Jane Dotson
American Family Insurance, also known as AmFam, is a Wisconsin-based insurance company that has been in business since 1927. The company offers a wide range of insurance products, including auto, home, life, and commercial insurance. In terms of ratings, American Family has received generally positive scores from various sources. Here's an overview of their ratings in different areas:
- J.D. Power: American Family ranked above average in the 2023 J.D. Power U.S. Auto Insurance Study in most regions and received an Excellent rating for overall customer satisfaction among midsize insurers.
- National Association of Insurance Commissioners (NAIC): American Family has consistently received low NAIC Complaint Indexes, indicating fewer complaints than expected for a company of its size.
- Better Business Bureau (BBB): American Family has an A rating from the BBB. However, its customer rating on the BBB website is lower, currently at 1.1 stars out of 5.
- WalletHub: American Family received a rating of 4.3/5 from WalletHub editors, based on factors such as sample insurance quotes, customer reviews, and ratings from organizations like J.D. Power and the BBB. The average user rating on WalletHub is 3.4/5.
- NerdWallet: American Family earned 5 out of 5 stars overall from NerdWallet, which takes into account factors such as consumer complaints, customer satisfaction, and financial strength.
- U.S. News: American Family is tied for 6th place in the U.S. News rating of the best car insurance companies. They ranked well in claims handling, customer service, and discounts but came last in customer loyalty and likelihood to be recommended.
| Characteristics | Values |
|---|---|
| Customer Satisfaction Score | 80/100 |
| WalletHub Rating | 4.3/5 |
| WalletHub User Rating | 3.4/5 |
| Bankrate Rating | 4.2/5 |
| MarketWatch Rating | 4.5/5 |
| J.D. Power Auto Claims Satisfaction Study Score | 819/1000 |
| NAIC Rating | 0.43 |
| AM Best Rating | A (Excellent) |
| Average Annual Premium for Full Coverage | $2,421 |
| Average Annual Premium for Minimum Coverage | $759 |
| Average Annual Premium for Full Coverage (National Average) | $2,681 |
| Average Annual Premium for Minimum Coverage (National Average) | $633 |
| Number of States Available | 19 |
What You'll Learn
Customer satisfaction
In terms of ratings, AmFam has consistently scored well for customer satisfaction in the J.D. Power U.S. Auto Insurance Study, ranking above average in most regions in 2023. AmFam also received a high score of 4.3 out of 5 in The Zebra's Customer Satisfaction Survey, with particularly positive feedback from homeowners. Additionally, AmFam has a low NAIC Complaint Index, indicating that it receives fewer complaints than the average car insurance provider.
On the other hand, AmFam has received a lower customer rating on the Better Business Bureau (BBB) website, with a score of 1.1 out of 5 stars based on over 270 complaints in the last three years. WalletHub also gives AmFam a lower rating of 3.4 out of 5 based on user reviews, with customers citing high premiums and average customer service as areas of concern.
Overall, while AmFam has received recognition for its customer satisfaction in several studies and surveys, there are also a significant number of customer complaints, particularly regarding claims handling and delayed payments. It's important for prospective customers to consider both the positive and negative feedback when making a decision about their insurance provider.
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Discounts
American Family Insurance offers a wide range of discounts to help with costs. The company provides savings for switching to American Family, as well as discounts that reward safe driving habits and good grades.
Multi-Policy Discounts
Customers who bundle their auto insurance with home insurance or renters insurance can save up to 23% on their auto insurance premium. Additionally, bundling auto and renters insurance can lead to savings of up to 5% on both policies.
Multi-Vehicle Discounts
Insuring more than one vehicle with American Family Insurance may qualify you for a reduced auto insurance premium on your cars and trucks.
Loyalty Discounts
American Family Insurance rewards its long-standing customers with loyalty discounts. The amount of savings depends on how long you have been a customer with the company.
Early Bird Discounts
If you have an active insurance policy with another company and get a quote from American Family Insurance at least seven days before it takes effect, you may be eligible for a discount.
Steer into Savings Discount
When switching to American Family Insurance from a competitor, you may receive a discount on your auto premium, depending on your state.
Auto Safety Equipment Discount
If your vehicle is equipped with factory-installed safety features, such as airbags, you may be eligible for savings on your insurance premium.
Defensive Driver Discount
In certain states, drivers aged 55 or above who complete an approved defensive driving course may receive a discount on their insurance.
Good Driving Discount
American Family Insurance offers discounts for drivers without accidents, violations, or claims, rewarding them with reduced rates.
Low Mileage Discount
American Family Insurance customers who drive less than 7,500 miles per year can qualify for additional savings on their insurance.
Good Student Discount
Good grades can lead to savings on insurance premiums. If your child is a student under 25 and maintains a top-notch track record, you may be able to reduce your insurance costs.
Young Volunteer Discount
Drivers under 25 who complete 40 hours of volunteer work per year for a non-profit organisation may be eligible for a discount on their auto insurance policy.
Customer Full Pay Discount
Paying your policy in full at the time of purchase can result in savings through the Customer Full Pay Discount offered by American Family Insurance.
Paperless Discount
Enrolling in online billing and e-delivery of policy documents can help you save money, as American Family Insurance offers a discount for those who choose paperless options.
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Claims handling
American Family also ranks highly in the J.D. Power U.S. Auto Insurance Study for 2023, performing above average in most regions. The company received an overall satisfaction score of 80 out of 10 in a NerdWallet survey, indicating that customers are generally pleased with the company's claims handling process.
The National Association of Insurance Commissioners (NAIC) assigns complaint indexes to insurance carriers, and American Family's auto insurance product has received low indexes over the past three years, indicating fewer complaints than expected. The company's NAIC rating of 0.43 also suggests it receives fewer complaints than the average car insurance provider.
Overall, American Family Insurance excels in claims handling, earning recognition from various sources and receiving positive feedback from customers.
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Cost
The cost of American Family auto insurance varies depending on factors such as age, driving record, credit score, and location. The company offers a range of coverage options, including full coverage and minimum coverage, as well as various discounts that can lower the cost of premiums.
The average cost of full coverage car insurance in the United States is $2,329 per year, while the average cost of minimum coverage is $633 per year. American Family's average annual rates for full coverage are $2,421, and $759 for minimum coverage, slightly higher than the national average. However, American Family offers a wide range of discounts that can help reduce the cost of premiums. These include multi-vehicle, loyalty, early bird, steer-into-savings, auto safety equipment, defensive driver, good driving, low mileage, and good student discounts.
The cost of American Family auto insurance also varies by age and driving record. For example, the average cost of full coverage for a 45-year-old driver with a clean driving record is $2,421 per year, while the average cost for a 45-year-old driver with a DUI is $3,046 per year. The cost of American Family auto insurance is also affected by location, as rates can vary by state.
Overall, American Family auto insurance is considered to be affordable, with rates that are lower than or comparable to the national average. The company's ratings for cost are generally positive, with customers citing the availability of discounts and the competitiveness of rates as strengths. However, there are also some complaints about high premiums and issues with claims handling.
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Coverage
American Family Insurance offers a wide range of coverage options for its customers. The company provides all the standard auto insurance coverage options, including comprehensive, collision, property and bodily injury liability, uninsured and underinsured motorist coverage, personal injury protection (PIP), and medical expenses coverage.
In addition, American Family offers several optional protections, including:
- Gap insurance: This covers the difference between the actual cash value of your vehicle and the amount you owe on your lease or loan if your car is totalled in a crash.
- Rental car reimbursement coverage: American Family will cover the cost of a rental car while your vehicle is being repaired after a covered accident, within certain limits.
- Emergency road service coverage: This includes towing services, battery jumps, tire changes, fuel deliveries, locksmith services, and roadside repairs.
- Accidental death and dismemberment coverage: This covers death or certain injuries resulting from a car accident, regardless of who is at fault.
American Family also offers standard minimum-coverage policies, which include bodily injury liability, property damage liability, and uninsured motorist/underinsured motorist liability. For drivers seeking more protection, American Family provides full-coverage policies, which include comprehensive and collision insurance, in addition to the minimum liability coverage.
Furthermore, American Family offers several optional add-ons for its home insurance policies, including equipment breakdown coverage, matching siding protection, sump pump and water backup coverage, and credit theft protection and monitoring.
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Frequently asked questions
WalletHub gives American Family Insurance a rating of 4.3/5. The Zebra gives it 4/5, while Bankrate gives it 4.2/5.
WalletHub gives American Family Insurance's auto insurance a rating of 4.3/5.
American Family Insurance ranks above average in the 2023 J.D. Power U.S. Auto Insurance Study. It also received an overall satisfaction score of 80 out of 100 by a pool of its customers in a NerdWallet survey conducted in 2023.
American Family Insurance is the eighth-largest car insurance company in the U.S. It has fewer customer complaints than expected for a company its size, according to the National Association of Insurance Commissioners.
