American Family Auto Insurance Review [Rates, Coverage, & More]

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Americ Family AutoStats
Founded1927
Premiums Written (2017)$8,363,930
Loss Ratio (2017)68.95%
Headquarters Address6000 American Parkway
Madison, WI 53783
Phone Number1-800-MYAMFAM (1-800-692-6326)
Websitewww.amfam.com
Best ForAffordability and Discounts

In 1919, the Green Bay Packers were founded by Curly Lambeau and George Whitney Calhoun. Originally funded by the Indian Packing Company, the nascent football club would join the American Professional Football Association, which was the precursor to today’s National Football League, in 1921. Over the next nine-plus decades, the Green Bay Packers would go on to establish itself as a model for Midwestern excellence, professionalism, and stability.

Founded by Herman Wittwer in 1927, American Family Insurance is another Midwestern company established in the state of Wisconsin that has built a reputation for stability and over 90 years of service in the community.

Ratings

Seeing how an insurance company rates according to the following independent agencies can help you see determine if it’s right for you.

– Financial Ratings

AgencyRating
AM BestA+ (Stable)
Better Business Bureau (Chicago, IL)A+
Moody'sAa3 (Excellent)
S&PAA- (Very Good)

Moody’s is a rating system that evaluates debt covering the following:

  • 130 countries
  • 11,000 corporate issuers
  • 21,000 public finance issuers
  • 76,000 structured finance obligations

A Moody’s score of “Aa3” means “high quality and very low credit risk.”

– NAIC Complaint Index

Company (NAIC #)Complaint Index
American Family Mut Ins Co SI (19275)0.89
American Family Ins Co (10386)13.74
American Family Home Ins Co (23450)0.00

– JD Power

According to the J.D. Power 2018 U.S. Insurance Shopping Study, American Family received a score of 860 in providing a satisfying purchase experience, ranking it third among auto insurers.

Why should you give any credence to the recommendation of J.D. Power?

J.D. Power has been capturing and analyzing the Voice of the Customer across more than a dozen industries globally for 50 years…Our peerless data, analytics, and consumer intelligence drives and defines brand strategies worldwide. With every client, we look to enable and enhance customer loyalty, retention, and expansion – while helping every customer buy smarter.

– Consumer Reports

Claims HandlingScore
Total89 out of 100
Ease of Reaching an AgentExcellent
Simplicity of the ProcessVery Good
Promptness of Response - very goodVery Good
Damage AmountVery good
Agent CourtesyExcellent
Timely PaymentVery Good
Freedom to Select Repair ShopVery Good
Being Kept Informed of Claim StatusExcellent

American Family History

American Family Insurance has been providing insurance services to its community for over 90 years. The narrative of the company is one a man who dared to dream of creating a new kind of insurance company that would best meet the needs of the people in his community, which was mostly farmers in the late 1920s.

From its early stages as Farmers Mutual Automobile Insurance Company to the ubiquitous nature of its catchy jingle in present-day, American Family Insurance has longevity and name recognition on its side. It was founded on and continues to operate on the belief that philanthropy combined with strong financial support, employee volunteerism, and collaboration with the citizens within a given community creates long-lasting accountability and sustainability in partnerships.

We will take a closer look to see what the company is doing today to try to maintain and expand the reach of its brand in the car insurance marketplace.

– Market Share

YearPremiums WrittenMarket Share %Loss Ratio
2015$7,242,6211.22%55.25%
2016$7,808,8731.27%58.63%
2017$8,363,9301.30%68.95%

As you can see in the table above, American Family has increased its market share ever so slightly past couple years. If it continues this slow, but steady gradual growth, American Family can expect to have 2 percent of the market share by 2040.

– Business Model

American Family is an agent-based company. While you are afforded the option to file claims and receive quotes online, your policy will be ultimately be purchased through a local agent.

The company places a strong emphasis on community involvement and establishing a community presence as a staple of its business model and philosophy. In addition to its long history of forming partnerships with and sponsoring grants for local nonprofit organizations, American Family Insurance recently announced a formidable partnership with the Milwaukee Brewers of Major League Baseball.

The Madison-based insurance company will take over the naming rights of the baseball stadium that is home to the Milwaukee Brewers beginning in 2021. The naming rights deal is for 15 years, but the full financial details of the agreement were not disclosed.

According to American Family Insurance CEO Jack Salzwedel, “This new partnership represents an important and powerful message to customers, our employees, and American Family agency owners: We are a financially strong, customer-driven and community-minded company.”

Salzwedel continues, “The Brewers epitomize our brand and values. They are an exciting and emerging franchise with exceptional talent and a sustainable vision to succeed. They care for their customers. And, they care for their community… This is a smart marketing investment for us. We do not have the mega-advertising budget of other large insurance companies. Our marketing philosophy is to pursue creative, authentic and inspiring opportunities that align with the principle of value. This is one of those opportunities.”

– Advertising

Perhaps the most effective form of advertising for American Family Insurance is the catchiness of its popular jingle.

– Investment in the Community

American Family Insurance has long instituted community involvement and giving back to its neighbors as part of its DNA. From its Community of Dreamers initiative, which supports and awards gifts to nonprofit organizations in the community, to the American Family Dreams Foundations that provides grants to nonprofit organizations through an application process, American Family has demonstrated that investing in the community in which it serves is a priority.

In 2003, American Family Insurance donated $10 million to create the American Family Children’s Hospital at the University of Wisconsin Hospital and Clinics.

– American Family’s Position for the Future

As of 2017, American Family was the 16th largest auto insurer in the country by market share and the third largest privately-owned mutual property casualty insurance company in the nation. Even though it is only active in 19 states, American Family is consistently ranked as a top-10 insurance company in the country.

The company recently restructured its corporate structure in an effort to increase its flexibility to pursue customer-driven initiatives. Salzwedel said, “This proposed new structure is about the future and our customers. It upholds the concept of mutual company ownership by our policyholders while adding flexibility to continue our evolution as a proactive partner with our customers.”

Salzwedel and the leadership at American Family are looking to position the company to be leaders in the industry when it comes to utilizing innovative technologies to improve customer experience.

“This change would position American Family to meet customer needs in an age of automated cars, smart homes, and other advanced technologies that are already improving lives and changing the insurance industry.”

These sort of forward-thinking moves and philosophy bode well for American Family Insurance’s viability as a leading insurance provider for years to come.

Coverage Available

American Family Insurance offers its customers an array of coverage options and discounts. Here is a look at the services provided:

Collision Coverage – This protects you against collision or rollover damages, no matter who caused the accident.

Comprehensive Coverage – This covers you for damage caused by accidents that don’t involve colliding with another vehicle or object (i.e. hail damage, fire, flooding, theft, vandalism, collisions with animals, etc.).

Liability Coverage – This covers you for damage you cause to another person or vehicle.

Medical Payments Coverage – This coverage helps pay for medical care for you and your passengers, regardless of who is at fault.

Rental Reimbursement Coverage – This helps pay for the cost of a rental when your car’s damages are covered by your comprehensive and collision coverage. This can include things like damage from a car accident, by severe weather, theft or vandalism.

Uninsured Motorist Coverage – This coverage protects you if you’re injured in an accident and the other driver is uninsured. It also protects you if you’re the victim of a hit-and-run or hit as a pedestrian.

Underinsured Motorist Coverage – This coverage helps pay when another driver causes more damage than his or her insurance covers.

Gap Insurance – This add-on helps pay the difference if you have a total loss.

Emergency Roadside Coverage – This coverage protects for common roadside services like a flat tire or a dead battery.

Accidental Death and Dismemberment – This coverage helps pay in the event of death or certain injuries caused when a vehicle has been struck — regardless of who is at fault for the accident.

Rideshare Insurance CoverageThis coverage protects you from the moment your ridesharing app is turned on until you’ve been matched with a passenger.

American Family Insurance is available in the following 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

American Family Discounts and Programs

American Family Insurance has many discounts and affordability options available to its consumers.

DiscountsAmerican Family
Adaptive Cruise ControlNo
Adaptive HeadlightsNo
Anti-lock BrakesYes
Anti-TheftYes
Claim FreeYes
Continuous CoverageYes
Daytime Running LightsYes
Defensive DriverYes
Distant StudentYes
Driver's EdYes
Driving Device/AppYes
Early SigningYes
Electronic Stability ControlYes
Emergency DeploymentNo
Engaged CoupleNo
Family LegacyYes
Family PlanYes
Farm VehicleNo
Fast 5No
Federal EmployeeNo
Forward Collision WarningNo
Full PaymentYes
Further EducationNo
Garaging/StoringNo
Good CreditNo
Good StudentYes
Green VehicleNo
HomeownerNo
Lane Departure WarningNo
Life InsuranceNo
Low MileageYes
LoyaltyYes
MarriedNo
Membership/GroupNo
MilitaryNo
Military GaragingNo
Multiple DriversNo
Multiple PoliciesYes
Multiple VehiclesYes
New AddressNo
New Customer/New PlanNo
New GraduateNo
Newer VehicleNo
Newly LicensedNo
NewlywedsNo
Non-Smoker/Non-DrinkerNo
Occasional OperatorNo
OccupationNo
On Time PaymentsNo
Online ShopperNo
Paperless DocumentsYes
Paperless/Auto BillingYes
Passive RestraintYes
Recent RetireesNo
RenterNo
Roadside AssistanceNo
Safe DriverYes
Seat Belt UseNo
Senior DriverNo
Stable ResidenceNo
Students & AlumniYes
Switching ProviderYes
Utility VehicleNo
Vehicle RecoveryYes
VIN EtchingNo
VolunteerYes
Young DriverNo

– Bundle

Like many other property and casualty insurance companies, American Family Insurance offers customers discounts for bundling their home and auto insurance together. Customers can also receive multi-car discounts for insuring multiple vehicles under one policy.

– Steer Into Savings

Customers who sign on with American Family after leaving one of its competitors can receive a reduced premium quote.

– Low Mileage

American Family customers who drive less than 7,500 miles per year can qualify for additional savings.

– Early Bird

If you have an active policy with another carrier and receive a quote from us at least seven days before it goes into effect, you could get a discount.

– Loyalty

Customers who have a long track record with American Family earn discounted rates the longer they remain and renew coverage with the company.

– Smart Payments

Customers can earn rewards and discounts for choosing ease of payment options such as AutoPay, Full Pay, and Paperless Statements.

– KnowYourDrive

TrueMotion, a technology company that has teamed up with American Family to improve driver safety and reduce distracted driving using an unlikely tool—a smartphone app. KnowYourDrive is a usage-based insurance (UBI) mobile app powered by TrueMotion that tracks consumer driving habits and offers discounts to those utilizing best practices and behaviors.

KnowYourDrive uses cutting edge technology that analyzes a bunch of aspects of your driving and behavior to identify whether you’re a driver in a car, a passenger in a car, or traveling via some other mode of transit. Occasionally, the app may misclassify a trip. When this happens, just tap on the trip within five days and edit the mode by tapping the transit mode icon in the top right corner. This information also will help the app to better classify future trips.

How the app works is that you’re given a score based on how safely you drive. Your score will update five to 10 minutes after a trip, with a score ranging from 0 to 100. The program score is calculated from each individual driver’s score on your policy. The comprehensive program score is then used to determine your KnowYourDrive program discount. Please note, only the individual’s personalized driving score is displayed on the app.

– Good Student

Full-time students who maintain a B average or are in the top 20 percent of their class may qualify for the Good Student Discount.

– Teen Safe Driver

Policyholders with a teenage driver may help qualify for a 10 percent discount when their child drives 3,000 miles or uses the app for a year using the Teen Safe Driver Program.

– Away at School

If your child is a student who is under the age of 25 and more than 100 miles away at college, and they haven’t taken a car with them to school, you save. Or, if you’re the student, over 100 miles away from your parked car back at home, you save as well.

– Young Volunteer

In keeping with its commitment to community service, American Family Insurance offers savings on car insurance for customers under the age of 25 and who have completed 40 hours of volunteer work per year for a non-profit.

– Generational

It pays to keep it in the family with American Family Insurance. If your mother or father is an American Family customer, you may be eligible for lower rates on your auto insurance.

– Good Driving Discount

Any driver that has no accidents, violations, or claims within the last 5 years may be eligible for a reduced premium in certain states.

– Defensive Driver Discount

Drivers over the age of 55 can earn between 5-10 percent savings in certain states for completing an approved defensive driving course.

– Auto Safety Discount

If your vehicle is equipped with safety enhancements such as factory-installed airbags or an anti-theft alarm system, you can earn up to 30 percent savings on your premiums in some states.

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Availability of Coverage

Despite its relatively positive ratings and reviews, American Family Insurance is only available in just over one-third of the states in the country. To be exact, American Family only operates in 19 total states. These are the following states in which American Family Insurance has an active presence for your auto insurance needs: Arizona, Colorado, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, Wisconsin.

StateOverall Average Annual
Premium by State
American Family
Average Annual Premium
Compared to
Overall State Average
Percentage Difference
Arizona$3,421.51$4,153.07$731.5517.61%
Colorado$3,876.39$3,733.02-$143.37-3.84%
Georgia$4,043.28$4,848.72$805.4416.61%
Iowa$2,981.28$3,021.81$40.531.34%
Idaho$2,979.09$3,728.79$749.7020.11%
Illinois$3,305.48$3,815.31$509.8213.36%
Indiana$3,414.97$3,679.68$264.717.19%
Kansas$3,279.62$2,146.40-$1,133.22-52.80%
Minnesota$4,403.25$3,521.29-$881.97-25.05%
Missouri$3,328.93$3,286.90-$42.03-1.28%
North Dakota$4,165.84$3,812.40-$353.44-9.27%
Nebraska$3,283.68$2,215.13-$1,068.55-48.24%
Nevada$4,861.70$5,441.18$579.4810.65%
Ohio$2,709.71$1,515.17-$1,194.54-78.84%
Oregon$3,467.77$3,527.28$59.511.69%
South Dakota$3,982.27$4,047.47$65.201.61%
Utah$3,611.89$3,698.77$86.882.35%
Washington$3,059.32$3,713.02$653.7017.61%
Wisconsin$3,606.06$1,513.27-$2,092.80-138.30%
Median$3,660.89$3,698.77$37.881.02%

Comparison of Annual Average Rates vs Competitors

– Average Annual Premium by Demographic

CompanySingle 17-year old femaleSingle 17-year old maleSingle 25-year old femaleSingle 25-year old maleMarried 35-year old femaleMarried 35-year old maleMarried 60-year old femaleMarried 60-year old male
Allstate$9,282.19$10,642.53$3,424.87$3,570.93$3,156.09$3,123.01$2,913.37$2,990.64
American Family$5,996.50 $8,130.50$2,288.65$2,694.72 $2,202.70$2,224.31$1,992.92 $2,014.38
Farmers$8,521.97$9,144.04$2,946.80$3,041.44$2,556.98$2,557.75$2,336.80$2,448.39
GEICO$5,653.55$6,278.96$2,378.89$2,262.87$2,302.89$2,312.38$2,247.06$2,283.45
Liberty Mutual$11,621.01$13,718.69$3,959.67$4,503.13$3,802.77$3,856.84$3,445.00$3,680.53
Nationwide$5,756.37$7,175.31$2,686.48$2,889.04$2,360.49$2,387.43$2,130.26$2,214.62
Progressive$8,689.95$9,625.49$2,697.73$2,758.66$2,296.90$2,175.27$1,991.49$2,048.63
State Farm$5,953.88$7,324.34$2,335.96$2,554.56$2,081.72$2,081.72$1,873.89$1,873.89
Travelers$9,307.32$12,850.91$2,325.25$2,491.21$2,178.66$2,199.51$2,051.98$2,074.41
USAA$4,807.54$5,385.61$1,988.52$2,126.14$1,551.43$1,540.32$1,449.85$1,448.98

– Average Annual Premium by Driving Record

CompanyClean recordWith 1 accidentWith 1 DUIWith 1 speeding violation
Allstate$3,819.90$4,987.68$6,260.73$4,483.51
American Family$2,693.61$3,722.75$4,330.24$3,025.74
Farmers$3,460.60$4,518.73$4,718.75$4,079.01
GEICO$2,145.96$3,192.77$4,875.87$2,645.43
Liberty Mutual$4,774.30$6,204.78$7,613.48$5,701.26
Nationwide$2,746.18$3,396.95$4,543.20$3,113.68
Progressive$3,393.09$4,777.04$3,969.65$4,002.28
State Farm$2,821.18$3,396.01$3,636.80$3,186.01
Travelers$3,447.69$4,289.74$5,741.40$4,260.80
USAA$1,933.68$2,516.24$3,506.03$2,193.25

– Average Annual Premium by Coverage Level

CompanyHighLowMedium
Allstate$5,139.02$4,628.03$4,896.81
American Family$3,416.40$3,368.49$3,544.37
Farmers$4,494.13$3,922.47$4,166.22
GEICO$3,429.14$3,001.91$3,213.97
Liberty Mutual$6,356.04$5,805.75$6,058.57
Nationwide$3,505.37$3,394.83$3,449.80
Progressive$4,350.96$3,737.13$4,018.46
State Farm$3,454.80$3,055.40$3,269.80
Travelers$4,619.07$4,223.63$4,462.02
USAA$2,667.92$2,404.11$2,539.87

– Average Annual Premium by Credit History

CompanyFairGoodPoor
Allstate$4,581.16$3,859.66$6,490.65
American Family$3,169.53$2,691.74$4,467.98
Farmers$3,899.41$3,677.12$4,864.14
GEICO$2,986.79$2,434.82$4,259.50
Liberty Mutual$5,604.24$4,388.18$8,802.22
Nationwide$3,254.83$2,925.94$4,083.29
Progressive$3,956.31$3,628.85$4,737.64
State Farm$2,853.00$2,174.26$4,951.20
Travelers$4,344.10$4,058.97$5,160.22
USAA$2,219.83$1,821.20$3,690.73

– Average Annual Premium by Commute

Company10-mile commute/6,000 annual mileage25-mile commute/12,000 annual mileage
Allstate$4,841.71$4,934.20
American Family$3,401.30$3,484.88
Farmers$4,179.32$4,209.22
GEICO$3,162.64$3,267.37
Liberty Mutual$5,995.27$6,151.63
Nationwide$3,437.33$3,462.67
Progressive$4,030.02$4,041.01
State Farm$3,175.98$3,344.01
Travelers$4,399.85$4,469.96
USAA$2,482.69$2,591.91

– Average Annual Premium by Make and Model

Company2015 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V62015 Honda Civic Sedan: LX with 2.0L 4cyl and CVT2015 Toyota RAV4: XLE2018 Ford F-150: Lariat SuperCab with 2WD 6.5 foot bed and 2.7L V62018 Honda Civic Sedan: LX with 2.0L 4cyl and CVT
Allstate$4,429.74$4,753.69$4,324.99$5,491.12$5,380.28
American Family$3,447.30$3,178.82 $3,326.18$3,487.91 $3,721.32
Farmers$4,093.50$4,405.21$3,728.22$4,390.19$4,779.51
GEICO$3,092.11$3,092.58$3,090.89$3,338.40$3,338.87
Liberty Mutual$5,830.16$5,869.32$5,825.33$5,988.85$6,682.63
Nationwide$3,571.01$3,547.84$3,517.03$3,373.64$3,361.93
Progressive$3,914.05$4,429.56$3,647.22$3,962.58$4,528.90
State Farm$3,204.23$3,024.24$3,226.02$3,497.17$3,189.99
Travelers$4,023.47$4,420.37$4,383.78$4,412.42$4,661.22
USAA$2,551.56$2,409.67$2,454.58$2,855.69$2,422.66

How to File a Claim

American Family Insurance offers customers multiple avenues to file a claim or to get answers about their specific policies.

By phone: Call 1-800-692-6326 (MYAMFAM) to contact an agent about your policy or claim.

By mail:

American Family Insurance
6000 American Parkway
Madison, WI 53783

By chat: Visit the chat page to talk with an agent today at http://www.amfam.com/customer/chat/default.asp.

By online claim form: American Family Insurance Online Claim

When submitting a claim, make sure to have the following information available:

  • Your name, phone number, and address
  • Your policy number
  • Date and time of the accident
  • Location of the accident
  • Description of how the accident occurred
  • Description of other vehicles involved
  • Description of injuries and damages
  • Contact and insurance information of others involved

Once the claim process has begun, you can check the status of the claim online or by calling 1-800-692-6326.

Pros and Cons

ProsCons
AffordabilityOnly available in 19 States
Excellent consumer ratingsHigh Complaint Ratio in some states
Top ranked Teen Safe Driver ProgramLimited mobile app functionality
Multiple consumer discounts availableSharp increase in Loss Ratio over past three years

FAQ’s

– How do I get an auto quote?

American Family offers three equally convenient ways to receive a personalized auto quote:

– What is GAP Insurance?

Gap insurance, or Guaranteed Asset Protection, is optional coverage for newer cars that can be added to your collision insurance policy. It can pay the difference between the balance of a lease or loan due on your new vehicle and what your auto policy will pay if the car is considered a covered total loss.

– What is an SR-22?

An SR-22 is a document or electronic certification issued by an auto insurance company that verifies to the state that you have an auto insurance policy with the state minimum liability limits. If you are required to maintain this filing, you will be notified by the state. An SR-22 is required for high-risk auto insurance customers by the state Department of Motor Vehicles or Public Safety after you have been involved in an accident with no auto insurance, or if an accident is due to excessive driving violations on your part. The length of time required to carry the filing varies by state, but it is generally one to five years.

State contact information for American Family’s 19 operating states:

  1. Arizona Department of Transportation 1-800-251-5866
  2. Colorado Division of Motor Vehicles (303) 205-5613
  3. Georgia Department of Motor Vehicle Safety (678) 413-8400
  4. Idaho Transportation Department (208) 334-8000
  5. Illinois Department of Driver Services (217) 782-3720
  6. Indiana Bureau of Motor Vehicles (317) 232-2840
  7. Iowa Department of Transportation (515) 239-1101
  8. Kansas Driver Control Bureau (785) 296-3671
  9. Minnesota Driver & Vehicle Services (651) 296-6911
  10. Missouri Department of Revenue (573) 526-2407
  11. Nebraska Department of Motor Vehicles (402) 471-2281
  12. Nevada Department of Motor Vehicles (800) 344-0483
  13. North Dakota Motor Vehicle Department (701) 282-5070
  14. Ohio Bureau of Motor Vehicles (614) 752-7700
  15. Oregon Department of Motor Vehicles (503) 945-5001
  16. South Dakota Motor Vehicles Division (605) 773-3541
  17. Utah Department of Motor Vehicles 1-800-DMV-UTAH (800-368-8824)
  18. Washington Department of Licensing (360) 902-3900
  19. Wisconsin Department of Transportation (608) 266-2353

– What happens if I’m involved in an accident in another state?

The company will assign your claim to an American Family claims representative familiar with the claim handling laws and procedures in that state. They will also arrange for the repair estimate/review process and help you find repair options in the state where the accident occurred or in your home state – whichever is most convenient for you.

– Does my deductible still apply even if I’m not at fault?

Yes, your deductible applies even if you’re not at fault. Once your claim is paid, if the at-fault person is known, American Family will seek to recover the payments – including your deductible – from the responsible person or their insurance company.

The overall commitment of American Family Insurance to give back to its communities, its overall positive ratings among consumers, and its support for the dreams of young people and young families through its #DreamFearlessly campaign make American Family a favorable option in the auto insurance market.

Ready to start saving on your car insurance? Just enter your zip code below to get the best rates in your area.

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