American Family Auto Insurance Review

Generous, family-friendly auto insurance with limited availability

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American Family

American Family

overall rating
3.5

Our Take 

If you live in American Family’s service area, coverage is comprehensive and available for a variety of vehicle types. There are also a number of discounts available to help you save money on a policy. However, customer service ratings are low and policies may be more expensive than some of its competitors. 

  • Pros & Cons
  • Key Takeaways
  • Specifications
Pros & Cons
Pros
  • Multiple auto insurance discounts

  • Strong financial strength

  • Insures multiple vehicle types

Cons
  • Restricted availability

  • Poor customer service

  • Limited optional coverage

Key Takeaways
  • Founded in 1927, American Family is available today to policyholders in 19 states.
  • There are 10 options for car insurance coverage with over 16 auto insurance discounts to help you save.
  • Although its customer support receives mixed reviews, American Family makes it easy to receive help with 24/7 customer service and local agent support.
  • There are several exclusive policyholder benefits, like its Dreams Restored Program and Safelite Windshield and Auto Glass Repair program.
Specifications
  • Year Founded 1927
  • Types of Coverage Collision, comprehensive, property damage liability, bodily injury liability, medical expense, personal injury, underinsured and uninsured motorist
  • Available Discounts 16
  • Purchasing Options Online, phone, live chat, local agent
  • Customer Service Phone 1-800-692-6326, available 24/7. Online chat, available Monday through Friday, 8 a.m. - 8 p.m. CST
  • Official Website https://www.amfam.com/

Pros Explained

  • Multiple auto insurance discounts: It is easy to save money on your auto insurance with 16 different discounts available from American Mutual. 
  • Strong financial strength: American Family receives an A (Excellent) rating from AM Best for strong financial strength and stability. 
  • Insures multiple vehicle types: In addition to traditional car insurance, American Family also insures other types of vehicles, such as motorcycle, RV, boat, and classic car insurance. 

Cons Explained

  • Restricted availability: Insurance products are only available to residents in 19 states.
  • Poor customer service: American Family has a high customer complaint index from the National Association of Insurance Commissioners.
  • Limited optional coverage: Only a few types of optional insurance coverage are available for your policy.  

Introduction

American Family Mutual Insurance Company has been a leading provider of auto insurance for more than 90 years. With a full suite of car insurance protections, availability is limited to just 19 states. American Family has several exclusive programs meant to simplify your life behind the wheel with benefits like mobile repair service and Safelite glass repair. Add-on coverages are limited, but there are still plenty of ways to lower the cost of your car insurance with 16 different discounts for auto insurance.

Customer support is plentiful with several options to find help, whether in-person, online, or over the phone. The MyAmFam mobile app is accessible via iPhone and Android with 24/7 phone support and extended hours for online chat. Though financially strong, its customer satisfaction ratings fluctuate yearly, with the Southwest region earning the highest scores.

Company Overview

American Family Mutual Insurance Company was founded in 1927 as Farmers Mutual Automobile Insurance Company in Madison, Wisconsin. After introducing insurance in 1957, American Family Mutual Insurance company was founded just six years later in 1963. By 2017, American Family had become the fourth-largest company in Wisconsin and earned a spot on the Fortune 500 list.

Today, American Family remains committed to its name, supporting the American dream through its local communities. In 2005, it teamed up with the Green Bay Packers to raise over $1 million for breast cancer prevention, treatment, and research. Two years later, American Family Children’s Hospital was founded in Madison, Wisconsin, where it all began.

American Family has limited availability for its auto insurance coverage, restricting service to just 19 states in the U.S.

Geographical Limitations

American Family is only available in nineteen states.

  • Arizona 
  • Colorado
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Minnesota
  • Missouri
  • Nebraska
  • Nevada
  • North Dakota
  • Ohio
  • Oregon
  • South Dakota
  • Utah
  • Washington
  • Wisconsin

Types of Coverage

American Family offers a full suite of auto insurance protections, with several optional add-ons available for extra protection.

For help with your policy, phone support is available 24/7, or you can use the online chat function during business hours.

Standard Coverage

American Family offers 10 types of standard car insurance. 

Collision Coverage

If you are involved in an accident resulting from a collision or accident, collision coverage can help cover the damages.

Comprehensive Coverage

Comprehensive car insurance covers damages from other accidents that do not involve a vehicle collision. This can include protection for common events like fire, hail, theft, and vandalism. 

Property Damage Liability Coverage

When you damage another party’s property, property damage liability coverage helps pay for the damages.

Bodily Injury Liability Coverage

If you cause an accident, bodily injury liability coverage will help pay for medical and legal expenses relating to injuries.

Medical Expense Coverage

If you or your passengers experience any injuries from a car accident, medical expense coverage helps pay for care, regardless of fault. 

Personal Injury Protection Coverage

Personal injury protection provides valuable coverage should you or your passengers lose income or incur medical or child care costs relating to an accident. This is provided regardless of fault.  

Gap Coverage

When you lease or finance your vehicle, there may be a difference between your car’s worth and the balance you owe. Gap coverage helps pay for that difference, so you are not financially liable should you experience a total loss. 

Underinsured Motorist Protection Coverage

Underinsured motorist protection provides coverage when you experience greater damages than what is covered by the other motorist’s insurance.

Uninsured Motorist Protection Coverage

Uninsured motorist protection covers your damages if you are in an accident or hit by another driver who does not have insurance coverage. 

Accidental Death and Dismemberment Coverage

Accidental death and dismemberment (AD&D) coverage provides protection when death or certain injuries are incurred by a vehicle accident, regardless of fault. 

Optional Coverage

American Family has additional auto insurance coverage that you can add to your policy.

Emergency Road Service Coverage

Emergency roadside assistance is available at an additional cost should you encounter trouble along your travels. Things like flat tires or a dead battery can be easily helped when you request support via phone or the MyAmFam app.

Rental Reimbursement Coverage

Rental reimbursement coverage can help cover the cost of a rental car should you need one while your car is being repaired. 

Coverage for Other Vehicles

American Family offers several types of auto insurance for vehicles beyond the standard car and truck. With motorcycle insurance, American Family offers up to $1,000 in coverage for your helmet, boots, and other gear. American Family also insures several types of recreational vehicles, including motorhomes, camping trailers, fifth wheels, and mounted truck campers. There is also insurance coverage for boats, watercraft, ATVs, snowmobiles, and classic cars.

Discounts

To help you save money on your car insurance, American Family offers 16 discounts for your policy. 

American Family can be a fantastic provider for teens and young drivers with several programs to help them save on auto insurance.

Auto Safety Equipment

You can receive an extra discount when your car is equipped with factory-installed airbags.

Away at School

American Family offers discounts for students under the age of 25 that attend college more than 100 miles away while their cars are parked at home. 

Loyalty

The longer you are a member, the more you can save with American Family’s loyalty discount.

Defensive Driver

Drivers 55 or older can earn an extra discount when completing an approved defensive driving course.

Generational

If a parent is an American Family customer, you can receive an extra discount on your policy.

Good Driving

Good driving discounts are available for those who do not receive any accidents, violations, or claims.

Good Student

Students with good grades can receive an extra discount on their auto insurance policies.

KnowYourDrive

American Family’s signature KnowYourDrive program is a telematics-based rewards system that discounts your auto policy based on safe driving. Drivers can earn a total discount of up to 20% with a 10% introductory offer upon your free enrollment. 

Low Mileage

American Family may lower the cost of your car insurance if you drive less than 7,500 miles annually.

Teen Safe Driver

American Family’s Teen Safe Driver program offers free enrollment to policies with a teenage driver. Teen drivers can earn discounts of up to 10% when they have completed one year or logged 3,000 miles of driving in the program.

Accident Forgiveness

American Family offers accident forgiveness, which means that safe drivers will not be penalized with increased premiums when they have their first at-fault accident. 

Young Volunteer

American Family is committed to community service and extends that philosophy to its members, too. Policyholders under the age of 25 can receive extra savings when they complete 40 hours of volunteer work each year at a non-profit.

Payment Options

American Family makes it easy to pay your bill with several payment options.

American Family Payment Options
Payment method How to make payments
Automated payments by phone 1-866-424-8002
Online Use your account or pay as a guest 
Mobile app Download and pay 
Automatic payments  Enroll using your checking or savings account 
Mail  Varies by state 

Several payment-related discounts are also available for your policy.

  • Early-Bird: If another provider currently insures you, you can receive a discount when you purchase an American Family policy at least seven days before the policy start date.
  • Multi-Product: Bundling multiple insurance policies from the same provider can earn you significant savings, such as 29% off your auto policy, 20% off your home insurance, and 15% off your renter’s insurance.
  • Multi-Vehicle: You can also save on insurance for multiple vehicles when they are insured by American Family
  • Steer into Savings: Your policy can be reduced when you switch your auto insurance coverage to American Family from another provider.

Before purchasing your policy, inquire about which discounts may apply to lower your premium. 

Loss Ratio

In May 2021, American Family published a report sharing its newest financial ratings. 2020 shows considerable improvement from 2019, with a total net underwriting loss of $402 million compared to $614 million in 2019. Its combined loss ratio in 2020 is 103.5, improved from 105.7 the year before. According to the report, this means that American Family expects to pay $1.04 in claims and expenses for each dollar in earned premiums.

Other Features

American Family offers many additional services and benefits not commonly seen with other auto insurance providers. 

Dreams Restored Program

With its Dreams Restored Program (DRP), American Family offers members exclusive access to its network of local repair shops. Repairs can be completed faster with direct billing and a lifetime workmanship guarantee from American Family itself.

Safelite Windshield and Auto Glass Repair 

American Family has partnered with Safelite to provide efficient and reliable auto glass and windshield repair and replacement. There is an optional mobile auto glass service if you prefer that service comes to you instead of a visit to one of the 700+ facilities nationwide. 

Customer Service

American Family provides multiple options for customer support, regardless of the day or hour. 

American Family Customer Support
Type of contact Availability  Contact details 
Phone  24/7 1-800-MYAMFAM (1-800-692-6326)
Chat  Monday - Friday 8 a.m. - 8 p.m. CST  
MYFAM App Mobile App  24/7 Available on Google Play or the App Store
Mail  - 6000 American Parkway Madison, WI 53783 
Special Investigations Unit  608 242-4100 ext. 31061

If you prefer to work directly with a local agent, an online search tool allows you to locate an agent either by name or your location.

Customer Satisfaction 

American Family receives strong ratings from AM Best, a ratings agency that assesses a company based on financial strength and stability. AM Best assigns American Family a score of A (Excellent) in its latest scores, which indicates that the company is financially sound and generally reliable in its claims processing.

Satisfaction Ratings

For customer satisfaction, American Family receives mixed reviews. 

J.D. Power, another popular ratings company, scores insurance providers based on customer satisfaction. In J.D. Power’s 2021 U.S. Auto Insurance Study, American Family’s scores vary significantly based on region. While it rates about average in the Central region and below average in the Northwest, it scores far better in the North Central area. It has even nabbed the top score in the Southwest area for two years running. It shows that customer satisfaction varies significantly based on where you live.

Meanwhile, in J.D. Power’s 2021 U.S. Insurance Shopping Study, American Family is the top-rated insurance provider among mid-size insurers.

Complaint Index

The National Association of Insurance Commissioners (NAIC) is another industry leader who judges a company based on customer complaints. A 1.00 score is used as the industry baseline, and companies that score below that threshold are considered to have poor customer satisfaction. 

For the last few years, American Family’s scores have hovered around the 1.00 mark, with its highest score of 1.19 in 2020. In 2019, it scored well below the baseline at 0.88, an improvement since 2019’s 0.95 score.

Account Management

American Family makes it easy to manage your account with both online and mobile access, coupled with personal agent support and 24/7 general customer service. Its claims process is just as simple, with a built-in support system of experienced professionals to help guide you through the process. American Family claims include local agent support, in addition to an expert claims specialist to help as needed. Claims filing is available online, with 24/7 support when you experience any issues.

How American Family Compares to Other Auto Insurance Companies

Based on our latest insurance methodology, American Family is the 8th-rated insurance provider in the U.S. with an overall 3.3 rating. It scores far better than some of its other larger competitors, such as Allstate, Farmers, and Auto Club, and ranks 9th in market share ahead of companies like Travelers, Erie, and The Hartford. Still, American Family manages to stay largely affordable with industry average premiums. Though not the cheapest, American Family stands out as a leading insurance provider in the U.S. for auto insurance.

Final Verdict

At American Family Mutual Insurance Company, coverage and discounts are plentiful, with several savings types that apply to nearly every driver. There is a strong emphasis on family-friendly options, with special discounts for students and young drivers, as well as payment- and policy-related savings programs. Though it only services 19 states, American Family is active in the communities it serves through its local agents and charitable endeavors.

Methodology 

All of our reviews of auto insurance companies are based on extensive research and analysis of each company’s coverage, customer service, pricing, years in business, accreditation, and more. To rate American Family and other providers, we developed an auto insurance review methodology that compares the auto insurance coverage types, additional features, discounts, account management, and reported customer experiences to help us provide insights into things like customer service and the strength of each company’s offerings. 

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
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  2. American Family. “Insurance for Motorcycles.” Accessed Nov. 4, 2021. 

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  4. American Family. “Know Your Drive.” Accessed Nov. 4, 2021. 

  5. American Family. “Teen Safe Driving Program & Discount.” Accessed Nov. 4, 2021. 

  6. American Family. "Payments." Accessed Nov. 4, 2021. 

  7. American Family. “American Family Insurance group’s customer focus, financial ratings.” Accessed Nov. 4, 2021.

  8. American Family. “Car Insurance - Why Choose Us?” Accessed Nov. 4, 2021. 

  9. American Family. “Contact Us.” Accessed Nov. 4, 2021. 

  10. American Family. “Insurance Agents Near Me.” Accessed Nov. 4, 2021. 

  11. AM Best. “American Family Mutual Insurance Company.” Accessed Nov. 4, 2021. 

  12. J.D. Power. “2021 U.S. Auto Insurance Study.” Accessed Nov. 4, 2021.

  13. J.D. Power. “J.D. Power 2021 U.S. Insurance Shopping Study.” Accessed Nov. 4, 2021. 

  14. NAIC. "American Family Mut Ins Co SI National Complaint Index Report." Accessed Nov. 4, 2021.