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

Quick Facts

• Looking at the national averages for insurance, American Family offers significantly cheaper prices than North Star Mutual
• American Family offers more affordable premiums for drivers with a DUI charge on their record
• North Star Mutual has more affordable rates for policyholders who haven't received any speeding tickets or been in an accident in the last few years

American Family vs. North Star Mutual: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. You've probably seen commercials and billboards from companies offering big discounts, but exactly how much money can you save by switching?

You've maybe even narrowed your search down to American Family or North Star Mutual as potential options, but which carrier has less expensive prices for auto insurance?

As you can see, North Star Mutual is about $40 more per month than American Family when looking at the national average rates for car insurance.

But that doesn't mean American Family will necessarily be more affordable than North Star Mutual for every driver. Insurance companies use a ton of complex algorithms to calculate premiums, so depending on how good your credit score is or how clean your driving record is (among a bunch of other factors), you could see wildly different rates from the ones above.

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

American Family or North Star Mutual: Average Car Insurance Rates by State

American Family and North Star Mutual only compete against each other in three states, with American Family offering cheaper prices to the average driver in all of them. South Dakota has the most noticable difference, where American Family premiums are over 70% less expensive than auto insurance rates at North Star Mutual.

There's a lot more that goes into your car insurance payment than just the state you live in. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive insurance prices of any group out there on the road. The reason is that young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $20 less a month by choosing American Family over North Star Mutual.

Even so, both carriers will offer you dramatically lower rates once you turn 25. For example, average prices for American Family policyholders reduce over 60% and North Star Mutual's premiums drop more than 50% over that time.

Which is the Best Company for Retired Drivers?

When it comes to auto insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest rates you'll ever find.

When looking at American Family and North Star Mutual specifically, which carrier is best for retired drivers? American Family gets the edge here, with average prices coming in at around $107 a month compared to North Star Mutual's $144.

Which is the Best Company for Married Drivers?

Did you know that insurance premiums are usually more expensive for those who are single than they are for married drivers? That's typically because married couples tend to own and insure more than one car, which can often earn you a discount.

When it comes to relationship status, American Family is the clear winner for single drivers, with rates about $33 per month more affordable than North Star Mutual, on average. The advantage for married policyholders with American Family is also obvious, where drivers save nearly $50 a month.

American Family vs. North Star Mutual: Average Rates by Gender

Men normally pay more for car insurance than women. This is because men are statistically more likely than women to cause a collision and get into accidents, which leads to increased risk for insurers and, therefore, higher prices.

On average, women see premiums around 3% per month less with American Family, and about 2% less with North Star Mutual.

When it comes to the most affordable prices for each gender, American Family comes out on top for both men and women. On average, women save about $40 a month and men save around $39 with American Family compared to the average North Star Mutual policyholder.

American Family or North Star 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 auto insurance can be pretty complicated. There are so many different terms and limits that it can make it pretty confusing to find the right policy.

That being said, most policies end up falling into two different types of coverage -- liability only (which covers the other party's injuries and property damage if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability).

In this case, North Star Mutual offers the lowest average rates for state minimum liability limits, while American Family has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $30 with North Star Mutual, while full coverage comes out to be about $100 cheaper with American Family Insurance.

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

You've probably seen plenty of commercials from car insurance companies 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 tickets and at-fault accidents on your record, but which of these two carriers offers the cheapest rates to drivers with less-than-ideal driving records?

Which Company is Best for Drivers with Speeding Tickets?

American Family policyholders can expect their prices to go up an average of $29 per month if they get a ticket, while North Star Mutual generally raises rates around $44 a month, on average.

However, North Star Mutual is normally the less expensive option for both drivers who have a recent speeding ticket and those with clean records -- their rates are around 14% more affordable for drivers with clean records and 1% 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 about an $20 -- or around 14% -- increase in their car insurance premiums. Drivers who use North Star Mutual for their auto insurance will see a monthly bill about $73 (or 42%) more expensive after reporting an accident to their insurance company.

Overall, drivers who use American Family end up with the cheaper prices after an accident, with monthly prices averaging $138 compared to North Star Mutual's $174.

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 a collision or ticket. For example, North Star Mutual increases average rates by just under $200 per month -- that's over a 65% increase.

If you have a DUI on your record and are looking for more affordable premiums, American Family tends to be the much less expensive option with average prices of $158 per month compared to $299 from North Star Mutual.

How does Credit Score Impact American Family and North Star Mutual Rates?

In many cases, your credit score can come into play when companies determine your monthly bill. This isn't always the case (for example, Michigan and California are two states that ban the practice entirely), but it does affect quite a few policyholders out there.

Auto insurance carriers 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, drivers with good credit will often be rewarded with more affordable rates.

Looking at American Family and North Star Mutual specifically, which company has the most affordable prices for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, you'll usually find a better deal with American Family. Drivers with "excellent" credit can save more than 25% compared to North Star Mutual, and those with "good" scores can also expect to see savings -- around $32 or 21% cheaper each month.

Which Company is Best for Drivers with Bad Credit?

American Family typically offers lower premiums than North Star Mutual when it comes to drivers with a below average credit score. Drivers with "fair" credit pay about $38 a month less with American Family compared to North Star Mutual, and those with "poor" scores usually save an average of around $51 monthly.

Is American Family or North Star Mutual 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 how much insurance companies will charge for coverage. That's because the more miles you drive, the more likely you are to get into an accident and cause an insurance claim.

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

American Family vs. North Star Mutual: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can have a considerable impact on your monthly car insurance bill. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for insurance, while the opposite is true for people in rural areas.

American Family boasts the lowest average prices for drivers in all types of areas, no matter if they're urban, suburban, or rural.

In urban areas, American Family Insurance's average premiums are around 20% less than North Star Mutual. Drivers in suburban ZIP codes pay about 19% less with American Family compared to North Star Mutual. If you live in a rural area, you can expect to save around 27% with American Family compared to North Star Mutual.

American Family vs. North Star Mutual 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, and the best way to do that is by taking advantage of as many car insurance discounts as you can.

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

In the table below, we've broken down all of the different discounts offered by both American Family and North Star 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 North Star Mutual away when it comes to the sheer amount of discounts available, offering 15 more discounts than North Star Mutual.

Both carriers offer several of the same discounts -- like anti-theft discounts, multi-policy discounts, and paid in full discounts -- but American Family also offers advance quote discounts, connect partner discounts, COVID-19 relief discount, and more that North Star Mutual does not.

On the flip side, North Star Mutual has a couple unique discounts of its own -- family discounts and passive restraint discounts.

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

You've seen the effect certain factors have on your insurance and the different discounts companies offer. But, at the end of the day, is American Family or North Star Mutual the right company for you, your vehicle, and your wallet?

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

• You're single and purchasing auto insurance by yourself.
• You're looking for the company with the most discounts.
• You are purchasing your car insurance with a spouse.

North Star Mutual might be best for you if...

• You're looking for the best rates in MN, ND, NE, and SD.
• You have a speeding ticket on your driving record.
• You want basic auto insurance coverage at the state minimum limits.

We hope this guide helps you get a better idea of the difference between American Family and North Star Mutual and that it aids in making a more informed decision about your insurance.

At the end of the day, the sure-fire way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple carriers, not just American Family and North Star Mutual. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top car insurance companies in your area, all in just a few minutes.

American Family vs. North Star Mutual FAQs

Is American Family or North Star Mutual cheaper?

Looking just at the national average rates, American Family is the more affordable of the two carriers, offering average rates of $140 per month compared to $180 for North Star Mutual. But American Family won't necessarily be the cheapest carrier for everyone, since there are many different variables that are considered when it comes to your insurance cost.

Who is better, American Family or North Star Mutual?

Unfortunately, the real answer is "it depends.". No single company is "better" for everyone -- it all depends on what your unique auto insurance profile looks like.

Why do American Family and North Star Mutual offer me different rates?

Car insurance companies take a look at lots of different factors when calculating the premiums they charge policyholders. Variables like where you call home, where you live, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both American Family and North Star Mutual calculate prices using different factors, 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 bunch of different carriers.

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

The only way to find the insurance company that's right for you is by getting quotes from several companies 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 information once and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the lowest premium. And who knows, the best carrier for you might not be American Family or North Star Mutual 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.