American Family Insurance review 2021: Car, home and life

Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

American Family Insurance was launched in 1927 by a local insurance salesman to offer auto insurance to Wisconsin farmers. Since then, the Madison, Wisconsin-based company, commonly known as AmFam, has grown to become one of the biggest insurance companies in the U.S., generating nearly $13 billion in revenue in 2020 alone.

While it started by helping farmers, AmFam currently ranks as the seventh-largest home insurer and ninth-largest auto insurer in the U.S., according to the Insurance Information Institute. American Family also offers a wide variety of life insurance products, including whole life insurance for children.

American Family auto insurance

AmFam’s auto insurance program is highly rated, not to mention affordable. The company offers numerous coverage options, which allows drivers to customize their policy. You can also take advantage of AmFam’s 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 auto insurance, which includes collision, comprehensive, liability and medical payments coverage.
  • Rideshare insurance: If you drive for a rideshare company such as Lyft or Uber, AmFam can provide 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 auto insurance or who is underinsured.
  • Emergency roadside assistance: American Family offers 24/7 emergency roadside assistance, which is valuable coverage if your vehicle breaks down when you are away from home or have a dead battery.
  • 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 original equipment manufacturer parts after an accident, which can improve the car’s resale value.
  • Accident forgiveness: If you have accident forgiveness coverage, your auto 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.
Looking to save money on auto insurance?
Looking to save money on auto insurance?

Looking to save money on auto insurance?

Compare rates & save

Discounts

Auto insurers 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 vehicle automatically reduces premiums by 10%. Their adaptor tracks your driving behavior, and safe drivers could get up to a 20% discountby participating in this usage-based insurance telematics program.
  • Multi-vehicle and multi-product: Earn discounts for insuring multiple vehicles or buying multiple AmFam products, such as auto, home and life insurance.
  • Defensive driver: This discount applies in some states if you’re over 55 and take a virtual defensive driving course.
  • Good driving: If you’ve had no accidents or tickets and filed no claims, you could earn a good driving discount.
  • Low mileage: This discount is available for AmFam policyholders who drive fewer than 7,500 miles/year.
  • Loyalty: A loyalty discount applies if you have been an American Family customer for at least one year. The discount amount increases based on how long you’ve been an AmFam policyholder.
  • Early-bird: Choose to be insured by AmFam within seven days of requesting an auto quote, and you’ll get a discount.
  • Steer into savings: Reduced premiums if you leave a competitor and steer your car into an AmFam auto 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 up to a 10% discount if the insured teen is accident-free and has incurred no traffic citations.
  • Good student: Discount for teens who maintain good grades in high school or college.
  • 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 vehicle 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 your auto insurance bill is 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. AmFam’s home insurance program is highly rated, with a few optional 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 a wide variety of home insurance coverage options:

  • Standard home insurance: An AmFam standard home insurance policy includes dwelling, personal property, liability, medical payments and loss of use (additional living expenses) 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 your home’s 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

AmFam offers its home insurance policyholders numerous discounts, including:

  • Age of home: Newer homes typically have more safety features, and thus could qualify for discounts.
  • Renovated home: Discounts for plumbing, electrical and heating systems that have been replaced within the past 15 years.
  • Safe, secure, smart home: A smart home 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 earn 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 insurance coverage for your home.

American Family life insurance

Although life insurance isn’t AmFam’s most popular insurance product, the carrier offers a diverse lineup of life insurance policies branded as 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 increments, and offer 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 a 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.
  • 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 policy options, one which includes $10,000 in coverage, and another that has $15,000 in coverage. This type of specialty policy is primarily intended to pay for end-of-life and funeral expenses.
  • Children’s whole life insurance: If you want to financially protect your kids starting at 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.
  • Flexible life insurance: As of September 15, 2021, AmFam’s DreamSecure flexible life insurance policy is no longer available for purchase. If you purchased a DreamSecure flexible life insurance policy prior to that date, there are no changes to your coverage or your policy.

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, consider AmFam’s comprehensive line of DreamSecure life insurance products. They offer numerous types of life insurance plans, including senior and children’s life insurance, which can be hard to find. AmFam also offers term, whole and simplified life insurance plans as well. You can customize your policy with a variety of riders for even more protection. Life insurance provided by AmFam is affordable and offers great customer service.

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 standard 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.

American Family ratings, reviews, customer satisfaction and complaints

Rating organization AmFam rating
J.D. Power Home Insurance (2020) 821/1,000 (Overall)
J.D. Power Auto Insurance (2021) 850/1,000 (Southwest)
Better Business Bureau A
NAIC Complaint Index 1.36 (above average)

Overall, AmFam earns positive ratings and reviews from customers and third parties. The company received 821/1,000 points in J.D. Power’s 2020 U.S. Home Insurance Study, which puts it in the ‘about average’ category. In the J.D. Power 2021 Auto Insurance Shopping Satisfaction Study, AmFam achieved the highest customer satisfaction score amongst midsize U.S. auto insurers. The company ranked first in overall experience and captured first place in four categories: price, distribution channel, policy offerings and quote process.

Despite having an A rating from the Better Business Bureau, AmFam has a one-star rating based on almost 50 customer reviews. It also has above average customer complaints according to the National Association of Insurance Commissioners Complaint Index.

AmFam carriers an ‘A’ (Excellent) financial strength rating from A.M. Best, reflecting the company’s strong balance sheet, favorable business profile and appropriate enterprise risk management.

Average rates available from American Family

The average cost of car insurance through AmFam is $1,911 for full coverage, which is higher than the national average of $1,674 per year.

Additional policies offered by American Family

AmFam also provides coverage for:

  • 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 an auto quote from American Family?

Apply for an American Family auto insurance quote online via the company’s website with just your ZIP code and type of vehicle. Or, input your ZIP code to find a local AmFam agent. You can also call or chat with an AmFam customer service representative.

How do I file a claim with American Family?

You can file a claim 24/7 via the MyAmFam smartphone app or on the company’s website. You can also file claims through your American Family agent or by calling the company’s toll-free claims number. When reporting a claim, you will need your name, address and phone number, your policy number, the data and time of your loss and the contact information for anyone else involved.

Written by
Grace Kim
Insurance Contributor
Grace Kim has two years of experience in writing for finance and insurance domains such as The Cheapest Car Insurance Companies in New Jersey at Bankrate and Reviews.com. She has written about auto, homeowners, renters and life insurance. She holds an M.Sc from New York University in Corporate Communications and has spent most of her professional experience writing about finance and tech topics.
Edited by
Loans Editor
Reviewed by
Director of corporate communications, Insurance Information Institute