American Family vs. Central Mutual: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for insurance, American Family offers significantly cheaper rates than Central Mutual
• American Family offers less expensive average premiums for drivers who have a speeding ticket on their driving record
• Central Mutual has more affordable rates in GA, NM, NY, and OH

American Family or Central Mutual: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. You've probably seen commercials and billboards from companies offering pretty big savings, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to American Family or Central Mutual, but which company will save you the most?

Looking at the national average rates for both carriers, Central Mutual has average rates that are around 60% a month more expensive than those from American Family.

But that doesn't mean American Family will necessarily be cheaper than Central Mutual for every driver. After all, auto insurance companies can offer drastically different rates to every driver depending on rating factors like your driving record, your age, where you call home, or even your credit score (among other things), so premiums will change quite a bit from person to person.

So, if you want to find out which of American Family or Central Mutual is really the best for you, keep reading to see average prices for each carrier broken down by a variety of different rate factors.

American Family vs. Central Mutual: Average Car Insurance Rates by State

American Family and Central Mutual only compete against each other in one states, with American Family offering more affordable rates to the average driver in all of them. Ohio has the most noticable difference, where American Family prices are $12 less expensive than insurance premiums at Central Mutual.

But there's more to calculating car insurance prices than just where you live. Read on to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for insurance compared to older drivers. It's because teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

Even so, that doesn't mean teen drivers can't still save money on their car insurance. As you can see above, teens who use American Family save over 45% per month compared to those who use Central Mutual.

That being said, both carriers will offer you dramatically lower premiums by the time drivers turn 25. For example, average rates for American Family policyholders reduce about $200 and Central Mutual's prices drop around $250 over that time.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll normally enjoy the lowest auto insurance rates you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly premiums for car insurance.

But who has the best rates for retired drivers between American Family and Central Mutual? American Family gets the edge, with prices for drivers 65 and older more than 60% cheaper than the national average for Central Mutual.

Which is the Best Company for Married Drivers?

Single drivers tend to get offered slightly more expensive auto insurance premiums than married policyholders. This usually boils down to married drivers having more than one vehicle on their policy -- something several insurance companies will reward with discounts.

For those who are single, the difference in average prices between these two carriers is significant, with American Family rates coming in at about half of Central Mutual's. The advantage for married couples with American Family is also obvious, where drivers save almost $200 a month.

American Family or Central Mutual: Average Rates by Gender

Because women are less likely to get into accidents and get tickets, they run a lower risk of filing a claim with insurance. So, insurance companies will often charge women less than men.

Normally, women see premiums around 3% per month less with American Family, and about 4% less with Central Mutual when compared to their male counterparts.

Looking at overall affordability, American Family offers the cheapest average prices for both men and women. On average, male drivers save about $204 a month and women save around $195 with American Family compared to the average Central Mutual policyholder.

American Family vs. Central Mutual: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's 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.

Car insurance isn't the easiest topic to understand. There are a range of different coverages that account for a bunch of different things. Some protect you and your car, while others only provide coverage for other people's property and health if you cause a collision.

The two most common policies that drivers look at fall into two categories -- liability coverage (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability coverage).

Looking specifically at state minimum liability insurance, American Family has the significant edge, with average monthly rates coming in at $96. If you want a full coverage policy with the same state minimum limits, American Family again has the edge, with policies averaging about $185 per month to Central Mutual's $506.

Is American Family or Central Mutual Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance carriers offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with collisions and speeding tickets on your record, but which of these two companies offers the most affordable rates to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their auto insurance can generally expect their monthly bill to go up around 20% after getting a speeding ticket. Central Mutual policyholders can expect a bit more drastic of an increase of about 26%.

However, American Family has more affordable prices for drivers in both categories -- their rates are around 51% less expensive for drivers with clean records and 55% more affordable for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through American Family can expect to see around an $20 -- or about 14% -- rise in their auto insurance premiums. Drivers who use Central Mutual for their car insurance will see a monthly bill around $69 (or 22%) more expensive after reporting a collision to their insurance company.

At the end of the day, drivers who use American Family end up with the cheaper prices after an accident, with average rates coming in at $138 compared to Central Mutual Insurance's $311.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly car insurance bill -- typically a lot more than an accident or ticket. On average, Central Mutual will raise your premiums about 50% after a DUI, while American Family's average prices increase by more than 25%.

But if you end up with a DUI charge and are looking for more affordable rates, American Family tends to be less expensive for the average driver, with monthly premiums coming in at around $158 to Central Mutual's $482.

How does Credit Score Impact American Family and Central Mutual Rates?

In many cases, your credit score can come into play when carriers determine your monthly bill. Certain states and companies do not allow for credit score to be used as a car insurance factor, but it might come into play for lots of drivers.

The reasoning auto insurance carriers use is that policyholders with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper premiums, while those with poor credit will usually be forced to pay more.

So, which carrier offers the cheapest prices for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have a solid credit score, American Family will generally reward you the most. For policyholders with "excellent" credit scores, American Family comes in over 61.09 cheaper. Drivers with "good" credit scores normally save about 58% with American Family compared to average premiums from Central Mutual.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower prices than Central Mutual when it comes to drivers with less-than-stellar credit. Drivers with "fair" credit pay around 57% a month less with American Family compared to Central Mutual, and those with "poor" scores typically save an average of about 59% per month.

Is American Family or Central Mutual Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a sizable impact on your monthly car insurance cost. Usually, those who drive less will end up with less expensive rates since there's less of a chance of causing a collision and filing an insurance claim.

American Family tends to be the cheaper option for both remote workers and those taking short commutes. American Family's average prices for drivers with 6,000 annual miles come in nearly 60% more affordable than Central Mutual. Those who drive 12,000 miles annually can expect to pay just under 60% less with American Family over Central Mutual.

American Family or Central Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can have a big impact on your monthly insurance bill. Normally, those who live in rural areas will pay less than drivers in urban areas since there are a lot fewer cars on the roads where they live.

American Family tends to offer the lowest rates for drivers in all areas, regardless of if they're urban, suburban, or rural.

In urban areas, American Family's average premiums are around $166 per month compared to Central Mutual's $529. People in suburban areas pay a monthly price of about $134 with American Family compared to $263 with Central Mutual. Those in rural areas can expect to pay around $121 a month with American Family and $228 with Central Mutual.

American Family vs. Central Mutual Discounts

You want to save as much money as you can, right? The best way to do that is by utilizing as many auto insurance discounts as possible.

But with what seems like a million different discounts out there, it can be challenging to find all the ones you can take advantage of or to nail down the company that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and compared all of the different discounts offered by American Family and Central Mutual so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

American Family blows Central Mutual away when it comes to the sheer amount of discounts available, offering six more discounts than Central Mutual.

Both companies offer several of the same discounts -- like anti-theft discounts, distant student discounts, discounts for being a good student, and paid in full discounts -- but American Family also offers discounts for advance quote, connect partner, COVID-19 relief, and more.

On the other hand, Central Mutual has a few proprietary discounts of their own for things like ABS discounts, book transfer policy discounts, driver training discounts, and more.

Final Thoughts: Is American Family or Central Mutual Best for You?

So, you've seen how different variables can affect your insurance rates. We've broken down the different discounts each carrier offers, too. That's all well and good, but at the end of the day, which insurance company is the best carrier for you and your specific driver profile?

American Family might be best for you if....

• You value the experience that comes with a large national car insurance carrier.
• You're looking for the company with the most discounts.
• You live in a rural neighborhood.

Central Mutual might be best for you if...

• You're looking for the best rates in GA, NM, NY, and OH.

Hopefully, this guide has ben a valuable resource as you compare American Family and Central Mutual. We also hope we've given you the information you need to make the best decision about your auto insurance.

But, at the end of the day, there's only one way to know for sure that you're getting the best possible deal on insurance -- comparing quotes from several carriers, not just American Family and Central Mutual. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

American Family vs. Central Mutual FAQs

Is American Family or Central Mutual cheaper?

American Family is the cheaper of the two carriers when looking at national average premiums, with policies averaging $140 a month with American Family and $340 for Central Mutual. But that doesn't mean American Family will be the cheapest carrier for everyone, since there are lots of different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, American Family or Central Mutual?

Sadly, the only answer we can give you is "it depends.". One company is not necessarily "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do American Family and Central Mutual offer me different rates?

Car insurance companies use many different variables when determining the prices they charge. Factors such as age, where you live, gender, your driving record, and sometimes even things like your credit score can all be used. Both American Family and Central Mutual calculate rates using different variables, so it's likely they'll offer different prices. The best way to determine which carrier is the most affordable for you is by comparing personalized quotes from multiple different carriers.

How do I know if American Family or Central Mutual is right for me?

The only way to find the insurance company that's right for you is by getting quotes from multiple companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your information once and you'll get quotes from dozens of your local top auto insurance carriers for free. That way, you can guarantee you're getting the lowest premium. And maybe you'll find that the best carrier for you isn't American Family or Central Mutual at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.