American Family auto insurance review for 2021
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American Family was founded nearly 100 years ago as Farmers Mutual Automobile Insurance Company. Established in 1927 in Madison, Wisconsin to insure farmers, the mutual company today sells car insurance to drivers of all vocations in 17 states. American Family reviews from customers remark on the insurer’s affordable insurance policies. The provider is financially stable, provides affordable coverage and gets good reviews from policyholders, making it the one of the best insurance companies for drivers on a budget.
American Family Quickpoints
- Average full coverage premium: $1,218
- Region offered: Central, West
- Market share: 2.28%
- AM Best rating/financial strength profile: A (Excellent)
- J.D. Power claims satisfaction rating: 3/5
- Specialty coverages: Classic cars, rideshare
American Family customer satisfaction and complaints
We turned to J.D. Power for an objective ranking of how the insurance company compares to other insurers, according to what customers have to say. American Family’s overall customer satisfaction ranks the insurance company in the top three for mid-size insurers with a score of 878 out of 1,000.
American Family insurance reviews from customers are better-than-average overall, although American Family ratings by region come in lower than its overall customer satisfaction rank. The carrier earned 823 for the Central region, 820 in the North Central region, 825 in the Northwest and 826 in the Southwest.
American Family auto insurance reviews when it comes to claims may be the weakest segment for the insurer due to the field of competition. The company placed in 13th among providers and received a 3/5 Power Circle rating.
How factors affect American Family’s auto insurance rates
Car insurance rates may be the most important factor for many drivers. American Family’s full coverage — which includes liability, comprehensive and collision insurance — costs $1,218 per year, on average. Minimum liability costs just $542 annually. However, other factors such as your driving record can affect your car insurance premiums, as indicated in the chart below.
|Average rates||Accident||Speeding ticket||Poor credit|
How driving record affects American Family car insurance rates
One of the primary factors raising the cost of car insurance is a history of accidents. American Family does not penalize you for accidents in which you’re not at-fault, but if you are responsible for a crash, your car insurance premiums will likely go up. With one accident as a factor, American Family rates were more than $500 higher for an annual, full coverage policy.
Although accidents typically stay on your record and are reviewable for a time period of three to five years, American Family will forgive an accident if you haven’t had any traffic violations or crashes in the 12 months prior to a policy start date, which can provide premium savings.
Although many drivers might not think a speeding ticket is a big deal, to insurance companies, it’s a sign of a riskier driver and potential for costly claims. The good news is that American Family’s increased rate for policyholders caught speeding is significantly less than other carriers. American Family full coverage rates increase roughly $170 per year (on average) with a speeding ticket on record.
Most car insurance companies take speeding tickets into account for three years. If your insurance premiums go up after a speeding violation, your premiums may remain elevated for that period of time.
How poor credit affects rates
Poor credit can be a reflection to insurers of a higher-risk driver. In all states except California, Hawaii and Massachusetts, car insurance companies can check your credit score to determine how much your premiums should cost.
For those with poor credit, American Family full coverage rates were nearly $1,000 higher a year. However, working on improving your credit by paying off your debts and clearing any errors on your credit report could improve your score and save you money on your car insurance at renewal time.
American Family auto insurance discounts
You can also save money on your car insurance simply by taking advantage of discounts. Most carriers have discounts based on your job, whether you’re in school and where you work. In addition, American Family offers some unique ways to save on already-competitive car insurance rates.
Unique discounts offered by American Family
You can reduce your car insurance costs by taking advantage of your parents’ loyalty to American Family. If they’re insured by the provider, and you’re between the ages of 18 and 30, you may qualify for the reduction.
Young volunteer discount
Young drivers can save money while doing good for others. The Young Volunteer discount was designed for drivers under the age of 25 who can show they’ve completed 40 hours of volunteer work per year.
Steer into savings
American Family helps you get off the fence about switching car insurance providers. You’ll receive a discount just for switching to American Family.
American Family auto insurance premium length
With American Family, policies are in force for a 12 month period. Unless you’re sure you’ll be relocating in the next six months or changing vehicles, a 12-month policy is generally considered better than a six-month term because you are less subject to rate changes.
American Family vs. other insurance companies
|Company||J.D. Power Score (Overall)||J.D. Power Score (claims satisfaction)||AM Best||Average rate full coverage|
|American Family||878||3/5||A (Excellent)||$1,218|
|The Hartford||895||4/5||A- (Excellent)||$1,572|
American Family mobile app and digital experience
American Family’s digital experience is useful for basic functions. The mobile app can perform the following policy management operations:
- Track claim statuses (to file a claim, you’ll need to call or file online)
- Get roadside assistance
- View your auto insurance documents
- Schedule your payments
Alternative insurance products offered by American Family
In addition to auto insurance, American Family offers a host of insurance products that can be bundled for additional savings.
American Family profile
|Product||Discounts||J.D. Power rating|
In the spotlight
- One of the most affordable car insurance companies.
- American Family auto insurance reviews from customers are higher than average overall.
- Youth-related discounts such as Generational and Youth Volunteer discounts are available.
- The American Family Insurance Dreams Foundation promotes volunteerism and invests in community programs and services.
Coverage Utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using American Family’s premiums written. Quoted rates are based around the profiles of a 30-year-old male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.
An accident was defined as an at-fault accident with $3k in property damage. A speeding incident was defined as speeding 16-20 MPH over the limit.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only – your own quotes may be different.