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American Family Insurance Review 2018: Complaints, Ratings and Coverage

Auto Insurance, Insurance

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American Family reviews and ratings

  • American Family’s customer satisfaction ratings are average or better
  • Has fewer customer complaints than other companies of similar size
  • Ridesharing insurance is available in select states

Overview

American Family is the nation’s ninth-largest auto insurance seller and has few complaints compared with other insurers. The company also offers a wide selection of other insurance products, so if you like the convenience of bundling policies, American Family might be right for you.

 

AUTO INSURANCE RATING

American Family ranked eighth in NerdWallet’s ranking of the best car insurance companies, earning 4.5 stars out of 5. NerdWallet’s rating is a score based on:

  • J.D. Power ratings for claims satisfaction and customer service
  • Consumer complaints against the insurer, based on data from the National Association of Insurance Commissioners

Complaints

American Family had fewer than the median number of complaints to state regulators in 2016 for a company of its size, according to the National Association of Insurance Commissioners.

Customer satisfaction

  • American Family ranked “better than most” for overall purchase experience for auto insurance in J.D. Power’s 2017 U.S. Auto Insurance Shopping Study
  • It ranked “about average” for overall auto claims satisfaction in J.D. Power’s 2017 Auto Claims Satisfaction Study
  • It ranked “about average” for overall homeowners insurance satisfaction in J.D. Power’s 2017 Home Insurance Study
  • American Family ranked “about average” for overall homeowners claims satisfaction in J.D. Power’s 2017 Property Claims Satisfaction Study

Financial strength: A (“Excellent”)

American Family’s financial strength is “excellent,” according to ratings agency A.M. Best. Financial strength is important because it indicates how well an insurer can pay claims.

 

American Family auto insurance

American Family offers a standard suite of auto insurance coverage types, plus a few additional options including:

Gap insurance will pay out if your car is totaled and it’s leased or has a loan balance. Without this coverage, you would receive only the depreciated value of the car minus any deductible — leaving you to pay off the rest.

Accidental death and dismemberment coverage pays out if a car accident causes death or certain injuries, regardless of who is at fault.

Emergency Roadside Service covers towing expenses, locksmiths, and provides services like battery jumps and tire patches if you’re stranded.

Ridesharing insurance is available for customers who drive for services such as Uber or Lyft, but not in every state. It can be added to your personal auto policy and fills a coverage gap while you’re waiting for customers, so you’re fully insured the entire time the app is on.

American Family home insurance

American Family Insurance offers standard homeowners insurance and the following types of optional coverage:

  • Scheduled property: Pays out for the full value of damaged or destroyed valuables such as art or jewelry
  • Backup and overflow: Pays out if your sump pump overflows or your sewer backs up
  • Identity theft: Pays for costs associated with restoring your finances if you become a victim of identity theft
  • Homebased businesses: Provides additional liability and personal property coverage if you run a business from your home

American Family life insurance

American Family offers a variety of life insurance choices, including:

SimplyProtected Term: Available only to existing American Family policyholders, the policy targets younger and first-time life insurance customers looking for a lower-cost policy. The application doesn’t require a medical exam, and a policy can be issued in 10 days, which is quick among life insurers. Coverage ranging from $50,000 to $150,000 is available in the following terms:

  • 10 years
  • 20 years
  • 30 years

Level term life insurance is also available if you want more coverage, though you’ll need to take a medical exam. These policies are also available in 10-, 20- and 30-year terms, and can be converted into permanent insurance at the end of the term.

More about American Family

On the American Family Insurance website, you can find an agent, get a quote, pay your bill and report a claim.

MyAmFam, American Family’s mobile app, will let you manage your claim, pay your bill, find an agent, view your policy documents and download proof of insurance. In addition, you can find roadside assistance or an auto or glass repair shop.

DreamVault is American Family’s home inventory app. It lets you keep an updated inventory of your belongings, with photos. If your belongings are damaged or destroyed, a home inventory can help you make an insurance claim.

American Family sells several types of insurance in addition to auto, home and life insurance. Health insurance is available from partner companies through American Family agents.

Other insurance from American Family
  • Motorcycle
  • ATV
  • RV
  • Boat
  • Condo
  • Mobile home
  • Mexico car and boat
  • Renters
  • Umbrella
  • Flood
  • Business
  • Ranch and farm
  • Snowmobile
  • Travel

  • NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates. NerdWallet

    Methodology

    NerdWallet’s auto insurance star ratings and rankings are based on the following three factors, each weighted equally:

    • 2016 consumer complaints data from the National Association of Insurance Commissioners. The median complaint ratio for the industry is 1. Lower ratios are better. Insurers whose median complaint ratios were more than 1 received fewer points; those lower than 1 received more points.
    • 2017 regional customer service satisfaction data from J.D. Power. The higher the average J.D. Power rating across regions, the more points the insurer scored in our calculation.
    • 2016 auto claims satisfaction data from J.D. Power. The higher the J.D. Power rating, the more points the insurer scored in our calculation.
    • Only larger insurers with data available in all three of these categories were included. In case of ties, NAIC consumer complaints data were used to break the tie. Smaller insurers not listed here may also be good choices and are worth consideration.