American Family 2019 Auto Insurance Review: Rates, Claims Satisfaction, and Coverage

BravoDollar Editor rating:

Summary:  

American Family Insurance offers auto insurance to 19 states.  The company offers all the traditional coverage options. Additionally, it offers many discounts which may drive its mid to low rates into the low rate category.  The company, however, falls below the national average for claims satisfaction, something you do not normally see in the smaller companies. However, it is a solid company financially with an A.M. Best rating of A.  The company also offers a wide array of other types of insurance including life, business, health, identity theft, travel, and property insurance.

Pros:

  • American Family has a number of discounts for young drivers who, as a group, tend to pay higher rates with any auto insurance company.
  • The company is financial stable with an ‘Excellent’ A.M. Best rating.
  • Rates are in the mid to low price range.
  • The company offers more types of insurance coverage than most auto insurance companies with health insurance being one of its offerings.

Cons:

  • American Family’s claims satisfaction rating is below the national average.
  • The company only services 19 states.
  • There are complaints that its online quote system is difficult to use compared to that of other auto insurance companies.

American Family has been in business for almost 100 years and has all the tradition car insurance options.  One of the best things about the company is that it offers a large number of discounts that consumers may qualify for that may bring its mid to low price range rates solidly into the low category.  Because of the number of discounts that it has for young drivers, American Family is a great option for parents with teenage drivers.

American Family has a very limited coverage area, serving only 19 states. The states in which the company offers insurance includes Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

American Family offers more types of insurance than most companies which offer auto insurance.  In addition to property insurance, life insurance, and business insurance, the company also offers travel insurance, health insurance, and identity theft insurance.  Thus, American Family is a great choice for consumers who wish to get all their insurance needs fulfilled by the same company.

The Value Equation ($$$)

Cost is one of the primary considerations that most people are concerned about when selecting an auto insurance company.  American Family Auto Insurance bases your rates on many of the same criteria as other car insurance companies such as age, location, coverage choices, driving history, and type of vehicle.  Choosing the cheapest coverage options may not be a wise choice because this may not afford you all the coverage that you need. In fact, the cheapest options tend to provide you with only the bare minimum coverage required by your state and may not be enough if you are involved in an accident.

To get a quote from American Family, you can go to the website, click ‘State Quoting’ and fill out the information requested.   You can also enter your zip code and click ‘Find An Agent’ if you would prefer to get a quote through an agent.

Here’s a glimpse of how American Family’s average premiums compare to 2 other large national providers.

American Family tends to offer low to mid-range rates in comparison to its large competitors such as State Farm and GEICO which are the two largest insurance companies in the US.

 GEICOState FarmAmerican Family
Drivers in their 30s$1,218$2,379$1,685
Drivers in their 40s$1,189$1,587$1,089
Drivers with at-fault accident$1,580$1,524$990
Drivers with DUI/DWI$2,550$3,854$1,857
Drivers with speeding ticket$1,395$1,983$1,270

Although, American Family’s rates are not lower than its competitors in all areas, it does offer a significant number of discounts compared to other auto insurance companies to lower its rates even further.

Discounts

American Family offers its customers more discounts than most other auto insurance companies.  They fall into these categories:

  • Multi-Vehicle Discount – a discount for having more than one vehicle insured by the company.
  • Loyalty discount – discount for having an American Family policy for a certain period of time; a young driver can get a discount if one of his or her parents has a policy with American Family.
  • Early Bird – If you have a policy from another company that is about to go into effect and get a quote from American Family at least seven days before the other policy goes into effect.
  • Multi-Product – bundle auto and another type of insurance from American Family such as homeowners insurance for a discount.
  • Auto Safety Equipment – if your car has certain safety features such as airbags.
  • Defensive Driver – If you are 55 or older and you take a defensive driving course you may qualify for a discount.  This discount is subject to the state in which you live.
  • Good driving – If you do not have an accident or violations you can get a discount.
  • Low mileage – If you drive less than 7,500 miles per year, you can get a reduced rate.
  • KnowYourDrive Discount -sign up for KnowYourDrive to learn safer driving habits and get a discount.
  • Good Student Discount – students who maintain good grades may qualify for discounts.
  • Teen Safe Driver – Enroll in this program and save.
  • Away at School – If your college student is under 25 and at a college more than 100 miles away from the car.
  • Young Volunteer – If you are under the age of 25 and complete more than 40 hours of volunteer work for a nonprofit in a year.
  • Billing Discounts – sign up for autopay; pay in full; and/or go paperless for discounts.

As with other auto insurance companies, the discounts that you qualify for with American Family Auto Insurance are mostly determined when you obtain the policy; however, you can add discounts you become eligible for later to your policy to save on your rate.  Discounts are determined by a variety of personal factors such as age, driving record and whether you vehicle is equipped with safety features. Furthermore, you must remain qualified for the discounts throughout the life of the policy to continue to receive most discounts.

Claims Satisfaction

The claims satisfaction rating that an automobile insurance company has is just as important as price when searching for an automobile insurance company that you can count on.  American Family Auto Insurance may offer slightly lower rates than many of the largest insurance companies; however, the company does fall a little short in the area of claims satisfaction.

How easy is it to file a claim with American Family?

  • Visit the website to file a claim at:  https://www.amfam.com/claims
  • Call American Family at: 1-800-MY-AMFAM
  • Contact your American Family Insurance Agent to file a claim.

What is the average customer experience and satisfaction with American Family Auto Insurance?

Every year, J.D. Power surveys an estimated 10,000 customers who have filed a claim in the last six months to learn more about their experience.  Insurance providers are then ranked on a 1000-point scale based on the results of this survey. American Family falls below the national industry average of 861/1000 with a score of 853/1000.  In comparison, State Farm, the largest US insurance company, scored 864/1000 and GEICO, the second largest, scored below the nation average at 857/1000.

Coverage Options

CoverageAmerican FamilyState Farm GEICO
Liability
Physical Damage
Uninsured Motorist
Medical Payments Coverage
Comprehensive
Collision
Roadside Assistance
New Car Replacement
Rental Reimbursement
Rideshare (Uber/Lyft)
Gap insuranceOnly for State Farm Bank financed vehiclesX

Other Insurance

In addition to traditional motor vehicles, American Family Auto Insurance also insures motorcycles, recreational vehicles, snowmobiles, boats, ATV, and classic cars.  Thus, you can get all your vehicles, both on road and off-road, insured by America Family.

American Family also offers property insurance.  The company offers traditional property insurance such as homeowners insurance, renters insurance, and condo insurance.  In addition, it offers manufactured home insurance, and farm and ranch insurance.

The company also offers life insurance.  Its options for life insurance include DreamSecure term Life, DreamSecure Simplified Term Life, DreamSecure Whole Life, and MyLife Flexible Life.

Business owners can obtain business insurance through American Family as well.  The business insurance offers are more extensive than that of other companies. You can get insurance for building coverage, business personal property, business automobiles, business rental property and contractor insurance through American Family.  In addition, the company offers coverage for employees including business liability protection, medical expense coverage, commercial liability umbrella policies, employment practices liability protection, workers compensation and an employers liability policy.  American Family also offer Spoilage Coverage for perishable products, back up and overflow coverage for sewers, employee dishonesty protection, and flood insurance. Thus, you can purchase thorough coverage and protect your business through American Family Business Insurance.

Additional types of insurance American Family offers include Umbrella Insurance, Identity Theft Insurance, Health Insurance, Travel Insurance, and Credit Monitoring.  This means that consumers can really get all their insurance needs fulfilled through one company.

Website Experience

American Family offers a superb website experience.  The website is very easy to navigate and clearly states all the auto insurance coverage that the company offers as well as the discounts and other insurance. On the website, you can get quote, file a claim, monitor a claim, pay your bill, get roadside assistance, and more.  In addition, the website provides online chat so that you can quickly discuss matters with a knowledgeable representative. Moreover, American Family has a convenient app that consumers can download so that they can handle their insurance needs on the go.

The Bottom Line

  • American Family’s claims satisfaction rating is below the national average according to a J.D. Power survey.  However, the company is solid and financially stable with an A.M. Best rating of Excellent.
  • American Family only serves 19 states and it has less than 4,000 agents.  Thus, this insurance is not available in a number of states.
  • American Family offers all the traditional coverage options in the mid to low price range.  In addition, it offers an array of discounts that is more extensive than most other insurance companies. Consumers who qualify for a number of discounts may find that American Family Auto Insurance policy premiums are less expensive than their competitors.
  • American Family also offers a wide variety of other type of insurance besides car insurance.  Its property insurance options are more extensive and includes farm and ranch coverage. The company offers a large selection of business insurance.  It also offers, health insurance, a coverage which is not offered my most of the large auto insurance companies. Furthermore, the company offers life insurance, travel insurance, identity theft insurance, umbrella insurance and credit monitoring.
Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

No comment yet, add your voice below!


Leave a Reply