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

Quick Facts

• Based on national averages for car insurance, Nodak offers significantly cheaper rates than American Family
• American Family may help you save more money -- they offer more discounts than Nodak Insurance Company
• Nodak tends to be a much less expensive option for policyholders whose driving record contains an at-fault collision

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

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering hefty savings, but exactly how much money can you save by switching?

You might have narrowed it down to American Family or Nodak as your top options, but which carrier has more affordable prices for auto insurance?

As you can see, Nodak has average rates that are around 21% a month cheaper than those from American Family when looking at the national average rates for car insurance.

That being said, that doesn't mean Nodak will necessarily be less expensive than American Family for each driver. Insurance carriers vary their premiums depending on things like how old you are, how good your credit score is, how clean your driving record is, where you live, and tons of other factors. So, at the end of the day, rates from every carrier will differ quite a bit from person to person.

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

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

American Family and Nodak only compete against each other in North Dakota, where American Family offers the cheaper average rates. American Family drivers tend to pay about $18 per month less on average compared to drivers who use Nodak for their auto insurance.

There are plenty of other factors that go into your car insurance bill than just where you call home. 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 typically pay a lot more for insurance than any group 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 that doesn't mean that teen drivers have to just accept sky-high car insurance prices. Just look at the table above -- where 18-year-old drivers who have Nodak for their insurance pay over 35% less than those who use American Family. It's worth noting that American Family offers auto insurance in 16 different states compared to Nodak's one, which can skew the average premiums a bit, but the difference here is still considerable.

Even so, both companies will decrease rates once you turn 25. For example, average prices for American Family policyholders drop more than 60% and Nodak's premiums lower almost 50% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the most affordable car insurance prices out there. After all, they've likely been driving for quite some time, which generally reduces their chances of collisions and other infractions that can raise rates.

So, which carrier offers the best premiums to retired drivers? Nodak gets the edge here, with average prices coming in at about $84 monthly compared to American Family's $107.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly more affordable insurance rates than single policyholders. That's usually because married couples tend to own and insure several vehicles, which can often earn you a discount.

For those who are single, the difference in average premiums between these two carriers is significant, with Nodak prices coming in at a quarter less than American Family's. It's not quite so glaring for married drivers, where drivers who use Nodak save nearly 10% a month.

American Family or Nodak: Average Rates by Gender

Did you know women typically pay less for auto insurance than men? This is because men are statistically more likely than women to get into accidents and file an insurance claim, which leads to increased risk for insurers and, therefore, higher premiums.

Usually, women see rates around $5 per month less expensive with American Family, and about $5 less with Nodak.

Looking at the data for each company specifically, Nodak comes out as the lowest option for both genders, with average prices 20% less for men and 21% cheaper for women.

American Family vs. Nodak: 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, insurance isn't the easiest topic to understand. There are so many different terms and coverages that it can make it pretty confusing to find the right policy for you.

However, the 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 a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to liability).

When it comes to state minimum liability limits, Nodak has the edge, while American Family offers the most affordable average rates for full coverage policies with similar coverage limits. Policyholders looking for basic state minimum coverage can save around $60 with Nodak Insurance Company, while full coverage comes out to be around $2 cheaper with American Family Insurance.

Is American Family or Nodak 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 collisions on your record, but which of these two companies offers the lowest premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

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

That being said, Nodak has more affordable rates for drivers in both categories, offering premiums that are $28 and $40 less expensive, respectively, compared to American Family Insurance.

Which Company is Best for Drivers After an Accident?

American Family policyholders who get in an accident can expect to see their prices increase by just under 15%, while those who have insurance through Nodak will see about a 15% increase.

At the end of the day, Nodak offers the cheapest rates for drivers with an at-fault accident on their records, with average prices coming in at $107 compared to American Family Insurance's $138.

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 ticket when it comes to your insurance bill. For example, Nodak increases average premiums by more than $50 a month -- that's more than a 35% increase.

Nodak has the overall lowest prices for drivers with a DUI on their records at $141 a month, but it's worth noting that American Family's average rates come from 16 states compared to just one for Nodak, so the data may be skewed slightly.

How does Credit Score Impact American Family and Nodak Rates?

Did you know many car insurance carriers take your credit score into account when determining premiums? This isn't true for everyone (Michigan, for example, has banned the use of credit score as an insurance factor) but it will come into play for quite a few drivers.

Auto insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

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

Which Company is Best for Drivers with Good Credit?

If you have great credit, Nodak will usually reward you the most. For policyholders with "excellent" credit scores, Nodak comes in over 42 cheaper. Drivers with "good" credit scores normally save around 30% with Nodak compared to average premiums from American Family.

Which Company is Best for Drivers with Bad Credit?

Nodak typically offers lower rates than American Family when it comes to drivers with less-than-perfect credit. Drivers with "fair" credit pay about 21% per month less with Nodak compared to American Family, and those with "poor" scores typically save an average of around 4% per month.

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

How much you drive can have a sizable impact on your monthly insurance cost. That's because the fewer miles you put on your car, the less likely you are to be in a collision and file an insurance claim.

Nodak tends to be the more affordable option for both remote workers and those taking short commutes. Nodak's average prices for drivers with 6,000 annual miles come in about $30 less expensive than American Family. Those who drive 12,000 miles yearly can expect to pay around $28 less with Nodak over American Family.

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

Where you call home can have a pretty big impact on your monthly auto insurance payment. Generally, drivers who live in less densely populated rural areas will pay quite a bit less than urban policyholders since there are a lot fewer vehicles on the roads where they live.

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

Those in rural areas can expect to save about 7% with Nodak compared to American Family. People who live in suburban areas pay around 17% less with Nodak compared to American Family. For drivers in urban ZIP codes, Nodak Insurance Company's average rates are about 33% less than American Family Insurance.

American Family vs. Nodak Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by taking advantage of as many insurance discounts as possible.

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

Luckily, we did the hard work for you and looked at all of the different discounts American Family and Nodak offer their customers so that you can find the one that has the most discounts and, therefore, the largest savings.

American Family knocks Nodak out of the park when it comes to the sheer number of discounts available, offering 21 different discounts to Nodak's nine.

A couple of those are overlapping for things like discounts for being a defensive driver, discounts for being a good student, and multi-policy discounts. American Family also offers discounts for advance quote, anti-theft, connect partner, and more.

On the other hand, Nodak has a few proprietary discounts of their own for things like driver training discounts, low mileage discounts, loyalty discounts, and more.

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

So, you've seen how different factors can affect your car insurance prices. We've shown you all the discounts each carrier offers, too. But, when it comes down to it, which insurance company is the right carrier for you and your specific needs?

Nodak might be best for you if....

• You have received a ticket within the last few years.
• You're looking for the best premiums on liability only coverage.
• You have a short drive to work everyday.

American Family might be best for you if...

• You value the experience that comes with a large national auto insurance carrier.
• You care about discounts (American Family offers the most).
• You want the most robust protection via a "full coverage" policy.

Hopefully, this guide has ben a valuable resource as you compare American Family and Nodak and that it aids in making a more informed decision about your car 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 carriers, not just American Family and Nodak. Luckily, sites like Compare.com do all the hard work for you. Simply enter your ZIP codes below and get multiple free quotes from some of the best insurance companies in your area, all in just a few minutes.

American Family vs. Nodak FAQs

Is American Family or Nodak cheaper?

Nodak is the more affordable of the two carriers when looking at national average rates, with policies averaging $111 a month with Nodak and $140 for American Family. But that doesn't mean Nodak will be the cheapest company for everyone, since there are multiple different variables that come into play when it comes to your car insurance bill.

Who is better, American Family or Nodak?

Unfortunately, the answer truly is "it depends.". No one carrier is necessarily "better" for each policyholder -- it all comes down to what your unique insurance profile looks like.

Why do American Family and Nodak offer me different rates?

Auto insurance companies use many different factors when calculating the prices they charge. Variables such as your driving record, gender, where you park your car, age, and sometimes even things like your credit score can all come into play. Both American Family and Nodak calculate premiums differently, so it's likely they'll offer different prices. The best way to determine which company is the most affordable for you is by comparing personalized quotes from many different carriers.

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

The only way to find the insurance carrier that's right for you is by getting quotes from multiple companies 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 ZIP code and you'll get quotes from dozens of your local top auto insurance carriers for free. With those, you can guarantee you're getting the best price. And maybe you'll find that the best company for you isn't American Family or Nodak 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.