American Family Insurance Review

Apr 7, 2022

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Insurance reviews

American Family Auto Insurance
  • Auto insurance

  • Homeowners insurance

  • Life insurance

The bottom line:

American Family offers a long list of insurance discounts, and it receives fewer consumer complaints than expected for a company of its size.

Pros

  • Fewer customer complaints than expected for a company its size for auto, home and life.
  • Many coverage types offered.
  • Wide range of discounts.

Cons

  • Not available in all states.
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Auto insurance review

American Family Auto Insurance
American Family

5.0

/5
 NerdWallet rating 
NAIC complaints
Far fewer than expected
Ease of use
Above average
Discounts
Great set of discounts

American Family is the nation’s ninth-largest auto insurance seller and has far fewer than the expected number of auto insurance complaints for a company its size. 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 is among NerdWallet’s Best Car Insurance Companies.

American Family auto insurance coverage

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 is 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’s 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.

  • Original equipment manufacturer coverage pays for your vehicle to be repaired with parts made by your car’s manufacturer rather than aftermarket parts.

  • Accident forgiveness coverage can be purchased to ensure your premium won’t go up if you’re at fault for a wreck. (Note that you can earn accident forgiveness for free if you go five years without a claim.)

Auto insurance discounts

American Family offers numerous ways to save on your auto policy, including:

  • 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 air bags.

  • Defensive driving course completion discount for drivers 55 and older.

  • 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, upfront.

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Pricing based on tracked driving habits

If you’re willing to let American Family track your driving behavior, you could save up to 20% on your auto policy. The KnowYourDrive app monitors actions like speeding, hard braking and distracted driving (such as sending a text). Your rate won’t go up for unsafe driving.

Another app, Teen Safe Driver, is designed specifically for young drivers up to age 21. It tracks distracted driving and other unsafe behaviors to encourage better habits. You can get a discount up to 10% once you participate for at least 3,000 miles or one year.

American Family Auto Insurance
American Family Home Insurance
NerdWallet rating 
NerdWallet rating 
NAIC complaints

Far fewer than expected

NAIC complaints

Fewer than expected

Ease of use

Above average

Discounts

Great set of discounts

Discounts

Average set of discounts

Homeowners insurance review

American Family Home Insurance
American Family

4.0

/5
 NerdWallet rating 
NAIC complaints
Fewer than expected
Coverage options
More than average
Discounts
Average set of discounts

American Family home insurance coverage

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

  • Sump pump failure and water backup: 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 a sudden mechanical, electrical or pressure systems failure.

  • 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.

  • Service line: Pays for repairs to water, power or other underground lines that run to your house.

  • Senior living: Covers liability and personal belongings for seniors in nursing homes or assisted living facilities.

  • Vacant home: Available for three-, six- or 12-month periods, this coverage pays for damage if your house is unoccupied during renovations or while it’s on the market.

  • Hidden water: Covers up to $25,000 worth of damage, including mold, resulting from hidden water leaks.

  • Short-term rental: If you rent your home out to others on a temporary basis (no more than 62 days a year total), this coverage pays for damage that happens during those rental periods.

  • Scheduled personal property: If you have individual items that are particularly valuable — such as an engagement ring or pricey musical instrument — you can buy separate insurance that covers those items for a wider range of potential disasters.

Home insurance discounts

Depending on where you live, you may be eligible for some of the following 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, upfront.

  • Loyalty discount for those who’ve been insured with American Family for at least a year.

  • Discount for insuring a home under 15 years old.

  • Generational discount if you’re between 18 and 30 and 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.

Life insurance review

American Family Life Insurance
American Family

4.0

/5
 NerdWallet rating 
Financial strength rating
Strong
NAIC complaints
Fewer than expected
Policies offered
Term, permanent & no-exam
Online purchase
Yes

American Family life insurance coverage

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

Simplified term: The application doesn’t require a medical exam, and a term life insurance 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.

Term: This policy offers more coverage, though you may 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.

DreamSecure 15 Pay Whole Life: This type of permanent life insurance is fully paid after 15 years but offers coverage throughout your life.

Whole life: This policy features level premiums until age 100 and builds cash value you can borrow against or leave to your heirs.

Whole life for seniors: Available to those between ages 50 and 80, this policy doesn’t require a medical exam and offers $10,000 to $15,000 worth of coverage. It may be a good option if you want to make sure your funeral expenses are covered.

Whole life for children: You can buy permanent life insurance for your child in $25,000, $50,000 or $75,000 amounts. The policy will be paid off in either 10 or 20 years, but they’ll have the coverage throughout their life.

Complaints and customer satisfaction

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

Customer satisfaction ratings for American Family’s home and auto insurance are better than average, according to J.D. Power.

2021 J.D. Power study

American Family ranking

Auto insurance shopping

No. 1 out of 12 companies.

Auto insurance claims satisfaction

No. 7 out of 18 companies.

Home insurance

No. 6 out of 21 companies.

Property claims

No. 6 out of 19 companies.

More about American Family insurance

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

Mobile apps: MyAmFam, American Family’s mobile app, lets you manage claims, pay bills, contact your agent, view policy documents, download proof of insurance, get roadside assistance and find an auto or glass repair shop.

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

Other insurance from American Family

American Family sells several types of insurance in addition to auto, home and life insurance, including:

  • Renters.

  • Motorcycle.

  • ATV.

  • Umbrella.

  • RV.

  • Flood.

  • Boat.

  • Business.

  • Condo.

  • Ranch and farm.

  • Mobile home.

  • Snowmobile.

  • Classic car.

American Family also offers the following types of insurance through third parties:

  • Travel insurance.

  • Health insurance.

  • Pet insurance.

Methodology

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. 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 (including renters and condo) and life insurance.

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 and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. 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.

Home insurance ratings methodology

NerdWallet’s homeowners 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, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. 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.

Life insurance ratings

NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale. 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.

Frequently asked questions