American Family Insurance Auto Insurance Review (2024)

American Family Insurance, also known as AmFam, is one of America’s largest and best-known insurers. Founded in 1927, the Madison, Wisconsin-based company offers car, home, life, health, and commercial coverage products. Today, American Family Insurance is a Fortune 500 company, earning $10.2 billion USD of revenue in 2018 while employing over 11,300 people countrywide. Learn more in this American Family insurance review and learn how to get American Family insurance quotes.

What is the history of American Family?

American Family was founded by salesman Herman Wittwer on October 3, 1927, in Madison, Wisconsin. The company was originally known as Farmers Mutual – not to be confused with Farmers which would be founded one year later.

At launch, the company only sold personal auto policies to farmers. The company believed farmers were ideal customers because they drove less often than city drivers and rarely drove during winter.

In 1963, Farmers Mutual Insurance Company changed its name to American Family Mutual. The company had grown to offer a wider range of products to a wider range of customers.

Today, American Family has four regional corporate headquarters across the United States, including offices in Eden Prairie, Minnesota; Saint Joseph, Missouri; Denver, Colorado; and Columbus, Ohio, among other smaller offices and the corporate headquarters in Madison, Wisconsin.

American Family plays a crucial role in Wisconsin’s economy, employing thousands of people in Madison alone. As a testament to the company’s connection to Wisconsin, American Family and the Milwaukee Brewers announced a fifteen-year naming rights partnership over the stadium currently known as Miller Park. That partnership is scheduled to begin in 2020.

What are American Family insurance ratings?

American Family Insurance tends to be one of the highest-rated major insurers in the United States. It consistently achieves average to strong ratings from J.D. Power and other rankings organizations.

In 2018, for example, American Family Insurance earned the following ratings from J.D. Power:

Shopping (Auto): Better than most

Auto Claims Satisfaction: About average

Homeowners: About average

Property Claims: About average

Additionally, American Family Insurance earned an “Excellent” financial strength rating from A.M. Best. An “Excellent” financial strength rating means that American Family Insurance should have no issues paying off its liabilities.

What makes American Family unique?

American Family Insurance functions like most other car insurers in the United States. Some of the differentiating factors include:

MyAmFam Mobile App: American Family Insurance has a surprisingly good mobile app called MyAmFam. The app lets you manage your claim, pay your policy bill, find an agent, view your policy documents, and even download proof of coverageon-the-go. You can also use the app to contact roadside assistance or find an authorized auto or glass repair shop nearby.

Read more: What documentation do I need to file an auto insurance claim with American Family?

Multiple Types of Coverage: Some insurers focus exclusively on car coverage policies. American Family, however, offers auto, homeowners policies, and life policies. The company also sells health coverage through its agents, although this is technically offered through third-party companies.

Available in 19 States: American Family is not available nationwide. It’s available in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

Is American Family a good company?

American Family is generally recognized as one of the best auto insurance companies in the country, typically ranking within the top 10 or 15 best insurers nationwide. Generally, customers are satisfied with their claims, and American Family Insurance’s ‘Average’ rating in the latest J.D. Power study reinforces that rating.

Read more: How long does it take for American Family to process an auto insurance claim?

One of the main things holding American Family back from some of its larger, better-known competitors is the lack of nationwide coverage: American Family is only available in 19 states, while most larger competitors are available in all 50 states.

However, those who live in one of the 19 states can enjoy powerful coverage for all aspects of their lives. American Family offers car, motorcycle, ATV, RV, snowmobile, and boat coverage, for example, along with condo, mobile home, homeowner’s, and renter’s policies. You can also buy umbrella, flood protection, business, and ranch/farm coverage, among other products.

By bundling multiple policies together with American Family car insurance, you can save money on each individual policy. Many policyholders enjoy popular products like the DreamSecure Simplified Term life insurance, for example, which offers life payouts of $50,000 to $150,000 with no medical exam required.

American Family is also ideal for drivers working for Uber, Lyft, and other rideshare companies. American Family offers ridesharing coverage policies in certain states. It can be easily added to your policy to fill in the coverage gaps left by Uber or Lyft’s coverage.

What are American Family auto insurance policies and products?

American Family offers a standard set of auto coverage options along with a few additional types of auto insurance coverage. Some of the features that make American Family car policies unique include:

Gap Insurance: American Family will cover the gap if your car is totaled while it’s being leased or financed. Without gap coverage, drivers would have to pay the remaining balance of the vehicle even when the actual cash value of the vehicle is much lower.

Accidental Death and Dismemberment: This coverage pays out when someone dies in a car accident or when there are certain grievous injuries, regardless of fault.

Rideshare Insurance: As mentioned above, American Family allows rideshare drivers to add coverage to their existing policies, filling in the gaps left by Uber and Lyft.

Find out more about how auto insurance works.

The Final Words

American Family is one of America’s top insurers, frequently ranking among the best in terms of claims satisfaction. It doesn’t quite compete with the best and biggest companies in America, nor is it available in every state, but American Family provides comprehensive coverage to policyholders in 19 states across America.

What are the facts on American Family?

Parent Company:
American Family Insurance Group

Subsidiaries:
American Family Mutual Insurance Company
American Standard Insurance Company of Wisconsin
American Family Life Insurance Company
American Family Insurance Company (OhioAmerican Family Ins. Co. of Ohio)
American Standard Insurance Company of Ohio

Lines of Coverage:
Vehicle Coverage: Car/Truck/SUV, RV, Motorcycle, ATV, boats
Other Coverages: Health, Life, Homeowners, Renters, Travel, Business

Coverage Options:

• Bodily Injury and Property Damage Liability
• Uninsured / Underinsured
• Collision
• Comprehensive

States licensed to sell policies in:
AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI

A.M. Best Company Rating: A
(Rating Explained)