American Family Car Insurance Review [2024]

We protect what matters most. Dreams don’t always come with instructions, but there are signs to direct you along the way. We do more than protect things. We protect your dreams.

Sound familiar? Those are the taglines behind American Family Insurance. Unlike other major insurance companies who use humor and “what if” advertisements, American Family waxes nostalgic by pushing us to pursue our dreams and let everything fall into place.

But what if your car gets pushed over a cliff? Are you covered? We hope that’s something which never happens to you, even in your dreams. Car insurance is something most of us have to have, and we want to make sure that you’re not spending too much, and use that money to follow your dream.

In this guide, we’re going to provide you with everything you need to know about American Family car insurance, including company history, ratings, coverage options, and more. Want to start comparison shopping today? You can take advantage of our FREE online tool to start comparing rates in your area. Let’s get started.

What are American Family financial ratings?

American Family is the ninth-largest insurance provider in the nation. The company offers a wide selection of insurance products, so if you wish to bundle policies, American Family might be the right choice for you.

All companies tout how better they are than the competition. But let’s see what multiple independent agencies have to say about American Family Insurance and whether it’s the right company for your situation. Comparing the pros and cons is an important factor in determining the best car insurance company for you.

103-American-Family-Auto-Financial-Ratings.csv-2019-07-18.csv

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A.M. Best

An A.M. Best rating measures the financial stability of a company, with A++ being the highest rating possible. Since American Family has an A+ rating, it means the company has a stable financial future.

Moody’s

Moody’s rating looks at how well a company can pay off its debts (its creditworthiness). Moody’s Aa3 rating falls into the P-2 category, meaning the company is of high quality and very low credit risk.

Standard and Poor’s (S&P)

S&P’s rating of American Family is good, though the best grade is AA-. This rating means that American Family has a very strong capacity to meet financial commitments. It differs from the highest-rated companies by only a small degree

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Better Business Bureau

This rating looks at multiple aspects of a business, although the most critical element is the company’s complaint history. A complaint history shows how satisfied auto insurance customers are with the service they receive.

Since A+ is the highest rating, the Better Business Bureau views American Family as better than most.

J.D. Power

Another important rating to look at when searching for an insurance company is customer satisfaction levels. J.D. Power rates companies solely on customer satisfaction levels. American Family received a score of 860 in providing a satisfying purchase experience, ranking it third among auto insurers.

Consumer Reports

109-American-Family-Auto-Consumer-Reports.csv-2019-07-18.csv

American Family scores well in many of the above categories.

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Consumer Affairs

As for the Consumer Affairs’ rating of American Family Insurance, the company has received 2/5 stars on 290+ reviews. Customers like the company ideals and several other features but complain about the difficulty in communicating with company personnel.

NAIC Complaint Index

108-American-Family-Auto-Complaint-Index.csv-2019-07-18.csv

The National Association of Insurance Commissioners (NAIC) measures the number of complaints a company receives. The company’s complaint ratio is 0.89 and below the national average of 1.16. One thing to consider is that your experience may be better or worse than these ratings based on your insurance needs.

Market Share

Below, you will see NAIC’s data on American Family market shares for the last four years.

110-American-Family-Auto-Market-Share.csv-2019-07-18.csv

The company’s market share has increased steadily over the last four years. Several factors could be in play, such as smaller premiums, customer recommendations, and more brand recognition from its advertising campaigns.

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Accessibility

American Family has several options if you want to access information or get in touch with someone about your car insurance policy.

• Online. You can find quotes and more online at the American Family website.
• Agents. You can talk to agents by texting, calling, or emailing.
• Apps. American Family offers a mobile app, through which you can access your policy information and contact agents.

How to get cheap car insurance rates?

We partnered with Quadrant Data to bring you this information. Here are two things to keep in mind.

1. Many variables can affect what you pay. Your rate will differ from what is listed below
2. American Family has discounts and options that may help offset the cost

Rates By State

American Family doesn’t offer car insurance in every state. Their rates vary, sometimes below and sometimes above average, and can be further affected by factors like driving record and credit history.121-American-Family-Auto-Average-Annual-Premium-by-State.csv-2019-07-19.csv

The most expensive state to carry American Family as your insurance provider is Idaho, where rates are 20 percent above average. In eight of the 19 states American Family covers, rates are below average.

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Rates Compared to Other Companies

Here’s a look at American Family compared to nine other top companies on a state-by-state basis.American Family top 10 company by state

For a small company, American Family has competitive rates when it comes to competing against bigger companies like Geico and Progressive. American Family’s nationwide average of $3,700 is $250 less than Progressive and $600 more than Geico. As we’ve mentioned previously, your rates will vary based on your situation.

Male vs. Female Car Insurance Rates

Here’s how American Family’s annual rates based on demographics compare to other top insurance carriers in the country. These averages are national, so where you live could affect your rates.123-American-Family-Auto-Comparison-Annual-Average-Premium-Demographics.csv-2019-07-19.csv

Rates by Make and Model

What vehicle you drive can also have an impact on your car insurance. Below, we show you what you can expect to pay for five specific models from American Family and its competitors.128-American-Family-Auto-Comparison-Make-and-Model.csv-2019-07-19.csv

Good news if you drive a 2015 Honda Civic Sedan, because of the vehicles listed, it has the cheapest rates.

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Average Annual Premiums by Commute

If you drive more than 12,000 miles a year, you may also see your car insurance rates start to rise.127-American-Family-Auto-Comparison-Commute.csv-2019-07-19.csv

American Family customers can expect to pay the fifth-highest rates when it comes to their commute. Other factors such as living in a rural or urban area could also contribute to the cost of your insurance,

Coverage Level Rates

You might think that having the lowest minimum coverage in your state is the best way to ensure you and your family are protected. But that’s not necessarily the case, because sometimes the difference in low to high coverage is less than you think. Check out the table below to see the differences in coverage in your state.

125-American-Family-Auto-Comparison-Coverage-Level.csv-2019-07-19.csv

Up next, we discuss how your credit score could affect what you pay for car insurance with American Family.

Credit History Rates

Besides not being able to secure a car loan or a mortgage, poor credit can also have an impact on how much you pay for car insurance. The table below reflects what you’ll pay for car insurance if you have good, fair, or poor credit. Of course, these are estimates, and your rates may be different based on your situation.

126-American-Family-Auto-Comparison-Credit-History.csv-2019-07-19.csv

The average credit score in the U.S. is 675. If your credit score is lower than this, you may face increased rates on car insurance. In some states, poor credit can raise your rates by thousands of dollars.

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Driving Record Rates

If you get a speeding ticket, have an accident, or get a DUI, your rates with American Family will increase in most states. The table below shows rates with these three violations compared to the rate for a clean record.

124-American-Family-Auto-Comparison-Driving-Record.csv-2019-07-19.csv

What coverage is offered by American Family?

American Family offer the same coverage as all of the other companies do and in some cases, at a competitive rate. Let’s take a look at standard insurance terms and go into detail about what they mean. Some companies advertise about coverage under every scenario imaginable, but what is that actual coverage called? And American Family wants to cover you so you can dream big. We know, it can be confusing, so that’s why we’ve compiled a list of common coverages with a brief explanation. Different coverage types fall into four basic categories:

When you are at fault:

Liability car insurance coverage. Covers the physical damages you inflict upon another vehicle and the bodily injuries sustained by all individuals in the other vehicle

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When you are not at fault:

Uninsured and Underinsured Motorist Coverage. Covers your expenses if the at-fault driver has little or no liability coverage.

https://youtu.be/g5ei9hbuiYU 

What type of vehicle protection is available?

• Collision Car Insurance Coverage. Covers vehicle repairs or replacement after an accident
• Comprehensive Car Insurance Coverage. Includes what most would consider “out of our control” such as storm damage, hitting an animal, and more
• Emergency Road Service. Covers standard roadside services like tire changes, jump starts, and lockout services.
• Rental Reimbursement Coverage. Includes a rental car while yours is getting repaired for a covered loss
• Mechanical Breakdown Coverage. Covers parts and systems failure of your vehicle that is not caused by normal wear and tear or improper maintenance

What type of personal protection is available?

• Medical Payments Coverage. Covers medical expenses of those in your vehicle
• Personal Injury Protection. Covers costs incurred from injuries to yourself or others in the vehicle, lost wages and funeral expenses no matter who is at fault
• Umbrella Policy. Extends your liability coverage to a much higher limit which blankets over multiple policies such as home and auto as well as others

American Family’s extensive list of auto insurance coverages means you can tailor a car insurance plan to meet your needs.

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What are some additional car insurance options?

Depending on where you live, some of the above may be optional coverages. American Family also have a good selection of additional coverage, including the most popular options

• Collision
• Comprehensive
• Towing and Roadside Assistance
• Rental Reimbursement
• New Car Replacement
• Rideshare car insurance
• Gap insurance
• Accidental death and dismemberment coverage
• Classic and collector car insurance
• Personal Liability Umbrella

What’s KnowYourDrive?

TrueMotion is a technology company that has teamed up with American Family to improve driver safety and reduce distracted driving using an unlikely tool, a smartphone app. American Family KnowYourDrive car insurance is a usage-based insurance (UBI) mobile app powered by TrueMotion that tracks consumer driving habits and offers discounts to those utilizing best practices and behaviors.

KnowYourDrive uses cutting edge technology that analyzes a bunch of aspects of your driving and behavior to identify whether you’re a driver in a car, a passenger in a car, or traveling via some other mode of transit. Occasionally, the app may mis-classify a trip. When this happens, just tap on the trip within five days and edit the mode by tapping the transit mode icon in the top right corner.

This information also will help the app to classify future trips better. How the app works is that you’re given a score based on how safely you drive. Your score will update five to 10 minutes after a trip, with a score ranging from 0 to 100. The program score is calculated from each driver’s score on your policy. The overall program score is then used to determine your KnowYourDrive program discount. 

Please note, only the individual’s personalized driving score is displayed on the app.

What’s their area of operation?

American Family Insurance is available in the following 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

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What discounts are offered?

American Family Insurance has many discounts and affordability options available to its consumers. Depending on the discount, you could save up to 40 percent.

111-American-Family-Auto-Discounts-Available.csv-2019-07-19.csv

These discounts aren’t available everywhere, so be sure to ask your agent about what options you qualify for based on your situation.

What Stands Out

Let’s take a step back and look at what American Family has to offer, and what it’s missing so far.

• What Stands Out. American Family offers multiple coverages, more so than other insurers, such as insurers like Geico. American Family also has an expansive range of discounts to provide customers with that can cut down on costs.

What’s Missing

• What’s Missing? American Family lacks military car insurance discounts, which is a standard discount at most providers. There also isn’t a pay-as-you-drive program, where you pay less if you rarely use your car.

American Family has more to offer than what’s missing, as the company has a complete list of coverages and lacks only a few discounts and programs that other insurers offer.

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How to cancel your policy?

Over time, there may be occasions when you may need to cancel or adjust your insurance policy with American Family. Here are four examples which may apply to you:

• Selling a car and not replacing it
• Storing a classic or antique vehicle
• A teen is heading to college and will no longer be driving the vehicle
• A vehicle has been paid off and no longer requires comprehensive cover

But what if you want to cancel your policy for other reasons such as customer dissatisfaction, rates that are too high, or you’re moving geographic locations?

How to cancel?

You’ll need to pick up the phone and call your local agent if you want to cancel your policy. American Family’s website does allow you to modify or change some policies but doesn’t allow for canceling a policy.

Is there a cancellation fee?

American Family doesn’t generally charge a cancellation fee, but could if the state law allows it. The company will also prorate any unused portion of your paid premium and refund you the difference.

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When can I cancel?

Don’t cancel your policy until you’ve secure representation with another company. Even a one-day lapse in coverage can cause unwanted headaches and possible fines in some states. The cancellation will go into effect at midnight the following day after your policy expires or whatever day you have chosen to end the policy.

How to make a claim?

Uh, oh. You’ve been in an accident and need to file a claim. How does that work?

https://youtu.be/dJ4SD-P2ADc 

Is making a claim easy?

It’s easy with American Family, follow these simple steps:

• Online: You can file a claim online at American Family’s website. You will need to have your policy number, contact information, and accident/incident information.
• Mobile App: If you have American Family’s mobile app, you can use it to file a claim.
• Agent: You can also contact your agent directly to file a claim.
• Phone: You can call 1-800-MY AMFAM (1-800-692-6326) at any time (it is available 24/7, seven days a week).

Now, that we’ve shown you how to file a claim, let’s look at how American Family pays out claims to its customers. Loss ratios can give us some insight into the answer to that question.

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What’s the number of written premiums and loss ratio?

The information below comes from NAIC and shows the premiums written by American Family compared to its loss ratio over four years.

Premiums written and loss ratio

The company has shown consistent growth over the lookback period, which means it’s attracting more customers. The loss ratio has increased as well, which is good news to customers.

What exactly is a loss ratio?

https://youtu.be/2H_FkXcmAIM

American Family is a financially stable company, meaning that if you have a valid claim, the company will be able to pay it.

How to Get a Quote Online

Step #1 — Learn About American Family’s Values

Shopping for car insurance isn’t the most exciting process, so you might be tempted to just dive right in, enter your ZIP code, and get a couple quotes ASAP. But the company you choose matters. A good offer and seemingly good coverage can come at a hefty cost when you realize that the provider you’ve chosen doesn’t have any customer support or services.

Your car insurance provider is more than just another financial obligation or legal requirement; your provider should be a reliable brand for you to count on when you need them most.

Do some research and learn about different companies, then narrow your list down to at least three before you request any quotes. You can read about American Family’s story, values and mission on their site. Their About page is a great place to begin your research.

Step #2 — Start Your Search with Your ZIP Code

You can enter your ZIP code in any of the boxes that appear on American Family Insurance’s site to begin your request. In some cases, you might receive the message presented in the image below. If so, just click “Get Your Quote Today” to proceed.

Step #3 — Review the Progress Bar and Agree to Terms and Disclosures

The first thing you might be tempted to do is start filling out any personal information that’s requested, but it’s a better idea to take a look around the page and get a feel for the process.

We highly recommend reviewing the terms and disclosure agreements typically found at the bottom of the first page on a car insurance quotes site.

Because every company has its own way of calculating policy rates and so many individual factors go into auto insurance, it’s not possible to get an online quote without any personal information. That being said, you shouldn’t just give your name out to anybody.

Carefully review the terms and disclosure agreements and make sure you’re comfortable with how your information will be used before you bother typing anything. You can also take a look at the progress bar at the top of the page and get a feel for the steps you’ll be following throughout the process and what kind of details you’ll have to provide.

Step #4 — Enter Your Details

Enter your name, address, city, state, email address and phone number. This information will be passed on to an agent should you decide to buy a policy, and your contact info will be used to reach you later if you decide to go ahead with buying from American Family.

There are some questions relating to your address that are important. You’ll be asked if you’ve lived at your current address for more than a year. If not, then you’ll have to list your prior address as well.

Your location plays a role in how much your car insurance premiums cost, so make sure you enter your primary residence and proper ZIP code.

Find out what information you need for a car insurance quote.

Step #5 — Add Vehicles

Now, you’ll have to enter information about the vehicle(s) you wish to insure. American Family features a drop-down menu system that makes entering your make and model easy.

To save time, you can enter your car’s Vehicle Identification Number (VIN) and the information will be automatically added for you.

Your vehicle information doesn’t just stop at its year and model, though. You’ll have to reflect on how you use your car and how much you drive approximately each year. There are different types of coverage available for business vehicles and everyday cars.

If you work for a carpool service like Uber or Lyft, American Family has special rideshare car insurance you can add to your policy for added coverage and security.

Step #6 — Add Drivers

Drivers are just as important to vehicles to a car insurance company. You’ll need to enter information about every driver of a vehicle in your household, even if you’re just looking to get personal auto insurance. Your gender, marital status and similar details help American Family calculate a more accurate quote.

You’ll also need to provide information regarding your current or previous car insurance coverage. Switching car insurance providers is easy with the right information; make sure you speak to your current insurer and give them at least 30 days notice before canceling. Learn how to change your car insurance mid-policy.

Step #7 — Qualify for Discounts

American Family will inform you about possible discounts you qualify for based off the information you’ve provided.

Don’t stop there, though. There’s an entire section of their site dedicated to the car insurance discounts on American Family’s site, and you can continue your research online to find out what discounts are out there so you can bring them up with an agent when you’re ready to buy.

Step #8 — Save Money and Choose How You Pay

Before you get your quote, you’ll be presented with additional ways to save money on your auto policy. You can choose to opt into an automatic payment system that will have your monthly premium debited from your bank account so you don’t ever have to worry about forgetting.

You can also choose to enroll in American Family’s paperless program, which will allow you to live a bit more green and keep all your billing statements and policy information sent to you online instead of through the mail.

You aren’t automatically enrolled in either of these incentives when you click yes during this part of the quotes process, but you’ll be prompted again later if you decide to buy a policy.

Selecting yes now, though, will ensure proper discounts are applied to your estimate and your quote is as accurate and personalized as possible.

Step #9 — Review Your Quote

American Family will present you with a quote as well as several coverage options to choose from. Each policy will have its features and exclusions listed. You’ll also have the option to customize a policy that’s presented to you and adjust limits and other coverages to your liking.

If you love what you see, take note of the prices, save your quote information and get ready to compare a few more estimates before you make a final decision.

Step #10 — Purchase a Policy (After Comparison Shopping)

Even if you love American Family’s auto insurance rate, make sure to shop around and compare at least three different quotes before you purchase a policy. Explore various coverage options, limits, and discount opportunities at multiple providers to get the most bang for your buck.

What’s the design of the website/app like?

While other insurance company websites and apps may be difficult to navigate, American Family’s is relatively simple and easy to use. On the website, it is easy to find whatever information you’re searching for. Just click from any of the categories on the drop-down menu and go.

This makes it easy to find answers to common questions you may have, such as how to make a claim or how to download American Family’s apps.

You can also enter questions in the search bar at the top right of the page. If you already have an American Family account, you can also sign in at the top right.

As for American Family’s mobile apps, they have a general app that has 4.8 stars out of five from 28,500 ratings.

Some of the common complaints with the app are as follows.

• Doesn’t make timely payments on policy
• Trouble logging in (fingerprint ID doesn’t work, or page is forever loading)
• App is slow

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What are some other app features?

According to American Family’s website, here are other convenient options available on the app:

• Instant Agent Access: Instantly contact your agent through the app. Plus, store agent and auto policy information to Passbook for quick and easy access.
• Digital ID Cards: Access proof of insurance without having to reach for the glove box or sift through papers.
• Policy Documents: View your policy documents and agent information on the spot, and even email it directly from the app, whenever you need it.
• Manage Claims: Start a claim and track any changes or updates. Plus, you can use the Accident Toolkit to follow the step-by-step checklist immediately following a collision.
• Roadside Assistance: Have a flat? Car break down? Every minute counts when you’re stranded on the road. Know who’s coming and when with our 24/7 Roadside Network. Our On-Demand service is accessible to any driver, any car, any time.

What are the pros and cons?

Now that we have covered everything you need to know about American Family, let’s check out the biggest takeaways in terms of pros and cons.American Family pros and cons

What’s the bottom line?

We’ve shown you everything you need to know about American Family, so you can decide for yourself whether AmFam is right for you. With American Family, they want to protect you, and what matters so that you can focus on your dreams. But don’t focus too much that you end up paying too much for your car insurance.

One thing to consider is that everyone’s needs are different, and rates can vary significantly based on individual factors.

As thorough as this guide is, we still strongly suggest that you shop around with your personal details and specific vehicle information before you choose an auto insurance provider.

Get quotes today to find out how much you could save on car insurance. Get started by simply entering your ZIP code in our free comparison tool.