American Family Auto Insurance

by Nikola Djurkovic

American Family Insurance is a private company that was founded in 1927. It is located in Madison, Wisconsin, and it offers many types of insurance, including life, health, homeowners, commercial, and auto. It has many subsidiaries, and it operates in 19 states in the US. The company is ranked on the Fortune 500 list, and it has been there for more than 20 years. Here, we’ll take a look at the many American Family insurance reviews and use our analysis to determine where the company stands among the best on the market.

Product Overview

Features

The company offers mostly high rates and some tremendous discounts. American Family car insurance reviews indicate customer service and coverage options are average. The company operates in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

While American Family’s website is not among the best, their mobile app, called MyAmFam, has excellent features. It can be used to process payments, request roadside help, download proof of insurance, or track American Family insurance claims.

Signature Feature

The standout feature of American Family is the many discounts the company offers Out of these, perhaps KnowYourDrive is the most noteworthy. It is sadly available only in some selected states, but it is a great option. When you enroll in the program, American Family installs a device that measures how safely you drive. If your scores qualify, you can get up to an astounding 40% off your premium according to the reviews on American Family insurance.

Financial Strength

From the perspective of a customer, it’s justified to worry about an insurance company’s financial stability; if the company isn’t financially stable, it will not have the resources to pay out your claims. However, there are solid reasons to be confident about American Family’s financial strength. It is a Fortune 500 company, ranked at 311th place in the year 2018, and it has been on the list for over 20 years. It also holds an “A” or “Excellent” rating—the second best rating possible—from A. M. Best rating services, an agency that rates insurance companies.

Types of Insurance

American Family insurance offers all the common types of insurance that can be found with most insurance carriers, plus some interesting additional coverage options. They also are ready to insure all kinds of vehicles besides just cars. Standard coverages include collision, comprehensive, property damage liability, bodily injury liability, medical expenses, personal injury protection, underinsured/uninsured motorist protection, and accidental death and dismemberment. The additional coverages are the following:

Rental Car Reimbursement – This option is available with comprehensive and collision coverage. If you need to wait for your damaged car to be repaired, American Family will cover the expenses of the car you rent in the meantime, and you can continue with your daily obligations hassle-free.

A few American Family auto insurance reviews indicate that it’s more convenient to select one of the rent-a-car companies approved by American Family since they will charge the company directly. If you choose a different firm, you will have to send a request for reimbursement to American Family. Enterprise Rent-A-Car is a widely available company approved by American Family.

Gap Coverage – This add-on helps you if your car suffers a total loss while it is still on lease or in loan. It pays the difference between the depreciated value of your vehicle and the amount that’s left.

Emergency Roadside Service – If your car breaks down on the side of the road, or you lock yourself out of the car, the American Family reviews say that this inexpensive add-on can help. American Family’s roadside assistance operates 24/7 and can be contacted by phone or by the excellent MyAmFam application. It offers extensive services like towing, battery restart, tire repair, gas or oil delivery, locksmith services, and roadside repairs.

Ride-Sharing Auto Insurance – If you drive for Uber or Lyft, you are fully covered by the company only when you have a passenger in your car, or if you’re driving to pick up a match. American Family offers an inexpensive endorsement that also covers you when you’re waiting for a match.

Customer Service

American Family receives good grades for customer service satisfaction. It has the best possible score of A+ on the Better Business Bureau website; however, the majority of American Family Insurance reviews on the BBB left by customers are negative. Nevertheless, it also boasts a solid NAIC Complaint Ratio, which was 0.64 in 2016, significantly below average for a company of its size (the lower, the better).

J.D. Power, a company that grades auto insurance providers based on customer satisfaction, gives American Family 3 out of 5 stars in claims processing satisfaction and 4 out of 5 stars in the insurance shopping department.

The American Family insurance company rating on sites like Trustpilot and USInsuranceAgents is mostly one star, with customers complaining about poor claims handling, low settlements and lousy customer service. Yelp also has a significant number of almost comically negative reviews. However, this is the issue seen with the majority of larger insurance companies. Put simply, customers are more inclined to take the time and effort to leave a review if the experience was extremely negative.

Discounts

This is an area where American Family really stands out from its competitors. American Family car insurance reviews all praise the company for offering a plethora of different discounts that can significantly reduce its clients’ premiums. These include:

Multi-Product Discount – If you have multiple insurance policies with American Family, like homeowners and auto, you can get a bundle discount.

Multi-Vehicle Discount – You can save money if you insure more than one vehicle at a time with American Family.  

Steer into Savings – If American Family manages to lure you away from its competitors, you can get a discount on your auto insurance.

Good Driving Discount – If you are a model driver with a clean record, you can expect a discount.

Loyalty Discount – Although it isn’t necessarily an unusual discount, some American Family insurance company reviews bring this one up. If you have been a loyal member of American Family, you can receive a discount based on the amount of time you’ve spent with them.

Auto Safety Equipment – If your car is equipped with safety features like airbags, you can get a discount of anywhere from 10% to 30%, depending on the state you live in.

Defensive Driver – If you are 55 years or older, in certain states, you can complete an approved defensive driving course and get a 5%–10% discount.

Low Mileage Discount – If you are driving less than 7,500 miles per year, you can qualify for an additional discount.

Generational – If your parents are also insured with American Family insurance, you can get a discount if you keep up the family tradition.

Good Student – Studying hard can pay off at American Family, since good grades can bring your premium down.

Away at School – If the insured driver is under 25 and attending a college that is 100 miles away from where the car is usually parked, a discount is available.

Young Volunteer – Those who are under 25 years old can get a discount if they complete 40 hours of volunteer work per year for a nonprofit organization.

Early-Bird – If you have an active policy with another insurance company, and if you get a quote from American Family car insurance at least seven days before the policy becomes effective, you can receive a discount.

Autopay – If you select the automatic funds transfer option or electronic recurring payments, you can get a discount.

Discount for Paying in Full – If you pay the premium in full at the start of the term, you can receive a discount.

Paperless – If you choose online billing and e-delivery, you can save money and protect the environment at the same time.  

Safe Teen Driver – This program is offered for free to those who have a policy with a teenage driver. A mobile app tracks and scores the teen’s driving habits. If participants drive more than 3,000 miles or drive for more than one year in the program, they can get up to 10% off for safe driving habits.

KnowYourDrive Discount – This is the option that most American Family insurance reviews rave about. If you enroll in this program, American Family will install a device in your car that measures your driving habits, tracking how fast you drive, where you drive, acceleration and breaking, and how often you use your vehicle. The better you score, the higher the discount you will get, with the maximum discount being a whopping 40%. The great news is that enrolling in KnowYourDrive can never increase your premium, no matter how you score. This discount, unfortunately, is only available in some states

Insurance Rates

When comparing the American Family rates found in some of the best auto insurance reviews against other companies, the prices American Family offers are not the cheapest, but they still belong to the wallet-friendly section of the market. The rates become more competitive for older customers, showing the company’s tendency to insure safer drivers.

For a 19-year-old male, Geico and Farmers offer slightly cheaper annual premiums, while for a 35-year-old female only Geico is cheaper. For a 65-year-old married couple, American Family offers the best rates, being more than $200 cheaper than Farmers, which is the second best option.

Keeping this American Family auto insurance rate comparison in mind, if you can take advantage of their discounts, American Family can be an outstanding option. KnowYourDrive, for example, can bring an already competitive premium down by 40%.

American Family Insurance Prices Compared to Top Competitors

We requested a quote for a 21-year-old-driver, 40-year-old driver, and 70-year-old-driver, and we found that the monthly premium offered by American Family was the highest among all insurance companies that we were able to test. Per our data, you will certainly need a discount if you opt for American Family.

AAA Auto Insurance Compared with Top Competitors

American Family vs. Allstate

Through J.D. Power, Allstate has an average customer service rating for claims processing, scoring 3 out of 5 stars, while scoring below average with 2 out of 5 stars for shopping satisfaction. American family car insurance scores equally for claims processing, at 3 stars, but has a substantially better shopping rating, scoring 4 out of 5 stars.  Allstate has a slightly stronger financial rating at A+ (Superior), while American Family has an A (Excellent). Allstate is available in all of the US states, compared to American Family, which is only available in 19 states. However, as many American Family insurance reviews confirm, this company offers unmatched discount options.

American Family vs. State Farm

Often, State Farm is the most expensive option in the insurance reviews, while American Family is among the cheaper options. With so many discounts available, you can get an even better deal if you decide to go with American Family. State Farm does offer more extensive coverage options, being one of the largest auto insurance providers in the US, but when discounts are concerned, American Family auto insurance reviews agree this is the best option.

On the other hand, State Farm holds the best possible financial rating (A+), while American Family scores the second best, A. This shouldn’t bother the average customer given the fact that both ratings are really strong. Both American Family and State Farm have the same average scores for customer satisfaction in claims processing, while American Family scores better in the shopping category. If you can buy insurance through American Family in your state, this may be a better option due to lower prices.

American Family vs. Travelers Insurance

American Family scores better than Travelers in J.D. Power’s review when it comes to shopping satisfaction, while both Travelers and American Family insurance claims reviews through J.D. Power have 3 stars for processing satisfaction. Travelers has a better financial rating, which is Superior, compared to American Family’s Excellent, but given that American Family is on the fortune 500 company list, this should not be a concern. Travelers is ranked sixth in NerdWallet’s auto insurance review, while American Family is ranked tenth.

Overall, American Family and Travelers can each be good options. The best course of action is to get both a Travelers and an American Family insurance quote, evaluate if you can get discounts, and determine which offers better terms.

Best Alternatives

Erie is a really strong alternative, according to some of the more reliable auto insurance reviews, for those looking for top-notch customer service. It was rated as the best in this department by J.D. Power. It also offers very competitive rates, but not as many discounts. It is, unfortunately, only available in 13 states.

Geico has good prices too, and reliable customer service, and it’s available in all states. AAA Auto Club  is another option that scores well in auto insurance reviews. It’s available in all US states, and it offers the additional benefits of being a member of an Auto Club that provides services like free towing and travel discounts.

Expert Thoughts

American Family auto insurance reviews give it a good or very good score, depending on the source. The company is ranked 10th in NerdWallet’s ranking, out of 23 insurance companies. ValuePenguin gives a very positive review, awarding it 4 stars out of 5. Finder also lists more positive than negative things about American Family. The overall impression is that the company is perceived positively, while not being considered the absolute best option by the experts.

Frequently Asked Questions

1. Is American Family good insurance for cars?

American Family auto insurance can be a very good option. It offers solid rates and some terrific discounts. The customer service and variety of coverage options seem to be average. Older and safer drivers tend to get excellent quotes. Sadly, the company operates in only 19 US states.

2. What states is American Family available in?

American Family operates in 19 states total. These are Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

3. How do I file a claim with American Family insurance?

You can contact American Family insurance agents or file a claim on the company’s website. The online option is likely to be the most convenient solution for filing a claim. However, if you decide to call an agent or the claims handling department, you should have all of the relevant information prepared beforehand, and you can reach them 24/7 at 1-800-692-6326, which is the American Family customer service number.

4. Does American Family insurance offer roadside assistance?

Yes, roadside assistance that includes services such as towing, locksmith assistance, and battery restart is available. However, it comes in the form of an add-on to a regular policy, and it’s charged as extra. Insurance companies that also operate as a motorist club, like AAA, offer those services for free to their members.

5. Is Aflac American Family insurance?

No, these are two separate insurance companies with different headquarters located in different cities.

6. What is the American Family Insurance A. M. Best rating?

American Family’s A. M. Best rating is A, or Excellent. This is the second best possible rating, after A+ or Superior, indicating first-rate financial operations. As American Family insurance reviews will remind you, this guarantees that they have a strong ability to pay claims in case of an accident.

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