American Family Insurance Reviews

Better Business Bureau (BBB) rating: A-
BBB complaints in the last three years: 152
J.D. Power customer satisfaction index: 889 / 1,000
Trustpilot rating: 3.5 / 5.0

American Family insurance reviews are fairly mixed, with praise from customers balanced out with negative experiences as well. It seems service standards can vary widely among American Family insurance agents, making it challenging to tell whether your policy will lead to a headache.

However, with a complaint index of 1.19, American Family receives about 19 percent more complaints than the industry norm. This index is determined by the National Association of Insurance Commissioners (NAIC) which determines how many complaints auto insurance companies receive compared to the industry average.

American Family Insurance Claims Complaints

While American family insurance has a high complaint index, claims complaints are lower on average. American Family Insurance ranked slightly above average for its handling of auto claims in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study℠. American Family Insurance earned the highest score for small insurers with 899 out of 1,000 possible points in the J.D. Power 2021 U.S. Insurance Shopping Study℠. 

American Family Know Your Drive App Reviews

The KnowYourDrive app has exceptional reviews, with a 4.6 out of 5.0-star rating on the App Store and a 4.4-star rating out of 5.0 on Google Play.

Our team gives American Family Insurance a rating of 4.3 out of 5.0 stars for its affordable plans and wide selection of coverage options.  American Family offers cost-effective insurance plans and multiple forms of coverage. At the same time, American Family insurance reviews show that standards can vary widely across the company.

About American Family Insurance

Founded: 1954
States available: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, Wisconsin
AM Best financial strength rating: A+

Since its founding in 1927, American Family has been offering customers extensive coverage plans. The Madison, Wisconsin-based company, often known as AmFam, has grown into one of the largest auto insurers in the United States due to its consistently affordable rates. It’s less regarded for its service standards, however, as many customers speak of frustrating claims processes in American Family Insurance reviews.

American Family offers the following insurance products:

• Auto insurance
• Motorcycle insurance
• Homeowners insurance
• Renters insurance
• Health insurance
• Umbrella insurance
• Travel insurance
• Life insurance

The average cost for a full coverage policy with American Family is $1,505 per year. This is about 13 percent cheaper than the national average of $1,732 per year. The company is known for offering affordable pricing, and American Family insurance reviews generally speak positively about the company’s low average rates. An added benefit of American Family insurance is the diminishing deductible, which lowers fees for those with clean driving records over time.

To give you an idea of how much you might pay for an insurance policy with American Family, we’ve included full coverage rate estimates for states where American Family insurance is available. These estimates are for a 35-year-old driver with good credit and a clean driving record.

*Cost information not available for American Family in Georgia.

Regardless of the provider, a few factors nearly always influence how much car insurance is. Some of the most common can be found below:

• Location: Car insurance rates vary drastically as you cross state lines. Drivers in states with extensive minimum coverage standards, high numbers of uninsured motorists, and higher rates of car theft can expect higher premiums, as can residents of urban areas.
• Age and gender: Younger men face steep car insurance rates, though they start to decrease as drivers reach their mid-20s.
• Marital status: Married drivers usually pay lower prices than single motorists.
• Credit score: Those with low credit scores often pay high insurance premiums.
• Driving history: If your record includes car accidents or DUIs, expect higher-than-average car insurance rates.
• Vehicle type: Newer vehicles, ones often targeted by thieves, and cars with below-average safety ratings pay increased prices.

American Family Car Insurance Discounts

Drivers who pick American Family insurance can take advantage of many savings. If you’re looking for the cheapest car insurance from American Family, ask about some of these top offers:

American Family insurance reviews also mention that the provider’s usage-based insurance plan leads to significant savings. By enrolling in the KnowYourDrive^® program, you’ll be able to further reduce your rates.

American Family offers the six standard types of auto insurance, as well as a few add-on coverage options:

Other than car insurance American Family also offers many options for life insurance, home insurance, and renters insurance. Below we will go into more detail about what its life, home, and renters insurance policies cover:

American Family Life Insurance

American Family offers term, whole, and universal life insurance policies, but it does not offer medical exam options. Its whole life insurance policies offer benefits such as premiums that never increase. American family term insurance is offered for 10, 15, 20, or 30 year periods. It also offers flexible payment options so that its life insurance policies can be more affordable.

American Family Home Insurance

American Family offers standard coverage for home insurance as well as more coverage options than the average insurer. Standard options include dwelling, other structures, personal property, and liability and other add-on options are also offered to get more coverage for your home. Other coverage options for home insurance include:

• Sump pump failure and water backup
• Identity theft
• Home-based businesses
• Equipment breakdown
• Matching siding protection
• Service line
• Senior living
• Vacant home
• Hidden water
• Short-term rental

American Family Renters Insurance

American Family offers renters insurance coverage that includes three main types which are personal property, personal liability, and loss of use insurance. Personal property renters insurance helps replace your belongings damaged by situations like theft, the result of a fire, lighting, and more. Coverage for personal liability covers accidents that happen to guests in your home and medical expenses that come with it.

Lastly, American Family’s loss of use renters insurance pays for expenses when you are displaced from your home due to it being uninhabitable. All these insurance policies cover you regardless of if you are renting a home, condo, or apartment.

American Family insurance reviews often praise the simplicity and helpfulness of the company’s mobile app, MyAmFam. From their phones, American Family insurance policyholders can view their plans, pay premiums, access pertinent account information, and file claims. Unlike many auto insurance apps, the American Family Insurance app receives overwhelmingly positive reviews. It gets 4.8 stars out of 5.0 on the App Store and 4.1 stars out of 5.0 on Google Play.

American Family Know Your Drive

The American Family KnowYourDrive app monitors driving behavior and tracks habits behind the wheel while rewarding good practices, making it a solid opportunity to decrease premiums. This usage-based platform can get you up to 20% discount for good driving.

In our American Family Insurance review, we give its services a 4.3 out of 5.0 stars. American Family has a wide range of coverage options to choose from for auto insurance, home, life, and renters insurance. The company’s cost for some of its policies can be higher on average compared to most insurers, but generally, it offers affordable rates.

There are also very few complaints on average about American Family’s claims service which speaks well to its overall customer satisfaction. While American Family can be a good insurance provider, we recommend shopping around and comparing quotes before making a decision.

If you need car insurance, you can start the quote search process with the tool below:

American Family Car Insurance Competitor: Top Picks

While American Family car insurance coverage might be a good fit for your needs, it’s best to get car insurance quotes from multiple companies to compare your options. We recommend checking out Progressive and USAA in your search, as both companies offer more consistent customer service and a wide range of coverage options.

Progressive: Best Usage-Based Insurance

While other providers offer the service, Progessive stands out for its usage-based insurance program. The company says that customers save an average of $146 per year by signing up for Snapshot^®, which rewards drivers for safe habits on the road.

Progressive is known for covering all types of drivers, from the most experienced to high-risk motorists. Despite this, it holds an A+ financial strength rating from AM Best, meaning Progressive is financially capable of covering claims. If you’re searching for consistent coverage and excellent usage-based insurance, consider this insurer.

Learn more in our Progressive insurance review.

USAA: Best For Military Members

Although USAA coverage is limited to military families and veterans, it is a great option for those who qualify. USAA offers some of the industry’s highest customer service standards at below-average rates.

The company received the highest customer satisfaction score in every region of the country in the J.D. Power 2021 U.S. Auto Insurance Study℠. USAA’s A++ financial strength rating from AM Best is equally impressive, especially considering its affordable average car insurance premiums.

To learn more about the provider, check out our USAA insurance review.

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.

• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.

• Service: We comb through customer reviews on sites like the BBB to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.