American Family Auto Insurance Review [updated 2023]

American Family Auto Insurance Review

American Family Mutual Insurance Company, with almost a century of experience, has been a prominent provider of auto insurance. Operating in 19 states, they offer a range of car insurance protections, signifying a strong commitment to supporting the American dream through community involvement and enterprises. Here’s a detailed look at the pros, cons, coverage options, discounts, customer service, and more.

Pros Explained:

Multiple Auto Insurance Discounts:

American Family Insurance offers an impressive array of 18 different discounts, making it easier for policyholders to save on their auto insurance premiums.

Strong Financial Strength:

Rated A (Excellent) by AM Best, American Family boasts strong financial stability and strength, instilling confidence in its policyholders.

Insures Multiple Vehicle Types:

Apart from traditional car insurance, American Family extends its coverage to various vehicle types including motorcycles, RVs, boats, and classic cars, providing a comprehensive range of options.

Cons Explained:

Restricted Availability: American Family’s insurance products are limited to residents in only 19 states, restricting its availability.

Uneven Customer Service: Customer service experiences vary by region, with higher satisfaction reported in the Southwest region compared to other parts of the country.

Limited Optional Coverage: The availability of optional insurance coverage is limited, providing only a few types for policyholders.

Types of Coverage:

American Family offers a comprehensive suite of auto insurance protections, including standard coverage and additional optional coverages.

Standard Coverage:

Collision Coverage: Covers damages resulting from collisions or accidents.

Comprehensive Coverage: Protects against damages from non-collision incidents like fire, hail, theft, etc.

• Property Damage Liability Coverage
• Bodily Injury Liability Coverage
• Medical Expense Coverage
• Personal Injury Protection Coverage
• Gap Coverage
• Underinsured Motorist Protection Coverage
• Uninsured Motorist Protection Coverage
• Accidental Death and Dismemberment Coverage

Optional Coverage:

Emergency Road Service Coverage
Rental Reimbursement Coverage
Coverage for Other Vehicles (motorcycles, RVs, boats, etc.)

Discounts: American Family Insurance offers a range of discounts to help policyholders save on their car insurance premiums. Some notable discounts include:

• Auto Safety Equipment
• Away at School
• Loyalty
• Defensive Driver
• Good Driving
• Good Student
• KnowYourDrive
• Low Mileage
• Teen Safe Driver
• Accident Forgiveness
• Young Volunteer

Customer Service: American Family Insurance prioritizes customer support with various options such as phone, chat, and their mobile app (MyAmFam) available for 24/7 assistance. Additionally, they offer localized agent support and online chat during business hours.

Loss Ratio: In March 2023, American Family reported its financial results for the previous year. The company’s combined loss ratio in 2022 was 111.4% across auto, homeowners, and commercial insurance lines. This implies that for every dollar earned in premiums, the company paid out $1.11 in claims. The increase in the loss ratio compared to 2021 (103.8%) was attributed to inflationary pressures and substantial catastrophe claims, particularly due to severe storms in the Midwest and Hurricane Ian in Florida. A higher loss ratio may indicate potential future premium increases for policyholders.

Additional Features:

Dreams Restored Program: American Family offers a unique Dreams Restored Program, connecting policyholders with a network of local repair shops for efficient and speedy repairs. The program ensures direct billing and a lifetime workmanship guarantee, providing added convenience and peace of mind.

Safelite Windshield and Auto Glass Repair: Partnering with Safelite, American Family offers reliable auto glass and windshield repair services. They even provide an optional mobile auto glass service, offering flexibility and convenience to their policyholders.

Comparison with Other Auto Insurance Companies:

Based on our latest assessment, American Family ranks as the 8th-rated insurance provider in the U.S., earning an overall 3.3 rating. This rating places them ahead of larger competitors like Allstate, Farmers, and Auto Club. Moreover, American Family holds the 9th position in market share, outpacing companies such as Nationwide, Erie, and The Hartford. While their premiums are industry average and not the cheapest, they stand out as a leading insurance provider in the U.S., particularly for auto insurance.

Final Verdict:

American Family Mutual Insurance Company impresses with an abundance of coverage options and discounts, catering to a wide range of drivers. Their strong focus on family-friendly options and special discounts for students and young drivers make them a competitive choice. Despite being available in only 19 states, their active involvement within the communities they serve showcases their commitment. With a solid financial standing and a range of offerings, American Family stands as a leading and reliable insurance provider in the U.S. for auto insurance coverage.

Payment Options:

American Family ensures convenient payment methods for their policyholders, offering flexibility and ease of managing their insurance bills. The available payment options include:

Automated Payments by Phone:

Policyholders can make automated payments by calling 1-866-424-8002.

Online Payments:

Payments can be made online using your account or as a guest.

Mobile App:

The MyAmFam mobile app allows for seamless payments and account management, available for download on both iPhone and Android devices.

Automatic Payments:

Policyholders can enroll in automatic payments using their checking or savings account.

Mail:

Traditional mail-in payments are also accepted, with specifics varying by state.

Additionally, American Family offers payment-related discounts, encouraging timely payments:

Early-bird Discount:

Policyholders switching to American Family from another provider can receive a discount when purchasing a policy at least seven days before the start date.

Multi-product Discount:

Customers who bundle home and auto insurance can save up to 23% on both policies.

Multi-vehicle Discount:

Insuring multiple vehicles with American Family provides savings on insurance premiums.

Customer Satisfaction:

American Family receives strong ratings from AM Best, highlighting its financial stability and strength with an A (Excellent) rating. However, customer satisfaction ratings vary based on location, as evidenced by J.D. Power’s 2022 U.S. Auto Insurance Study. In the Southwest region, American Family ranked third, showcasing higher customer satisfaction. Conversely, in the North Central area, it ranked seventh, aligning with the regional average. The National Association of Insurance Commissioners (NAIC) complaint index for American Family in 2022 was 0.40, indicating fewer complaints compared to similar insurers, signaling a reasonable level of customer satisfaction.

Unique Features:

KnowYourDrive Program: American Family’s KnowYourDrive program employs telematics to incentivize safe driving habits. This program rewards policyholders with discounts based on their driving behavior, potentially offering up to a 20% discount, encouraging responsible driving.

Teen Safe Driver Program: American Family acknowledges the challenges young drivers face and offers the Teen Safe Driver program. Young drivers can earn discounts of up to 10% upon completing one year or driving 3,000 miles safely in the program.

Young Volunteer Discount: American Family encourages community service by offering extra savings to policyholders under the age of 25 who complete 40 hours of volunteer work annually at a non-profit organization.

Location

Residing in a city characterized by high crime and car accident rates will influence the way insurance policies are priced. Similarly, if you reside in a flood-prone area, this will affect the cost of your policy.

As reported by Savvy, a data collection platform for insurance rates based on consumers’ current policies, Maine holds the title of being the least expensive state for car insurance, while New York ranks as the most costly in this regard.

Least Expensive	Most Expensive
1. Maine	1. New York
2. Hawaii	2. Rhode Island
3. Idaho	3. Washington, D.C.
4. Wyoming	4. Maryland
5. Iowa	5. Louisiana

Source: Savvy

DUI

Getting a DUI, which stands for driving under the influence of alcohol or drugs, can have a substantial effect on your insurance premium. Generally, insurance companies tend to offer higher premiums to individuals with DUIs, resulting in rate hikes typically ranging from 30% to 100%.

On a positive note, The Zebra reports that American Family’s rates are lower than the national average of $205 per month compared to its competitors following a DUI penalty.

Car Insurer	Average Monthly Premium after DUI
American Family	$137
Progressive	$153
State Farm	$157
GEICO	$229
Allstate	$356

Data Source: The Zebra

Methodology:

Our review of American Family Auto Insurance is based on thorough research and analysis. We’ve considered crucial factors such as coverage options, additional features, discounts, customer service, payment options, and overall offerings within the auto insurance industry. This assessment aims to provide readers with an informed and impartial evaluation, aiding them in making educated decisions regarding their insurance needs.

Online Accessibility:

American Family excels in embracing the digital age, ensuring easy accessibility for their policyholders through online platforms. The MyAmFam mobile app, available on both iPhone and Android devices, offers convenient 24/7 access for account management, policy information, and bill payments. This online presence reflects their commitment to enhancing user experience and providing accessible customer

Conclusion:

American Family Mutual Insurance Company, though limited in geographic availability, excels in providing a wide range of auto insurance coverages and discounts. Their commitment to community involvement and financial stability adds to their appeal. For those within their service areas, American Family stands out as a leading auto insurance provider in the U.S.