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American Family Insurance Review 2020

Jan. 2, 2020
Auto Insurance, Insurance
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

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American Family reviews and ratings

  • American Family’s customer satisfaction ratings are average or better.
  • Has fewer customer complaints than expected for a company of its size.
  • Ridesharing insurance is available in select states.

American Family is the nation’s 10th-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.

American Family auto insurance

4.5 NerdWallet rating

American Family auto insurance earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account pricing and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

Based on these ratings, American Family ranks 8th in our list of the 20 best car insurance companies for 2020.

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

  • 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.
  • 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’s auto insurance discounts:

  • Multiple policy (bundling) discount.
  • Multiple vehicle discount.
  • Good driver discount.
  • KnowYourDrive app discount, based on your driving behavior.
  • Loyalty discount.
  • Discount for switching to American Family from another insurance company.
  • Early-bird discount for getting an American Family quote at least seven days before your policy takes effect, if you’re switching from another insurer.
  • Safety discount for equipment like anti-lock brakes, air bags or electronic stability control.
  • Defensive driving course completion discount.
  • Low-mileage discount if you drive less than 7,500 miles per year.
  • Good student discount.
  • Discount for teen drivers who enroll in a safe driver program.
  • Student away at school discount.
  • Discount for drivers under age 25 who complete 40 hours of volunteer work a year for a nonprofit.
  • Discount for young drivers whose mom or dad is an American Family customer.
  • Discounts for going paperless, setting up automatic payments or paying your premium in full, up front.

» MORE: Compare car insurance rates

American Family homeowners insurance

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

  • 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.
  • Home-based businesses: Provides additional liability and personal property coverage if you run a business from your home.
  • Equipment breakdown: Pays out if your appliances, home systems or smart home devices are damaged due to mechanical, electrical or pressure systems breakdown.
  • Matching siding protection: When an event like a storm or a fire damages your siding, your home insurance will cover the costs. Matching siding protection reimburses you for up to $20,000 to replace the remaining undamaged siding so everything matches.

American Family’s home insurance discounts:

  • Discounts for safety features or smart devices such as a video doorbell.
  • Multiple policy (bundle) discount.
  • Discount if you purchased a home within the past three years.
  • Discounts for going paperless, setting up automatic payments or paying your premium in full, up front.
  • Loyalty discount.
  • Discount for insuring a relatively new home.
  • Generational discount if your mom or dad is an American Family customer.
  • Discount for replacing your home’s plumbing, heating or electrical systems in the past 15 years.

American Family life insurance 

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

DreamSecure Simplified Term: The application doesn’t require a medical exam, and a policy can be issued in 10 business days, which is quick among life insurers. Coverage ranging from $50,000 to $150,000 is available in the following terms:

  • 10 years.
  • 15 years.
  • 20 years.
  • 30 years.

DreamSecure 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-, 15-, 20- and 30-year terms, and in some cases can be converted into permanent insurance at the end of the term.

American Family complaints and customer satisfaction

American Family had fewer than the expected number of complaints to state regulators for life, home and auto insurance relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners.

Customer satisfaction ratings for American Family are average or better.

2019 J.D. Power StudyAmerican Family ranks...
Insurance Shopping (Auto)Better than most
Auto Insurance Claims SatisfactionAbout average
Home InsuranceAbout average
Property ClaimsAbout average

More about American Family

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

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

American Family also has two apps — KnowYourDrive and Teen Safe Driver — to monitor driving habits. These programs allow you to earn discounts on your insurance premiums.

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
MotorcycleRenters
ATVUmbrella
RVFlood
BoatBusiness
CondoRanch and farm
Mobile homeSnowmobile

Recap: American Family pros and cons

ProsCons
Fewer customer complaints than expected for a company its size for auto, home and lifeDoesn’t earn top ratings for home or auto claims satisfaction
Many coverage types offeredNot available in all states
Wide range of discounts

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Find your rate.

Auto insurance ratings methodology

NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, website transparency and affordability. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home and life insurance.

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