Haris Ashley
American Family Insurance is a mid-level insurance company that offers a wide variety of add-on coverages and discount opportunities. The company has a reputation for excellent customer service and competitive rates. However, its services are only available in 19 states.
American Family's average car coverage rates range from $1,328 to $1,412 per year. The company offers discounts for safe drivers, young drivers, and families. It also has a diminishing deductible insurance option, which lowers your deductible so you can better prepare for unforeseen expenses if you make a claim.
American Family also provides bundling discounts, so you can combine your car and home policies to save 29% on auto coverage and 20% on homeowners insurance.
The company has a financial strength rating of A (Excellent) from AM Best and an A rating from the Better Business Bureau.
| Characteristics | Values |
|---|---|
| Customer Satisfaction | American Family is ranked above average in the 2023 J.D. Power U.S. Auto Insurance Study in most regions. The company is third best in our rating for handling claims and No. 5 for customer service. |
| Cost | The company’s average rate for car insurance is approximately $100 higher per year than the national average. The average cost of full-coverage car insurance from American Family is $2,700 per year, while its average rate for minimum coverage is $1,254 per year. |
| Discounts | American Family offers a wide range of discounts to help with costs. Discounts include multi-vehicle, loyalty, early bird, auto safety equipment, defensive driver, good driving, low mileage, good student, bundling, and more. |
| Coverage | American Family offers standard types of car insurance, as well as optional protections like gap insurance, rental car reimbursement coverage, emergency road service coverage, accidental death and dismemberment coverage, and more. |
| Availability | American Family is only available in 19 states: AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA and WI. |
What You'll Learn
Customer satisfaction
American Family Insurance (AmFam) has a strong customer satisfaction rating, with 57% of survey respondents saying they were completely satisfied with the company's customer service. AmFam also ranks above average in the 2023 J.D. Power U.S. Auto Insurance Study in most regions. The company's auto insurance product has received low NAIC Complaint Indexes for the past three years, indicating that the National Association of Insurance Commissioners (NAIC) receives fewer complaints than expected from the company's auto insurance policyholders.
AmFam's customer satisfaction ratings are further bolstered by its high volume of positive reviews, with customers praising the company's affordable coverage and great customer experience.
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Discounts
American Family Insurance offers a wide range of discounts to help with costs. Customers who bundle their auto and home insurance policies can save up to 23% on both policies together. Similarly, customers who bundle their auto and renters insurance may save up to 5% on both policies.
American Family Insurance also offers discounts for good grades, safe habits, and loyalty. For instance, drivers without accidents, violations, or claims may be eligible for a reduced rate premium. Customers who drive less than 7,500 miles per year can qualify for additional savings. The company also offers a 10% discount for enrolling in their Pay-How-You-Drive safe driving program.
For young drivers, American Family Insurance offers a variety of discounts. If a student achieves good grades, it could help their parents save on insurance premiums. If a student is under 25 and more than 100 miles away at college, and their car is parked at home, their parents can also save on their auto policy. Additionally, if a young driver under 25 completes 40 hours of volunteer work per year for a non-profit, they could save money on their auto policy.
Other discounts include multi-vehicle discounts, multiproduct discounts, auto safety equipment discounts, and defensive driver discounts.
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American Family's auto insurance coverage
American Family Insurance offers a wide range of auto insurance coverage options, including standard types of car insurance as well as optional protections. The company provides insurance for cars, motorcycles, boats, RVs, and ATVs. Here is a detailed look at the auto insurance coverage options available from American Family:
Standard Coverage Options:
- Bodily Injury Liability: Covers medical expenses, lost wages, and associated costs for other parties involved in an accident you're found at fault for.
- Property Damage Liability: Covers damages to vehicles and other personal property resulting from a collision for which you are found at fault.
- Uninsured Motorist/Underinsured Motorist Liability: Covers the cost of damages when an at-fault driver lacks sufficient coverage.
- Personal Injury Protection: Covers your and your party's medical expenses resulting from an accident, regardless of who is at fault. This is required in no-fault insurance states and some at-fault states.
Optional Coverage Options:
- Gap Insurance: Helps pay the difference between what you owe and what your car is worth if your vehicle is totaled in a crash.
- Rental Car Reimbursement Coverage: Helps pay for a rental car while your car is in the shop after a covered accident.
- Emergency Road Service Coverage: Includes towing services, battery jumps, tire changes, gas and oil deliveries, locksmiths, and roadside repairs.
- Accidental Death and Dismemberment Coverage: Helps pay in the event of death or certain injuries resulting from a car accident, regardless of who is at fault.
In addition to these coverage options, American Family also offers various discounts and add-ons to help lower premiums. The company has a solid reputation for customer service and competitive rates, but it is only available in 19 states. Overall, American Family Insurance is a good choice for auto insurance, especially for those looking for comprehensive coverage and various add-on options.
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American Family's auto insurance rates and costs
American Family Insurance offers a range of auto insurance coverage options, including liability, collision, and comprehensive insurance. The company also provides several optional coverages, such as gap insurance, rental car reimbursement coverage, and accidental death and dismemberment coverage.
The cost of American Family auto insurance varies depending on factors such as age, driving record, and credit score. The average cost of full-coverage insurance from American Family is $2,700 per year, while its average rate for minimum coverage is $1,254 per year. For a 25-year-old man, the average annual cost is $1,695, while a 35-year-old woman would pay around $1,322. A 60-year-old man would pay approximately $1,228 per year.
American Family also offers various discounts that can lower insurance premiums. These include multi-vehicle, loyalty, early bird, and auto safety equipment discounts. The company also has a telematics insurance program called DriveMyWay, which offers a 10% discount upon signing up, and up to 20% off upon policy renewal for safe drivers.
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American Family's home insurance
American Family Insurance offers a range of customizable home insurance options to fit your unique needs. Their standard homeowners insurance coverage includes protection for your home, other structures, personal property, and living expenses in the event of a covered loss. You can also add on coverages such as earthquake insurance, equipment breakdown coverage, and water damage coverage.
One of the key benefits of American Family's home insurance is the ability to bundle your home and auto insurance, offering significant savings. According to their website, customers who bundle home and auto insurance policies may save up to 25% on both policies together. They also offer a diminishing deductible program, which reduces your deductible by $100 each year, up to a policy maximum, helping to control what you pay for your homeowners coverage.
In addition to the financial protection offered by their policies, American Family also provides expert support and guidance for homeowners. Their website features advice on topics such as how to prepare your home for a storm, protecting roofs from wildfires, and simple home pool safety tips.
American Family has been in business for over 90 years and is trusted by over 12 million customers. They have been named one of America's Best Insurance Companies by Forbes and have a 4.8/5 star rating out of 63.8k reviews.
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Frequently asked questions
The average cost of American Family car insurance varies depending on the level of coverage, the driver's age, and other factors. For a full coverage policy, the average cost is around $2,400 to $2,700 per year, while the average cost for a minimum coverage policy is around $700 to $1,300 per year.
American Family car insurance offers various benefits, including a wide range of coverage options, accident forgiveness, and optional emergency roadside assistance. They also provide bundling discounts for customers who combine their car and home insurance policies, as well as discounts for safe drivers and young drivers.
One drawback of American Family car insurance is that it is only available in 19 states. Additionally, some customers have reported issues with denied claims, inconsistent payout processes, and abrupt premium increases.
American Family car insurance is generally less expensive than other major providers like Allstate, Farmers, and Geico. However, it is more expensive than Geico, State Farm, and USAA on average.
