Paul Sanchez
American Family Insurance, also known as AmFam, is an American private mutual company that was founded in 1927 by insurance salesman Herman Wittwer. The company has grown over the last 90 years to become one of the most popular insurance brands in the United States, offering a range of insurance products, including auto, property, casualty, commercial, life, health, and homeowners insurance. With a focus on protecting and restoring the dreams of its customers, American Family Insurance has a long history of adapting to the changing needs of its customers and expanding its market and product lines.
| Characteristics | Values |
|---|---|
| Founding Date | 3 October 1927 |
| Founder | Herman Wittwer |
| Original Name | Farmers Mutual Insurance Company |
| Original Product | Auto Insurance |
| Original Target Market | Farmers |
| First Office Location | Madison, Wisconsin |
| First Expansion | 1957, sickness and accident insurance |
| First Name Change | 1963, American Family Mutual Insurance Company |
| First Acquisition | 2012, The General Insurance |
| Current Headquarters | Madison, Wisconsin |
| Current Regional Corporate Headquarters | Minnetonka/Eden Prairie, Minnesota; Saint Joseph, Missouri; Denver, Colorado; Columbus, Ohio |
| Current Ranking | 8th-largest auto insurance seller |
| Customer Service Scores | 4.7 on Trustpilot |
| Satisfaction Score | 79/100 |
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What You'll Learn
American Family Insurance's history
American Family Insurance was founded on October 3, 1927, by insurance salesman Herman Wittwer. At the time, the company, then called Farmers Mutual Insurance Company, was based in Madison, Wisconsin, and offered auto insurance targeted at farmers, who Wittwer believed presented lower risks than city drivers.
Over the next few years, Farmers Mutual expanded its market and product line to meet the changing needs of its customers. In 1957, the company began to offer sickness and accident insurance, and the following year, it introduced homeowners' insurance and opened the American Family Life Insurance Company. In 1959, Farmers Mutual entered the computer age with the RAMAC 305. By 1963, the company had expanded its customer base beyond farmers, and the policyholders approved changing the company's name to American Family Mutual Insurance Company.
In 1981, American Family's assets surpassed $1 billion, and it became the fourth-largest mutual auto insurance company. In 1994, the company rolled out its catastrophe trailer and ranked as the 11th-largest property/casualty insurer. Two years later, American Family appeared on the Fortune 500 list for the first time, at number 403. In 1997, the company became the nation's 10th-largest property/casualty insurer, with assets surpassing $8 billion. By 2001, American Family Mutual Insurance Company's assets had exceeded $10 billion.
In 2012, American Family Insurance completed its acquisition of The General Insurance, and the following year, it acquired Homesite Insurance. In 2016, the company became the inaugural jersey sponsor of the 2017 MLS expansion team Atlanta United FC. In 2017, American Family Insurance acquired HomeGauge and Networked Insights. A year later, it merged with Florida-based insurance company Main Street America Insurance. In 2019, the company acquired Ameriprise Auto & Home, and the subsidiary was renamed Connect in 2020. In 2021, American Family Insurance became the naming rights sponsor of the stadium of the Milwaukee Brewers, American Family Field.
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The company's insurance products
American Family Insurance, founded in 1927, initially offered auto insurance to farmers, believing them to be lower-risk drivers. Over the years, the company expanded its product line to include various insurance products catering to diverse customer needs. Today, American Family Insurance provides a comprehensive range of insurance policies, including:
Auto Insurance
American Family Insurance offers auto insurance with competitive rates and various discounts. Their full-coverage auto insurance includes collision and comprehensive protection, covering vehicle damage and theft. The company also provides liability car insurance, which is required by law in most states, covering injuries and damage caused to others. American Family Insurance also offers Accident Forgiveness, rewarding safe drivers by preventing premium increases after their first accident. Additionally, they provide Diminishing Deductible coverage, which helps reduce out-of-pocket expenses for various vehicles, including motorcycles and watercraft.
Home Insurance
The company provides home insurance with unique discounts and coverage options. Bundling home and auto insurance with American Family Insurance can lead to significant savings of up to 23% on both policies. They also offer hidden water damage coverage, protecting against appliance leaks, and mechanical breakdown insurance, covering mechanical failures of appliances and home systems. American Family Insurance's home insurance rates are slightly higher than the national average, but bundling with their auto insurance can make it more affordable.
Life Insurance
American Family Life Insurance Company offers both term and whole life insurance policies. Their whole life insurance provides lifelong protection with guaranteed premium amounts, and the policy builds cash value that can be borrowed against. Life insurance policies can be customized to fit individual needs, and adding a life insurance policy may qualify customers for discounts on other coverages.
Other Insurance Products
American Family Insurance also offers a range of other insurance products, including personal umbrella insurance, business insurance, farm and ranch liability insurance, and travel insurance, including trip cancellation and global medical insurance. They also provide insurance for specific vehicles, such as motorcycles, boats, motor homes, and snowmobiles. Additionally, the company has introduced variable products and catastrophe trailers to their offerings.
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American Family Insurance's acquisitions
American Family Insurance, founded in 1927, has grown and expanded over the years through various acquisitions and mergers. The company's history of acquisitions demonstrates its strategic growth and diversification efforts. Here is a detailed overview of some of American Family Insurance's notable acquisitions:
The General Insurance:
In 2012, American Family Insurance completed the acquisition of The General Insurance, a subsidiary based in Nashville, Tennessee. The General Insurance specializes in direct-to-consumer non-standard auto insurance (NSA insurance), serving customers who face challenges in obtaining standard auto coverage. In 2024, American Family Insurance announced an agreement to sell The General to Sentry Insurance for approximately $1.1 billion in cash consideration. Including liabilities and required capital, the total transaction value rose to $1.7 billion. This sale aligned with American Family Insurance's strategic shift, as they focused on other areas of the market.
Homesite Insurance:
In 2013, American Family Insurance expanded its reach by acquiring Homesite Insurance. Homesite Insurance is a part of the American Family Insurance Group and offers property and casualty insurance products.
HomeGauge and Networked Insights:
In 2017, American Family Insurance continued its acquisition streak by taking over HomeGauge and Networked Insights. These acquisitions contributed to the company's growth and expansion in the insurance industry.
Main Street America Insurance:
In 2018, American Family Insurance merged with Florida-based insurance company Main Street America Insurance. This merger strengthened American Family Insurance's presence in the insurance market, particularly in the state of Florida and surrounding regions.
Ameriprise Auto & Home:
In 2019, American Family Insurance added to its portfolio by acquiring Ameriprise Auto & Home. The subsidiary was subsequently renamed Connect in 2020, reflecting a strategic rebranding decision.
Bold Penguin:
In January 2021, American Family Insurance acquired Bold Penguin, a software suite founded in 2016 for the commercial insurance industry. This acquisition demonstrates the company's interest in technological advancements and their potential applications in the insurance sector.
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The company's customer service
American Family Insurance, also known as AmFam, was founded on 3 October 1927 by insurance salesman Herman Wittwer. The company has since expanded its product line to include various types of insurance, including life, auto, home, and business insurance.
American Family Insurance has received positive reviews for its customer service, with a 4.7 rating on Trustpilot. Customers have praised the company for its low prices, convenience, and the expertise of its agents. The company also offers a range of discounts to help lower rates, including discounts for bundling home and auto insurance, paying for policies upfront, setting up autopay, and going paperless.
American Family Insurance also has an ambassador program with the mission to "inspire, protect and restore dreams." Notable ambassadors include athletes such as J.J. Watt, Derek Jeter, and Steve Stricker, as well as actress and entrepreneur Kathy Ireland.
The company provides customers with various tools and resources to understand their insurance coverage and make informed decisions. For example, customers can use the online pricing and coverage tool to get quick quotes and explore different coverage options. They can also connect with an insurance agent to ask questions and seek advice without any pressure to purchase.
In addition to standard insurance offerings, American Family Insurance offers unique coverages, such as hidden water damage and mechanical breakdown insurance for home systems. The company also has a "Dreamkeep Rewards" program, providing small to large rewards for completing online tasks.
American Family Insurance has a strong focus on supporting young drivers with various discounts, including good student discounts, away-at-school discounts, and volunteer work incentives. The company also recognises the importance of financial protection for loved ones, offering both temporary and permanent life insurance policies with customizable coverage options.
Overall, American Family Insurance's customer service is characterised by its commitment to providing accessible, affordable, and comprehensive insurance solutions, supported by a team of knowledgeable agents and a range of discount and reward programs.
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American Family Insurance's discounts
American Family Insurance, founded in 1927, offers a range of insurance products, including auto, home, life, business, and specialty insurance. The company provides various discounts to help customers save on their insurance premiums. Here are some of the key American Family Insurance discounts:
Bundling Discounts
American Family Insurance offers significant savings to customers who bundle their insurance policies. Those who bundle home and auto insurance policies can save up to 23% on both policies combined. Additionally, customers can bundle other policies, such as renters and car insurance, to maximize their savings.
Safe Driving Discounts
The company encourages safe driving habits and offers discounts to good drivers with a clean driving record. Maintaining a good driving record can help lower auto insurance rates.
Payment Discounts
American Family Insurance rewards customers who pay their bills in full or set up automatic payments. Streamlining payment methods can result in discounts and lower premiums.
Home Features and Smart Devices Discounts
Homeowners can take advantage of discounts based on the features of their homes. Newer homes, under 15 years old, may be eligible for lower rates due to fewer claims. Additionally, installing qualifying smart home devices can earn customers a "proactive home protection" discount.
Loyalty Discounts
American Family Insurance values customer loyalty and may offer lower premiums to those who have been with the company for a year or more. They also offer a generational discount for younger customers whose parents have active policies with the company.
Good Grades and Teen Driver Discounts
The company offers discounts for families with teen drivers and rewards young adults purchasing insurance on their own. Good grades can also translate into savings on car insurance for young drivers.
To find out more about specific discounts and eligibility, customers are encouraged to connect with an American Family Insurance agent, who can review their policy and provide a personalized quote that includes applicable discounts.
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Frequently asked questions
American Family Insurance was founded on October 3, 1927, by insurance salesman Herman Wittwer.
The company was initially called Farmers Mutual Insurance Company.
In 1963, Farmers Mutual changed its name to American Family Mutual Insurance Company to reflect its broader customer base.
American Family Insurance offers term, universal, and whole life insurance, auto insurance, home insurance, ranch and farm insurance, travel insurance, and many more.
Some notable milestones include surpassing $1 billion in assets in 1981, ranking as the 11th-largest property/casualty insurer in 1994, and appearing on the Fortune 500 list in 1996.
