American Family Auto Insurance Review for 2024

What You Should Know About American Family Insurance

While it sells solid policies, American Family Insurance reviews are mixed.

A company’s financial stability is one of the most important aspects to consider when shopping for car insurance. A.M. Best rates companies on their financial strength and gives American Family an excellent rating of A.

As for prices, American Family’s rates are usually a little lower than the national average, but companies like GEICO and State Farm are often cheaper.

There are a few things that set American Family apart from its competitors. While American Family’s rates are about average, young drivers, people with low credit scores, and drivers with a DUI might find lower rates.

Additionally, American Family offers features that can be hard to find elsewhere, like its ForeverCar program.

Does American Family have good customer service?

Unfortunately, American Family Insurance customer service reviews aren’t always positive. Most customers report difficulty getting in contact with representatives. Reports also say that many customers aren’t satisfied with their service.

Another good way to look at how well a company does with customer service is with third-party ratings. For example, the National Association of Insurance Commissioners rates companies on the number of complaints they receive compared to their size. 1.0 is the national average, with higher scores meaning the company receives more complaints.

American Family has a 1.18, meaning it gets slightly more complaints than the average company.

Another place to look is at the Better Business Bureau (BBB). The BBB rates companies on their ability to resolve customer complaints, and American Family has an A.

Finally, J.D. Power reports high satisfaction levels with the shopping experience of American Family, but customer service experiences vary by region.

American Family Insurance Coverage Options

As a mid-sized insurance company, you can expect American Family to sell the basic coverage types you need for a standard policy. The two most common types are minimum insurance and full coverage.

Minimum auto insurance refers to the least amount of insurance you can buy to drive legally. Each of the 19 states American Family operates in requires minimum insurance, though some states demand more coverage than others.

No state requires full coverage, but you’ll probably need it if you have a car loan or lease. Full coverage is also good for people who own a newer or more expensive vehicle and can’t afford to replace the car outright.

To meet all your coverage needs, American Family offers the following insurance:

• Bodily injury liability. Bodily injury liability pays for damages resulting from injuries to others when you’re at fault in an accident. All 19 American Family states require this and property damage liability insurance.
• Property damage liability. Property damage liability pays for damage you cause to cars, buildings, and other property. It doesn’t cover your vehicle.
• Collision. You need collision insurance to help with your car repairs after an accident. Collision insurance covers you no matter who caused the accident or if you run into a stationary object like a light post.
• Comprehensive. While collision insurance repairs your car after an accident, you’ll need comprehensive coverage to cover your vehicle from weather, fire, theft, and vandalism.
• Uninsured/underinsured motorist. If a driver no insurance or insufficient insurance hits you, uninsured motorist insurance picks up the repair bill. It also covers you if you’re the victim of a hit-and-run.
• Personal injury protection/medical payments. Medical bills after an accident can get expensive, but personal injury protection or medical payments insurance helps pay for you and your passengers.

A full coverage policy consists of the coverages listed above. People looking for their state’s minimum insurance need at least liability insurance but may also need uninsured motorist or personal injury protection. If you don’t know your state’s laws, an American Family representative can help.

Does American Family sell car insurance add-ons?

While the basic coverage options can give your car relatively complete protection, most companies offer add-ons to increase your policy’s value. American Family offers several good choices, including:

• GAP coverage. If you total a new car and its value is less than you owe on your loan, you’ll end up paying for a vehicle you no longer own. GAP coverage protects you from an underwater loan by paying the difference.
• Rental car reimbursement. If your car gets stuck in the repair shop after a covered incident, American Family pays for your rental car.
• Roadside assistance. American Family’s roadside assistance comes to your rescue if your car isn’t working. Roadside assistance service includes towing, battery jumps, and fuel delivery.
• Accidental death and dismemberment. This coverage pays for death expenses or medical bills if you get killed or seriously injured in an accident, regardless of fault.
• Accident forgiveness. AmFam will ignore your first accident by not increasing your rates or revoking good driver discounts. You’ll still need to file a claim and pay your deductible.
• Diminishing deductible. Every year you go without filing a claim, American Family will credit your account $100 toward your deductible.
• Original equipment manufacturer (OEM) coverage. If your car is under seven years old, you can purchase OEM insurance or Custom Parts and Equipment (CPE) coverage to ensure repair shops don’t use aftermarket parts to fix your vehicle.

American Family offers plenty of options to customize your policy, but you should only buy what you need. While they add valuable coverage to your policy, add-ons can also significantly increase your rates.

Do American Family policies come with extra features?

American Family offers a few extra features with car insurance policies, some of which are hard to find elsewhere. When you buy an American Family car insurance policy, you can choose the following extra features:

• Dreams Restored. If you need a mechanic after an accident, American Family has a list of trustworthy shops in your area. As a bonus, any work done by a Dreams Repaired mechanic is guaranteed by American Family.
• Safelite windshield and glass repair. American Family partners with Safelite to make windshield repairs easy and can send a glass technician to your home. If you have comprehensive insurance, American Family usually waives your deductible if your windshield can get repaired.
• ForeverCar. This monthly subscription service acts like car repair insurance and helps pay for unexpected repairs and some maintenance costs.

American Family rates aren’t usually the cheapest, but the extra benefits make AmFam plans a little more valuable. A representative can give you more information if you’re interested in any of these extra features.

What other types of car insurance does American Family sell?

Aside from car insurance, American Family offers several other policies, including:

• Home/renters/condo/manufactured home
• Personal property
• Motorcycle
• RV and camper
• ATV and snowmobile
• Farm and ranch
• Livestock and cattle
• Tractor and equipment
• Boat
• Business
• Life
• Health
• Pet
• Umbrella
• Travel

As you can see, American Family offers various products. Like its car policies, American Family insurance rates for most products are average.

American Family writes most of its own insurance, but AmFam partners write its health, pet, and travel plans.

American Family Insurance Rates Breakdown

Although insurance companies look at a variety of factors, an excellent place to start your search for the cheapest coverage is with average rates. American Family’s rates are usually slightly cheaper than the national average, but you can find other more affordable options.

You can compare American Family’s average rates below with other major insurance companies.

As you can see, American Family’s rates are fairly average compared to other companies. However, you might find cheaper rates with American Family, depending on your situation.

American Family Insurance Rates by Location

Insurance companies look at many factors when crafting your rates; one of the most impactful is your location. Things like your state’s minimum insurance laws, vehicle crime rates, extreme weather risk, and overall traffic density play a role in your coverage rates.

American Family sells car insurance in 19 states, all requiring coverage before you can legally drive or register a vehicle. Below, you can get an idea of what the average driver in each state pays for American Family insurance.

Although American Family auto insurance rates are usually lower than the national average, some states pay much more than others. Some states — especially no-fault states like Florida and Michigan — have higher rates because they require more insurance.

Other states pay more due to other factors. For example, Californian drivers tend to pay higher prices because of heavy traffic and increased car thefts, while Louisiana has higher rates due to uninsured drivers and coastal weather.

American Family Insurance Rates by Age and Gender

In addition to location, age and gender are incredibly important factors in setting rates. Insurance companies carefully track who files claims and have detailed numbers for each age group.

Teen drivers pay some of the highest rates for car insurance because they’re more likely to drive recklessly and lack experience on the road. In addition, new drivers don’t have a driving record for companies to look at, so they have no idea how risky a driver might be.

Men also pay higher rates for similar reasons. Men statistically get into more accidents, engage in road rage, and drive under the influence than women.

The good news is that your rates won’t stay high forever. Teen drivers who keep their driving record clean see their rates lower by age 25, while the gap between genders lessens with age.

One group that American Family car insurance excels with is young drivers. AmFam insurance rates tend to be much lower than the national average. It doesn’t take the top spot for the cheapest teenage rates, but American Family is still affordable for new drivers.

American Family Insurance Rates for Low Credit Scores

One factor affecting car insurance rates that often catches drivers off-guard is credit scores. Every state American Family sells car insurance allows companies to use credit scores when crafting rates, so drivers with low scores will pay more.

Car insurance companies charge more for low credit scores for two reasons. First, people with lower scores are statistically more likely to file a claim. Additionally, companies assume that having a higher score means you’re more likely to pay your bills on time.

While drivers with low credit scores typically pay about $100 more per month than people with higher scores, higher prices aren’t permanent. Your car insurance rates will lower as you improve your credit score.

American Family car insurance rates are lower than the national average for people with low credit scores. Although GEICO and Nationwide usually have lower rates, you might find that insurance from American Family is your cheapest option, depending on other factors.

American Family Insurance Rates After Traffic Incidents

One of the easiest ways for a car insurance company to determine your risk level is by looking at your driving history. Even a small ticket can significantly increase your insurance rates because people with one infraction are more likely to add another in the future.

Depending on the infraction, American Family tends to offer lower-than-average rates. For example, an American Family driver with a single speeding ticket pays about $134 a month, while the national average is $159.

Once again, American Family’s rates fall in the middle, with companies like GEICO, State Farm, and Travelers offering better prices.

If you get a ticket or cause an accident, it’s important that you avoid future traffic violations. Your rates should return to normal if you can keep your record clean for about three years.

American Family Insurance Rates After a DUI

Of all the factors, DUIs have some of the biggest impacts on your insurance rates. Aside from legal fees, license suspension, and jail time, insurance rate increases are a lasting consequence of a DUI.

Finding affordable insurance after a DUI is usually a challenge. All companies will raise your rates, but some may refuse to work with you after even a single DUI. Drivers with a DUI often need to find high-risk insurance, especially if they have multiple charges on their record. Here’s a list of auto insurance companies accepting DUIs.

If your insurer doesn’t drop you, expect your rates to at least double, if not triple. However, some companies are more forgiving than others regarding a DUI, so comparing rates is vital. You might pay thousands of dollars extra if you don’t seek new insurance.

American Family is relatively forgiving of your first DUI charge, offering some of the cheapest rates for DUI drivers. In some states, American Family is the most affordable option for insurance after a DUI. You’ll also probably need SR-22 insurance, which American Family can help file.

DUIs eventually fall off your record, though the exact amount of time depends on your state’s laws. Once your record is clear, your rates will start to return to normal. However, this process takes longer for DUIs — the typical DUI affects your rates for seven years.

American Family vs. the Competition

You’ll need to compare rates with your unique factors in mind, but looking at the average rates by company is a good way to see where you should look for coverage.

American Family is fairly average compared to other companies. However, the cheapest rates aren’t necessarily the best — compare everything a company offers before making a final decision.

American Family Insurance Discounts Available

American Family’s rates might be average, but its selection of discounts isn’t — AmFam has one of the longest lists of available savings. When buying a policy from American Family, you might be eligible for the following car insurance discounts:

• Early bird. Earn this discount by signing up for an American Family policy at least seven days before it goes into effect.
• Multi-policy. American Family offers various insurance products to protect everything important in your life. You’ll save on your insurance when you buy more than one policy.
• Multi-vehicle. If your household has more than one vehicle, American Family will reduce your rates if you add them to the same policy.
• Loyalty. The longer you remain an American Family customer, the more you’ll save.
• Steer into savings. American Family rewards new customers if they have a car insurance policy with a different company.
• Defensive driver. Drivers 55 or older can earn a discount for passing an approved defensive driving course.
• Good driver. American Family rewards drivers who keep their records free of accidents, traffic tickets, or other claims.
• Safety equipment. You’ll earn reduced rates if your vehicle has safety equipment like air bags or anti-lock brakes.
• Low mileage. Drivers who put less than 7,500 miles annually on their car save on their policy.
• Good student. Full-time students under 25 can earn lower rates by maintaining a 3.0 GPA.
• Away at school. Students who live more than 100 miles from home for school can see significant savings if they leave their car behind.
• Generational. American Family discounts young drivers if a parent or guardian is a current customer.
• Young volunteer. Volunteers under 25 who perform 40 hours of volunteer work per year have their kindness returned with a discount.
• Paperless. Earn a small discount by electing to receive all documents and notifications digitally.
• Autopay. You’ll pay a little less for your car insurance if you allow American Family to withdraw directly from your bank account.
• Pay in full. Most people pay their car insurance monthly, but you can earn a small discount by paying for your entire policy at once.

American Family has the second-longest list of discounts for major car insurance companies, losing the top spot to Farmers. With this many discounts, most drivers find at least a few they can receive. Most discounts apply to your insurance when you get a policy, but you can always contact a representative to ensure you’re getting every possible discount.

KnowYourDrive by American Family

Most major insurance companies offer a usage-based insurance program for drivers looking to save even more on their policies. Usage-based insurance tracks driving behaviors and gives safe drivers a discount. These programs are a good choice for low-mileage drivers, remote workers, and people who consistently drive well.

American Family’s usage-based insurance program is KnowYourDrive. With KnowYourDrive, you can get up to 20% off your policy if you practice safe habits, with an automatic 10% savings just for signing up.

KnowYourDrive works through the American Family app and doesn’t require a physical device in your car. The app tracks the following behaviors while you drive:

• Mileage
• Harsh braking
• Hard acceleration
• Speeding
• When you drive
• Phone distractions

While the savings are worth looking into KnowYourDrive, there are a few things to consider. First, the app always runs in your phone’s background, affecting your battery life. If you plan on taking a long road trip, plug in your phone.

You should also keep an eye on your data plan — KnowYourDrive uses data to track your driving.

Teen Safe Driver by American Family

American Family knows teen car insurance rates are expensive, so it offers the Teen Safe Driver program. Like the KnowYourDrive app, the Teen Safe Driver program tracks driving behavior through a teen’s phone.

Teen Safe Driver aims to help young drivers improve their skills by making suggestions about driving habits. It also allows a parent or guardian to track how their teen drives on their own phone.

Once a teen logs 3,000 miles or completes a year, they’ll earn a 10% discount on their insurance. Drivers up to 21 are eligible for this program.