American Modern Insurance Review 2021: Home & Car

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American Modern Insurance was founded in 1965 as one of the first companies to specialize in mobile home insurance. Several decades later, the company began expanding its insurance products and started selling car insurance and home insurance. Today, the company offers a wide variety of policies in all 50 states and Washington, D.C. Read through our review to find out if American Modern Insurance might be a good provider for your home and auto insurance needs.

American Modern Car Insurance

American Modern does not offer standard auto insurance. The company specializes in collector car insurance, which includes a wide variety of coverage options for classic cars, muscle cars, race cars, kit cars and much more. Customers can choose a deductible between $0-$10,000, and opt for a flexible payment plan. American Modern also offers a few discounts to help drivers save money on their collector car insurance policy.

Types of Coverage

American Modern auto insurance has impressive coverage for collector models. Here are the policy options available:

  • Full coverage: American Modern sells full coverage insurance, which includes collision, comprehensive, liability and uninsured/underinsured motorist coverage. Full coverage includes medical payments coverage and personal injury protection (PIP) in some states.
  • Agreed value loss settlement: American Modern uses agreed value coverage to determine a vehicle’s value. If the car is totaled, the driver receives compensation for the agreed value, without depreciation.
  • Mileage plans: drivers who use their collector car daily or regularly can still get coverage from American Modern. There are plans available for 1,000, 3,000 and 6,000 miles, or unlimited mileage.
  • Single liability policy: drivers who insure multiple collector cars with American Modern are only charged for one liability policy.
  • Spare parts coverage: American Modern will reimburse drivers for lost or stolen spare parts up to $2,000, with the option to raise the coverage limit.
  • Towing coverage: if a vehicle breaks down, American Modern will pay up to $75 to have the car towed to a local auto body shop.
  • Trip interruption coverage: if a driver gets stranded with a disabled car at least 50 miles away from home, American Modern will pay up to $150 per day for transportation, hotel and food expenses.
  • Pet coverage: policyholders that own a pet can get up to $750 in paid medical expenses if their pet is injured in the car.
  • New purchase coverage: if a driver purchases a new collector car valued at $50,000 or less, the vehicle is automatically covered for 30 days before it is formally added to the policy.
  • Roadside assistance: American Modern offers optional nationwide roadside assistance, with flatbed towing, lockout assistance and fuel delivery, among other services.
  • Glass coverage: if a windshield sustains damage and can be repaired, rather than replaced, no deductible is required. This is an optional coverage.
  • Foreign transport coverage: drivers can get extended coverage to use their vehicle overseas. This is also an optional coverage.

Discounts

With American Modern classic car insurance, drivers can take advantage of several discounts for a lower premium. According to its website, the discounts can help drivers save up to 45% on their policy. Here are the discounts currently available:

  • Car collection storage (security features/fire resistant garage)
  • Car club membership
  • Anti-theft device
  • Accident prevention course

American Modern Home Insurance

American Modern home insurance is designed for homeowners who do not qualify for coverage from a preferred provider based on the condition of their home or claims history. According to its website, American Modern is “the middle ground between basic and comprehensive coverage.” The coverage is limited, with only a few add-on policies and discounts. American Modern home insurance policies come standard with Actual Cash Value (ACV) and named perils coverage.

Types of Coverage

An American Modern home insurance policy has sufficient coverage for people who cannot get insurance from another provider. Here are the coverage options available:

  • Standard coverage: standard home insurance from American Modern includes dwelling, other structures, personal property, liability and additional living expenses coverage. The company will also cover reasonable emergency repairs if damage occurs.
  • Mechanical breakdown coverage: American Modern home insurance policies come with mechanical breakdown coverage, which pays to repair or replace HVAC systems, major appliances, electrical systems, among other systems.
  • Full repair cost settlement: this is an optional coverage that will reimburse policyholders for the cost of home repairs without depreciation.
  • Water backup coverage: homeowners can add extra coverage for water backup caused by faulty or damaged pipes, drains and sewers.
  • Open perils coverage: American Modern sells open perils coverage for homeowners who want to upgrade their policy.

Discounts

American Modern does not disclose any discounts for its home insurance policies. However, the company does offer flexible payment plans. Homeowners can sign up for automatic monthly payments, pay their annual premium in full or pay in quarterly installments.

American Modern Ratings, Reviews, Customer Satisfaction and Complaints

Organization American Modern rating
AM Best A+ (Superior)
Better Business Bureau (BBB) A+
NAIC Company Complaint Index 1.81 (higher than average complaints)

American Modern Insurance’s parent company, Munich Re, has an A+ (Superior) rating from AM Best, which is indicative of superior financial strength. But when it comes to customer satisfaction, American Modern Insurance ratings are not as positive.

Although the company has an A+ rating from the BBB, it has an average score of 1.31 out of 5 stars based on 29 customer reviews. Customers complained about issues like unhelpful agents, unexpected policy cancellations and slow claim payouts.

American Modern’s poor customer satisfaction is mirrored in the National Association of Insurance Commissioners’ (NAIC) Company Complaint Index. American Modern has higher than average complaints compared to the insurance industry average.

Reasons Why American Modern is a Great Option

Collector car enthusiasts will especially benefit from American Modern auto insurance. The company offers a long list of unique coverages that come standard with every policy. In addition, there are different plans available for how frequently the car is driven, including an unlimited mileage plan.

American Modern home insurance is also a good option to consider for those who cannot get approved for home insurance through other popular providers. It can be beneficial for people who have a poor credit score, a lengthy claim history or own an older home. The coverage is basic, but it offers essential protection for those who really need it.

The most significant downside of American Modern Insurance is its reputation for customer service, between average customer complaints per the NAIC Company Complaint Index and a number of negative reviews from the BBB.

Additional policies offered by American Modern

American Modern Insurance has a large portfolio of insurance products. Other policies available include:

  • Boat insurance
  • Landlord insurance
  • Motorcycle insurance
  • Commercial auto rental insurance
  • Vacation home insurance
  • ATV/UTV insurance
  • Yacht insurance
  • Vacant property insurance
  • Golf cart insurance
  • Pet insurance
  • Snowmobile insurance
  • Personal watercraft insurance
  • Mobile home insurance

Frequently Asked Questions

What is the best auto insurance company?

The best auto insurance company is different for every driver, based on their needs and budget. For example, drivers who want the lowest rate might be happiest with Geico, but drivers who care about customizable coverage might prefer The Hartford. Finding the best car insurance company starts by shopping around and comparing rates, coverage options, discounts and third-party ratings.

What is the best home insurance company?

The best home insurance company also varies based on your needs and preferences. Some of the top-rated homeowners insurance providers are Amica, Allstate, Travelers and Chubb.

How much does home insurance cost?

In the United States, the average homeowner pays $2,305 per year for home insurance, but the cost varies based on factors like state, age, claims history, credit score and coverage levels, among others.