American Family Car Insurance [Definitive Guide]

Company OverviewDetails
Year Founded1927
Current ExecutivesCEO: Jack Salzwedel
President: Bill Westrate
Number of Employees2,400 independent agents
11,000 total employees
Total Revenue
Total Assets
$10.3 billion
$27.5 billion
HQ Address6000 American Parkway
Madison, WI 53783
Phone Number1-800-MYAMFAM
1-800-692-6326
Company Websitewww.amfam.com
Premiums Written4,687,909
Loss Ratio0.69
Best ForOnline Options
Reasonable Rates
Community-focused

Choosing a car insurance company can be hard. It is an important decision, as customers have to find a company that is within their price range but also offers great protection and customer service.

As a result, finding the right company can be time-consuming, and every insurer claims they offer the best insurance or rates on the market.

If you want to learn the truth about American Family, you’ve come to the right place. We will guide you through American Family’s value as an insurer, from its financial ratings to its coverages.

Ready to start? Stick with us as we review the merits and issues of American Family.

Want to start comparison shopping for car insurance rates today? Call the number above.

Table of Contents

Rating Agency

One of the most important parts of researching a company is finding out what others are saying about a company’s service.

To save you time, we’ve collected ratings from important independent reviewers.

The ratings cover everything from financial standing to customer satisfaction, so we can depict an accurate picture of every aspect of American Family.

Let’s get started.

AM Best

A top financial reviewer, AM Best assigns its ratings based on the following criteria:

  • Balance sheet strength
  • Business profile
  • Enterprise risk management
  • Operating performance
  • Specific nature/details of security

Once AM Best looks at these criteria, it calculates an insurer’s ability to fulfill financial responsibilities (an insurer’s financial strength).

American Family has an A rating from AM Best.

This is the third-highest rating possible (the highest rating from AM Best is A++), which means American Family has an excellent financial standing.

Better Business Bureau

The Better Business Bureau (BBB) bases its ratings on the following factors:

  • Complaint history
  • Type of business
  • Time in business
  • Transparent business practices
  • Failure to honor commitments to BBB
  • Licensing and government actions
  • Advertising issues

As you can see, the BBB isn’t focused on financial standing but the ethics of how a company runs its business.

If a company doesn’t have ethical business practices, it is going to receive a poor rating.

Before we take a look at BBB’s rating of American Family, we want to note that the BBB’s ratings are by area. So rather than having one rating for a company, the BBB has multiple ratings based on location.

We chose to look at American Family’s rating in Illinois, one of the states that American Family sells insurance in.

American Family has an A+ rating from the BBB.

This is the highest possible rating. It means that based on the seven rating categories, American Family scored a total of at least 97 points.

Of course, this is only the rating for American Family’s business practices in Illinois. While the rating is a good indication of how American Family operates on a whole, enter in your area at BBB to see how American Family rates near you.

Moody’s Rating

Moody’s is another financial reviewer, although American Family withdrew from Moody’s in 2008.

Before American Family withdrew from Moody’s, it had a rating of Aa3.

This rating is good, as it means American Family is financially stable and has low credit risk.

While American Family doesn’t have another Moody’s rating since 2008, it still has a good rating from AM Best, the other major credit review source.

So currently, American Family is still in good financial standing.

NAIC Complaint Index

The National Association of Insurance Commissioners (NAIC) collects extensive data on customer’s complaints at a company.

This data is then used to calculate a complaint index, which is the number of complaints compared to the number of customers.

In 2017, American Family had a total of 73 complaints. When these complaints were compared to American Family’s total number of customers, American Family only had a complaint index of 0.79.

This means that less than one percent of American Family’s customers submitted complaints.

The result is a low complaint ratio, which is good news.

JD Power

Let’s continue our look at American Family’s customer satisfaction with ratings from JD Power.

In 2019, JD Power surveyed over 42,700 auto insurance customers in their auto insurance study.

Each company was rated on a scale of 1,000 points and assigned a JD Power Circle rating.

  • Five circles means a company is “among the best.”
  • Four circles means a company is “better than most.”
  • Three circles means a company is “about average.”
  • Two circles means a company is like “the rest.”

Now that we know how JD Power ranks companies, let’s see what American Family scored in different U.S. regions.

RegionOverall Score (Out of 1,000)Power Circle Rating
Central823About Average
North Central820About Average
Northwest825Better than Most
Southwest826About the Average

As you can see, American Family is only in a few regions. It only scored above average in the Northwest, although average isn’t a terrible rating.

Let’s look deeper into customer satisfaction with JD Power. Below are the scores for customers’ satisfaction with claims at American Family.

Factors in Claim ProcessRating (out of 5)
Claims Servicing3
Estimation Process3
First Notice of Loss3
Overall Satisfaction3
Rental Experience2
Repair Process3
Settlement3

American Family didn’t score very well in claims either. It received a two in rental experience and threes in the rest.

Consumer Reports

Since American Family only scored okay at JD Power, we want to take a look at few more customer satisfaction sites.

The first one we want to take a look at is Consumer Reports’ rating.

The table below shows ratings for American Family’s claim process.

American Family Customer ServiceConsumer Report Score
Ease of Reaching an AgentExcellent
Simplicity of the ProcessVery Good
Promptness of the ResponseVery Good
Damage AmountVery Good
Agent CourtesyExcellent
Timely PaymentExcellent
Freedom to Select a Repair ShopVery Good
Being Kept Informed of Claim StatusVery Good

Consumer Reports scored American Family’s claim process better than JD Power did.

American Family has excellent or very good in every category, which are the two highest scores at Consumer Reports.

Consumer Affairs

We want to also take a look at Consumer Affairs rating of American Family.

Out of the 30 reviews left within the last year, American Family has an average of 1.4 stars (out of five).

This is a poor rating, but remember that it’s only based on 30 reviews.

Thirty customers only make up a tiny percentage of American Family’s customers.  The negative rating is therefore created from a small group of angry customers and isn’t reflective of American Family’s customer service as a whole.

American Family History

Nearly a century ago, American Family was founded by Herman Wittwer. Originally, Wittwer created the company to serve farmers, as he saw a need for better service.

As a result, American Family’s original name was Farmers Mutual Insurance Company (not related to Farmers Insurance today).

In 1930, the company began to expand beyond insurance for farmers. After a few name changes as the company grew, the company settled on the name American Family and is now one of the top insurers in the U.S.

As well, American Family now offers property and business, life, and health insurance in addition to vehicle insurance.

So why are we talking so much about American Family’s history? Looking at American Family’s history will give us a picture of American Family’s values and standing (compared to other companies).

Keep scrolling to learn about everything from American Family’s market share position to employee reviews. Let’s begin.

American Family Market Share

The more market share a company has, the more competitive it is. The NAIC has recorded years worth of data on insurance companies’ market share.

Let’s take a look at American Family’s market share over a four-year period.

Year American Family's Market Share
20151.85%
20161.87%
20171.89%
20181.9%

American Family has had a slight increase in its market share. While less than 2 percent of the market may seem small, it is actually a significant portion of the market.

As well, American Family doesn’t even sell in all 50 U.S. states, so a 1.9 percent market share is impressive.

All in all, the increase bodes well for American Family and shows it’s staying competitive in the insurance market.

American Family’s Position for the Future

We’ve covered a few ratings already, and we want to take a moment to see how American Family’s past ratings inform its future.

Some of the positives are:

  • American Family has strong financial ratings. AM best gave American Family an A rating, and Moody’s gave American Family an Aa3 rating in 2007.
  • American Family has a good market share. It has managed to increase its market share slightly over the years, which is a good sign.

However, some of the negatives are:

  • American Family has poor customer satisfaction reviews. JD Power and Consumer Reports gave American Family poor ratings.
  • American Family has limited availability. It isn’t available in all states, which means it will lose customers who move to other states.

Bottom line?

American Family’s financial future is stable, but this stability depends on American Family’s service. So if American Family’s customer satisfaction levels drop, it could be in some trouble.

To make sure American Family can continue to grow, it needs to work on making its customer satisfaction rate is above average.

American Family’s Online Presence

Like other companies in today’s technology-driven world, American Family has a strong online presence.

You can find American Family at the following online sites:

    • Facebook (@amfam)
    • Instagram (@amfam)
    • Mobile App (MyAmFam)
    • Twitter (@amfam)
    • Website at www.amfam.com
    • YouTube

American Family’s website also offers the option to search and find a local agent. If you would rather talk to a representative directly instead of surfing the web for information, this is a good option.

American Family’s Commercials

American Family’s commercials stand out from the usual crowd of humourous advertisements.

While other companies use humor to get their messages across, American Family uses more sentimental messages.

The commercials focus on helping the community and making customer’s dreams come true.

American Family also uses celebrities in its commercials, such as football player JJ Watt.

While American Family’s commercials won’t make you laugh, they will probably make you smile.

All in all, American Family has a clever marketing strategy that focuses on inspirational stories of those helped by American Family.

American Family in the Community

American Family’s commercials show its customers helping in the community, such as helping to end hunger or clean up rivers, but what is American Family doing to help?

Well, American Family has a number of charity and volunteer programs in place. Take a look at them below.

  • American Family Insurance Dreams Foundation: Offers financial support and volunteers to help out the community.
  • AmFam Championship: An event that raises money for charities.
  • DreamBank: Centers offering free classes and focusing on providing resources to support the surrounding communities.

These are just broad generalizations of the programs. American Family’s community work involves multiple areas of education and empowering communities.

All this community work helps strengthen the underlying message that American Family will be there to support the community like family.

American Family’s Employees

Employees have inside information on a company, making their opinions a valuable resource when researching a company. Let’s take a look at American Family’s employee ratings on Glassdoor.

User Prompt Rating (out of 5)
Overall Rating 3.3
Culture and Values 3.3
Work/Life Balance3.5
Senior Management 2.8
Compensation and Benefits 3.6
Career Opportunities 3.0

These ratings aren’t bad, but they could be better. In addition to the ratings above, only 56 percent of employees would recommend American Family to a friend.

As well, 68 percent approve of the CEO, and only 42 percent think American Family has a positive business outlook.

Finally, Glassdoor didn’t honor American Family with any awards, probably because of these poorer ratings.

Now that we know what employees think on Glassdoor, let’s look at one more employee review site to make sure the Glassdoor rating is on par.

On Payscale, American Family has 3.7 stars out of five.

This is a little better than American Family’s rating on Glassdoor, and the rating is based on the following categories:

    • Appreciation
    • Company Outlook
    • Learning and Development
    • Manager Communication
    • Manager Relationship
    • Pay Policy
    • Pay Transparency

American Family scored the best in the categories of company outlook and manager relationship.

It did the worst in the categories of fair pay and pay transparency. This is typical of most companies the pay could always be better.

American Family Awards and Accolades

We know what customers and employees think of American Family. Now we want to see what other organizations think of the company.

Despite being around almost a century, American Family has a shortlist of awards. However, individual agents at American Family have multiple awards for their work at the company.

As well, American Family is a smaller insurer that isn’t in every state. This means that it may have been passed over for awards in favor of larger companies.

Cheap Car Insurance Rates

Now that we’ve explored American Family’s ratings, we want to see what it charges for its policies. Often, customers’ first question is how much an insurer costs. If you aren’t sure if American Family’s rates will fit your budget, keep reading.

In this section, we will go in-depth into American Family’s rates. We will look at what changes its basic rates, from gender to driving record.

All of the following data in this section is from our partnership with Quadrant, bringing you the most complete and accurate data available. Let’s begin.

American Family Availability and Rates by State

As we mentioned earlier, American Family is not available in every U.S. state.

It is only available in 19 states, which means it is in less than half of U.S. states. This could be problematic if you move, as you’ll have to change insurers if you move to a state not covered by American Family.

Now that we’ve covered American Family’s availability, let’s take a look at what American Family’s rates are in the 19 states.

StateAverage by StateAmerican Family Annual PremiumCompared to State Average (+/-)Compared to State Average (%)
Alaska$3,421.51$4,153.07$731.5521.38%
Colorado$3,876.39$3,733.02-$143.37-3.70%
Idaho$2,979.09$3,728.79$749.7025.17%
Illinois$3,305.48$3,815.31$509.8215.42%
Indiana$3,414.97$3,679.68$264.717.75%
Iowa$2,981.28$3,021.81$40.531.36%
Kansas$3,279.62$2,146.40-$1,133.22-34.55%
Median$3,660.89$3,698.77$37.881.03%
Minnesota$4,403.25$3,521.29-$881.97-20.03%
Missouri$3,328.93$3,286.90-$42.03-1.26%
Nebraska$3,283.68$2,215.13-$1,068.55-32.54%
Nevada$4,861.70$5,441.18$579.4811.92%
North Dakota$4,165.84$3,812.40-$353.44-8.48%
Ohio$2,709.71$1,515.17-$1,194.54-44.08%
Oregon$3,467.77$3,527.28$59.511.72%
South Dakota$3,982.27$4,047.47$65.201.64%
Texas$4,043.28$4,848.72$805.4419.92%
Utah$3,611.89$3,698.77$86.882.41%
Washington$3,059.32$3,713.02$653.7021.37%
Wisconsin$3,606.06$1,513.27-$2,092.80-58.04%

The median rate that American Family has is slightly over the average rate. However, how economical American Family’s rates are do depend on the area.

American Family’s rates are well below the state average in Wisconsin, Ohio, Nebraska, and Kansas.

This isn’t always the case, but American Family’s rates tend to be close to the state averages.

Comparing the Top 10 Companies by Market Share

We shared how American Family’s rates compare to the state average, but how do American Family’s rates compare to other companies?

Let’s start by taking a look at the average rate by state for the top 10 companies.

StateAllstateAmerican FamilyFarmersGEICOLiberty MutualNationwideProgressiveState FarmTravelersUSAA
Alaska$3,145.31$4,153.07-$2,879.96$5,295.55-$3,062.85$2,228.12-$2,454.21
Colorado$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77-$3,338.87
Idaho$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19-$1,867.96$3,226.29$1,877.61
Illinois$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35-$3,898.00$2,408.94$3,393.75$1,630.86
Iowa$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Kansas$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Median$4,532.96$3,698.77$3,907.99$3,073.66$5,295.55$3,187.20$3,935.36$2,731.48$3,729.32$2,489.49
Minnesota$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49-$2,066.99-$2,861.60
Missouri$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91-$2,525.78
Nebraska$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71-$2,330.78
Nevada$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
North Dakota$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53-$2,006.80
Ohio$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
Oregon$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
South Dakota$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23--
Texas$5,485.44$4,848.72-$3,263.28-$3,867.55$4,664.69$2,879.94-$2,487.89
Utah$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83-$2,491.10
Washington$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78-$2,262.16
Wisconsin$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53-$2,975.74

Compare American Family’s rate to other providers’ rates to make sure you’re getting the best deal on car insurance in your state.

If you don’t feel like scrolling through the rates above, take a look at the table below to see how the overall average rate of each company compares.

CompanyMedian AverageHigher/Lower (+/-)Higher/Lower (%)
Allstate$4,532.96$834.1918.40%
American Family $3,698.77$37.881.03%
Farmers$3,907.99$247.106.75%
Geico$3,073.66-$587.23-16.04%
Liberty Mutual$5,295.55$1,634.6644.65%
Nationwide$3,187.20-$473.69-12.94%
Progressive$3,935.36$274.477.50%
State Farm$2,731.48-$929.41-25.39%
Travelers$3,729.32$68.431.87%
USAA$2,489.49-$1,171.40-32.00%

As you can see, American Family is definitely not the most expensive company. However, it is still not cheaper than average, like USAA and State Farm.

Average American Family Male vs. Female Car Insurance Rates

Since experience is directly related to age, drivers are often aware that their age is used to determine rates.

However, a demographic factor that often surprises people is that their gender is also used to determine rates.

The law bans insurers from using gender as a demographic factor in the following states: California, Hawaii, Massachusetts, Montana, Pennslyvania, North Carolina, and parts of Michigan.

In states where gender is allowed to be a factor, insurers look at their accident data to determine rates. Most insurers end up charging males more.

Why? A number of studies have shown that males get into more accidents than females.

The Insurance Institute for Highway Safety found that males are more dangerous drivers than females as males engage in more risky behaviors.

With this in mind, let’s take a look at American Family’s rates by age, gender, and marital status.

DemographicAverage Premium
Married 60-year old female$1,992.92
Married 60-year old male$2,014.38
Married 35-year old female$2,202.70
Married 35-year old male$2,224.31
Single 25-year old female$2,288.65
Single 25-year old male$2,694.72
Single 17-year old female$5,996.50
Single 17-year old male$8,130.50

As you can see, males pay more on average than females, even if it’s only $20.

Age is also a major factor, as rates decrease the older drivers become.

Average American Family Rates by Make and Model Last Five-Year Average

It’s easy to imagine why a sports car would be more expensive to insure than a minivan. When insurers base rates on car make and model, they consider the following factors:

  • Safety rating: How safe is a car in a crash? The less safe a car is, the more insurers will have to pay for injury costs after an accident.

  • Repair costs: How much do the parts for your car cost? If they are easy to find and cheap, insurers will charge less. But if your car needs special, imported parts, insurers will charge more.

Now that you know why insurers charge based on make and model, take a look at what cars are the most expensive to insure at American Family.

Make/ModelAverage Premium
2015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT$3,178.82
2015 Toyota RAV4: XLE$3,326.18
2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6$3,447.30
2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V6$3,487.91
2018 Toyota RAV4: XLE$3,496.99
2018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT$3,721.32

There is a $540 difference between the most expensive and least expensive cars on this list. That is a fairly significant price increase, about 1/4th of the price of an average car insurance policy.

Average American Family Commute Rates

The more you drive, the more likely you are to get into an accident of some kind. Because of this small added risk, insurers sometimes add more onto a premium for long commutes.

Commute and Annual MileageAverage Premium
10 miles commute | 6,000 annual mileage.$3,401.30
25 miles commute | 12,000 annual mileage.$3,484.88

An average price increase of about $80 isn’t bad. It is on the lower end of most insurers’ price increases for commute distance.

Average American Family Coverage Level Rates

How much an insurer charges for different coverage levels is important. Because high coverage (or at least medium) is best, you’ll want to find an insurer whose rates are economical.

Take a look at American Family’s average rate increases below.

Coverage Level LowMediumHigh
Average Annual Premium$3,368.49$3,416.40$3,544.37

American Family’s rates are fairly economical. The upgrade from low to high coverage only costs $170.

This is cheap. Most insurers charge over $1,000 for an upgrade from low to high coverage. So take advantage of American Family’s low price increase and purchase medium or high coverage.

Average American Family Credit History Rates

While factors like commute distance and car make and model do matter to insurers, one of the more important factors is a customer’s credit score.

The average credit score in the U.S. is 675, which is a good credit score.

If you don’t have a good credit score, insurers will penalize you with higher rates. However, some insurers’ rate increases are worse than others.

Let’s see what American Family charges.

Credit ScoreGood CreditFair CreditPoor Credit
Average Annual Premium $2,691.74$3,169.53$4,467.98

The change from good to poor credit will cost drivers an average of $1,770. Even going from good to fair credit costs an average of $1,300.

While these numbers may make do a double-take, American Family’s price increases are fairly typical at most insurance providers.

Average American Family Driving Record Rates

Do you have any poor marks on your driving record? A poor driving record can make it hard to find a good rate on insurance. If you are a high-risk driver, you’ll have to shop around for car insurance.

So take a look at American Family’s rates for driving offenses below.

Driving RecordAverage Annual Premiums
Clean record$2,693.61
With 1 speeding violation$3,025.74
With 1 accident$3,722.75
With 1 DUI$4,330.24

These rates aren’t bad. A DUI results in an average increase of $1,640, which is on the lower end. The total amount for a DUI is also under $5,000, which is cheaper than a DUI offense at the majority of providers.

Bottom line?

American Family’s rates for various driving offenses aren’t terrible. The price increases are on the cheaper end, which means you may end up paying more if you switch from American Family.

Coverages Offered

It’s one thing to know what a company charges, and another thing to know what a company is offering for its prices. It is important to make sure that a cheaper price doesn’t mean cheap coverages or an expensive price is worth the coverages.

If a company’s prices don’t match the quality of its coverages, it may be time to look elsewhere.

We know that American Family’s prices are about average, so we want to make sure its coverages are above average. After all, having adequate coverage is vital if you get into an accident.

So keep scrolling to learn about American Family’s coverages, discounts, and programs to see if it’s worth your time.

Types of Coverages Offered

American Family offers a variety of coverages. Let’s start our look into its coverages by seeing what coverages are offered for personal auto coverage (coverages that protect you).

Personal Auto CoveragePurposeYou Might Need It:
Bodily Injury LiabilityWill pay for the other drivers' medical bills/loss of income in an accident you causedWhen the artist you hit broke his arm and can no longer paint
Uninsured MotoristHelps you when you are in an accident with a driver who's uninsuredIf you are in a hit-and-run accident or the driver has no insurance
Underinsured MotoristHelps you when you are in an accident with a driver who's underinsuredA driver has insurance, but the maximum amounts are not enough to cover your injury or property damage costs
Medical PaymentsHelps pay for you and your passengers' medical costs after an accidentYou broke your arm, resulting in hospital and follow-up bills

A number of these coverages are actually required in most states, such as bodily injury liability coverage and Medpay. However, American Family is noticeably missing important coverages like property damage liability and Personal Injury Protection (PIP).

Let’s take a look at the coverages that protect your vehicle.

Vehicle CoveragesPurposeYou might need it:
CollisionPays for damages to your car in a collision with an object or vehicleWhen you run into a mailbox backing out of the driveway
ComprehensivePays for damages to your car for situations not involved in a collision with another vehicle (theft, vandalism, natural disasters, and natural disasters)When you run into a deer that came out of nowhere
Gap CoverageCovers the gap between the actual value of your car and what you owe, if your car is totaledWhen your car is totaled and the manufacturer still wants money

American Family does offer all the basics to protect your vehicle. Now let’s take a look at what add-on coverages American Family has.

Special Auto CoveragesPurposeYou might need it:
Business Car Covers commercial vehicles Your truck is primarily used to make deliveries for your business
Classic Car Covers vintage cars When you have a vintage car in your garage that you only take out on nice days
Emergency Roadside AssistanceWill pay for when you need a tow, jump start, or moreWhen it's pouring rain and you're stranded on the side of the road with a dead battery
Rental Car ExpenseGives you access to a rental car if your car is in the shop for a claimWhen you need to get to work but your car has major damage from an accident
Rideshare Covers rideshare drivers (Uber, Lyft, etc.) . Is in addition to personal insurance When you drive rideshare at nights to earn extra cash

Once again, American Family is missing a few add-ons that other companies provide:

  • Accidental death or dismemberment
  • Modified car insurance

However, these missing add-ons are among the least-popular/least-common, so overall, American Family has a decent array of coverages. While it is missing a few basics, it still has most of the basic coverages and a nice selection of add-on coverages.

Factors that Affect Your Rates

A number of factors we’ve already covered, but as a reminder, these factors are:

  • Demographics (gender/age)
  • Commute
  • Coverage Level
  • Credit Score
  • Driving Record

All of these factors have a direct impact on your rates. Since a number of these factors are outside of your control, though, you may be wondering how you can save money.

One way is by taking advantage of discounts. A great discount to consider is a bundling discount. You can get a bundling discount at American Family if you have more than one policy at the company.

A common bundling option is home and auto insurance, but you can also bundle in policies like life or RV insurance to receive an even higher discount.

Keep reading to see what other discounts American Family offers.

Getting the Best Rate with American Family

A great way to lower your rate at American Family is applying for discounts. In this section, we will cover all of the discounts American Family offers and how to qualify for them.

Let’s start by seeing what personal family discounts American Family has.

Personal Auto DiscountsDetails
Distant StudentUsually must be 100 miles away
Good StudentUpper 20% of class
LoyaltyMust be a customer of American Family
Students & AlumniFor certain schools only
Young VolunteerUnder 25 and at least 40 hours of volunteer work per year

American Family offers quite a few discounts for students. Now let’s see what discounts there are for vehicle features.

Car DiscountsDetails
Advanced Safety FeaturesExamples: Anti-lock brakes and electronic stability control
Anti-TheftCertain anti-theft technologies required
Vehicle RecoverySome examples are OnStar and LoJack

Having extra safety features on your car can earn you a discount at American Family.

Another way to get a discount is through driving habits.

Driving DiscountsDetails
Claim FreeIf you haven't had to file a claim
Defensive DriverUsually must be 50+
Driver's EdUsually must be under 21
Low MileageFor those who drive under the norm
Safe DriverTypically no wrecks or violations

Having a clean driving record will help you save money at American Family. There are also discounts you can get on your policy for having multiple policies or staying loyal to American Family.

Policy DiscountsDetails
Family LegacyFrom generation to generation
Family PlanWhen you ensure the whole family
Multiple PoliciesAlso called a "bundle discount"
Multiple VehiclesA discount for insuring more than 1 vehicle

Thought we were done? Not quite. American Family offers a few more discounts.

Extra DiscountsDetails
Continuous CoverageWhen you haven't had a lapse in coverage
Early SigningUsually seven days before current policy expires
Full PaymentWhen you pay your policy in full
Paperless DocumentsAlso referred to as an "e-policy"
Paperless/Auto BillingSome examples are AutoPay and e-Bill
Switching ProvidersWhen you switch from another company

This final set of discounts is easy to get. Simply signing up for paperless billing can earn you a small discount on your premium.

All in all, American Family offers a nice array of discounts that can help lower your insurance costs.

American Family’s Programs

There are a few programs through American Family that can also save customers money.

  • Accident Forgiveness: American Family has an earned accident forgiveness program. Drivers must be accident-free for five years to qualify. For qualifying drivers first at-fault accident, American Family won’t raise rates.
  • Driving App: American Family has a usage-based app called KnowYourDrive that offers discounts for safe driving habits. Currently, this app is only available in select states.

Both of these programs are designed to encourage drivers to drive safely. However, the driving app is limited by area.

What Stands Out and What’s Missing

We’ve now covered quite a bit of our guide, so let’s take a moment to go over American Family’s coverages and rates.

  • What Stands Out: American Family’s rates are about average, and it offers the basic array of coverages for the price.
  • What’s Missing: American Family is missing coverages like property damage liability and PIP. It’s driving app is also limited to only a few states.

So far, American Family seems to be an ordinary provider, falling in the category of “average.” It has decent rates and coverages, but it also has nothing that makes it stand out as truly remarkable.

For a car insurance provider, though, all you need a steady and reliable insurer.

Canceling Your Policy

If you decide American Family is no longer right for you, its important that you understand the cancellation process.

Customers who don’t know how a company’s cancellation process works may be stuck paying fees or finding out their policy was never canceled.

However, insurers are often vague about how to cancel a policy. By making it harder to cancel, an insurer may frustrate customers enough that they end up staying.

To make sure this doesn’t happen to you, keep reading. We cover everything from cancellation fees to how to actually cancel an American Family Policy.

Let’s get started. 

Cancellation Fee

American Family doesn’t say anything about a cancellation fee, which implies there isn’t one. However, sometimes companies will charge a small fee if customers cancel before the end of a billing cycle.

Is there a refund?

American Family should definitely refund you if you cancel before the end of a billing cycle.

So say you prepaid for six months of coverage. You cancel in the second month, which means American Family needs to refund you for the remaining four months of coverage.

How to Cancel (Step by Step Guide)

Because companies make their cancellation process rather vague, we are going to go step by step through how to cancel an American Family Policy.

Keep reading to see what information you’ll need and what mistakes to avoid.

Step One: Have a New Insurer

Before you cancel your American Family policy, you need to have a new insurer. Otherwise, you are risking a lapse in insurance.

In fact, when canceling and signing up for a new policy, insurers are going to ask for the start or end date of your policy. If they see a lapse in coverage, they will charge you more.

However, if you are canceling your auto insurance policy because you no longer need it, you don’t need to provide proof of a new insurer. Instead, you’ll to provide a bill of sale or proof of license plate relinquishment if you sold your car.

Step Two: Call or Contact Your Agent

There are two ways to cancel your American Family policy.

  1. Call American Family at 1-800-MYAMFAM (1-800-692-6326). Customer service will submit a cancelation form to an agent.
  2. Call your agent. This will cut out the middleman, so you know your cancellation from will reach the agent directly.

When you cancel your policy, you will need the following information:

  • Personal Information (name, address, etc.)
  • Current Policy Number
  • Policy Number at New Insurer (or Bill of Sale)
  • Reason for Canceling

Make sure to have all the necessary information prepared beforehand so you don’t have to call back.

Step Three: Make Sure Cancellation Worked

This may seem like an odd step, but you should always doublecheck that your cancellation went through.

Either call American Family again or check your bills to make sure you weren’t charged after cancellation.

We also want to point out that simply stopping payment is not an official cancellation. You may become embroiled in a legal battle if you stop paying without officially canceling, as legally you owe American Family money.

When can I cancel?

You can cancel at any time. Just remember that you may be charged a small fee if you cancel before the end of a billing cycle.

Your cancellation will go into effect immediately, but it’s always smart to double-check that the cancellation went through.

How to Make a Claim

Now that we’ve covered how to break up with American Family, we want to look at what to do when you have American Family and are in an accident.

It’s easy to get flustered after an accident and skip important steps, which is why we are going to guide you through how to file a claim at American Family.

We will also look at important claim statistics, such as how many claims American Family is paying out each year.

Ease of Making a Claim

Unlike canceling a policy, American Family offers up detailed information on how to make a claim.

Before you file your claim, make sure you’ve collected information on the following:

  • Date/time of accident
  • Description of accident
  • Photos of damages (if possible)
  • Insurance/contact information of all involved

Once you have your information ready, you can file a claim through the following methods:

  • Call American Family. Call 1-800-MYAMFAM (1-800-692-6326).
  • Contact your agent. You can call or email your agent directly to file a claim.
  • Use your mobile app. You can file a claim directly from your smartphone. This option also makes it easy to upload pictures of damages.
  • Use your online account. Sign in to your account on American Family’s website to file a claim.

American Family recommends filing through the mobile app, as it is the fastest method. The mobile app also allows customers to file 24/7, which is useful for crashes outside of business hours.

Premiums Written

So what are your chances of having your claim approved? Well, the more premiums a company writes, the more customers there are providing funds.

This means that if a company has a high number of written premiums, it is more able to pay off more claims.

So let’s take a look at the NAIC’s data on American Family’s written premiums.

Year American Family Written Premiums
2015$3,530,595,000
2016$4,005,549,000
2017$4,381,962,000
2018$4,687,909,000

American Family’s written premiums have grown substantially over a four-year period, which is great news.

After all, it means more customers are signing up with American Family, keeping American Family in the running as a competitor in the insurance market.

Loss Ratio

A loss ratio is another great indicator of how many claims a company is paying each year.

The NAIC calculates loss ratios by comparing the number of premiums written to the number of claims paid. So if a company has a loss ratio of 60 percent, it means the company is spending $60 on claims for every $100 earned from written premiums.

If a company has a low loss ratio, it is paying out very few claims. On the other hand, a company with a high loss ratio risks bankruptcy by paying out too many claims.

So let’s see if American Family’s loss ratio has been well-balanced over a four-year period.

Year American Family Loss Ratios
201564.11%
201665.06%
201770.32%
201869%

These loss ratios are excellent. Although they’ve increased and decreased, they’ve stayed in a good range (neither too high nor too low). This means that you have a good chance of American Family approving and paying your claim.

How to Get a Quote Online

Every insurance company is eager to give out free quotes, as they offer a personalized price for potential customers. Free quotes make it easy to compare prices and coverages at various providers, and they only take a few minutes.

However, it’s important to know what information you need before applying for a free quote, in order to save time and make sure the quote is as accurate as possible.

Keep scrolling to learn how to get an online quote at American Family in our step-by-step guide.

Step One: Visit Website

The first step is to visit American Family’s website. On the home screen, you will see a large quote box taking up most of the left side of the screen.

American Family 2019 Get a Quote 1 Home Page-medium

To start, enter your zip code and select what type of quote (car) you would like from the dropdown bar.

Step Two: Enter Personal Information

Next, you will be taken to the online quote form. The first set of information American Family will ask for is personal information.

American Family 2019 Get a Quote 3 Contact Information

The form will ask for basic details like your name and address.

Step Three: Enter Vehicle Information

After you’ve entered your personal information, you’ll be asked questions about your vehicles.

American Family 2019 Get a Quote 4.1 Vehicle Info

You can enter up to four vehicles. For each vehicle you enter, American Family will upload vehicle safety information.

American Family 2019 Get a Quote 4.2 Vehicle Information-medium

You can also enter in your annual mileage to receive a more accurate quote.

Step Four: Enter Household Information

American Family will then ask for information on household members, even those who don’t drive. (Note: Names and information are for display purposes only and do not represent actual individuals.)

American Family 2019 Get a Quote 5 Household Members-medium

For each person, American Family will ask about occupation, gender, and date of birth.

American Family 2019 Get a Quote 6 Household Members Characteristics-medium

Step Five: Enter Driver Information

Next, American Family will ask about past accidents and violations.

American Family 2019 Get a Quote 7.1 Traffic Violation Accidents-medium

Make sure to fill out this section completely, as omitting an accident or violation will change how accurate your quote is.

American Family will also ask about your past insurance to make sure you have no lapses in your history.

American Family 2019 Get a Quote 8 Prior Insurance-medium

Step Six: Enter Discounts

American Family will also ask for you to choose what discounts you would like, such as paperless billing or bundling.

American Family 2019 Get a Quote 9.1 Discounts-medium

Add as many discounts as you’d like, so you can see what your rate will be after discounts.

Step Seven: Get Quote

Finally, American Family will ask about what type of coverage you’d like.

American Family 2019 Get a Quote 10.1 Quote Page-medium

Pick and select what coverages you’d like to get your quote. Remember, you need the following information to get as accurate a quote as possible:

Information Required?
Basic Personal Information Yes
Driver History Yes
Drivers License No
Social Security Number Optional
Vehicle Information Yes

Design of Website and Apps

A website is the first thing most people visit when researching a business. If a website doesn’t make a good first impression, consumers will look elsewhere.

The same goes for apps no-one has the patience for poorly-designed technology these days. So in this section, we’re going to go through American Family’s website and apps to see how user-friendly they are.

Design of Website

When you visit American Family’s website, you’ll see that it is fairly easy to navigate.

American Family 2019 Get a Quote 1 Home Page-medium

There are options at the top of the page that offer drop-down menus with more information, as well as quick links at the bottom of the page.

Below is an example of what the drop-down menus look like.

American Family Website Menu Pulled Down

If you click on car insurance, you will be taken to a page with more information and links.

Because of the organization of the drop-down menus, the website is well designed. It makes sure that people can narrow down topics quickly.

It is easy to find information on the website. Why? Because in addition to the drop-down menus, there is a search bar on the upper right side.

American Family Website Search Bar

Click on the search bar to enter your query. American Family also suggests a list of popular searches on the right side.

All in all, the website is well-organized. A clean design makes it easy to find answers quickly so that you don’t have to spend an hour slogging through articles.

Design of MyAmFam App

The MyAmFam app provides easy access to users’ accounts from mobile devices.

The app has rated highly on Apple, with 4.8 stars out five. This average rating is based on over 32,700 ratings.

American Family App iOS-medium

According to Apple’s description, you can do all of the following on the app.

  • View Insurance Policies
  • Set-Up/Manage Payments
  • Manage Policy Details
  • Access Your Insurance Information
  • Claims and Accident Support

As you can see, you can accomplish a lot just from your phone when using the app. However, some common complaints are that the app has glitches, such as not letting customers log on.

Usually, updating the app will take care of bugs like this.

Design of KnowYourDrive

American Family’s KnowYourDrive usage-based app isn’t rated well.

On Apple, the app only has two out of five stars.

American Family KnowYourDrive iOS-medium

However, this app is new and only reviewed by less than 100 users. As American Family works on the glitches with the app and gains more users, this rating should go up.

Common complaints with the app are that the app needs to be more accurate in its recording of driving data.

  • Inaccurate detection of speed
  • Inaccurate detection of hard-braking incidents
  • Problems with the app determining congestion
  • Dings for driving at night

As well, the app tends to drain users’ batteries, which can be a problem if there isn’t a working car charger.

Pros and Cons

We are almost done with this review, so let’s take a moment to go through the pros and cons of American Family.

ProsCons
Strong financial ratingsSome poor customer satisfaction ratings
Growth in premiums writtenSmall market share
Affordable ratesOnly available in 19 states
Has a driving discount programApp has technical and accuracy issues

While American Family has some great pros, it is limited in its reach and technology.

The Bottom Line

So should you choose American Family?

It is a solid company, with good financial ratings and decent customer service. As well, its rates are about average, usually falling in the middle of the pack.

American Family is also involved in the community, offers plenty of discounts, and has a decent selection of coverages.

However, American Family is only available in 19 states. This means that American Family won’t be able to follow you from state to state if you frequently move, forcing you to find another insurer.

So if you want an average insurer, American Family will meet your needs. Getting a quote will help you better determine if American Family is right for you.

FAQ

People are constantly asking questions to try and determine if a provider is right for them. If you are blanking on what to ask an agent, read our list of frequently asked questions about American Family.

Let’s jump in.

What if my pet is in the car during an accident or theft?

If you have add-on pet coverage through American Family, they will cover your pet’s injuries.

While having insurance on your pet is great, make sure to take steps to protect your pet by not leaving them alone in the car and buckling them in or placing them in a carrier.

Where are American Family’s headquarters?

Need to send American Family a letter? The main headquarters are located at 6000 American Parkway, Madison, Wisconsin 53783.

American Family also has regional headquarters at Minnetonka, Minnesota; Saint Joseph, Missouri; Denver, Colorado; and Columbus, Ohio.

Does American Family cover rental cars?

If you have rental car expenses through American Family, it will cover the cost of a rental car if your car is in the shop (after a claimable accident).

Does American Family have a grace period?

If you miss a payment, you will typically have 10-14 days to pay your bill. It is incredibly important to pay your bill before the end of the grace period. Otherwise, insurers will cease to cover you.

What does roadside assistance cover?

American Family’s roadside assistance covers the following:

  • Towing
  • Dead batteries
  • Flat tires
  • Locked out
  • Out of gas

Simply call roadside assistance, and American Family will send someone to help.

Now that you’ve made it through our review, we hope you are ready to make the decision about what provider to trust. Choosing a provider is an important decision, and we hope we answered all your questions.

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