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

Quick Facts

• Looking at the national averages for car insurance, American Family offers more affordable premiums than Nationwide
• American Family has cheaper prices for policyholders who live in urban areas
• Nationwide may help you save more money -- they offer more discounts than American Family Insurance

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

So, you're considering switching to a new insurance policy. With so many ads from all sorts of companies offering sizable savings, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to American Family or Nationwide for your next policy, but between the two, which one has less expensive premiums for auto insurance?

Looking at the national average rates for both carriers, Nationwide is around $30 more a month than American Family.

But that doesn't mean American Family will necessarily be cheaper than Nationwide for each driver. Car insurance companies use a ton of complex algorithms to determine prices, so depending on how clean your driving record is or how old you are (among a lot of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average premiums from both American Family and Nationwide by a variety of different rate factors, so read on to find out which company is the best for you.

American Family vs. Nationwide: Average Car Insurance Rates by State

American Family and Nationwide compete against each other in 11 states, with American Family offering less expensive rates to the average driver in all of them. If you live in, undefined is the more affordable of the two carriers when looking at the overall average prices, but Nationwide is the cheaper option in most of the others.

That being said, there's a lot more that goes into your insurance payment than just the state you live in. Continue reading to see how other variables will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for car insurance than any other group of drivers out there on the road. Normally, that's because teen drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

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 insurance pay almost 20% less than those who use Nationwide.

That being said, both companies will drop prices by the time you turn 25. For example, average premiums for American Family policyholders reduce over 60% and Nationwide's prices lower more than 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age generally enjoy some of the lowest auto insurance rates you'll ever find. After all, they've likely been driving for quite some time, which typically decreases their chances of collisions and other infractions that can raise premiums.

When looking at American Family and Nationwide specifically, which carrier is best for retired drivers? American Family gets the edge here, with average prices coming in at about $107 a month compared to Nationwide's $125.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are usually less expensive for married couples than they are for single drivers? That's normally because married drivers tend to own and insure multiple vehicles, which can often earn you a discount.

For those who are single, the difference in average rates between these two carriers is significant, with American Family premiums coming in at around 15% less than Nationwide's. For married policyholders, the advantage is clear again - American Family has the edge when it comes to average prices.

American Family or Nationwide: Average Rates by Gender

Men are statistically more likely than women to get into accidents and file an insurance claim, which means they'll typically end up paying more for car insurance than women.

Typically, men see rates about $5 per month higher with American Family, and around $12 more with Nationwide.

Looking at overall affordability, American Family offers the cheapest average premiums for both men and women. On average, women save about $26 a month and men save about $33 with American Family compared to the average Nationwide policyholder.

American Family vs. Nationwide: 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.

For most people, auto insurance can be pretty complicated. There are so many different limits and coverages that it can make it pretty confusing to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- liability coverage (which provides property damage and bodily injury coverage for other drivers if you cause a collision) and full coverage (which generally refers to having collision and comprehensive coverages in addition to what you get with liability).

Looking specifically at state minimum liability insurance, American Family has the 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 around $185 per month to Nationwide's $229.

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

It's no secret -- drivers with good records end up getting the best deals on their 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 at-fault collisions and speeding tickets on your record, but which of these two companies offers the most affordable prices to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use American Family for their auto insurance can usually expect their monthly bill to go up about 20% after getting a speeding ticket. Nationwide policyholders can expect a less drastic increase of around 16%.

However, American Family is typically the cheaper option for both drivers who have a recent ticket and those with clean records -- their rates are around 6% more affordable for drivers with clean records and 1% less expensive for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through American Family can expect to see about an $20 -- or around 14% -- rise in their auto insurance rates. Drivers who use Nationwide for their insurance will see a monthly bill about $53 (or 30%) more expensive after reporting an accident to their car insurance company.

At the end of the day, drivers who use American Family end up with the cheaper prices after an accident, with average premiums coming in at $138 compared to Nationwide's $178.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single collision or speeding ticket when it comes to your auto insurance bill. For example, Nationwide increases average prices by more than $100 a month -- that's more than a 45% increase.

How does Credit Score Impact American Family and Nationwide Rates?

You may not have known, but your credit score can come into play when carriers calculate your monthly bill. This isn't true for everyone (for example, California and Massachusetts are two states that ban the practice entirely), but it does affect many drivers out there.

Car insurance companies argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, policyholders with good credit will often be rewarded with more affordable rates.

Looking at American Family and Nationwide specifically, which company has the cheapest premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is American Family or Nationwide 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 insurance bill. Normally, those who drive less will end up with cheaper prices since there's less of a chance of causing a collision and filing an insurance claim.

For both remote workers and those taking short commutes, American Family offers more affordable premiums than Nationwide. Nationwide's average rates for drivers with 6,000 annual miles come in over $30 more expensive than American Family. Those who drive 12,000 miles yearly can expect to pay nearly $30 more with Nationwide over American Family.

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

Where your home is can play a considerable role in how much you pay for car insurance. Generally, if you live in a rural area with fewer cars on the road, you'll pay a little less for auto insurance, while the opposite is true for people in urban areas.

When comparing these two carriers side-by-side, American Family usually comes out as the lowest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, American Family's average prices are around $166 while Nationwide offers rates about $199. Drivers in suburban ZIP codes pay a monthly rate of around $134 with American Family compared to $159 with Nationwide. If you live in a rural area, you can expect to pay about $121 per month with American Family compared to Nationwide's $151.

American Family vs. Nationwide Discounts

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

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you're eligible for.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both American Family and Nationwide so that you can find the carrier that has the most discounts and, therefore, the largest savings.

Looking at the total number of discounts, Nationwide has a slight advantage when it comes to total number of discounts. American Family offers a grand total of 21 discounts, while Nationwide has 22.

There are a couple discounts both companies offer, but Nationwide also offers discounts for agency transfer, driver training, employee discount, and more.

On the other hand, American Family has a few proprietary discounts of their own for things like connect partner discounts, COVID-19 relief discount, DRL discounts, and more.

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

So, we've broken down the average premiums for many of the factors car insurance carriers look at, and walked through the different discounts each carrier offers, too. But, when it comes down to it, which company is the right one for you and your specific profile and needs?

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

• You will be the only person on the auto insurance policy.
• You want the most robust protection via a "full coverage" policy.
• You live in a rural area.

Nationwide might be best for you if...

• You are considering moving to another state -- undefined is only available in.
• You're looking for discounts -- Nationwide has the most.

Hopefully, this guide helps you get a good idea of the differences between American Family and Nationwide. We also hope we've given you the information you need to make the best decision about your 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 auto insurance -- comparing quotes from a handful of companies, not just American Family and Nationwide. Luckily, Compare.com makes it easy for you to do just that. Simply enter your ZIP codes below and get multiple quotes from some of the best car insurance carriers in your area, all for free.

American Family vs. Nationwide FAQs

Is American Family or Nationwide cheaper?

American Family is the less expensive of the two companies when looking at national average prices, with policies averaging $140 per month with American Family and $170 for Nationwide. Even so, that doesn't mean American Family will be the most affordable carrier for everyone, since there are a range of different variables (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, American Family or Nationwide?

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

Why do American Family and Nationwide offer me different rates?

Car insurance carriers use several different factors when determining the premiums they charge. Variables such as your driving record, gender, where you live, age, and sometimes even things like your credit score can all be taken into consideration. Both American Family and Nationwide calculate prices using different factors, so it's likely they'll offer different rates. The best way to determine which carrier is the lowest for you is by comparing personalized quotes from multiple different companies.

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

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