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

Quick Facts

• Based on national averages for car insurance, American Family offers slightly more affordable rates than Depositors
• American Family offers more affordable premiums for people who are single and purchasing auto insurance by yourself
• Depositors tends to be a much cheaper option for drivers who have received a ticket within the last few years

American Family vs. Depositors: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. With so many ads from all sorts of companies offering huge discounts, you're probably wondering exactly how much you might be able to save.

You might be considering American Family or Depositors as your top options, but between the two, which carrier will save you the most?

Looking at the national average rates for both companies, American Family is about $8 per month less expensive than Depositors.

That being said, American Family may not be the most affordable or best option for every single driver out there. After all, car insurance carriers can offer drastically different rates to each driver depending on rating factors like your age, your driving record, where you call home, or even your credit score (among other things). So, at the end of the day, prices from every company will differ quite a bit from person to person.

Wanting to know if American Family or Depositors is really the right carrier for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

American Family or Depositors: Average Car Insurance Rates by State

American Family and Depositors compete against each other in four states, with American Family offering more affordable rates to the average driver in all of them. If you live in Nevada, Depositors is the less expensive of the two companies when looking at the overall average premiums. American Family is the cheaper option in Iowa, Idaho, and Indiana.

There are plenty of other factors that go into your insurance payment than just where you live. Read on to find out more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for auto insurance than any group on the road. It's usually because young, inexperienced drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But that doesn't mean that teen drivers have to just accept sky-high car insurance rates. As you can see above, teens who use American Family save $0 a month compared to those who use Depositors.

However, with both carriers, you'll see your prices reduce significantly by the time you turn 25. For example, average premiums for American Family policyholders lower more than 60% and Depositors's rates decrease nearly 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest insurance prices you'll ever see. After all, they've likely been driving for quite some time, which generally reduces their chances of accidents and other infractions that can increase premiums.

When looking at American Family and Depositors specifically, which company is best for retired drivers? American Family gets the slight edge here, with average rates coming in at around $107 a month compared to Depositors's $111. Even so, the difference is only about 5%, so other factors will likely come into play when determining which carrier has the most affordable prices for you.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance premiums tend to be less expensive for married policyholders than they are for single policyholders. That's usually because married couples tend to own and insure several cars, which can often earn you a discount.

If you're in the market for car insurance, American Family tends to have the lowest average prices regardless of marital status, with prices around $5 more affordable for single drivers and about $10 cheaper for married drivers.

American Family vs. Depositors: Average Rates by Gender

Women generally to pay less for insurance than men. This is because women are less likely to get into accidents and get speeding tickets, which lowers the chances of an insurance claim.

Women normally pay around 3% per month less than men with American Family, and about 6% less with Depositors when compared to their male counterparts.

Looking at the data for each company specifically, American Family comes out as the cheapest option for both genders, with average rates 6% less for men and 3% cheaper for women.

American Family or Depositors: 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.

Auto insurance isn't the easiest topic to understand. Everyone needs insurance, but there are so many different limits and coverages that it can be hard to find the right policy.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers and passengers if you cause an accident) and full coverage (which typically refers to having comprehensive and collision coverages alongside liability).

In this case, Depositors offers the lowest average prices for state minimum liability insurance, while American Family has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $10 with Depositors Insurance Company, while full coverage comes out to be around $25 more affordable with American Family Insurance.

Is American Family or Depositors Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

Collisions and tickets will most likely raise your premiums, but is American Family or Depositors less expensive for drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their rates to go up an average of $29 a month if they get a ticket, while Depositors normally raises premiums about $24 per month, on average.

But Depositors has cheaper prices for drivers in both categories -- their rates are around 10% less expensive for drivers with clean records and 12% cheaper 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% -- increase in their auto insurance rates. Drivers who use Depositors for their car insurance will see a monthly bill around $51 (or 32%) more expensive after reporting a collision to their auto insurance carrier.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly prices averaging $138 compared to Depositors Insurance Company's $157.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or speeding ticket when it comes to your insurance bill. On average, Depositors will climb your rates about 46% after a DUI, while American Family's average premiums climb by over 25%.

If you have a DUI on your record and are looking for more affordable prices, American Family tends to be the much more affordable option with average premiums of $158 monthly compared to $198 from Depositors.

How does Credit Score Impact American Family and Depositors Rates?

In many cases, your credit score can come into play when companies calculate your monthly bill. This isn't always the case (Michigan, for example, has banned the use of credit score as a rating factor) but it will come into play for lots of policyholders.

The reasoning car insurance carriers use is that drivers with bad credit will be less likely to pay their bills on time; so typically, they'll be asked to pay more, while those with good credit will be rewarded with less expensive rates.

So, which company offers the most affordable prices for policyholders with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

If you have great credit, you'll usually find a better deal with American Family. Drivers with "excellent" credit can save just under 15% compared to Depositors, and those with "good" scores can also expect to see savings -- around $14 or 10% more affordable each month.

Which Company is Best for Drivers with Bad Credit?

If you have bad credit, it can be somewhat of a toss-up as far as which company offers you the best premiums. Drivers with "fair" credit pay about $14 less with American Family than Depositors, but those whose credit is considered "poor" have it flipped -- saving around $16 a month with Depositors.

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

The amount of time you spend behind the wheel of your car plays a big role in your monthly rates. Usually, the more miles you put on your vehicle each year, the more you can expect to pay for coverage.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Depositors charges. However, there's a small difference in monthly prices for American Family, with policyholders who drive 6,000 miles yearly paying about $5 less every month compared to those who drive 12,000 miles each year. Still, American Family is the cheaper option for drivers in both categories.

American Family vs. Depositors: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for insurance, but the type of area you live in can have a considerable impact as well. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for car insurance, while the opposite is true for people in urban areas.

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

For policyholders in urban ZIP codes, American Family offers premiums around $166 per month compared to Depositors's $174. People who live in suburban ZIP codes can expect to pay about $134 per month for American Family and $139 for Depositors. Lastly, those in rural areas tend to get the cheapest rates from both companies, with average monthly premiums coming in at $121 and $130 for American Family and Depositors respectively.

American Family vs. Depositors Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible. That's where insurance discounts comes into play.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you can take advantage of.

In the table below, we've compared all of the different discounts offered by American Family and Depositors so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Looking at the total number of discounts, American Family comes out ahead with 21 discounts to Depositors's 17.

A couple of those are overlapping for things like COVID-19 relief discount, distant student discounts, EFT discounts, and discounts for being a homeowner. American Family also offers anti-theft discounts, connect partner discounts, DRL discounts, and more that Depositors does not.

On the flip side, Depositors has a couple unique discounts of its own -- employee discounts, discounts for being a good driver, intra-agency transfer discounts, and more.

Final Thoughts: Is American Family or Depositors Best for You?

You've seen the role certain variables have on your auto insurance and the different discounts carriers offer. But, at the end of the day, which insurance company is the best company for you and your specific profile and needs?

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

• You already have plans to move to another state -- Depositors Insurance Company only offers policies in five states.
• You live in an urban area.
• You're buying car insurance for a teen and looking for a wallet-friendly option.

Depositors might be best for you if...

• You're looking for the best rates in IA, ID, IN, MT, and NV.
• You've received a ticket for speeding recently and don't want to see your rates rise.
• You want basic insurance coverage at the state minimum limits.

We hope this guide has ben a valuable resource as you compare American Family and Depositors. 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 car insurance -- comparing quotes from a handful of companies, not just American Family and Depositors. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

American Family vs. Depositors FAQs

Is American Family or Depositors cheaper?

Looking just at the national average prices, American Family is the less expensive of the two companies, offering average rates of $140 a month compared to $148 for Depositors. Even so, American Family won't necessarily be the lowest carrier for every policyholder, since there are a variety of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or Depositors?

Unfortunately, the answer truly is "it depends.". One company is not necessarily "better" for each driver -- it all depends on what your unique car insurance profile looks like. For example, American Family offers more affordable premiums for drivers with an at-fault collision on their record, while Depositors is cheaper for drivers who have less-than-stellar credit scores.

Why do American Family and Depositors offer me different rates?

Auto insurance carriers take a look at quite a few different variables when calculating the rates they charge policyholders. Factors such as gender, age, where your home is, your driving record, and sometimes even things like your credit score can all be used. Both American Family and Depositors calculate prices using different variables, so each one will most likely offer different premiums. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from a range of different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best auto insurance companies in your area. That way, you can guarantee you're getting the best price. And who knows, the best carrier for you might not be American Family or Depositors at all!

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.