American Family Insurance Review 2021: Generous Discounts With Below Average Complaints, Mixed Customer Reviews

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American Family — or AmFam — has been kicking around the insurance industry in one form or another since 1927. These days, American Family is one of the ten largest insurance firms in the U.S. for auto and home policies. It offers policies in 19 states. 

The provider has mixed reviews for customer satisfaction but a below-average number of complaints. AmFam offers many policy variations, as well as plenty of discounts to reduce premiums. We’ll run through everything you need to get started with an American Family policy. 

American Family Auto Insurance 

American Family’s car insurance policies provide all of the coverages you’d expect. But they also offer a few less-common coverages—like Gap and Emergency Roadside—that can be lifesavers if you’re in a rough situation. 

American Family also provides a wide range of discounts to reduce the cost of insurance. If you’re a young driver, insurance rates are typically higher, and AmFam provides many discounts geared toward young drivers to help balance the cost.

Types of Coverage 

Here are the typical car insurance coverage options American Family offers. Coverage availability may depend on the state where you buy the policy.

  • Collision
  • Comprehensive
  • Property Damage Liability
  • Bodily Injury Liability
  • Medical Expense
  • Personal Injury Protection
  • Gap
  • Underinsured Motorist Protection
  • Rental Reimbursement 
  • Uninsured Motorist Protection 
  • Emergency Road Service 
  • Accidental Death and Dismemberment

Cost of American Family Auto Insurance 

Car insurance rates are highly dependent on the person and the vehicle. The better your driving record, the better rate you’re likely to get. Or if your car has enhanced safety features, that might reduce the rate, as well. According to Bankrate’s latest data, the average cost of full coverage car insurance is $1,674 per year, or $139.50 per month. NextAdvisor requested a driving policy for a 31-year-old with no accidents in the last six months. AmFam quoted $859 for a 6-month premium, or $142.65 a month, with $50,000 bodily injury. 

American Family Auto Insurance Discounts 

AmFam is generous with its discounts. It offers discounts for all kinds of drivers. Here is a list of what you can get, broken out into a few categories. 

Standard Discounts:

  • Multi-vehicle – Get a discounted rate when you insure multiple cars with AmFam.
  • Loyalty – This discount is available for customers who have used American Family “for a while.” The length of time you’ve been an AmFam customer affects the discount rate. 
  • Early Bird – You can qualify for this discount if you already have an active policy with another company, then receive an AmFam quote at least a week before the policy goes into effect. 
  • Multi-product – This discount reduces coverage for those who use AmFam for more than one kind of insurance, such as auto and home. 

Safe Driving Discounts:

  • Auto Safety Equipment – This discounts policies for cars with factory-installed air bags.
  • Defensive Driver – In some states, you might qualify for a discount if you are 55 or older and complete an approved defensive driving course. 
  • Good Driving – If you have a clean driving record for an extended amount of time it could reduce the cost of your insurance policy.
  • Low Mileage – Policyholders who drive 7,500 miles per year or less might qualify for this discount.
  • KnowYourDrive – This is a usage-based discount. AmFam tracks your driving habits via smartphone app. The safest drivers can qualify for a discount of up to 20 percent.

Young Driver Discounts:

  • Good Student – If you maintain good grades at school, it could reduce your rate. 
  • TeenSafeDriver – This is a usage-based discount for teen drivers. It’s similar to KnowYourDrive. 
  • Away at School – If you are away at a school that’s 100 miles or more from home, and your car is parked at home, then you could get a discount. This is also available for your child if they are under 25.
  • Young Volunteer – If you are under 25 and complete at least 40 hours of volunteer work per year for a nonprofit organization, you could qualify for a discounted rate. 
  • Generational – If you have a parent with an AmFam policy, then you could also save on your policy. 

Billing Discounts:

  • Auto Pay – If you enroll in automatic payments, it can reduce your rate.
  • Customer Full Pay – If you can pay your policy in full when you buy it, you might get a discount.
  • Paperless – This discount is for customers who enroll in online billing. 

American Family Home Insurance 

Like American Family’s auto policies, AmFam’s home policies have many discounts available. J.D. Power rates home insurance from American Family as average for the industry, and Bankrate estimates the cost of American Family home insurance right in the middle when compared to competitors. 

“American Family home insurance comes with various discounts, including ones for homeowners who have smart devices or safety features that will protect the home from damages or theft. You can also get different discounts based on the age of the house or when you purchased it,” says Ben Reynolds, CEO of financial advisory firm Sure Dividend.

Types of Coverage 

American Family home insurance policies are customizable. Here are the coverages you can choose from when signing up or renewing your home policy. 

Standard coverages:

  • Dwelling 
  • Other structures 
  • Personal property 
  • Loss of use 
  • Personal liability 

Optional coverages:

  • Equipment Breakdown
  • Sump Pump and Water Backup Coverage
  • Matching Siding Protection
  • Credit Theft Protection & Monitoring

Cost of American Family Home Insurance 

Bankrate estimates the average cost of an American Family home insurance policy is $1,295 per year, which breaks out to $108 per month. 

This profile is based on a policy with $250,000 in dwelling coverage. Keep in mind this is a general profile, and the actual rate you receive will depend on your individual profile.

American Family Home Insurance Discounts 

Here are the discounts for home insurance that American Family offers to their customers, broken out into a couple categories. 

Standard discounts:

  • Bundle & Save – When you buy two or more kinds of insurance from American Family, you could get a reduced rate on all of the policies. 
  • Age of home – If your home is 15-year-old or newer, you might get a lower rate. 
  • Renovated home – If you have completely replaced your home’s plumbing, electrical, and heating systems within the last 15 years, you might qualify for a discount. 
  • Insurance payment – This discount refers to policyholders who set up auto-pay and paperless billing, and those who pay their policy in full upfront. 
  • Loyalty discount – If you’ve been an AmFam customer for over a year, then you might be able to get a reduced premium. 
  • Generational discount – If you’re between 18- and 30-years-old, and your parents have an active policy with American Family, the cost of your home insurance might be reduced. 

Smart Home Discounts:

  • Fire and smoke sensors – If your home is outfitted with fire and smoke alarms, it could reduce your monthly premium.
  • Home security – This discount is for homes that have a Frontpoint video doorbell camera installed. 
  • Climate control – This discount is for homes that have smart thermostats that monitor your home’s temperature and help with energy savings. 
  • Smart home water sensors – If you have internet-connected  sensors for water leaks and humidity, you could receive this discount. 

American Family Life Insurance 

American Family offers both term and whole life insurance policies. Within these two main life insurance categories, AmFam offers a few variations you can choose from, such as a whole life plan geared toward seniors. 

Types of Coverage

  • Simplified Term Life Insurance
  • Term Life Insurance
  • Whole Life Insurance
  • Children’s Whole Life Insurance
  • Senior Whole Life Insurance
  • DreamSecure Flexible Life Insurance

Cost of American Family Life Insurance 

To get a life insurance quote from American Family, we used a profile of a healthy, 35-year-old female who lives in Madison, WI. The life insurance coverage amount we used was $150,000. 

A DreamSecure Term policy for this profile costs about $15 per month. A DreamSecure Simplified Term policy costs about $23 per month, and a DreamSecure Whole policy costs about $126 per month. 

American Family Life Insurance Discounts 

American Family only advertises one discount for their life insurance policies—bundling. If you bundle life insurance with another kind of AmFam insurance, such as a car or home, then you could receive a discount. 

Aside from the bundling discount, you can usually save on life insurance by signing up when you’re young and staying healthy and nicotine-free.

American Family Insurance Ratings

J.D. Power scores are based on customer satisfaction, product quality, and buyer behavior for each individual company. The National Association of Insurance Commissioners (NAIC) sets standards, establishes best practices, and overall keeps an eye on the insurance industry by protecting consumers. AM Best ranks a company’s creditworthiness, or the likelihood a company will default on its financial obligations. 

Take a look at how American Family ranked below.

American Family Auto Insurance 

J.D. Power: 839 (out of 1,000) Industry Average: 872

NAIC: No complaints

A.M. Best: A (excellent)

American Family Home Insurance 

J.D. Power: 881 (out of 1,000) Industry Average: 881

NAIC: .83 (fewer complaints than average)

A.M. Best: A (excellent)

American Family Life Insurance 

J.D. Power: N/A (out of 1,000) Industry Average: 763

NAIC: No complaints

A.M. Best: A (excellent)

American Family Insurance Pros and Cons

“Though only available in only select states, they still manage to be one of the largest insurers in the U.S,” says Melanie Musson, auto insurance expert at Clearsureance.com. “In the areas where they offer coverage, they have many customers, and their customers are generally satisfied with their services.”

Pros

  • Lower than average complaints (NAIC)

  • Auto insurance discounts for young drivers

  • 24/7 claims filing

Cons

  • Only serves 19 states

  • Auto insurance scores lower than industry average (J.D. Power)

Other Policies Offered by American Family Insurance

Vehicle:

  • Motorcycle 
  • RV & Camper
  • Boat
  • ATV
  • Snowmobile 
  • Classic Car

Property & Business:

  • Renters
  • Condo
  • Manufactured Home
  • Farm & Ranch
  • Business
  • Landlord

Other:

  • Umbrella
  • Identity Theft
  • Credit Monitoring
  • Health 
  • Travel

Bottom Line

American Family falls somewhere in the middle of their competitors when it comes to pricing and overall customer satisfaction. However, American Family shines when it comes to discounts. 

If you can qualify for a few of the discounts for AmFam’s auto and home policies, you could receive an excellent rate on a reliable policy. If you’re shopping around for a new policy, we recommend at least getting a quote from American Family to see how much you can save on premiums with their discounts.  

Frequently Asked Questions 

What states does American Family Insurance serve?

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

How long has American Family been in business?

Dating back to 1927, American Family has been in business for nearly 100 years.

Is American Family Insurance a good company?

The best insurance company is highly dependent on the individual needs of the customer. To find the best policy for you, we recommend shopping around and getting quotes from a few different providers for comparison.