American Family insurance review 2023

American Family car insurance

Based on our comprehensive assessment of coverage offerings, average premiums, online tools and more, American Family car insurance earned a Bankrate Score of 3.8 out of 5, partly due to the company’s lower-than-average full and minimum coverage premiums and high third-party customer satisfaction ratings. Still, its score may have been better if it offered car insurance nationwide. Additionally, the company has a financial strength rating of A (Excellent) from AM Best. While this rating is still solid, it is lower than some other carriers.

American Family car insurance offers standard auto coverage types like liability, comprehensive, collision, medical payments, and uninsured and underinsured motorist coverage. Safe drivers may utilize optional tools like KnowYourDrive, a usage-based telematics program that allows drivers to earn up to 20 percent off their car insurance based on how safely they drive, with a 10 percent discount earned automatically just for signing up. AmFam also allows policyholders to purchase Diminishing Deductibles, which credits drivers with a 12-month policy $100 off their collision and comprehensive deductible for every year of safe driving, up to the full deductible amount.

Pros and cons of American Family car insurance

When shopping for the best car insurance, it’s important to evaluate a carrier’s options as well as the carrier itself. Here’s a quick summary of American Family car insurance to help you compare with other car insurance companies:

American Family car insurance cost

Car insurance with American Family costs an average of $1,700 per year for full coverage and $606 per year for minimum coverage, based on our study of quoted premium data from Quadrant Information Services. Comparatively, the national average cost of car insurance is $2,014 per year for full coverage and $622 per year for minimum coverage. Keep in mind that personal rating factors and variances among each car insurance carrier will affect your auto insurance quotes.

American Family car insurance rates by driving history

Drivers with a clean driving record generally pay the cheapest average car insurance rates based on Bankrate’s analysis of car insurance premiums. Drivers with a single infraction, like a speeding ticket, are often surcharged by car insurance companies. While DUIs are one of the more serious driving convictions, these have been excluded from the table below as not all car insurance companies accept DUIs. The best way to know if American Family accepts DUIs and what the car insurance rate might be is to reach out for a quote.

American Family car insurance quotes by age

Driver age matters when it comes to car insurance rates in most states. Drivers who are young and newly licensed pay some of the most expensive car insurance rates compared to older drivers, but it’s still possible to find cheap car insurance. Below is a comparison of American Family car insurance quotes by age, with all rates based on drivers with a clean driving record. We also show how rates compare for younger drivers on their parents’ policy versus those on a standalone policy.

Average cost of car insurance for drivers on their parents’ policy

Average cost of car insurance for drivers on their own policy

American Family car insurance discounts

Taking advantage of discounts could help you save on car insurance. A few AmFam discounts you may not find as common among other insurers include:

American Family car tools and benefits

AmFam has partnered with ForeverCar, a car repair insurance provider, to give policyholders up to 44 percent off a ForeverCar Vehicle Service Plan. Whereas car insurance is intended for accident-related damages, ForeverCar is for covered mechanical breakdowns, including parts like brake pads, headlamps and windshield wipers, among others. Its coverage is similar to a vehicle warranty program. There are three plans to choose from depending on whether the car has an existing parts warranty and its current mileage, but note that coverage is not offered once a car’s odometer reaches 225,000 miles.

American Family home insurance

Although the company did not make Bankrate’s list of best homeowners insurance companies, AmFam’s diverse range of policy add-ons and competitive pricing positively influenced its overall Bankrate Score of 3.1 out of 5. However, AmFam did not score as favorably in areas such as state availability.

AmFam home insurance may be a good option for homeowners looking for unique opportunities to extend their financial protection beyond the standard homeowners insurance coverage. Beyond coverage for dwelling, other structures, personal property and liability, homeowners insured with AmFam may add hidden water damage protection to cover water damage caused by leaks within a home’s plumbing system or household appliances or opt for equipment breakdown coverage. AmFam’s matching siding protection will also cover the replacement of damaged siding after a covered loss.

Pros and cons of American Family homeowners insurance

American Family home insurance may be the right fit for some, but if you’re having doubts, it can help to compare the carrier with other home insurance companies. Here’s some pros and cons of AmFam home insurance to aid in your research:

American Family home insurance cost

On average, an American Family home insurance policy with $250,000 in dwelling coverage costs $1,168 per year. This is considerably lower than the national average cost of home insurance at $1,428 per year. However, if you’re looking for cheap home insurance, remember that the final premium for your homeowners insurance policy will vary based on various factors unique to you and your home. Requesting home insurance quotes from more than one carrier will help you find the best price for your desired coverage amounts.

American Family home insurance discounts

To save money on home insurance, AmFam provides some unique discount opportunities. These home insurance savings include:

American Family home tools and benefits

AmFam customers who value home security may benefit from AmFam’s partnerships with other companies. For example, policyholders can purchase smart devices from HelloTech at a discounted price and also earn a monthly discount with ADT Home Security’s professional monitoring and free installation.

In addition to home security, AmFam has also partnered with CyberScout — a service that offers AmFam customers a discount on credit monitoring services.

American Family life insurance

The best life insurance companies structure policies to allow policyholders to protect their loved ones’ financial future in the event of an untimely death. AmFam offers term life insurance and whole life policies, as well as some other options, like simplified term, flexible life, senior whole life and children’s whole life policies. Whether you want to purchase life insurance for mortgage protection, income replacement or future tuition costs, AmFam’s different policy offerings and coverage options could provide solutions for your financial situation.

Pros and cons of American Family life insurance

Shopping for life insurance quotes can be an involved process. Whether you’re looking for the cheapest life insurance or a personalized policy, it’ll be important to consider how well your insurer meets your needs. The table below highlights where American Family life insurance excels and where it may fall short:

American Family life insurance endorsements

Available endorsements for an American Family life insurance policy depend on the policy type. For example, with an AmFam whole life insurance policy, policyholders can add a guaranteed purchase option, which may allow you to buy additional permanent life insurance coverage without the need for medical questions or a health exam in certain situations. Policyholders may also be able to opt for a children’s insurance rider, which gives natural, adopted and stepchildren $15,000 in coverage.

These are only a few options available with AmFam’s whole life insurance policies. Speaking with an American Family insurance agent can help provide a full breakdown of endorsements on each of its policies, especially if you’re also wondering how much life insurance costs.

American Family life tools and benefits

American Family does not currently indicate whether it provides any additional financial planning services to its life insurance customers.

American Family customer satisfaction

When shopping for insurance, it can be important to also consider the customer experience, especially when it comes to claims. In addition to reaching out to friends and family for their experience, also consider ratings from third-party agencies like J.D. Power that conducts annual surveys of insurance companies and ranks them on a 1,000-point scale.

American Family auto satisfaction

American Family generally ranked above average in the regions it operates in the 2022 J.D. Power U.S. Auto Insurance Study. The carrier came in second in the Central region, earning 848 out of 1,000 points. It ranked above average in the North Central and Southwest regions. Additionally, American Family ranked above average for customer claims satisfaction in the 2022 J.D. Power U.S. Auto Claims Study.

American Family homeowners satisfaction

American Family also ranked second in the 2022 J.D. Power U.S. Home Insurance Study. The carrier earned 842 out of 1,000 points, indicating that customers were generally pleased with their policy shopping and claims experience, price, billing and interaction with the company.

American Family life satisfaction

American Family life insurance was not rated in the J.D. Power U.S. 2022 Individual Life Insurance Study. However, the company only has one complaint lodged with the National Association of Insurance Commissioners (NAIC) regarding its life insurance product. This translates into an NAIC Complaint Index Score of 0.11. For perspective, a baseline complaint index score is 1.0. A score higher than 1.0 means that a company gets more complaints than average, and a lower score indicates fewer than average. Based on this data, policyholders may be generally happy with the customer service provided for American Family life insurance.

How to file a claim with American Family

Filing a claim with American Family can be done through its website, mobile app or by contacting your local agent. Non-AmFam members can also call 1-800-MYAMFAM (1-800-692-6326) or file a claim online as a guest.

American Family availability

Although it started as a small regional carrier, AmFam is now available in multiple states. Car and home insurance coverage with American Family is only offered in the following states:

• Arizona
• Colorado
• Georgia
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Minnesota
• Missouri
• Nebraska
• Nevada
• North Dakota
• Ohio
• Oregon
• South Dakota
• Utah
• Washington
• Wisconsin

Other American Family perks worth considering

In addition to auto, home and life insurance, American Family also offers:

• Renters insurance: If you rent your home, renters insurance can insure your personal belongings and provide liability coverage.
• Umbrella insurance: An umbrella policy will provide additional liability coverage over your underlying auto, home and other policies.
• Pet insurance: Owning a pet can come with many expenses, but having pet insurance could help offset some of the costs of your pet’s healthcare.

American Family corporate sustainability

American Family’s DreamBank Community strives to motivate individuals to pursue their business and personal dreams. The program hosts three experiences: Dream Camp, Dream Summit and Dream Academy to support this initiative. It also has a physical location in Madison, Wisconsin, called DreamBank Madison. It serves as a co-working and community center to give participants a place to work, network and listen to invited speakers.

Not sure if American Family is right for you?

It may help to compare American Family to similar insurers before deciding it’s the right fit for your insurance needs. With that in mind, you may find these insurers also worth considering:

American Family vs. Liberty Mutual

Liberty Mutual is another insurer with a long list of coverage endorsements for home and auto insurance that you may find worth exploring. The company also offers numerous other insurance products, such as renters, motorcycle, pet and life insurance.

Learn more: Liberty Mutual Insurance review

American Family vs. The Hartford

The Hartford provides home and auto insurance for AARP members. AARP members may also receive discounts and unique financial services by purchasing their insurance through The Hartford.

Learn more: The Hartford Insurance review

American Family vs. USAA

Only available for active-duty military, veterans and qualified family members, USAA offers some of the cheapest home and auto insurance in the nation, on average. Many of USAA’s policies are tailored towards military needs, especially regarding deployment or living on base.

Learn more: USAA Insurance review

Is American Family a good insurance company?

Bankrate’s comprehensive American Family Insurance review, conducted by an editorial team with over 45 years of insurance industry experience, can help you decide if the carrier could work for you. We also reviewed average home and auto insurance premiums from hundreds of carriers. Our research shows that American Family’s rates are relatively low compared to the national average. This could be ideal for homeowners looking for affordable home insurance policies. Furthermore, while AmFam car insurance may not be the cheapest around, its rates are still lower than average, and the company offers many discount opportunities that could help you save more (as long as the company is available in your state).

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16-20 added to their parents’ policy reflect the good student and driver's training discounts applied. The rates for drivers aged 18-20 on their own policy do not include the good student and driver's training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner. 

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident. 

Homeowners

• Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services, as well as the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.