American Family Insurance Review
- With 4.5/5 in 2024, American Family is a good insurance company.
- Read American Family reviews, complaints and prices before you buy.
American Family insurance: Ratings and reviews
As a well-known name in the industry and one of the most popular insurance companies today, American Family has been writing policies since 1927 and offers a variety of coverage for just about everyone's needs. They offer insurance policies for everything from cars and homes to livestock protection and travel insurance.
Continue reading for a comprehensive review of American Family's coverage options, discounts and more.
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Offers several lines of insurance and can bundle coverage
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Good overall ratings from The Zebra's customer satisfaction survey
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A variety of discounts for auto insurance
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The mobile app is user-friendly and efficient
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Limited add-ons and endorsements for auto policies
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Only available in 19 states
Is American Family a good insurance company?
The majority of The Zebra's review incorporates how well American Family scores in terms of customer service. In order to determine that we looked at the following third-party ratings.
Claims Satisfaction: Above average
- American Family earned Above average marks in J.D. Power's most recent auto claims satisfaction study[1]
Customer Satisfaction: Above average
- J.D. Power also rated American Family as Above average in overall auto customer satisfaction[2]
Complaint Index: Below average
- The National Association of Insurance Commissioners (NAIC) receives Below average customer complaints for American Family [3]
Financial Strength: Excellent/Good
- American Family received an Excellent/Good financial strength rating from A.M. Best for its ability to pay out claims[4]
The Zebra Customer Satisfaction Survey
In addition to third-party ratings, we also incorporated the results from our own consumer survey where we ranked which car insurance companies are the best based on feedback from real customers. In this survey, American Family scored 8.68/10 overall. Below you can see where American Family ranked for some of the individual categories.
8.7/10 — American Family's score for trustworthiness also placed it in 5th place in The Zebra's Customer Satisfaction Survey.
American Family vs. other top insurance companies
How much does American Family insurance cost?
Currently, the national average for a 6-month car insurance policy is $880, whereas American Family is about $784Â or roughly 11%Â cheaper than a typical policy, so definitely not one of the cheapest auto insurance options available.
The table below shows how American Family auto insurance compares against other top insurers.
| Company | Avg. Monthly Premium |
|---|---|
| Allstate | $201 |
| American Family | $131 |
| Farmers | $149 |
| GEICO | $129 |
| Nationwide | $123 |
| Progressive | $157 |
| State Farm | $131 |
| USAA | $114 |
Like other insurance companies, American Family auto insurance rates vary based on your age and generally will get cheaper the older you get.Â
The table below shows American Family's car insurance premiums for different age brackets.Â
| Age Group | Avg. Monthly Premium |
|---|---|
| Teens | $317 |
| 20s | $158 |
| 30s | $125 |
| 40s | $118 |
| 60s | $114 |
| 50s | $112 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Discounts offered
- Multi-policy:Â Bundling multiple policies (e.g. auto and homeowners insurance) is rewarded with a slight discount on your premium.
- Multi-car:Â You can save some money by adding more than one car to your policy. Plus, it saves you the hassle of handling multiple premiums.
- Early bird:Â If you get a quote from American Family at least seven days before your policy with another insurance company goes into effect, you may be eligible for a discount.Â
- Defensive driver:Â In certain states, drivers may qualify for additional discounts by taking a defensive driving class to invest in safety behind the wheel.
- Auto safety equipment:Â Depending on the state you reside in, you can expect a 10-30% discount if your car has safety equipment like factory-installed airbags.
American Family also offers savings for young drivers, families and more. Take a look at all the discount offerings here.
Search, compare and buy all on one site. Start saving today!
What types of coverage does American Family offer?
Part of the review process is taking a look at the coverage options that are available from American Family. The company provides all state-specific and basic coverage options you might need, including liability, collision, comprehensive, and uninsured/underinsured motorist coverages. They also have other optional coverages, add-ons, and various policies that may meet your other needs as a consumer.
- Bundling options:Â One of the simplest ways to save money while staying consistent (and efficient!) is to bundle your policies. If you've got a renters or homeowners policy, it's easy to bundle your policies with American Family.
- Roadside assistance:Â American Family offers emergency roadside service in the event you need help with a lock-out, refueling, tow service, and more.Â
- Gap coverage:Â This coverage is helpful if you owe more than your car is actually worth and you've been in an accident. Gap coverage helps cover the difference between what your car would be reimbursed for if it were totaled and your actual loan payoff, which could be thousands of dollars.
- Rental coverage reimbursement: If your vehicle is in the shop for repairs after being involved in a "covered" accident (i.e. not regular maintenance), American Family will reimburse your car rental costs. This covers not only a rental car, but light rail, taxis and other public transportation methods if that is your preferred option.
Read more about American Family's coverages here.
American Family DriveMyWay
For safe drivers looking to save some money, consider DriveMyWay from Amerian Family. This telematics program tracks your safe driving habits and rewards you with savings. You can get a 10% discount just for enrolling, and most drivers will see savings of between 5% and 20% at each policy renewal period.
The app looks at metrics such as speeding, phone usage, night driving, hard braking and the typical length of a trip. You can check your stats by looking at the DriveMyWay app (when you aren't driving!) to see how you measure up and work on improving in certain areas.
Q: How did you like American Family overall?
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Q: Have you ever filed a claim? If so, how would you rate the experience?
Yes, multiple claims when I was a teen. When I had my permit, I backed into a brick mailbox. Since my parents added me to their policy, American Family covered the mailbox and my parents did not have to pay out of pocket.
The second time, I was pulled for going 45 in the 35-mile-per-hour zone when I was late for curfew. I was driving my mom's car for the first time and accidentally shifted into reverse instead of park. When I took my foot off the brake and reached for my insurance card, the car slowly shifted back and collided with the police car. It caused over $3,000 in damages because he needed a new hood. And yet again, American Family saved the day.Â
American Family insurance review: Summary
American Family is a dependable insurance company suitable for most kinds of drivers. The company has high marks for claims and customer satisfaction, a low number of customer complaints and excellent financials that put it in a good position for paying out claims. The average cost is also pretty reasonable when compared to other car insurance companies. We highly recommend checking out American Family next time you shop around for quotes.
Methodology — how The Zebra reviews insurance companies
The team of insurance experts at The Zebra considers the company's standing in five main categories to come up with an overall rating. These metrics are weighted according to importance and are detailed below:
- Price (20%): Using the base profile detailed below, we compared the company's average rate with the national average. If it surpassed this average, we gave a lower rating; if it fell below, we awarded a higher rating.
- Coverage (20%): The highest-scoring companies offer a variety of coverage options, including bundling options, roadside assistance, telematics, beyond-basic coverage levels, and a variety of other coverage types.
- Customer service (30%): We averaged ratings from JD Power, the NAIC complaint index to come up with a rating for the company's customer service. In instances when a company is not rated, we may use alternative rating agencies such as the Better Business Bureau and Trust Pilot.
- Financial strength (10%): We use AM Best to determine a company's financial standing. In some cases when a company is not rated by AM Best, we may use an alternative measure such as Demotech.
- The Zebra's Customer Satisfaction Survey (20%): The Zebra conducts an annual survey measuring customer satisfaction for many of the top insurance companies with the goal of ranking both the best auto insurance companies and best home insurance companies. Read more below.
For our auto insurance review, we analyzed more than 83 million insurance rates spanning every U.S. ZIP code using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:
- $50,000 per person/$100,000 per incident for bodily injury liability
- $50,000 per incident for property damage liability
- $500 deductibles for collision and comprehensive coverage
For our home insurance review, rates are based on a sample user profile: a 45-year-old married homeowner living in a 2,500-square-foot single-story home built in 2011 with these coverage levels:
- $200,000 for the dwelling
- $20,000 for other structures
- $100,000 for personal property
- $100,000 for personal liability
- $1,000 deductible
These sample premiums are dynamic and automatically refresh whenever the newest data is made available.
To generate pricing for particular rating factors, we adjusted this profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level and others.
For The Zebra's Customer Satisfaction Survey, findings are based on an online quantitative survey of 4,134 current U.S. auto and home insurance customers, with Census-balanced sampling by age, gender and region. Categories with n=<20 responses are considered insufficient sample size and are not reported. This survey was developed by The Zebra and executed by independent research firm Maru/Blue in 2023.
American Family insurance: Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.