American Family vs. GEICO Car Insurance for 2021
Our American Family vs. GEICO car insurance guide will help you decide between two great insurance companies. Both companies have competitive rates; however, American Family is better than GEICO for drivers with speeding tickets, accidents, DUIs, and shifting credit scores. American Family insurance ratings are high from NAIC and A.M. Best, but GEICO carries the highest rating possible from A.M. Best.
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Written by
D. Gilson, PhD
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Reviewed by
Jeffrey Johnson
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UPDATED: Jul 2, 2021
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- Both American Family and GEICO have great customer satisfaction and low customer complaint ratios.
- GEICO has the highest possible financial strength rating from A.M. Best, and American Family has better rates for drivers with a poor driving record.
- GEICO has cheaper car insurance rates overall than American Family — but not by much.
- American Family premiums decrease at a slower rate than GEICO based on credit history.
- GEICO offers more discounts than American Family, though American Family has lower car insurance rates across the board.
American Family, abbreviated as AmFam, and GEICO are both reputable companies with stable financial strength. But which is better for you and your personal situation?
Overall car insurance rates between the two companies don’t differ much; however, penalties for a bad driving record or poor credit score differ greatly. GEICO is also defying the assumption that young males are worse drivers.
In our American Family vs. GEICO car insurance guide, we compare rates by age, driving record, credit score, and other factors that affect the cost of car insurance.
We compare available discounts and GEICO and American Family ratings from agencies with a credible and trustworthy view of car insurance companies.
Read our guide before you buy American Family or GEICO car insurance. If you’re ready now, enter your ZIP code to start comparing affordable car insurance quotes from companies in your local area.
Table of Contents
Is American Family car insurance or GEICO car insurance cheaper based on age?
Age is one of the biggest factors in determining your car insurance rates, and rightfully so — as we age, we drive more, so we become more practiced, aware, and safer.
Take a look at a comparison of American Family insurance rates and GEICO insurance rates based on 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 |
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The majority of car insurance companies will charge more for male drivers, especially teens. GEICO is definitely an excellent choice over American Family if you have a teen (specifically male) driver in your household.
At GEICO, car insurance rates for teen males are 23% cheaper than American Family, and rates for single, 25-year-old males are 16% cheaper.
Overall, American Family vs. GEICO car insurance rates are fairly competitive for other age and gender groups.
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Is American Family car insurance or GEICO car insurance cheaper based on driving record?
If you have a record of infractions such as speeding tickets, accidents, or DUIs, it doesn’t matter what company you choose; you will always pay higher rates than drivers with a clean record. Be sure to look into discounts to offset your high rate.
| 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 |
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American Family auto insurance policy rates are around $500 higher than GEICO car insurance rates for a speeding ticket or accident. However, American Family is more forgiving for drivers that incur a DUI.
GEICO auto insurance policy rates increase more dramatically with more serious infractions. We figure this is 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, GEICO penalizes drivers that cause an accident with a 50% increase in rates, and drivers with GEICO that get a DUI will pay well over double that of a driver with a clean record.
Is American Family car insurance or GEICO car insurance cheaper based on credit score?
Unfortunately, auto insurance companies assume that drivers with bad credit are more likely to file a claim. The good news is several states have passed bills making it illegal for car insurance companies to base rates on credit score.
Let’s take a look at how American Family and GEICO handle drivers with good, fair, and poor credit scores.
| 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 |
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Overall, GEICO car insurance rates are cheaper than American Family car insurance rates based on credit score. However, GEICO is harsher when it comes to the difference in rates for a driver with fair or poor credit.
American Family rates increase by 18%-66% the worse the credit score. Alternatively, GEICO rates increase by 23%-75% for those with a fair or poor credit score.
No matter what your credit score is, GEICO is a better option overall. But, if you choose GEICO and you experience financial trauma, expect your rates to skyrocket. If that happens, it may be a good idea to change companies.
Does American Family or GEICO have better car insurance discounts?
Our data source shows only three discounts offered by American Family. GEICO offers 14 discounts and gives a bigger discount for having airbags which is the only discount American Family and GEICO share.
| 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 |
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If you are considering GEICO and have a bad driving record or a poor credit score, you should rely heavily on GEICO car insurance discounts. Some of GEICO’s highest discounts are on 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 car insurance discounts American Family offers that GEICO does not: 1) completing a defensive driving course, and 2) using the American Family mobile app or device to track driving habits.
The discounts provided by car insurance companies also target particular categories of drivers, so be sure to inquire if there are any extra discounts by calling American Family or GEICO customer service at the American Family or GEICO insurance phone number.
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Does American Family or GEICO have better car insurance mobile apps?
Most of the bigger car insurance companies have two different types of apps. One is a general app used to show electronic verification of coverage, pay your bill, or adjust your coverage levels. Before making adjustments, make sure you understand the different types of auto insurance coverage.
The driving app may use your mobile phone to record your driving habits, or the company may request that you install a device into your car. This is called usage-based car insurance.
One thing to note: GEICO was the last of the top 10 car insurance companies to design and implement a usage-based driving app, so be aware that they may still be working out the bugs.
A more general app is also offered by major car insurance providers to allow you to access your policy, make adjustments, and pay your bill. Usually, in both the general app and the driving app, your American Family login or GEICO login would likely be the same.
How do American Family and GEICO car insurance compare in financial strength and customer satisfaction?
Getting the best car insurance rates is something worth celebrating, especially if you get to take advantage of a discount that applies to your individual situation.
But just as critical as available discounts is a company’s financial strength, customer satisfaction with the claims process, and customer complaints. The following three credible and trustworthy agencies shine a light on 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. 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.
| 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) |
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Both American Family and GEICO have positive feedback from customers that go through the claims process and do well with managing customer complaints.
Additionally, GEICO vs. American Family insurance ratings show that the financial future of both companies is strong, but GEICO carries the highest rating possible from A.M. Best.
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