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American Family Insurance Reviews

In an in-depth review, our reviews team gives American Family Insurance 4.3 out of 5 stars for its low-cost plans and wide selection of coverage options.

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09/09/2023 05:17 PM

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American Family insurance reviews speak to a company that offers extremely low rates, but sometimes by cutting corners on service standards. Whether the provider’s plans are worthwhile depends on each customer’s needs and expectations, so it’s worth checking out how American Family Insurance stacks up against competitors.

Our expert review team has analyzed the best car insurance companies on the market today based on their cost, coverage, reliability and service. Learn more about American Family insurance reviews, coverage options, average costs, and more in our comprehensive review.

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American Family Insurance Customer Reviews

Better Business Bureau (BBB) rating: A-
BBB complaints in the last three years: 152
J.D. Power customer satisfaction index: 889 / 1,000
Trustpilot rating: 3.5 / 5.0

American Family insurance reviews are fairly mixed, with praise from customers balanced out with negative experiences as well. It seems service standards can vary widely among American Family insurance agents, making it challenging to tell whether your policy will lead to a headache.

However, with a complaint index of 1.19, American Family receives about 19 percent more complaints than the industry norm. This index is determined by the National Association of Insurance Commissioners (NAIC) which determines how many complaints auto insurance companies receive compared to the industry average.

American Family Insurance Claims Complaints

While American family insurance has a high complaint index, claims complaints are lower on average. American Family Insurance ranked slightly above average for its handling of auto claims in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study℠. American Family Insurance earned the highest score for small insurers with 899 out of 1,000 possible points in the J.D. Power 2021 U.S. Insurance Shopping Study℠. 

American Family Know Your Drive App Reviews

The KnowYourDrive app has exceptional reviews, with a 4.6 out of 5.0-star rating on the App Store and a 4.4-star rating out of 5.0 on Google Play.

American Family Insurance Rating

Our team gives American Family Insurance a rating of 4.3 out of 5.0 stars for its affordable plans and wide selection of coverage options.  American Family offers cost-effective insurance plans and multiple forms of coverage. At the same time, American Family insurance reviews show that standards can vary widely across the company.

Cost 4.7
Coverage 3.8
Reliability 4.0
Service 4.7
Overall Rating 4.3

About American Family Insurance

Founded: 1954
States available: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, Wisconsin
AM Best financial strength rating: A+

Since its founding in 1927, American Family has been offering customers extensive coverage plans. The Madison, Wisconsin-based company, often known as AmFam, has grown into one of the largest auto insurers in the United States due to its consistently affordable rates. It’s less regarded for its service standards, however, as many customers speak of frustrating claims processes in American Family Insurance reviews.

American Family offers the following insurance products:

  • Auto insurance
  • Motorcycle insurance
  • Homeowners insurance
  • Renters insurance
  • Health insurance
  • Umbrella insurance
  • Travel insurance
  • Life insurance

American Family Auto Insurance Cost

The average cost for a full coverage policy with American Family is $1,505 per year. This is about 13 percent cheaper than the national average of $1,732 per year. The company is known for offering affordable pricing, and American Family insurance reviews generally speak positively about the company’s low average rates. An added benefit of American Family insurance is the diminishing deductible, which lowers fees for those with clean driving records over time.

To give you an idea of how much you might pay for an insurance policy with American Family, we’ve included full coverage rate estimates for states where American Family insurance is available. These estimates are for a 35-year-old driver with good credit and a clean driving record.

State Annual Rate Estimate State Annual Rate Estimate
Arizona $1,569 Colorado $2,034
Idaho $1,081 Illinois $1,525
Indiana $1,261 Iowa $1,219
Kansas $1,221 Minnesota $1,351
Missouri $1,455 Nebraska $1,449
Nevada $2,847 North Dakota $1,026
Ohio $980 Oregon $1,493
South Dakota $1,209 Utah $1,696
Washington $1,763 Wisconsin $1,131

*Cost information not available for American Family in Georgia.

Regardless of the provider, a few factors nearly always influence how much car insurance is. Some of the most common can be found below:

  • Location: Car insurance rates vary drastically as you cross state lines. Drivers in states with extensive minimum coverage standards, high numbers of uninsured motorists, and higher rates of car theft can expect higher premiums, as can residents of urban areas.
  • Age and gender: Younger men face steep car insurance rates, though they start to decrease as drivers reach their mid-20s.
  • Marital status: Married drivers usually pay lower prices than single motorists.
  • Credit score: Those with low credit scores often pay high insurance premiums.
  • Driving history: If your record includes car accidents or DUIs, expect higher-than-average car insurance rates.
  • Vehicle type: Newer vehicles, ones often targeted by thieves, and cars with below-average safety ratings pay increased prices.

American Family Car Insurance Discounts

Drivers who pick American Family insurance can take advantage of many savings. If you’re looking for the cheapest car insurance from American Family, ask about some of these top offers:

Multi-Vehicle Discount Saves money on plans with more than one insured car
Loyalty Discount Helps those who’ve held an insurance plan  with American Family for years
Early Bird Discount Reduces rates for those who pick up an auto policy over a week before its start date
Multi-Product Discount Offers a bundling discount for drivers who combine American Family auto and homeowners insurance
Steer Into Savings Discount Benefits those who switch to the provider from one of its top competitors
Auto Safety Equipment Discount Lowers prices for those whose cars have airbags
Defensive Driver Discount Reduces rates for those who take a defensive driving course
Good Driving Discount Rewards safe driving without accidents, violations, or claims
Low Mileage Discount Reduces prices for those who drive fewer than 7,500 miles per year
Good Student Discount Lowers rates for students with strong academic performance
Teen Safe Driver Discount Saves young drivers up to 10 percent for downloading the Teen Safe Driver app
Away at School Discount Helps students who leave cars at home during college
Young Volunteer Discount Benefits young drivers who complete more than 40 hours of volunteer work
Generational Discount Lowers rates for drivers whose parents also have American Family insurance policies
Autopay Discount Cuts prices for those who sign up for automatic funds transfer or electronic recurring payments
Customer Full Pay Discount Helps those who pay for their entire policy at the start save money
Paperless Discount Reduces rates for those who enroll in online billing

American Family insurance reviews also mention that the provider’s usage-based insurance plan leads to significant savings. By enrolling in the KnowYourDrive® program, you’ll be able to further reduce your rates.

American Family Auto Insurance Coverage

American Family offers the six standard types of auto insurance, as well as a few add-on coverage options:

Liability Bodily injury (BI) liability insurance covers the medical expenses for other drivers and their passengers after an accident where you are at fault. Property damage (PD) liability insurance pays for damages to other drivers’ vehicles after an accident where you are at fault.
Collision Collision insurance pays for damages that occur while your car is moving, either with another vehicle or a road hazard, or if you flip your vehicle.
Comprehensive Comprehensive coverage pays for damages to your vehicle that are caused by animals or natural disasters. It also pays to repair or replace your vehicle if it is stolen or vandalized.
Medical Payments Medical payments (MedPay) covers medical bills for you and your passengers after an accident.
Personal Injury Protection Personal injury protection (PIP) pays medical bills for you and your passengers after an accident. PIP may also pay for other expenses, such as lost wages.
Uninsured/Underinsured Motorist Uninsured/Underinsured motorist coverage pays for damages to your vehicle if you are hit by another driver who does not have insurance or does not have enough insurance to fully pay for the cost of damages.
Guaranteed Asset Protection Guaranteed asset protection (gap coverage) pays the difference between your loans and your car’s depreciated value if it gets totaled.
Roadside Assistance Roadside assistance ensures you can get help if your vehicle breaks down mid-trip.
Rental Car Reimbursement Rental car reimbursement pays for your transportation needs while your car is in the shop for repairs.

American Family Insurance: Additional Coverage Options

Other than car insurance American Family also offers many options for life insurance, home insurance, and renters insurance. Below we will go into more detail about what its life, home, and renters insurance policies cover:

American Family Life Insurance

American Family offers term, whole, and universal life insurance policies, but it does not offer medical exam options. Its whole life insurance policies offer benefits such as premiums that never increase. American family term insurance is offered for 10, 15, 20, or 30 year periods. It also offers flexible payment options so that its life insurance policies can be more affordable.

American Family Home Insurance

American Family offers standard coverage for home insurance as well as more coverage options than the average insurer. Standard options include dwelling, other structures, personal property, and liability and other add-on options are also offered to get more coverage for your home. Other coverage options for home insurance include:

  • Sump pump failure and water backup
  • Identity theft
  • Home-based businesses
  • Equipment breakdown
  • Matching siding protection
  • Service line
  • Senior living
  • Vacant home
  • Hidden water
  • Short-term rental

American Family Renters Insurance

American Family offers renters insurance coverage that includes three main types which are personal property, personal liability, and loss of use insurance. Personal property renters insurance helps replace your belongings damaged by situations like theft, the result of a fire, lighting, and more. Coverage for personal liability covers accidents that happen to guests in your home and medical expenses that come with it.

Lastly, American Family’s loss of use renters insurance pays for expenses when you are displaced from your home due to it being uninhabitable. All these insurance policies cover you regardless of if you are renting a home, condo, or apartment.

American Family Insurance Apps

American Family insurance reviews often praise the simplicity and helpfulness of the company’s mobile app, MyAmFam. From their phones, American Family insurance policyholders can view their plans, pay premiums, access pertinent account information, and file claims. Unlike many auto insurance apps, the American Family Insurance app receives overwhelmingly positive reviews. It gets 4.8 stars out of 5.0 on the App Store and 4.1 stars out of 5.0 on Google Play.

American Family Know Your Drive

The American Family KnowYourDrive app monitors driving behavior and tracks habits behind the wheel while rewarding good practices, making it a solid opportunity to decrease premiums. This usage-based platform can get you up to 20% discount for good driving.

American Family Insurance Review: Conclusion

In our American Family Insurance review, we give its services a 4.3 out of 5.0 stars. American Family has a wide range of coverage options to choose from for auto insurance, home, life, and renters insurance. The company’s cost for some of its policies can be higher on average compared to most insurers, but generally, it offers affordable rates.

There are also very few complaints on average about American Family’s claims service which speaks well to its overall customer satisfaction. While American Family can be a good insurance provider, we recommend shopping around and comparing quotes before making a decision.

If you need car insurance, you can start the quote search process with the tool below:

American Family Car Insurance Competitor: Top Picks

While American Family car insurance coverage might be a good fit for your needs, it’s best to get car insurance quotes from multiple companies to compare your options. We recommend checking out Progressive and USAA in your search, as both companies offer more consistent customer service and a wide range of coverage options.

Progressive: Best Usage-Based Insurance

While other providers offer the service, Progessive stands out for its usage-based insurance program. The company says that customers save an average of $146 per year by signing up for Snapshot®, which rewards drivers for safe habits on the road.

Progressive is known for covering all types of drivers, from the most experienced to high-risk motorists. Despite this, it holds an A+ financial strength rating from AM Best, meaning Progressive is financially capable of covering claims. If you’re searching for consistent coverage and excellent usage-based insurance, consider this insurer.

Learn more in our Progressive insurance review.

USAA: Best For Military Members

Although USAA coverage is limited to military families and veterans, it is a great option for those who qualify. USAA offers some of the industry’s highest customer service standards at below-average rates.

The company received the highest customer satisfaction score in every region of the country in the J.D. Power 2021 U.S. Auto Insurance Study℠. USAA’s A++ financial strength rating from AM Best is equally impressive, especially considering its affordable average car insurance premiums.

To learn more about the provider, check out our USAA insurance review.

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American Family Car Insurance Reviews: FAQ

What kind of rating does American Family insurance have?

American Family insurance reviews speak to a company with somewhat mixed marks on customer service. We give it an overall rating of 4.0 out of 5.0 stars.

How much does American Family insurance cost?

The average cost of a full coverage policy with American Family is $1,505 per year. The company charges a different rate for each person based on specific factors. While your price may vary, American Family Insurance is generally known for having relatively affordable premiums.

Is American Family insurance good at paying claims?

By looking at American Family insurance reviews, it seems that the company does not have the best track record when it comes to paying claims. The provider also received a score that was slightly above average in the latest J.D. Power Auto Claims Satisfaction Study.

Is American Family Insurance a big company?

American Family Insurance is the ninth-largest auto insurance provider in the United States, writing over $11.8 billion in direct premiums across all lines of its business in 2020.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the BBB to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.