Average Annual Rates | Geico Average Annual Rates |
|---|---|---|
| Single 17-year-old female | $5,997 | $5,654 |
| Single 17-year-old male | $8,131 | $6,279 |
| Single 25-year-old female | $2,289 | $2,379 |
| Single 25-year-old male | $2,695 | $2,263 |
| Married 35-year-old female | $2,203 | $2,303 |
| Married 35-year-old male | $2,224 | $2,312 |
| Married 60-year-old female | $2,203 | $2,303 |
| Married 60-year-old male | $2,224 | $2,312 |
The majority of car insurance companies will charge high rates for male drivers, especially teens. Surprisingly though, Geico rates for teen males are 23 percent cheaper than American Family’s rates. Additionally, rates for teen females are 6 percent cheaper than American Family’s.
Car insurance rates for single 25-year-old males are 16 percent cheaper with Geico than American Family. Geico is definitely the best choice over American Family if you have a young driver in your family.
American Family and Geico car insurance rates are competitive for other age and gender categories.
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Is American Family or Geico car insurance cheaper based on driving record?
If you have a not-so-great driving record, it doesn’t matter what company you choose; you will always pay higher rates than drivers with a clean record. But, some companies offer discounts to help offset the higher rates.
American Family vs. Geico Average Annual Car Insurance Rates by Driving Record
| Driving Record | American Family Average Annual Rates | Geico Average Annual Rates |
|---|---|---|
| Clean record | $2,694 | $2,146 |
| With one speeding violation | $3,026 | $2,645 |
| With one accident | $3,723 | $3,193 |
| With one DUI | $4,330 | $4,876 |
American Family’s car insurance rates are about $500 higher than Geico’s car insurance rates for drivers with a speeding ticket or accident on their record. However, American Family is more lenient on drivers that have a DUI on their record.
Read more: How long does a ticket stay on your record?
Geico’s rates increase more drastically as a driver gets more serious charges. This could be because Geico was originally for government employees, so, naturally, there are greater penalties for breaking laws.
In fact, when compared to a driver with a clean record, drivers that choose Geico will have rates that increase by 50 percent if they cause an accident, and drivers with Geico that get a DUI will pay well over double that of a driver with a clean record.
To compare rates from top-rated insurance companies near you, enter your ZIP code here.
Is American Family or Geico car insurance cheaper based on credit score?
Sadly, and too often, bad things happen to good people when it comes to finances. A good credit score can plummet in a matter of a few months if you are a victim of financial trauma such as a divorce or medical challenges.
Also sad, the lower your credit score the higher your car insurance rates.
You may be thinking, “that’s not fair!” You aren’t the only one.
Car insurance companies assume that drivers with good credit are less likely to file a claim and are overall more responsible and safer drivers.
The good news is, along with gender and marital status, several states have banned basing rates on credit score. Let’s take a look at how American Family and Geico handle drivers with good, fair, and poor credit scores.
American Family vs. Geico Average Annual Car Insurance Rates by Credit Score
| Credit History Summary | American Family Average Annual Rates | Geico Average Annual Rates |
|---|---|---|
| Good Credit (670-739) | $2,692 | $2,435 |
| Fair Credit Score (580-669) | $3,170 | $2,987 |
| Poor Credit Score (300-579) | $4,468 | $4,260 |
Overall, based on credit score, Geico’s car insurance rates are cheaper than American Family’s car insurance rates. However, Geico is more punitive when it comes to the difference in rates for a driver with a not-so-great credit history.
Geico rates increase by 23 to 75 percent for those with a fair or poor credit score. American Family rates increase by only 18 to 66 percent.
Geico is a better option, initially, if you have bad credit. But, if you go with Geico, expect your rates to skyrocket if you experience financial trauma.
Use your Geico login to review your rates every six months. If you see a dramatic increase due to credit score, it may be a good idea to switch companies.
It’s possible, however, that your state has already outlawed basing car insurance rates on credit score. To know for sure, compare rates from a variety of companies by reading yourstate car insurance guide.
Does American Family or Geico have better car insurance discounts?
Our information source provides only three American Family car insurance discounts. Geico offers 14 discounts and gives a better discount for having air bags, which is the only discount American Family and Geico have in common.
Read more: How do airbags deploy?
American Family vs. Geico Discounts
| Discounts | American Family | Geico |
|---|---|---|
| Anti-lock Brakes | N/A | 5 |
| Anti-Theft | N/A | 25 |
| Claim Free | N/A | 26 |
| Daytime Running Lights | N/A | 1 |
| Defensive Driver | 10 | N/A |
| Driving Device/App | 40 | N/A |
| Emergency Deployment | N/A | 25 |
| Federal Employee | N/A | 8 |
| Good Student | N/A | 15 |
| Military | N/A | 15 |
| Multiple Policies | N/A | 10 |
| Multiple Vehicles | N/A | 25 |
| Passive Restraint | 30 | 40 |
| Safe Driver | N/A | 15 |
| Seat Belt Use | N/A | 15 |
| Vehicle Recovery | N/A | 25 |
Read more: What to Do if Your Airbags Deployed in an Accident
Geico’s best discounts are for anti-theft devices, vehicle recovery, being claim-free, insuring multiple vehicles, and if you are in the military and are urgently deployed. There are two discounts American Family has that Geico does not: completing a defensive driving course and utilizing its mobile driving app or device.
If you do choose American Family, be sure to use your American Family insurance login to review discounts regularly. Companies are always offering promotions even to current customers.
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Does American Family or Geico have the better car insurance app?
Most of the larger car insurance companies offer two different apps. One is a general app you can use to manage your policy, pay your bill, or show electronic verification of coverage which is permitted in most states. The other app is a driving app that uses your mobile phone to record your driving habits, or the company may have you install a device into your vehicle to record your driving habits.
Geico was the last of the top 10 car insurance companies to create and offer a usage-based driving app, so it is still doing some testing. This may mean you get an even bigger discount, so it never hurts to ask when you are getting your Geico quote.
Read about American Family’s KnowYourDrive and Geico’s DriveEasy usage-based car insurance apps in our American Family company review and our Geico company review.
How do American Family and Geico car insurance compare in financial strength and customer satisfaction?
Getting a great car insurance rate is something to celebrate, especially if you get to take advantage of multiple discounts. But just as important as finding the very best rate is a company’s financial strength, customer satisfaction with the claims process, and customer complaints.
The following three credible and trustworthy agencies provide insight into these factors:
A.M. Best scores companies based on their ability to meet their ongoing insurance obligations such as balancing premiums collected and claims paid. The highest score A.M. Best awards is Superior A++.
Consumer Reports collects annual data from its subscribers regarding customer satisfaction of the claims process, step by step. In their 2017 survey, 27 insurance companies were rated, and scores ranged between 86 to 96.
And the National Association of Insurance Commissioners (NAIC) calculates a complaint ratio based on the total number of customers against the total number of complaints. In 2017, the national average complaint ratio was 1. The lower the ratio, the better.
American Family vs. Geico Ratings
| Agencies | American Family Ratings | Geico Ratings |
|---|---|---|
| AM Best | A (Excellent) | A++ (Superior) |
| Consumer Reports | 89 | 89 |
| NAIC Complaint Ratio | 0.79 (total of 73 complaints) | 0.68 (total of 333 complaints) |
Both American Family and Geico have positive feedback from customers who go through the claims process. Geico’s customer services are also top-rated. Both companies also do well with managing customer complaints. Also, both companies have great financial strength ratings. Geico holds the highest rating possible from A.M. Best.
Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have.
Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”
Read more:
- American Family Insurance Company Car Insurance Review
- American Family Home Insurance Company Car Insurance Review
Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!
Before you buy car insurance, use our free comparison tool to compare affordable car insurance companies in your area.
Frequently Asked Questions
Which factors affect car insurance rates, and how do American Family and Geico compare in terms of rates for different demographics?
Car insurance rates are influenced by factors such as age, driving record, credit score, and more. In the comparison between American Family and Geico, Geico stands out for offering more competitive rates across various demographics, including lower rates for young drivers and individuals with speeding tickets or accidents on their record.
What discounts do American Family and Geico offer, and how do they differ in terms of discount variety and generosity?
Geico takes the lead in the discount department, offering a wide range of discounts such as anti-theft devices, vehicle recovery, military deployment, and more. While American Family provides some discounts, Geico’s variety and generosity give policyholders more opportunities to save on their premiums.
How do American Family and Geico handle car insurance rates based on factors like age, gender, and marital status?
Geico generally offers more favorable rates for certain demographics, especially young drivers. For instance, Geico’s rates for teen males are 23 percent cheaper than American Family’s rates, making it a preferred choice for families with teen drivers.
Does credit score impact car insurance rates, and how do American Family and Geico compare in terms of rates based on credit history?
Credit score plays a role in determining car insurance rates, and Geico generally offers cheaper rates than American Family. However, it’s important to note that Geico may be more punitive with rate increases for drivers with fair or poor credit, making it crucial for individuals to regularly review their rates and consider switching companies if needed.
What technological features and innovations do American Family and Geico offer, and how does this impact the overall customer experience?
Geico showcases innovation with its usage-based driving app, a feature that American Family lacks. This technology not only provides a potential avenue for additional discounts but also reflects Geico’s commitment to staying at the forefront of the industry, contributing to a tech-savvy and customer-friendly experience.
Compare quotes from the top car insurance companies and save
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.