Orlando Harmon
American Family Insurance, also known as AmFam, is a mutual holding company that has been serving customers since 1927. The company offers car insurance and home insurance and has received both positive and negative reviews from its customers. WalletHub's editors have given American Family Insurance a rating of 4.3 out of 5, while TrustPilot reviews have given the company a rating of 4.7. AM Best has affirmed American Family Insurance's 'A' financial strength rating, indicating that the company is financially strong and stable. On the other hand, some customers have complained about unexpected increases in insurance rates and difficulties in getting their claims approved. American Family Insurance's car insurance rates vary depending on factors such as age, driving record, location, and coverage selections. The company offers various discounts, including those for young drivers and bundling home and auto insurance.
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What You'll Learn
American Family Insurance's financial strength rating
American Family Insurance has been serving customers since 1927. The company has an 'A' financial strength rating from AM Best, which is the third highest of their 13 ratings. This indicates that the company is financially strong and in a good position to pay out claims. The rating also reflects the company's operating performance and balance sheet strength, which AM Best assesses as very strong.
AM Best has affirmed this rating for the 22nd consecutive year, and it has also been assigned a "stable" outlook. In addition to the 'A' financial strength rating, AM Best has also affirmed the 'a+' issuer credit rating of American Family Life Insurance Company. This is the fifth-highest of their 21 ratings.
American Family Insurance is also distinguished by AM Best as a "Standing the Test of Time" company, which means it has maintained an 'A' or better financial strength rating for 75 years. This distinction reflects the company's commitment to improving its operating results and loss and expense ratios.
WalletHub's editors have given American Family Insurance a rating of 4.3 out of 5, based on factors such as pricing, coverage options, customer reviews, and watchdog-group ratings. American Family Insurance's average annual car insurance rate is $2,268, which is slightly higher than the national average. However, the company offers competitive rates for teen drivers and drivers with a DUI.
Overall, American Family Insurance's financial strength rating from AM Best indicates that the company is financially stable and able to meet its obligations to policyholders.
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Customer reviews and watchdog-group ratings
Customer reviews of American Family Insurance are mixed. While some customers have praised the company for its low prices and convenience, others have criticised it for being a "rip-off" with rates that are higher than the national average.
One customer, who has been with the company for over 25 years, claims that American Family Insurance increased their auto insurance rates from $1,200 a year to $4,800 a year after their son got his license. They also claim that the company refused to replace their garage roof, despite only making one claim on their house in the past. Another customer complains about the company's handling of their claim after the death of their fiancé, stating that they are "ripping [them] off".
On the other hand, American Family Insurance has received positive reviews from customers who appreciate its low prices and convenience. One customer review on Trustpilot mentions that the company's rates are 3% less than the national average, while another review praises the company's agents for their expertise. American Family Insurance has also been recognised as a "Standing the Test of Time" company by AM Best, reflecting its financial strength and stability.
In terms of watchdog-group ratings, American Family Insurance has received a rating of A from AM Best, indicating its financial strength and ability to pay out claims. WalletHub's editors have given the company a rating of 4.3 out of 5, taking into account factors such as pricing, coverage options, customer reviews, and other watchdog-group ratings. J.D. Power has rated American Family Insurance at 3.3, and the company ranks above average in the 2023 J.D. Power U.S. Auto Insurance Study in most regions. The National Association of Insurance Commissioners (NAIC) has assigned low Complaint Indexes to American Family Insurance for the past three years, indicating fewer complaints than expected from auto insurance policyholders.
Overall, while there are some negative reviews and criticisms of American Family Insurance, the company has also received positive feedback and ratings from customers and watchdog groups.
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American Family Insurance's rates for different driver profiles
American Family Insurance offers a range of auto insurance policies with varying rates for different driver profiles. The rates are influenced by several factors, including age, gender, location, driving record, vehicle type, and financial information. Here are some insights into how their rates compare for different driver profiles:
Teen Drivers
American Family Insurance offers competitive rates for teen drivers, who typically face higher insurance costs due to their limited driving experience and higher accident risk. Their rates for this age group are lower than the national average, making them an attractive option for young drivers. American Family also provides various discounts and programs targeting young drivers, helping them save even more on their insurance premiums.
Young Adults (25-year-olds)
For 25-year-old drivers, American Family's rates are above the national average. Their sample rate for female drivers in this age group is $279 per year higher than the national average, while the rate for male drivers is $459 higher. Young adults can take advantage of American Family's discounts, such as those for safe driving, paperless billing, and automatic payments, to help offset these higher rates.
Adult Drivers (40-year-olds)
American Family's rates for 40-year-old drivers are also higher than the national average. The average annual rate for female drivers in this category is $181 higher than the national average, while it is $203 higher for male drivers. Adult drivers can benefit from American Family's loyalty discounts, early bird discounts, and bundling options to help reduce their insurance costs.
Senior Drivers
Senior drivers typically experience lower insurance premiums due to their extensive driving experience. However, American Family's rates for this age group are slightly higher than the national average. Their average annual rate for senior female drivers is $186 higher than the national average, and it is $226 higher for senior male drivers. Senior drivers can explore American Family's defensive driving course discounts and accident forgiveness policies to optimize their insurance costs.
Drivers with At-Fault Accidents or Violations
American Family Insurance offers lower rates for drivers with at-fault accidents or speeding tickets on their records compared to some competitors. Their accident forgiveness policies allow drivers to avoid premium increases after their first at-risk accident, and they offer discounts for safe driving habits tracked through telematics programs.
While American Family Insurance's rates vary for different driver profiles, they offer numerous discounts and opportunities for savings. It is important to remember that insurance rates are highly individualized, and the best way to determine your specific rate is to obtain a personalized quote.
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American Family Insurance's home insurance rates
American Family Insurance, also known as AmFam, has received mixed ratings for its home insurance policies. While it has received positive reviews for low complaint levels and reasonable rates, some customers have criticised the company for sudden rate hikes.
Financial Strength Ratings
American Family Insurance has received a financial strength rating of 'A' or 'Excellent' from AM Best for the 22nd consecutive year. This rating indicates that the company is financially stable and capable of fulfilling its obligations to policyholders. AM Best also affirmed an issuer credit rating of 'a+''', reflecting American Family Insurance's overall creditworthiness and ability to meet financial commitments beyond policyholder claims.
Customer Reviews and Ratings
American Family Insurance has received generally positive reviews for its home insurance policies, with an average rating of 4.07 out of 5 on Insurance.com in 2025. Customers have praised the company for its reasonable rates, extensive coverage endorsements, and low complaint levels. WalletHub editors have given the company a rating of 4.3 out of 5, taking into account factors such as pricing, coverage options, customer reviews, and watchdog-group ratings.
Rate Comparison
Discounts and Bundling Options
American Family Insurance offers various discounts and bundling options to make their home insurance policies more affordable. They provide a "renovated home" discount for updated electrical, heating, or plumbing systems and a generational discount for customers between the ages of 18 and 30 whose parents are also American Family customers. Additionally, bundling home and auto insurance policies can save customers up to 23% on both premiums.
While American Family Insurance's home insurance rates are slightly above the national average, they offer reasonable rates, a wide range of endorsements, and unique discounts. Customers have praised their positive claims handling experience and ease of contacting customer service. However, it is always advisable to compare quotes from multiple companies to ensure you are getting the best rate and coverage for your needs.
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Customer service scores
American Family Insurance, also known as AmFam, has received mixed reviews for its customer service. WalletHub's editors give the company a rating of 3.8/5, with consumers tending to comment on the company's high premiums and average customer service. WalletHub's research also places American Family in the second cheapest quartile among major car insurance companies in terms of price. The company's NAIC rating of 1.71 indicates that it has received fewer complaints than the average car insurance provider. However, customer complaints registered with the NAIC relate to issues with how adjusters handle claims and delayed claim payments.
In a survey conducted by Bankrate and market research firm SliceMR in May 2024, American Family Insurance customers were asked to rate their insurer’s cost, coverage, customer support and overall experience on a five-point scale. The results of this survey are not provided.
American Family Insurance has ranked highly for customer satisfaction in multiple regions in the 2023 J.D. Power U.S. Auto Insurance Study. Similarly, The Zebra's Customer Satisfaction Survey, which is based on a survey of 4,134 current U.S. auto and home insurance customers, places American Family Insurance in 5th place with a score of 8.7/10 for trustworthiness. The company also has an excellent rating of 4.7/5 on Trustpilot, with customers praising the company for its low prices, convenience, and the expertise of its agents.
In a consumer survey by US News, 51% of respondents were "completely satisfied" with the ease of contacting American Family's customer service, while 46% were "completely satisfied" with the customer service they received from the company. Additionally, 65% of survey respondents indicated they were "completely satisfied" with how their claim was resolved and with the status updates they received, and 74% were "completely satisfied" with the ease of filing a claim.
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Frequently asked questions
AM Best has affirmed American Family Insurance's 'A' (Excellent) financial strength rating, the third highest of their 13 ratings, for the 22nd consecutive year.
American Family's average annual rate is $2,268, which is higher than the national average.
American Family has an excellent 4.7 rating in Trustpilot reviews. It also earned a second-place score for service in J.D. Power's 2024 Insurance Digital Experience Study.
American Family Insurance rates go up by an average of 18% after an accident. However, drivers with accident forgiveness will not see their rates increase after their first accident in 1-5 years.
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