American Family Insurance Review: Great Discounts, Convenient Mobile Apps

American Family Insurance Review: Great Discounts, Convenient Mobile Apps

Deep discounts and great mobile apps make this insurance company one of the best.

Good for

  • Parents with teens on their auto policies
  • Customizable home insurance policies
  • Anyone looking to bundle their homeowners and auto insurance policies with a low-priced insurance company

Bad for

  • Someone searching for a quick insurance quote
  • Average claims servicing for customers

Editor's Rating

4.0/5.0

American Family (AmFam) offers some of the best-priced homeowners insurance policies and great discounts on auto insurance coverage as well. The company isn't the best when it comes to servicing claims or overall customer satisfaction; however, it fares just as well as other large insurance companies. Overall, American Family has much to offer, whether you're searching for cheap insurance quotes or unique coverage options, like ride-share insurance.

American Family Insurance: Its Discounts Drive Rates From Decent to Great

American Family offers its homeowners and auto insurance policyholders some of the best rates, although drivers will have to apply discounts to get lower-priced premiums. Aside from low rates, one of American Family's best features is its highly convenient apps. They allow policyholders to file claims, view their insurance cards and handle billing. AmFam's DreamVault mobile app, for example, offers a convenient way for homeowners to catalog their belongings, which is useful when filing a homeowners insurance claim.

American Family's biggest drawback is its limited coverage area. Currently, the company only offers insurance coverage in 19 states, which are listed below. While the company writes policies directly, it also writes policies through several subsidiaries, most notably with Homesite and The General. AmFam's quote system is slow and clunky, making it time-consuming to receive a quote and compare to other insurers. However, prospective policyholders also have the option to receive quotes by calling a company representative.

American Family insurance offers policies in the following states:

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

Bottom Line: American Family is one of the best auto and homeowners insurance companies around. While it fails to offer the best auto rates, it makes up for it with steep discounts. Similarly, an average customer support team is supplemented by excellent mobile apps. Where AmFam falls short, it always offers some feature to redeem itself.

American Family Auto Insurance Coverage

Whether you want basic coverage or you're a ride-share driver, you'll find that American Family's coverage options are fairly comprehensive. In other words, there are very few drivers who will be dissatisfied with American Family's auto insurance policy options.

Rental car reimbursement coverage: This optional coverage reimburses you for car rental expenses when your vehicle is inoperable due to a covered accident. AmFam allows policyholders to rent vehicles through an approved provider or through a business of their choice. If you select the former, the company will bill American Family directly, which saves you time. If you select the latter, you'll pay out of pocket and submit receipts for reimbursement. One of American Family's approved providers is Enterprise Rent-A-Car, whis is convenient for drivers because the company has more than 7,600 locations worldwide.

Ride-share auto insurance: If you drive for Uber, Lyft or any other ride-sharing service, you're likely not covered by your existing auto insurance policy when you're available to passengers and when you're driving to a passenger. While the ride-sharing service usually provides coverage when the passenger is in your vehicle, that doesn't protect you from accidents that happen beforehand. American Family's ride-share endorsement fills the coverage gap between a standard policy and coverage offered by a ride-share service.

Emergency roadside service: If you often find yourself stranded on the road, then consider this policy add-on that provides you with roadside assistance services. Among the services included are towing, tire servicing and fluid delivery. Much like other roadside service programs, help is available 24/7. To request roadside service, policyholders with the add-on can dial 800-MYAMFAM, but service can also be requested through the MyAmFam app.

Lease and loan gap coverage: Oftentimes, what you owe on a loan or a lease is more than the payment that you would receive when your vehicle is in a covered accident, resulting in a "gap" in your coverage. This is the case because new cars depreciate quickly, meaning they lose value faster than drivers are able to pay off a loan or a lease. American Family's gap insurance add-on covers the difference between what you owe and what you'll receive from your insurer if you're in an accident.

Traditional Coverage Options Available Through American Family Insurance

  • Comprehensive coverage
  • Collision coverage
  • Liability coverage
  • Uninsured and underinsured motorist damage
  • Medical payments coverage

American Family Auto Insurance Discounts

You'll be hard-pressed to find another insurance company that offers a more comprehensive list of discounts than AmFam does. Whether you have a teen driver on your policy or you exhibit safe driving habits, American Family has discounts for you.

KnowYourDrive discount: Enrolling in KnowYourDrive earns you an automatic 5% discount on your auto insurance policy. When you enroll in KnowYourDrive, American Family will send you a car adapter that is used to keep track of your driving habits. Depending on how safely you drive, you could earn a discount of up to 40%. The safer you drive, as determined by AmFam's metrics, the higher the discount you'll receive. We consider this to be a great discount opportunity because AmFam doesn't penalize drivers who don't qualify for discounts. In other words, at worst, you would receive a 5% discount.

Teen Safe Driver discount: While most auto insurance companies offer some sort of teen driver discount, not many offer a discount based on their driving behaviors. This discount program scores each trip teen drivers take using a mobile app. Once participants complete one year in the program or drive more than 3,000 miles, they qualify for up to a 10% discount. Parents can also access the information on their teens' driving habits and scores.

DiscountHow Do You Receive It?
Loyalty and Sign-Up Discounts
MultivehicleInsure multiple vehicles with AmFam.
LoyaltyCase-by-case discounts based on the time spent insured with the company.
Early-birdSign-up for coverage within seven days of receiving a quote from American Family.
Multi-productHave multiple insurance policies with American Family, such as homeowners and auto policies.
Steer into savingsSign up for American Family insurance coverage after leaving a competitor.
GenerationalQualify for this discount if your parents are insured through American Family.
Safety Discounts
Auto safety equipmentDrivers in certain states qualify for a discount if they have factory-installed air bags.
Defensive driverPolicyholders in certain states are eligible for a discount if they are over 55 years old and complete an approved defensive driving course.
Good drivingDrivers without accidents, tickets or any claims become eligible for a discount.
Low mileageQualify for this discount if you drive fewer than 7,500 miles per year.
Young Driver Discounts
Good studentBecome eligible for this discount if you have a student driver on your policy who maintains good grades as determined by American Family.
Away at schoolQualify for this discount if you have a student on your policy who is under 25 years old and is more than 100 miles away at college while their car is stationed at home.
Young volunteerReceive a discount if you're under the age of 25 for each year you complete 40 hours of volunteering at a nonprofit.
Billing Discounts
Auto payEnroll in automatic billing.
Customer full payPay the total cost of your policy upfront instead of paying a portion each month.
PaperlessSign up to receive email statements and save money on your auto insurance.

American Family's Auto Insurance Rates

While you likely won't get the absolute cheapest auto insurance quotes, American Family offers rates that are cheaper than the average competitor. American Family is at its best when drivers are able to take advantage of its many discounts, most notably, the KnowYourDrive discount program. For instance, a 19-year-old man who enrolls in the discount program could decrease his annual rate of $3,664 by as much as $1,466.

How Cheap Are American Family's Insurance Quotes

American Family Homeowners Insurance Coverage

American Family's homeowners insurance policies are highly customizable. When you receive a quote, you'll be taken to a page where you can select from three tiers of insurance, with each increasing in coverage limits. Alternatively, American Family also allows customers to opt for a policy with custom coverage limits. Below, we list a few of American Family's endorsements that can be used to supplement your standard homeowners insurance.

Sewer backup and sump pump overflow coverage: Most homeowners insurance policies don't provide coverage for damage caused by sewer backup, but American Family's endorsement serves to protect homeowners against these costly incidents. Coverage can be purchased in increments of $5,000 up to a maximum limit of $15,000.

Identity theft protection: American Family's identity theft protection endorsement covers expenses associated with restoring your identity, such as legal fees, notary expenses and an assigned caseworker. The caseworker will work with you and third parties, like police and credit bureaus, to resolve your case. The coverage will cost you around $21 per year, which is quite affordable, considering what's included.

What's Covered by an American Family Policy?Details
Your homeCovers your home for damage or losses if they're caused by a covered accident.
Your personal itemsCovers damage, destruction and theft of personal possessions.
Loss of useIf your home is uninhabitable due to a covered loss, your homeowners insurance will cover the expenses associated with living away from home.
Medical paymentsIf someone suffers an injury on your property, your homeowners insurance will pay for their medical bills up to your coverage limit.

American Family Homeowners Insurance Discounts

American Family offers its policyholders access to relatively few discounts compared to other insurance companies. However, discounts vary by state and depend on the company underwriting your homeowners policy, so you may qualify for more discounts than the ones listed below.

Safe, Secure, Smart Home discount: Homeowners with smart home devices or home security systems qualify for a 5% discount on their home insurance policies. This is a great discount because there are multiple ways to earn it. For instance, homeowners with a video doorbell or a burglar alarm system would be eligible for a discount on their homeowners insurance policies.

DiscountHow Do You Receive It?
MultiproductSave money when you bundle two policies, such as your auto and homeowners insurance.
Age of homeDepending on how new your home is, you might be eligible for a discount.
Renovated homeReceive a discount if you've replaced your home's plumbing, electrical and heating systems in the last 15 years.
Home purchaseIf you've purchased a home in the past three years, you're eligible for a discount.
Auto payHave your insurance premiums automatically deducted from your bank account.
Full payPay your insurance premium upfront all at once, rather than monthly.
PaperlessSign up for email delivery.
LoyaltyEarn a discount for being insured through American Family for a certain length of time.
GenerationalSave money if your parents are insured with American Family.

American Family's Homeowners Insurance Rates

Whether you're looking to insure a home worth $150,000 or one worth double that, American Family offers some of the most affordable home insurance quotes. While the company doesn't have as many homeowners discounts as it does for auto policyholders, it compensates by offering more competitive homeowners rates. Since home insurance rates vary widely by region, you should compare quotes you receive from American Family to the average in your state.

How Do American Family's Homeowners Insurance Quotes Compare to Other Insurers?

American Family Renters Insurance Coverage

American Family's renters insurance coverage is fairly middle-of-the-road. Besides the standard coverages for your personal property, loss of use of your home, and liability, American Family doesn't have a large variety of special coverages and discounts. There are a few worth calling out, however. Pet insurance covers veterinary costs and final expenses if your animal is hurt as a result of a covered loss. Identity theft coverage pays for any losses and hardships that you incur as a result of identity theft, such as lost savings or replacing a stolen identity document. It also provides ongoing credit monitoring.

Coverage

What it covers
Identity theft protectionProvides credit monitoring and covers financial losses as a result of identity theft
Travel protectionCovers unexpected costs while traveling, such as flight cancellation or illness
Pet insurancePays for up to $1,000 in veterinary costs and possible funerary costs if your pet (dog, cat, fish or bird) is injured by a covered peril
Home businessExtends your liability and personal property coverage to cover your home business

Renters Insurance Discounts

American Family offers more discounts to its customers than most renters insurance companies. You can stand to save an especially large amount if you are already buying car insurance from the company, as you'll get a reduction in both your renters and auto insurance rates by bundling both policies with AmFam.

DiscountHow to receive it
MultiproductBuy both renters and automobile insurance from AmFam
Smart homeUse smart home tools that monitor things such as break-ins and basement flooding
Claim-freeGo five years without making a claim on your renters policy
PaymentDiscount for using automatic payments, paying your premium in full or using paperless billing
LoyaltyDiscount for being a long-time American Family insurance customer
GenerationalDiscount if your parents are also insured by American Family

American Family Renters Insurance Rates

American Family's renters insurance rates are average when compared to its competitors. We collected quotes from four renters insurance companies and found that American Family's average rate was $219 per year—4% more than the overall average among all the companies we surveyed, which was $211.

Column chart comparing the costs of American Family renters insurance with three other companies

Renters insurance from American Family is most appealing for people who opt for a lower coverage limit and lower deductible. For this buyer, American Family offered insurance for exactly the average among its competitors: $118 per year. However, even then, AIG and USAA offered more competitive rates. Based on these findings, we don't recommend American Family insurance on price alone, unless you are able to take advantage of the company's available discounts. Renters insurance prices vary considerably by home location and construction type, so always gather quotes from multiple companies before committing to one insurer over the other.

American Family Insurance Financial Strength Ratings

When it comes to insurance, customers may worry whether an insurance company will pay their claims. Policyholders have a reason to be confident about American Family's ability to pay insurance claims. The company was awarded an A rating for its financial strength by A.M. Best Rating Services, an insurance rating agency. The high rating reflects that the company has excellent financial operations, which translates into the ability to pay customer claims.

American Family Insurance Reviews and Complaints

American Family's customer service is average, but it does come out ahead in claims satisfaction ratings when compared to other notable companies, including Safeco and Liberty Mutual. As a result, customers might experience slight hiccups when filing a claim, but the company performs no worse than other industry leaders. In fact, most large insurance companies have mixed reviews and some complaints. American Family was awarded a three out of five rating for overall customer satisfaction for both its auto and homeowners insurance policies by J.D. Power.

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