American Family Insurance Review September 2022

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Insurance reviews

American Family Auto Insurance
  • Auto 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 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.

American Family is among NerdWallet’s Best Car Insurance Companies.

Is American Family a good insurer?

Yes, American Family is a good auto insurer for most customers. The company also offers a wide selection of other insurance products, so if you're looking for a one-stop shop for insurance, American Family might be a good fit for you.

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.

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

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.

American Family homeowners and renters insurance

American Family offers homeowners insurance with a range of optional coverage to choose from. Learn more with our American Family home insurance review.

Don't own your home? You can get American Family renters insurance instead.

Complaints and customer satisfaction

American Family had fewer than the expected number of complaints to state regulators for life 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 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.

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.

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