American Family insurance review: Regional carrier with great discounts

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American Family insurance pros and cons

American Family auto insurance review


JD Power Customer Satisfaction Rating


#7


AM Best Financial Strength Rating


A (Excellent)


JD Power Customer Satisfaction Rating


#7


AM Best Financial Strength Rating


A (Excellent)

More Information

  • Auto Insurance

American Family was first known as Farmers Mutual Insurance in 1927. At the time of opening, Farmers Mutual Insurance exclusively offered


auto insurance

, specifically for farmers. With one last name change, Farmers Mutual Insurance became known as American Family Insurance. 

American Family currently operates in 19 states. It’s ranked #7 in J.D. Power’s auto claims satisfaction survey

American Family offers multiple opportunities to save on your


car insurance

policy including good driver, good student, multi-vehicle, loyalty, and auto/full-pay discounts to name a few. 

Like most insurance companies, American Family  provides discounts for bundling your home and auto policy. 

There are four types of insurance coverage: liability insurance (required by most states), comprehensivecollision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.

The difference between the various coverage types is outlined in the table below:

American Family homeowners insurance review


JD Power Customer Satisfaction Rating


#6


AM Best Financial Strength Rating


A (Excellent)


JD Power Customer Satisfaction Rating


#6


AM Best Financial Strength Rating


A (Excellent)

American Family ranked #6 in J.D. Power’s homeowners insurance customer satisfaction survey

American Family offers home, renters, condo and manufactured/mobile home insurance. American Family also offers insurance for personal property like furniture, clothing, electronics and jewelry. 

Homeowners insurance protects your dwellingpersonal belongings, and offers personal liability coverage for injuries that happen on your property. Standard homeowners insurance looks like the table below, but coverage varies depending on your provider:

*Available as add-on coverage if not part of policy

Flood insurance is available through the NFIP and approved insurers

If you live in hurricane or tornado areas, additional windstorm rider may be required

American Family renters insurance review


JD Power Customer Satisfaction Rating


#4


AM Best Financial Strength Rating


A (Excellent)


JD Power Customer Satisfaction Rating


#4


AM Best Financial Strength Rating


A (Excellent)

American Family ranks #4 in J.D. Power’s renters insurance customer satisfaction survey. American Family also offers diminishing deductible. You can earn $100 off your deductible when you first sign up, and it will continue to drop by $100 each year that you are claim-free up to your policy’s maximum. 

Renters insurance will cover your personal property in the event of damage and theft. Your landlord is responsible for insuring the building and structure. A renters insurance policy has three main parts: personal property coverage, personal liability coverage, and “loss of use” coverage.

Personal property covers lost, damaged, or stolen belongings. Personal liability protects you if your pet injuries a guest, if someone is injured in your unit, or if you are sued for damages. “Loss of use” coverage assists you with relocation costs if your rental becomes unlivable due to damage.

*Available as add-on coverage

Flood insurance is separate coverage

Data from Hippo Insurance

American Family life insurance review


AM Best Financial Strength Rating


A (Excellent)


AM Best Financial Strength Rating


A (Excellent)

American Family didn’t make the list for J.D. Power’s life insurance customer satisfaction survey.

American Family offers term and permanent life insurance products. The term life products offered are level term and simplified issue, a no-medical exam policy. The permanent life insurance products include whole life, senior, and children’s whole life insurance. 

The two types of life insurance are permanent life and term life. Term life insurance only cover a specific period of time. When your policy is up, you can reapply for coverage. However, the premiums will most likely increase as you age.

Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.

American Family pet insurance review


AM Best Financial Strength Rating


A (Excellent)


AM Best Financial Strength Rating


A (Excellent)

You can apply for pet coverage if you have a homeowners policy with American Family. Additional pet insurance will cover up to $1,000 for veterinarian bills or final expenses for a cat, dog, bird, or fish. However, you can only make a claim if your pet is injured or if your pet dies due to a loss under your homeowners policy. Like other carriers, you can add a wellness plan for routine veterinary care.

Pet insurance usually offers two types of coverage: accident-only and accident and illness coverage. Wellness plans are usually available for additional purchase. 

Accident-only coverage only reimburses the cost of injuries your pet suffers as a result of an accident. Accident and illness policies cover both accidents and sickness or diseases your pet develops after your policy begins. No pet insurance carrier covers pre-existing conditions. 

American Family insurance vs. the competition

American Family, Erie Insurance, and The Hartford are regional carriers that offers auto, homeowners, life, renter, and pet insurance. While American Family doesn’t rank for life insurance, it’s #6 in homeowners insurance customer satisfaction, #7 in auto claims satisfaction, and #4 in renters insurance customer satisfaction survey. 

Is American Family trustworthy?

We checked the NAIC Complaint Index for complaints against American Family Insurance. American Family has slightly more complaints filed against it compared to other top insurers. 

American Family’s financial stability is strong, with an A.M. Best’s rating of A (Excellent).

Frequently asked questions

What states does American Family cover? 

American Family is only available in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

How do I make a claim with American Family? 

You can either file a claim with your American Family account, by contacting your insurance agent, or by calling (1-800-692-6326).

How do I get a quote from American Family?

You get a free and quick quote by using American Family’s online quoting tool.

Alani Asis

Personal Finance Reviews Fellow

Alani Asis is a Personal Finance Reviews Fellow who covers life, automotive, and homeowners insurance. Prior to Insider, Alani was a Mortgage Support Specialist and a personal finance freelance writer based in Hawai’i. You can reach her via email at aasis@insider.com or through Twitter @AlaniAsis. 


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