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.
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 insurance company.
To learn more, check out WalletHub's American Family insurance review.
This answer was first published on 10/18/23 and it was last updated on 03/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
