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

Quick Facts

• In general, American Family offers significantly less expensive premiums than National Mutual
• American Family has more affordable rates for policyholders who haven't received any speeding tickets or been in a collision in the last few years
• National Mutual offers cheaper average premiums for drivers who have a speeding ticket on their driving record

American Family or National 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 large savings, but exactly how much money can you save by switching?

You might be considering American Family or National Mutual, but between the two, which one has less expensive prices for insurance?

As you can see, National Mutual is quite a bit more expensive than American Family, with rates averaging $201 a month compared to just $140 with American Family when looking at the national average rates for auto insurance.

But that doesn't mean American Family will necessarily be more affordable than National Mutual for every driver. Car insurance carriers vary their prices depending on things like how good your credit score is, where you live, how old you are, how clean your driving record is, and a ton of other factors, so premiums will vary quite a bit from person to person.

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

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

American Family and National Mutual only compete against each other in three states, with American Family offering cheaper prices to the average driver in all of them. Iowa has the most noticable difference, where American Family premiums are $105 less expensive than insurance rates at National Mutual.

But there's more to auto insurance than just the state you live in. As we mentioned above, there's a lot of things that go into how car insurance companies determine your prices. Continue reading to learn more about how other variables will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance premiums of any group out there on the road. The reason is that teen drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. Just look at the table above -- where 18-year-old drivers who have American Family for their auto insurance pay over 35% less than those who use National Mutual. It's worth noting that American Family offers car insurance in 16 different states compared to National Mutual's three, which can skew the average prices a bit, but the difference here is still considerable.

That being said, both carriers will offer you dramatically lower premiums once you turn 25. For example, average rates for American Family policyholders lower around $200 and National Mutual's prices decrease almost $300 over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the cheapest premiums out there.

So, which carrier offers the best rates to retired drivers? American Family gets the edge here, with average prices coming in at about $107 per month compared to National Mutual's $134.

Which is the Best Company for Married Drivers?

Married drivers tend to get slightly more affordable auto insurance premiums than single drivers. This usually boils down to married policyholders having more than one vehicle on their policy -- something a lot of car insurance companies will reward with discounts.

For single policyholders, the difference in average rates between these two carriers is significant, with American Family premiums coming in at a third less than National Mutual's. The advantage is also clear for married couples - American Family offers the lowest average prices.

American Family or National Mutual: Average Rates by Gender

You may not know, but men usually pay more for auto insurance than women do. This is because men are statistically more likely than women to get into collisions and file an insurance claim, which leads to increased risk for insurers and, therefore, higher rates.

Typically, women see prices around $5 per month cheaper with American Family, and about $20 cheaper with National Mutual when compared to their male counterparts.

When it comes to the most affordable premiums for each gender, American Family comes out on top for both men and women. On average, male drivers save about $69 a month and women save around $53 with American Family compared to the average National Mutual policyholder.

American Family vs. National 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.

It's no secret that insurance can be a complicated subject for most people. There are a variety 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 an accident.

The two most common policies end up falling into two different types of coverage -- liability coverage (which covers the other party's injuries and property damage if you cause a collision) and full coverage (which includes collision and comprehensive coverages that protect your own car, in addition to what you get with a liability policy).

When it comes to state minimum liability limits, National Mutual has the edge, while American Family offers the cheapest average rates for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $2 with National Mutual Insurance, while full coverage comes out to be about $100 more affordable with American Family Insurance.

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

It's no secret -- drivers with good records end up getting the best deals on their car insurance. But that's not to say you can't save money if you don't have the best driving record, either.

You'll probably end up paying more with speeding tickets and at-fault accidents on your record, but which of these two companies offers the most affordable premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Drivers who use American Family for their insurance can normally expect their monthly bill to go up around 20% after getting a speeding ticket. National Mutual policyholders can expect a less drastic increase of about 8%.

If you have gotten a ticket, National Mutual tends to offer the best prices at around 3% less expensive, while American Family has the edge for drivers with a clean record.

Which Company is Best for Drivers After an Accident?

Both carriers will raise rates pretty significantly if you get into an at-fault collision with National Mutual increasing by about 37%. American Family has a less extreme increase, but you can still expect to pay nearly 15% more than you were prior to your first accident.

At the end of the day, the cheaper prices come from American Family, with average premiums coming in at $138 compared to National Mutual Insurance's $207.

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 auto insurance bill -- typically a lot more than an accident or speeding ticket. National Mutual drivers usually see a 60% increase in their car insurance rates after a DUI charge, while American Family will generally raise prices by around 25%.

American Family has the overall lowest premiums for drivers with a DUI on their records at $158 a month, but it's worth noting that American Family's average rates come from 16 states compared to just three for National Mutual, so the data may be skewed slightly.

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

You may not realized it, but your credit score can come into play when companies calculate your monthly bill. Certain states and carriers do not allow for credit score to be used as an auto insurance factor, but it might come into play for several policyholders.

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

Looking at American Family and National Mutual specifically, which carrier has the cheapest prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have great credit, American Family will typically reward you the most. For drivers with "excellent" credit scores, American Family comes in more than 20.63 less expensive. Drivers with "good" credit scores generally save about 25% with American Family compared to average premiums from National Mutual.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower rates than National Mutual when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around 36% per month less with American Family compared to National Mutual, and those with "poor" scores normally save an average of about 32% monthly.

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

How much you drive can have a large impact on your monthly insurance bill. That's because the more milage you drive, the more likely you are to be in a collision and file an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much National Mutual charges. However, there's a small difference in monthly prices for American Family, with drivers who put 6,000 miles on their vehicle annually paying around $5 less every month compared to those who drive 12,000 miles yearly. Still, for drivers in both categories, American Family is the more affordable company.

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

Where you live can have a sizable impact on your monthly car insurance payment. Typically, those who live in rural areas will pay less than policyholders in urban areas since there are a lot fewer cars on the road where they live, which lowers the chances of an accident.

When comparing these two carriers side-by-side, American Family generally comes out as the most affordable option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Those in rural areas can expect to save about 36% with American Family compared to National Mutual. People who live in suburban areas pay around 33% less with American Family compared to National Mutual. For drivers in urban ZIP codes, American Family Insurance's average premiums are about 22% less than National Mutual Insurance.

American Family vs. National Mutual Discounts

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

But with what seems like a million different discounts out there, it can be hard to find all the ones you're eligible for or to nail down the carrier that has the most discounts for your unique driver profile.

Luckily, we did the hard work for you and looked at all of the different discounts American Family and National Mutual offer their customers so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

Overall, American Family has a slight advantage when it comes to total number of discounts. National Mutual offers a grand total of 19 discounts, while American Family has 21.

There are a couple discounts both companies offer, but American Family also offers discounts for connect partner, COVID-19 relief, distant student, and more.

On the other hand, National Mutual has a few proprietary discounts of their own for things like claim free discounts, continuous insurance discounts, driver training discounts, and more.

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

So, we've broken down the average rates for many of the factors auto insurance carriers look at, and walked through the different discounts each company offers, too. But, when it comes down to it, which carrier is the best company for you, your vehicle, and your wallet?

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

• You will be the only person on the car insurance policy.
• You want the most robust protection via a "full coverage" policy.
• You've started working from home and don't have much of a commute.

National Mutual might be best for you if...

• You like the personalized touch of a small, local company.
• You've received a ticket for speeding recently and don't want to see your prices climb.
• You're looking for the best premiums on liability only coverage.

Hopefully, this guide helps you get a better idea of the difference between American Family and National Mutual and that you can now make a more informed decision when it comes to your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from several companies, not just American Family and National Mutual. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

American Family vs. National Mutual FAQs

Is American Family or National Mutual cheaper?

American Family is the cheaper of the two companies when looking at national average rates, with policies averaging $140 a month with American Family and $201 for National Mutual. Even so, that doesn't mean American Family will be the lowest carrier for everyone, since there are several different variables that are considered when it comes to your insurance cost.

Who is better, American Family or National Mutual?

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

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

Car insurance carriers use many different factors when determining the prices they charge. Variables like where your home is, gender, age, where you call home, and sometimes even things like your credit score can all come into play. Both American Family and National Mutual calculate premiums differently, so it's likely they'll offer different rates. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from multiple different companies.

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

The only way to find the insurance company that's right for you is by getting quotes from a handful of carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your information once and you'll get quotes from dozens of your local top auto insurance companies for free. With those, you can guarantee you're getting the best rate. And maybe you'll find that the best carrier for you isn't American Family or National 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.