American Family Insurance Review | Prons and Cons, Ratings and Reports
American Family Insurance Review will provide you in detail with all the vital information you need to know and how to make the choice while choosing an insurance company.
Pros & Cons
Pros:
- Fewer customer complaints than expected for a company its size.
- Many coverage types offered.
- Wide range of discounts.
Cons:
- Not available in all states.
Full Review
Performance and Ratings: The American Family earned 5 stars out of 5 for overall performance. Smart Study Squad’s ratings are determined by an editorial team, taking into account consumer experience, complaint data from the National Association of Insurance Commissioners, and financial strength ratings.
Customer Complaints: American Family is the nation’s ninth-largest auto insurance seller and has far fewer than the expected number of auto insurance complaints for a company its size.
Coverage Options: American Family offers a variety of auto insurance coverage options, including rideshare insurance, gap insurance, and original equipment manufacturer coverage. The company also provides multiple life insurance products, such as whole life insurance for children and seniors.
Discounts and Telematics Programs: American Family offers more discounts than most other companies and provides two different telematics programs: Teen Safe Driver for drivers 21 or younger and KnowYourDrive for all drivers. These programs can help you earn discounts based on your driving habits.
Accident Forgiveness: You can buy accident forgiveness to ensure your rates won’t increase after an accident, provided you meet certain requirements. If you switch to American Family after being claim-free for at least five years with your current insurer, you can earn accident forgiveness for free.
State Availability: American Family doesn’t sell policies nationwide, which can be a limitation for some potential customers.
Pricing
Average Annual Rates: American Family’s auto insurance costs $1,791 per year on average for full coverage insurance, which is lower than the national average of $1,982. Here’s a comparison with other major insurers:
| Company | Average Annual Rate |
| Travelers | $1,681 |
| American Family | $1,791 |
| Geico | $1,846 |
| State Farm | $1,976 |
| Allstate | $2,665 |
| Progressive | $2,112 |
| Nationwide | $2,279 |
| Farmers | $3,106 |
| USAA* | $1,432 |
*USAA auto insurance is available only to active-duty military members, veterans, and their families.
Rate Comparison for Different Driving Profiles:
| Driving Profile | American Family Average Rate | National Average Rate |
| Good driver, good credit | $1,791 | $1,982 |
| Recent at-fault accident, good credit | $2,642 | $2,936 |
| Recent DUI, good credit | $2,433 | $3,693 |
| Good driver, poor credit | $3,076 | $3,222 |
Auto Insurance Coverage
American Family offers standard auto insurance coverage plus additional options:
- Gap Insurance: Covers the difference if your car is totaled and you have a lease or loan balance.
- Accidental Death and Dismemberment Coverage: Pays out for death or certain injuries caused by a car accident.
- Ridesharing Insurance: Available for services like Uber or Lyft in some states.
- Original Equipment Manufacturer Coverage: Repairs your vehicle with manufacturer parts instead of aftermarket parts.
- Accident Forgiveness Coverage: Prevents your premium from increasing after an at-fault accident if you meet eligibility criteria.
Auto Insurance Discounts
You can save on your American Family auto policy through various discounts:
- Bundling policies
- Insuring multiple vehicles
- Being a good driver
- Switching from another insurer
- Getting a quote at least seven days before your policy takes effect
- Owning a vehicle with safety equipment like airbags
- Completing a defensive driving course if 55 or older
- Driving fewer than 7,500 miles per year
- Earning good grades as a student
- Enrolling in a safe driver program as a teen
- Volunteering for a nonprofit if under 25
- Being a young driver with a parent who is an American Family customer
- Going paperless, setting up automatic payments, or paying your premium in full
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Telematics Programs:
- KnowYourDrive: Monitors driving habits like speeding and hard braking. Can save up to 20%.
- Teen Safe Driver: Designed for young drivers up to age 21. Can save up to 10% after participating for 3,000 miles or one year.
Life Insurance Options
American Family offers a variety of term and whole life insurance options:
- Simplified Term: No medical exam required, policies issued in 10 business days, coverage from $50,000 to $150,000.
- Term Life: Higher coverage amounts, may require a medical exam, terms of 10, 15, 20, and 30 years.
- DreamSecure 15 Pay Whole Life: Fully paid after 15 years, coverage throughout life.
- DreamSecure Whole Life: Level premiums until age 100, builds cash value.
- Whole Life for Seniors: No medical exam, coverage amounts of $10,000 or $15,000, for ages 50-80.
- Whole Life for Children: Permanent life insurance for children, coverage of $25,000, $50,000, or $75,000.
Customer Satisfaction
American Family had fewer than the expected number of complaints for auto insurance according to three years of data from the National Association of Insurance Commissioners. In a Smart Study Squad survey conducted in mid-2023, American Family received an overall satisfaction score of 80 out of 100, higher than the average of 78 among eleven insurers. J.D. Power’s studies also indicate better-than-average customer satisfaction for American Family’s auto insurance.
More About American Family Insurance
- Website: Offers tools to find an agent, get a quote, pay bills, and report claims.
- Apps: MyAmFam app for managing claims, paying bills, contacting agents, viewing policy documents, downloading proof of insurance, getting roadside assistance, and finding repair shops. KnowYourDrive and Teen Safe Driver apps for monitoring driving habits and earning discounts.
- Other Insurance: American Family also sells motorcycles, ATVs, umbrellas, RVs, boats, businesses, condos, ranches and farms, manufactured homes, snowmobiles, and classic car insurance. They offer travel, pet, and flood insurance through third parties.
Methodology
Survey Methodology: The opt-in survey of 7,514 adults was conducted online by Russell Research for Smart Study Squad in mid-2023. Respondents rated one auto insurance brand they obtained or renewed a policy with within the past 12 months. Brands were rated on satisfaction, value, online experience, trustworthiness, mobile app experience, claims experience, and customer support on a scale of 1-100.
Complaint Methodology: Smart Study Squad examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners from 2020-2022. A complaint index was calculated for each insurer, weighted by market share.
Auto Insurance Ratings Methodology: Ratings are based on customer-first features and practices, financial strength, consumer complaints, and discounts. Smart Study Squad’s editorial team uses a scoring formula to determine ratings.
Average Rates Methodology: Rates were averaged based on public filings and analyzed for people in all ZIP codes across the 50 states and Washington, D.C. Sample drivers had coverage limits typical for “good drivers,” with adjustments for poor credit, at-fault crashes, and DUIs. A 2020 Toyota Camry L was used for all cases.
American Family’s diverse offerings, extensive discounts, and strong customer satisfaction make it a competitive choice for auto insurance, particularly for those who qualify for its many discounts and coverage options.
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