American Family Insurance: An Overview

Is American Family the right insurance company for you?

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American Family Insurance dates back to 1927. Now with over 90 years in the business, it ranks well in customer satisfaction surveys and reviews, and offers coverage in 19 states for home, car, life, travel, and business insurance. American Family Insurance’s target clients span various age groups, indicated by discounts for students, adults, and retirees. Here’s what you need to know before deciding if American Family Insurance is a good choice for you.

Is American Family Insurance Right for You?

American Family Insurance has tailored offerings for a wide range of potential insurance buyers, including those who want to bundle their life, auto, and home insurance, and individuals who are tech-savvy and want easy app service, plus smart-home discounts. Anyone participating in the sharing economy, such as if your home is a short-term rental or you use your car for ridesharing, can also enjoy discounts.

Where Is American Family Insurance Offered?

If you live in one of these 19 states, you can sign up for one of American Family’s policies: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

Pros and Cons of American Family Insurance

Pros

  • Online tools

  • Life insurance option with no medical exam

  • Wide range of discounts and coverage

Cons

  • Limited geographic availability

American Family Insurance Pros Explained

  • Online tools: American Family makes it easy to sign up for insurance via a two-minute online quiz. The app allows you to see your insurance information, manage a claim, have proof of coverage, among other advantages.  
  • Life insurance option with no medical exam: The DreamSecure Simplified Term life insurance plan does not require a medical exam and can offer coverage of up to $150,000. All you have to do is answer a few questions about your health.
  • Wide range of discounts and coverage options: American Family offers discounts for multigenerational insureds, along with other discounts. If you’re seeking all-in-one coverage, then American Family offers property, car, life, and business insurance, including some unusual options such as Mexico boat insurance.

American Family Insurance Cons Explained

  • Limited geographic availability: Unfortunately, American Family Insurance is only available in 19 states, so it’s not an option for all Americans.

American Family Insurance Products

American Family offers a wide range of property, vehicle, personal, and business insurance options.

  • Property insurance: Homeowners, renters, condo, manufactured homes, farms and ranches, vacation homes and second homes, short-term rentals, assisted living and nursing homes 
  • Vehicle insurance: Cars, classic cars, motorcycles, RVs, boats (including houseboats, fishing, yachts, sailboats, speedboats), ATVs, and snowmobiles 
  • Personal insurance: Whole life insurance and term life insurance policy options, umbrella insurance, travel insurance, and health insurance supplements including Medicare supplement, short-term health, critical illness, dental and accident coverage 
  • Business insurance: Business, landlord, small home business, home daycare, cyber liability, spoilage coverage, and employee dishonesty protection 

American Family also offers additional coverage options for appliances, repairs, and other parts of your home. You can even get Matching Siding Insurance so that you can ensure that your home always looks its best in the event that part of your siding is damaged (up to $20,000).

What American Family Discounts Are Offered?

American Family has an extensive list of discounts that cater to clients of all ages and different stages in life:

You can save through bundling your insurance policies, signing up for autopay, paying in full every year, having multiple vehicles on your policy, and more.

When it comes to your property, installing smart thermostats, detection systems, and video doorbells can help you save. Additionally, you may be able to save by having a newer home, renovating parts of your home, or purchasing a new home (included manufactured ones).

If your parents have their homeowners insurance through American Family, you may be able to get a discount by also signing up for a homeowners policy through the same company.

If you’re looking to save on car insurance, you’ve got a lot of options. American Family offers discounts for being an experienced (and good) driver, having factory-installed airbags in your vehicle, having your college student leave their car at home, taking a defensive driver course (those over age 55), driving less than 7,500 miles per year, and more.

Anyone under the age of 25 can save on their auto policy by simply volunteering at least 40 hours per year at a nonprofit.  

Other Notable Offerings

There are even more products and perks offered by American Family Insurance, which you may have a difficult time finding elsewhere. 

  • Usage-based car insurance: KnowYourDrive and Teen Safe Driver are app-powered programs providing real-time safety feedback on driving habits. They could save you up to 20% off insurance premiums (based on the evaluation).
  • Travel insurance: This includes global medical insurance, trip cancellation insurance, Mexico auto insurance, and Mexico boat insurance (including up to $20,000 in legal assistance and bail bond coverage in Mexico).
  • Sharing-economy insurance: Insurance for rideshare drivers and short term home rental insurance are both offered by American Family. 
  • Rewards programs: “DreamKeep Rewards” is available to Illinois and Nebraska residents who are at least 18 years and older. It allows members to sign up and start earning points for simply taking an online quiz, watching a video, or uploading a video of yourself completing a task. Redeem points for gift cards, event tickets, hotel stays, and more.
  • Employee dishonesty protection: If you’re running a business, this protects you from any losses that may be the result of dishonest employees.
  • Pet coverage: If you have homeowners insurance through American Family, this optional add-on pet coverage provides up to $1,000 for vet services, final expenses, or dog replacement. It isn’t considered pet insurance, but is part of your homeowners policy. It also includes coverage for dog-related liability, including dog bites.

American Family Insurance Ratings and Reviews

American Family ranked No. 1 in renters insurance customer satisfaction in the 2019 J.D. Power U.S. Home Insurance Study. It also ranked in the top 10 in the home insurance category.

In the 2019 J.D. Power U.S. Auto Insurance Study, American Family placed third out of 10 auto insurance providers.

A.M. Best, an insurance rating company, has given American Family a financial strength rating of “A (Excellent).” The company’s app is rated 4.8 out of 5 in Apple App Store and 4.5 out of 5 in the Google Play Store.

The Bottom Line on American Family Insurance

American Family Insurance’s financial strength rating is strong. The insurance company provides customer tools for interacting online, getting information easily, and offers an app to manage insurance. American Family also covers things that some insurers are hesitant to cover, like pet liability or Mexico boat insurance. If you’re looking to have all of your insurance needs fulfilled by one company, you may be able to get discounts through American Family. It may also make the claims process easier. Whatever you choose, shop around for insurance before signing up.    

Article Sources

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  4. American Family Insurance. "American Family Insurance." Accessed Jan. 14, 2020.

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  6. American Family Insurance. "Teen Safe Driver." Accessed Jan. 14, 2020.

  7. American Family Insurance. "Know Your Drive." Accessed Jan. 14, 2020.

  8. American Family Insurance. "Rideshare Insurance," Accessed Jan. 14, 2020.

  9. American Family Insurance. "Short Term Rental." Accessed Jan. 14, 2020.

  10. American Family Insurance. "DreamKeep Rewards." Accessed Jan. 10, 2020.

  11. American Family Insurance. "Professional Insurance." Accessed Jan. 14, 2020.

  12. American Family Insurance. "Dogs and Homeowners Insurance." Accessed Jan. 14, 2020.

  13. J.D. Power. "Home Insurance Customer Satisfaction Declines, Opening Door for Insurtech Disruptors, J.D. Power Finds," Accessed Jan. 14, 2020.

  14. J.D. Power. "Auto Insurance Satisfaction Surges as Customers Adopt Direct-to-Consumer Models, J.D. Power Finds." Accessed Jan. 14, 2020.

  15. American Family Insurance. "A.M. Best affirms American Family's ‘A’ (Excellent) Financial Strength Rating." Accessed Jan. 14, 2020.

  16. App Store. "American Family Insurance App." Accessed Jan. 14, 2020.

  17. Google Play Store. "American Family Insurance App." Accessed Jan. 14, 2020.