American Family Auto Insurance Review

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While American Family Auto Insurance may not be as well-known as some other auto insurance companies such as The Hartford or USAA; it was the ninth largest auto insurer in the United States and the 15th largest property and casualty insurance company in America in 2020. It is listed in the Fortune 500 companies in the United States as 232 for 2021. American Family Insurance has as its mission, “to inspire, protect and restore your dreams.” In addition to auto insurance, the company offers home, life, business, health, umbrella, farm & ranch insurance as well as coverage for manufactured homes and RVs.

American Family Auto Insurance was founded in 1927 by Herman Wittwer and was first called Farmers Mutual Automobile Insurance Company. Mr. Wittwer started his company by offering automobile insurance to farmers, who he thought to be better risks as they often did not drive their vehicles in the winter but put them in storage.

Over the years, the company expanded its products and territory to include 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin. In 1963, the company changed its name to American Family Mutual Insurance Company. For 2020, American Family had over $10.6 billion in policyholder equity and over $33 billion in total assets. Its corporate headquarters is located in Madison, Wisconsin.

Auto Insurance Products

American Family sells its auto insurance products through a network of approximately 3,500 independent agents. With your auto policy, you can purchase collision, comprehensive, bodily injury liability, property damage liability, uninsured/underinsured motorist, medical expense insurance, and personal injury protection. You can choose to receive a quote online or visit one of the local offices. There are a variety of benefits and auto insurance discounts available with American Family’s auto policy, including those below.

Discounts

  • Multiple Product Discount
  • Multiple Vehicle Discount
  • KnowYourDrive Program Discount
  • Auto Safety Equipment Discount
  • Low-Mileage Discount
  • Good Student Discount
  • Young Volunteer Discount
  • And Billing Discounts, like AutoPay and Paperless Billing

Optional Coverage

  • Auto Rental Reimbursement Coverage – This coverage is offered in partnership with Enterprise Rent-A-Car. You can also use a rental company of your choice. Often costing less than one day's car rental, this coverage includes reimbursement benefits for car rentals, rideshare services, and public transportation like taxis, city buses, rails, and commuter trains.
  • Emergency Road ServiceEmergency road service is available with the “sign and drive” direct billing option which allows you to have emergency repairs for covered towing & labor operations completed without having to worry about upfront payments or having to be reimbursed. This 24/7 coverage includes towing, car battery jump, tire service, gas and oil delivery, roadside repairs, and locksmith services.

Safety Program

Teen Safe Driver Program – If you have a teenage driver living with you, this discount program allows you to actually see your teen’s driving habits. Using a pair of smartphone apps, teens learn to drive safely and parents can monitor their progress and know where they are. After the teen drives for 3,000 miles or for a full year, the parent earns a 10% discount on their car insurance and the teen develops good driving habits. There is no charge to enroll your teenage driver in the program.

Homeowners Insurance from American Family includes property and liability protection with extra coverage options for a home-based business, sewer backup, pump overflow coverage, identity theft protection and more.

Renters Insurance covers your belongings and liability interests as well as loss of use should your rental unit become uninhabitable due to a covered loss. You can add additional coverage for things like identity theft protection, travel insurance, pet insurance, and a home-based business.

Life Insurance policies offered through American Family include term life and simplified term life policies as well as whole life policies for seniors, children, and a DreamSecure flexible option.

Business Insurance coverage is available for apartment/condo owners, contractors, professional offices, retail establishments, auto service and repairs shops, and more. Business insurance coverage options include building coverage, auxiliary building coverage, business auto, rental property, contractors insurance, and cyber liability coverage. Employee coverage is also available.

Farm & Ranch Insurance is customizable and provides dwelling coverage, farm personal property coverage, fair rental value, outbuilding coverage, liability, and additional living expenses. For an added premium you can add equipment breakdown coverage, farm income, replacement cost for irrigation systems, additional property coverage, medical expense coverage for employees, and more.

Ratings, Customer Service & Awards

According to a customer survey by Insure.com, 94% of current American Family auto policyholders plan to renew their coverage. In 2021, J.D. Power and Associates gave the top position in their Shopping Satisfaction Survey to American Family Car Insurance. Ranking first in "overall experience," American Family Car Insurance also took the tops spots for price, distribution channel, policy offerings, and quote process. American Family has an “A” rating with the Better Business Bureau and is rated “A” Excellent by A.M. Best.

Not only does American Family rate well in the areas of customer service, claims and overall customer satisfaction but it has also received awards for its service in the community. It has been named one of the Best Places to Work for LGBTQ Equality by the Human Rights Campaign Foundation in 2019, scoring a 100 on the Corporate Equality Index. The company was awarded a Green Masters Certificate from the Wisconsin Sustainable Business Council and a LEED gold certification for their energy-reducing efforts. With 33% of the board of directors seats held by women, American Family Insurance earned a "W" recognition from the Women on Boards organization.

Pros

  • Excellent customer service and claims record
  • Attractive features, discounts and benefits including the teen safe driver program

Cons

  • Auto coverage is only available in 19 states
  • The website is a little hard to navigate if you are trying to find explanations for benefits or receive an auto insurance quote.

Contact Information

To receive a quote from American Family or learn more about its insurance products, you can visit the American Family Insurance website or call 1-800-MYAMFAM (1-800-692-6326). You can also use the agent locator to find a local agent.