Jane Dotson
American Family Insurance, also known as AmFam, is an American private mutual company that offers property, casualty, and
| Characteristics | Values |
|---|---|
| Type of company | American private mutual company |
| Date founded | October 3, 1927 |
| Founder | Insurance salesman Herman Wittwer |
| Original company name | Farmers Mutual Insurance Company |
| Original product | Auto insurance |
| Original target market | Farmers |
| Current products | Property, casualty, and auto insurance, commercial insurance, life, health, and homeowners coverage, investment and retirement-planning products |
| Revenue in 2017 | Over $9.5 billion |
| Milestones | 1938: Premiums and assets surpassed $1 million; 1957: Introduced sickness and accident insurance; 1958: Introduced homeowners insurance and opened American Family Life Insurance Company; 1959: Entered the computer age with the RAMAC 305; 1963: Changed company name to American Family Mutual Insurance Company; 1981: Assets surpassed $1 billion; 1994: Rolled out catastrophe trailer; 1995: Settled a redlining lawsuit for $16 million; 1996: First appeared on the Fortune 500 list |
| Number of locations | 106 |
| Notable ambassadors | Kathy Ireland, Derek Jeter, Christian Yelich, Drew and Jonathan Scott, Steve Stricker, J.J. Watt, Brad Guzan |
| Notable sponsorships | Major League Soccer club Atlanta United FC |
| Notable discounts | Up to 25% for customers who bundle home, auto, and life policies; lower rates for teen drivers, good students, students away at school, and young volunteers |
| COVID-19 response | Additional 10% pandemic mitigation premium on car policies; $225 million in refunds |
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What You'll Learn
American Family Insurance's ambassador program
American Family Insurance, also known as AmFam, has an ambassador program with the stated mission to "inspire, protect and restore dreams". The company's brand ambassadors are individuals who embody what it takes to "dream fearlessly" and share their wisdom and support with fellow dreamers. AmFam believes that a dream is the most valuable thing one can own, and so its ambassadors are chosen not only for what they have accomplished but also for how they pursued and achieved their dreams.
The ambassadors are individuals who, as they pursue their dreams, motivate and support others to dream fearlessly too. They reinforce the brand's mission to inspire people to find, follow and achieve their dreams. AmFam's ambassadors include Jordan Love, Green Bay Packers quarterback; Derek Jeter, former baseball player; Christian Yelich; the Scott Brothers; and Kathy Ireland, among others.
In 2017, AmFam launched an ongoing campaign called #DreamFearlessly, which encouraged consumers to express how they "dream fearlessly" for initiatives such as social justice, getting women into tech, and economic empowerment. The company's ambassadors used this hashtag on social media to help promote the campaign.
American Family Insurance was founded in 1927 and is based in Madison, Wisconsin. It is a Fortune 500 company, offering a range of insurance products, including property, casualty, life, health, and auto insurance, as well as investment and retirement-planning products.
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History of American Family Insurance
American Family Insurance, also known as AmFam, is an American private mutual company that was founded on October 3, 1927, by insurance salesman Herman Wittwer. The company initially focused on auto insurance for farmers, operating as the Farmers Mutual Insurance Company. Wittwer believed that farmers presented a lower risk than city drivers as they drove less frequently and not at all in winter. Over time, the company expanded its market and product line to cater to evolving customer needs.
In 1930, the company established the National Mutual Casualty Company to provide insurance for non-farmers. In 1935, Farmers Mutual founded the State Farm Mutual Insurance Company of Madison, Wisconsin, which quickly became the fastest-growing windstorm company in the state. By 1938, both premiums and assets had surpassed $1 million. In 1948, State Farm Mutual of Madison was renamed Farmers Mutual Insurance Company of Wisconsin.
In 1957, Farmers Mutual expanded its offerings to include sickness and accident insurance, receiving forty applications on the first day. The following year, the company introduced homeowners insurance and established the American Family Life Insurance Company, which expanded to ten states within a year. In 1959, Farmers Mutual entered the computer age with the RAMAC 305, a room-sized machine capable of processing a week's worth of applications and 1,000 renewal notices in just 2.5 hours.
In 1963, the company changed its name to American Family Mutual Insurance Company to reflect its diverse customer base. This new name was approved by policyholders, marking a significant shift in the company's identity. In 1965, American Family copyrighted its now-famous, recognisable jingle. By 1975, the company had introduced Commercial Lines and become the fifth-largest mutual auto insurer.
In 1981, American Family's assets surpassed $1 billion, and by 1985, the company had established American Family Brokerage, Inc. to serve policyholders by covering hard-to-place risks. In 1992, policyholders' surplus exceeded $1 billion, and the construction of the national headquarters was completed. In 1995, American Family settled a redlining lawsuit, resulting in a $16 million payout to victims, marking the first use of the federal Fair Housing Act of 1968 to counter insurance discrimination.
In 2001, American Family Securities, LLC introduced variable products, and the company expanded its presence to 17 states across the U.S., including Utah and Idaho. In 2003, American Family donated $10 million towards the construction of the American Family Children's Hospital, which opened in 2007 with the company as the lead donor. In 2005, American Family, together with the Green Bay Packers, raised over $1 million for breast cancer prevention, treatment, and research.
In 2011, American Family launched the "Dreams Protected" campaign, encouraging people to reflect on their dreams. In 2012, the company acquired Nashville-based Permanent General Companies and other subsidiaries of PGC Holdings Corp. By 2013, American Family had completed the acquisition of Homesite Insurance, a Boston-based direct homeowners insurance provider. In 2016, American Family became the inaugural jersey sponsor of the MLS expansion team Atlanta United FC.
In 2017, AmFam launched the "DreamFearlessly" campaign, encouraging consumers to express their dreams and aspirations. That same year, American Family Insurance celebrated its 90th anniversary, ranking as the fourth-largest Wisconsin-based company and 315th on the Fortune 500 list with revenues of $8.8 billion. The company had over 10,000 employees and nearly 3,000 agents, including those from Homesite and The General.
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American Family Insurance's rates and quotes
American Family Insurance offers auto, home, and life insurance, with customers saving up to 25% when bundling home, auto, and life policies together. The company also provides accident forgiveness for the first at-fault accident and coverage for accidents involving uninsured motorists.
When it comes to rates and quotes, American Family Insurance considers various factors to determine the cost of car insurance. These factors include age, marital status, driving behaviour, and the presence of safety features on the vehicle. Customers can save money by maintaining a good driving record, bundling insurance policies, paying bills in full, and taking advantage of available discounts. The cost of repairs and healthcare can also impact premiums, and rates may increase if the vehicle has expensive parts or advanced technology.
To get a quote, customers can connect with an American Family Insurance agent or use the online tools provided by the company. The company recommends comparing quotes for different makes and models of vehicles to find the best option. Customers can also request quotes on various coverage limits and adjust their deductibles to control the cost of their auto insurance.
American Family Insurance also offers paperless billing and encourages customers to use the MyAmFam app to manage their policies, billing, and insurance claims. By going paperless, customers can access additional discounts and save on their auto and home insurance premiums.
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BBB complaints about American Family Insurance
One customer complained about a sudden and unexplained 140% rate increase after being a client for over 15 years. Another customer experienced a rate increase from $1,723.74 to $5,260.74 for a six-month period, which they described as "abusive." American Family Insurance responded to this complaint, but the customer did not accept the response.
There are also complaints about the company's failure to respond to disputes and locate businesses. Some customers have expressed dissatisfaction with the company's handling of insurance claims, including issues with adjusters and delayed payments. One customer shared their experience of being charged twice for their six-month premium and not receiving a refund despite multiple assurances. Another customer's car was hit by an American Family Insurance driver, and they were asked to pay a $250 deposit for diagnostics despite the accident not being their fault.
In addition, American Family Insurance has been associated with a "Reader's Digest Sweepstakes" scam, where consumers receive a counterfeit check and are instructed to wire money overseas. The company has 106 locations and is headquartered in Madison, Wisconsin. WalletHub's editors have given the company a rating of 3.8/5 based on sample insurance quotes, customer reviews, and ratings from organizations like J.D. Power and the Better Business Bureau (BBB).
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American Family Insurance's COVID-19 response
American Family Insurance, in partnership with gener8tor, offered a COVID-19 response program to aid small businesses and non-profits affected by the COVID-19 outbreak. This free four-week virtual program was designed to help businesses identify, understand, and secure resources to navigate the challenges posed by the pandemic. It included weekly lunchtime webinars on crucial topics such as employee and customer safety.
The program was announced in June 2020, with Shayna Hetzel, the social impact investment director for the American Family Insurance Institute for Corporate and Social Impact, acknowledging the disruptive impact of COVID-19, especially on small businesses. The program aimed to provide valuable tools and resources to help small business owners meet pandemic-related challenges and support their long-term growth.
The partnership between American Family Insurance and gener8tor built upon their previous COVID-19 emergency response initiatives launched in March 2020. The four-week virtual accelerator program commenced on June 22, 2020, and concluded on July 17, 2020, offering a lifeline to businesses struggling to withstand the pandemic's economic fallout.
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Frequently asked questions
American Family Insurance, also known as AmFam, is an American private mutual company that focuses on property, casualty, and auto insurance. It also offers commercial insurance, life, health, and homeowners coverage, as well as investment and retirement-planning products.
American Family Insurance was founded on October 3, 1927, as Farmers Mutual Insurance Company by insurance salesman Herman Wittwer in Madison, Wisconsin. Initially, the company's product was auto insurance targeted at farmers. Over the years, the company expanded its market and product line, introducing homeowners insurance and sickness and accident insurance. In 1963, the company changed its name to American Family Mutual Insurance Company to reflect its broader customer base.
American Family Insurance offers various discounts on home and auto insurance. For example, customers who bundle home, auto, and life policies can save up to 25% on their home and auto policies. The company also offers discounts for paying upfront, setting up autopay, and going paperless. Additionally, American Family Insurance provides discounts for young drivers, including good student discounts, away-at-school discounts, and volunteer work discounts.
The American Family Insurance ambassador program aims to inspire, protect and restore dreams. Notable ambassadors include Kathy Ireland, Derek Jeter, Christian Yelich, Drew and Jonathan Scott, Steve Stricker, and J.J. Watt.
As of April 2020, American Family Insurance provided an additional COVID-19 pandemic mitigation premium of 10% on car policies. The company has also been responding to customer complaints and disputes, with varying levels of satisfaction, as reported by the Better Business Bureau.
