American Family Insurance review 2020: Car, home and life

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American Family Insurance was launched by a single insurance agent in 1927. Since then, the company, commonly abbreviated as AmFam, has grown to become one of the biggest insurance companies in the United States, generating $8.8 billion in revenue in 2017 alone.

While it started by helping farmers, AmFam is now the seventh-largest home insurance company in the United States, and the ninth-largest car insurance company. American Family also offers a wide variety of life insurance policies, including life insurance for children.

American Family auto insurance

AmFam’s car insurance policies are highly rated, not to mention affordable. The company offers a long list of coverage options, which allows drivers to customize their policy. You can also take advantage of unique discounts to get a lower rate.

Coverage

You can get an American Family insurance quote on some or all of its car insurance coverage options:

  • Full coverage: AmFam offers full coverage car insurance, which includes collision, comprehensive, liability, and medical payments insurance.
  • Rideshare insurance: If you drive for a rideshare company such as Lyft or Uber, you can receive coverage.
  • Lease and loan gap coverage: If you’re leasing a car, gap insurance covers the gap between the amount owed on it and its actual value.
  • Uninsured and underinsured motorist damage: Helps pay for repairs if you’re hit by someone who doesn’t have car insurance or who is underinsured.
  • Emergency roadside assistance: Help if your car breaks down by the side of the road. American Family car insurance offers 24/7 emergency roadside assistance.
  • Accidental death and dismemberment coverage: If you’re in a serious car accident that results in fatalities or severe injuries, this coverage will pay for medical costs or funeral expenses.
  • OEM coverage: With OEM coverage from AmFam, your car will be repaired with factory parts after an accident, which can improve the car’s resale value.
  • Accident forgiveness: If you have accident forgiveness coverage, your car insurance premium won’t increase after an at-fault accident.
  • Rental car reimbursement: If your car is in the shop due to a covered accident, AmFam will pay for a rental car.
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Discounts

Car insurance companies offer discounts on their policies to incentivize safe driving or capture more of their policyholder’s business. It’s almost a guarantee that one of AmFam’s many discounts will apply to your policy when you request an American Family insurance quote.

  • KnowYourDrive: Enrolling in and installing the KnowYourDrive adaptor in your car automatically reduces premiums by 10%. Their adaptor tracks your driving behavior, and safe drivers could get up to a 20% discount.
  • Multi-vehicle and multi-product: Discount for insuring multiple vehicles or buying multiple products.
  • Defensive driver: This discount applies in some states if you’re over 55 and take a defensive driving course.
  • Good driving: If you’ve had no accidents or tickets and filed no claims, you could get a good driving discount.
  • Low mileage: Discount available for those who drive fewer than 7,500 miles/year.
  • Loyalty: Available if you’ve been with American Family for years. The discount amount depends on how long you’ve been a customer.
  • Early-bird: Choose within seven days of requesting an American Family Insurance quote, and you’ll get a discount.
  • Steer into savings: Reduced premiums if you leave a competitor and steer your car into AmFam’s policy.
  • Generational: Available to the children of insured parents.
  • Teen safe driver: The program tracks teen drivers with a mobile app. After one year or 3,000 miles driven, they’ll get a 10% discount.
  • Good student: Discount for teens who maintain good grades.
  • Away at school: If you have a child under 25 on your policy, but they’re more than 100 miles away at college, while their car stays home, AmFam won’t charge you the full policy amount.
  • Young volunteer: Discount for drivers under the age of 25 who volunteer 40 hours a year with a nonprofit organization.
  • Autopay: Discount for signing up for auto-payments from a checking account or credit card.
  • Full pay: Total premiums are reduced when paid in full.
  • Paperless: Sign up to have your statements delivered by email to get this discount.

American Family home insurance

Because bundling policies will save you money, it’s worth looking at AmFam’s home insurance coverage in addition to car insurance. Overall, AmFam offers good home insurance policies, with a few add-on coverages for extra protection. We recommend checking out their home insurance resource page if you’re shopping for home insurance for the first time.

Coverage

AmFam offers the following home insurance coverage options:

  • Standard home insurance: Standard home insurance includes dwelling, personal property, liability, medical payments, and loss of use coverage.
  • Sewer and sump pump overflow: This covers damage caused by sewer backup.
  • Equipment breakdown coverage: If your appliances, home systems, or smart home devices get damaged, this coverage will pay to repair or replace them.
  • Matching siding protection: This coverage will pay to replace damaged sections of siding after a covered loss.
  • Credit theft protection: AmFam customers can purchase credit theft protection from CyberScout, which flags suspicious activity and opportunities for identity theft.

Discounts

These are the discounts specific to home insurance that AmFam offers:

  • Age of home: Newer homes have more safety features, and thus could qualify for discounts.
  • Renovated home: Discounts for plumbing, electrical and heating systems that’ve been replaced in the past 15 years.
  • Safe, secure, smart home: A smart device, such as a video doorbell or security systems, could earn you a 5% reduction on your insurance rates.
  • Multi-policy: If you bundle your home and auto policies, you can save up to 29% on your auto insurance, and up to 20% on your home insurance.
  • Loyalty: After one year of being an AmFam customer, you can qualify for a lower rate.
  • Payment discounts: If you sign up for autopay, paperless billing statements, or pay your premium in full, you’ll get a discount.
  • Generational discount: If you’re between the ages of 18-30, and one of your parents has an active home or auto policy with American Family, you can save money on coverage.

American Family life insurance

Although life insurance isn’t AmFam’s most popular insurance product, they do offer a diverse lineup of life insurance policies under the name DreamSecure. If you’re shopping for life insurance, you can use the policy comparison tool to see which type of coverage is right for you, and the life insurance calculator to determine how much coverage you need.

Types of policies offered

  • Term life insurance: AmFam’s term life insurance policies are available in 10-year, 15-year, 20-year and 30-year periods, and have consistent premiums and a guaranteed death benefit. Every policy comes with an accelerated death benefit rider, with the option to add a children’s insurance rider, and a premium waiver for disability benefit rider.
  • Simplified term life insurance: With AmFam’s simplified term life insurance, there’s no medical exam required, so it’s a good option for people with moderate health risks. You can choose a 10-year, 15-year, 20-year or 30-year term period, with coverage ranging from $50,000 to $150,000.
  • Flexible life insurance: Flexible life insurance is an adjustable life insurance policy that allows you to make changes to your policy overtime. For example, you can reduce or increase the amount of coverage you need and your premium whenever you want to. You can also customize AmFam’s policies with a variety of riders, including a guaranteed purchase option.
  • Whole life insurance: AmFam’s whole life insurance policies include protection for your entire lifetime. The company offers five different types of whole life insurance, which all have a cash value component. Policyholders are also eligible to receive dividends from American Family.
  • Senior whole life insurance: You can purchase senior whole life insurance from AmFam if you’re between the ages of 50-80. There are two policies options, one which includes $10,000 in coverage, and another that has $15,000 in coverage. This type of insurance is mostly used to pay for end-of-life and funeral expenses.
  • Children’s whole life insurance: If you want to financially protect your kids from a young age, consider children’s whole life insurance. AmFam offers three levels of coverage—$25,000, $50,000 or $75,000, with either a 10- or 20-year payment plan. These policies include a cash value component.

American Family ratings, reviews, customer satisfaction and complaints

Rating Organization AmFam Rating
J.D. Power Home Insurance (2019) 3-stars
J.D. Power Auto Insurance (2020) 1st in southwest region
Better Business Bureau A
NAIC Complaint Index 1.36 (above average)

Overall, AmFam gets decent ratings and reviews. The company received a 3-star rating in J.D. Power’s 2019 U.S. Home Insurance Study, which puts it in the ‘about average’ category. It was also recognized as the best car insurance company in the southwest region in J.D. Power’s 2020 U.S. Auto Insurance Study.

Despite having an A rating from the BBB, AmFam has a one-star rating based on almost 50 customer reviews. It also has above average customer complaints according to the NAIC Complaint Index.

Reasons why American Family is a great option

If you’re a safe driver or have a teenager, American Family Insurance could be your best option for car insurance. Often, adding a teen to your car insurance can send your premiums sky-high, but young drivers with AmFam could qualify for up to four discounts.

Safe drivers with clean driving records should get an American Family insurance quote. With three discounts related to safe driving, you could pay low policy premiums.

If you’re looking for robust life insurance coverage, American Family is definitely a company we recommend. They offer five different life insurance policies, including senior and children’s life insurance, which can be hard to find. You can customize your policy with a variety of riders for even more protection.

American Family home insurance is a good option if you’re looking for basic coverage. This company offers fewer add-on coverages and discounts compared to some of its competitors, but you won’t be disappointed with a policy from AmFam.

We also like that AmFam has 24/7 claims support, which is available by phone or online. Whether you’re shopping for home, auto, or life insurance, you’ll be sure to find a policy that meets your needs and your budget.

Average rates available from American Family

The average cost of car insurance through AmFam is $1,218 for full coverage. This is lower than the national average for full coverage of $1,555.

Additional policies offered by American Family

AmFam also covers;

  • Renters
  • Snowmobile, motorcycle, boat, ATV and RV
  • Manufactured home and condo
  • Farm
  • Business
  • Travel
  • Health
  • Flood
  • Umbrella

Frequently asked questions

What do I need to get a quote from American Family?

Apply for an American Family insurance quote online with just your ZIP code and type of car. Or, input your ZIP code to find a local agent. You can also call or chat.

How do I file a claim with American Family?

Call its toll-free number or complete an online claim form. You’ll need your name, address and phone number, your policy number, the date and time of your loss and the contact information for anyone else involved.