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When shopping for car insurance, two of the biggest brand names you’ll encounter are American Family Insurance and Progressive. But how do these insurance giants compare when it comes to coverage, discounts, customer satisfaction, and costs?
As a consumer, understanding the key differences between American Family and Progressive can help you determine which provider is the better fit for protecting your vehicle. In this comprehensive guide, we’ll analyze how these top insurers stack up across several categories.
Overview of American Family Insurance
Founded in 1927, American Family Insurance (AmFam) is headquartered in Madison, Wisconsin and operates across 19 states. It employs around 13,000 people and insures over 6 million vehicles. As a mutual insurance company, AmFam is owned by its policyholders rather than shareholders.
Key Stats:
- A.M. Best Financial Strength Rating: A (Excellent)
- J.D. Power Auto Claims Satisfaction Rating: 881 out of 1000
- Better Business Bureau Rating: A+
Overview of Progressive
Progressive first opened its doors in 1937 and is now the third largest auto insurer in the U.S. Based in Ohio, Progressive employs around 43,000 people and insures over 18 million vehicles across all 50 states. It is a publicly traded company.
Key Stats:
- A.M. Best Financial Strength Rating: A+ (Superior)
- J.D. Power Auto Claims Satisfaction Rating: 878 out of 1000
- Better Business Bureau Rating: A+
Now let’s see how these leading insurance firms stack up across key categories:
coverage Options
Both American Family and Progressive offer standard auto insurance coverages like liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments However, when it comes to additional options, there are some differences
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Rideshare Coverage – Progressive provides specific coverage for rideshare drivers AmFam only covers limited rideshare use
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Roadside Assistance – You can add 24/7 roadside assistance to Progressive policies. It’s not available from AmFam.
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Accident Forgiveness – AmFam offers accident forgiveness to reward safe driving. Progressive lacks a formal forgiveness program.
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Usage-Based Insurance – Progressive’s Snapshot program tracks driving for personalized rates. AmFam just launched a similar option.
For most standard coverages, both insurers are comparable. But Progressive edges ahead for add-ons like rideshare and roadside assistance coverage.
Discounts Offered
Discount opportunities help policyholders save on their premiums. Here are some key discounts from each insurer:
American Family Insurance Discounts:
- Multi-policy
- Multi-vehicle
- Safe driver
- Defensive driver training
- Student away from home
- Anti-theft devices
- Paperless billing
- Paid in full
Progressive Discounts:
- Multi-policy
- Multi-vehicle
- Continuous insurance
- Good student
- Defensive driver
- Homeowner
- Automatic payment
- Paperless billing
- Prompt payment
The discounts offered are very similar, though Progressive does have a few additional options like continuous insurance and a homeowners discount. Overall, both give drivers plenty of chances to lower their rate.
Customer Satisfaction Ratings
Independent consumer satisfaction ratings help reveal how happy customers are with their insurance experience. Here’s how the two insurers fare:
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J.D. Power Claims Satisfaction – Progressive scored 878/1000 points. AmFam scored 881/1000 points.
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BBB Rating – Both companies have an A+ rating. However, AmFam has a higher 4/5 star customer review rating.
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Consumer Reports Recommendation – Progressive is recommended by Consumer Reports based on satisfaction surveys. AmFam is not currently recommended.
Customer feedback indicates most policyholders are satisfied with both providers, though American Family has a slight edge in satisfaction based on these ratings.
Cost of Coverage
For most consumers, insurance rates are a major factor in choosing a provider. Here’s an overview of average annual premiums:
| Policy Type | American Family | Progressive |
|---|---|---|
| Minimum Coverage | $792 | $709 |
| Full Coverage | $1,849 | $1,698 |
Rates will vary significantly based on your location, driving history, age, vehicle, and other factors. But on average, Progressive offers slightly lower premiums than American Family on both minimum and full coverage policies.
Choosing the Right Insurer
When comparing American Family vs Progressive, both are solid choices with quality coverage, good discounts, and decent customer service. For most drivers, it will likely come down to cost when selecting between them.
Drivers who prioritize having an insurer with local roots may also lean towards American Family. On the other hand, those wanting usage-based insurance, rideshare coverage, or accident forgiveness may find Progressive is the better fit.
Ultimately you can’t go wrong choosing either highly-rated provider. But examining the differences above will allow you to make the right call for your coverage priorities and budget.
Other Major Competitors
While American Family and Progressive are two of the biggest auto insurers, they aren’t your only options. Here are a few other major national providers worth considering:
State Farm
The #1 US auto insurer with 18% market share. State Farm is known for local agent availability and comprehensive coverage.
Geico
Geico is owned by Berkshire Hathaway and is the second largest auto insurer with 17% market share. It’s known for low rates and clever advertising.
Allstate
Allstate is another insurance giant covering over 16 million vehicles. It offers accident forgiveness and safe driving bonuses.
Farmers
Farmers Insurance provides homeowners and auto insurance plus financial services. It’s known for bundling discounts.
Shopping around among the top insurers in your state can help reveal the best blend of coverage, service, and affordability tailored to your needs.
Choosing Your Ideal Insurer
Picking the right insurance company comes down to more than just a name. You want the provider that offers the best plan for your budget and coverage priorities. Keep the following in mind:
- Compare quotes from multiple top-rated insurers
- Review the coverage options and limits
- Research customer satisfaction and complaints
- Check insurer financial strength ratings
- Understand discount opportunities
- Consider additional services like roadside assistance
- Choose the optimal balance of rate and benefits
By doing your homework on American Family, Progressive, and competitors, you can feel confident you selected the ideal insurance company for protecting your vehicle. And driving with peace of mind is priceless.
American Family vs. Progressive: Compare State Minimum vs. Full Coverage Rates
| American Family | Progressive | |
|---|---|---|
| State Minimum* | $96 | $111 |
| Full Coverage** | $185 | $250 |
*State minimum value indicates liability-only policies at each states minimum bodily injury and property damage (BI/PD) limits
**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.
Insurance can be a complicated subject for most people. There are many different coverages that account for a range of different things. Some only cover other people’s property and health if you cause an accident, while others cover you and your car.
Having said that, most policies fall into two categories: liability coverage and full coverage. Liability coverage covers injuries and property damage to other drivers and their passengers if you cause an accident, while full coverage includes collision and comprehensive coverage as well.
When it comes to state minimum liability insurance, American Family is the best. The average monthly price is $96. Progressive policies cost $250 a month on average, while American Family policies cost $185 a month on average. If you want a full coverage policy with the same state minimum limits, American Family has the edge again.
Which is the Best Company for Retired Drivers?
| American Family | Progressive | |
|---|---|---|
| 65+-year-old drivers | $107 | $131 |
When it comes to car insurance, waiting and having experience pay off. People who are close to retirement age get some of the best deals.
But between American Family and Progressive, which company has the best rates for retired drivers? American Family has the best rates for drivers 65 and older, which is almost 100% more affordable than the national average for Progressive.
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FAQ
Is Progressive owned by American Family Insurance?
Why is American family insurance so expensive?
Where does Progressive rank in insurance?
Is Progressive Insurance really cheaper?
What is the difference between American family and Progressive Insurance?
American Family Insurance specializes in property, casualty, and auto insurance, while Progressive Insurance focuses mainly on auto insurance. In our American Family vs. Progressive auto insurance guide, we compare rates by age, driving record, credit score, and other factors that affect the cost of auto insurance.
Which is better American family or progressive?
Typically, American Family offers lower rates than Progressive for prospective clients with credit scores of lower than 580. Insurance shoppers with extraordinary credit — a score of 800 or higher — should opt for Check out average insurance rates by credit tier for American Family and Progressive below.
Which car insurance company is better American family or progressive?
If you have an at-fault collision, ticket, reckless driving citation, or DUI in your recent history, American Family could be a better choice than Progressive. Every car insurance company has different post-violation pricing structures, so don’t be afraid to shop around to find out which insurer suits you.
Is American family a good insurance company?
American Family, tied with Allstate at No. 6 in our rating, offers average rates slightly higher than the national average. The company scored well in the claims handling, discounts, and customer service subcategories. It came in last among companies in our rating for customer loyalty and most likely to be recommended.