American Family Insurance Review 2022 | Bankrate

American Family got its start in 1927 by offering car insurance to Wisconsin farmers and has since expanded to offer over a dozen types of insurance, including car, homeowners and life insurance. Commonly known as AmFam, the company might be particularly appealing to policyholders who want to personalize their insurance coverage with unique add-ons.

This Post: American Family Insurance Review 2022 | Bankrate

Perks
Drawbacks

Many opportunities for young drivers to earn discounts and build safe driving habits
Car and home insurance coverage availability limited to 19 states

Scored above-average in J.D. Power’s 2021 survey for Home Insurance and Auto Claims Satisfaction Study
Ranked below average in J.D. Power’s 2021 Auto Insurance Study in the Northwest region

Financial strength rating of A (Excellent) from AM Best

Bankrate’s comprehensive American Family Insurance review reveals that the carrier’s rates are relatively affordable compared to the national average. This could be ideal for homeowners looking for affordable home insurance policies. While its auto insurance is slightly more expensive, AmFam also has many options — including coverage and discount opportunities — to save on the premium and deductibles.

Although it started as a small regional carrier, AmFam is now available in multiple states. Car and home insurance coverage with American Family is only offered 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

American Family car insurance | Bankrate Score: 4.3

Drivers with infractions on their driving record may find American Family especially worth exploring. Although drivers with a mark on their record will typically experience higher rates, AmFam’s average rates following a speeding ticket conviction or at-fault accident were below the national average. However, rates for a driver with a clean driving record and adding a young driver to the policy were higher than the national average, which had an impact on its overall Bankrate Score of 4.3 out of 5 possible points.

Average car insurance premiums are only one factor of the Bankrate Score, however. In analyzing the best car insurance companies, our insurance editorial team also reviews companies’ policy offerings and discount availability, as well as its third-party ratings for customer satisfaction and financial strength. AmFam received an A (Excellent) AM Best rating, but scored below average for customer satisfaction in the Northwest region as part of J.D. Power’s 2021 Auto Insurance Study.

American Family car insurance offers standard auto coverage types like liability, comprehensive, collision, medical payments and uninsured and underinsured motorist coverage.

American Family car insurance cost

Car insurance with American Family costs an average of $1,627 per year for full coverage and $592 per year for minimum coverage, based on our study of quoted premium data from Quadrant Information Services. This is higher than the national average cost of car insurance, which is $1,771 per year for full coverage and $545 per year for minimum coverage. Keep in mind that personal rating factors and variances among each car insurance carrier will play a large role in determining your specific auto insurance rates.

American Family average annual full coverage premium
National average full coverage premium

Clean driving history
$1,627
$1,771

Speeding ticket conviction
$1,907
$2,138

At-fault accident
$2,301
$2,521

Adding a 16-year-old driver
$3,390
$3,852

American Family car insurance discounts

Taking advantage of discounts could help you save on car insurance. A few AmFam discounts you may not find as common among other insurers include:

• Early Bird: If you have a policy with another carrier and request a quote from American Family at least seven days prior to its effective date, you may qualify for this discount.
• Steer Into Savings: This discount provides policy savings to new American Family customers for switching their car insurance from another insurer.
• Young Volunteer: To qualify for this discount, drivers must be under 25 years old and have earned 40 hours of volunteer service at a non-profit.

Safe drivers can utilize optional tools like KnowYourDrive, a usage-based telematics program that allows drivers to earn up to 20% off their car insurance based on how safely they drive, with a 10% discount earned automatically just by signing up. AmFam also allows policyholders to purchase Diminishing Deductibles, which credits drivers $100 off their collision and comprehensive deductible for every year of safe driving, up to the policy maximum.

American Family car services

AmFam has partnered with ForeverCar, a car repair insurance provider, to give policyholders up to 44% off a ForeverCar Vehicle Service Plan. Whereas car insurance is intended for accident-related damages, ForeverCar is for covered mechanical breakdowns for parts like brake pads, headlamps and windshield wipers, among others. Its coverage is similar to a vehicle warranty program. There are three plans to choose depending on whether the car has an existing parts warranty and its current mileage, but note that coverage is not offered once a car’s odometer reaches 225,000 miles.

American Family home insurance | Bankrate Score: 4.1

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Although the company did not make Bankrate’s 2022 list of best homeowners insurance companies, AmFam’s diverse range of policy add-ons and competitive pricing positively influenced its overall Bankrate Score of 4.1 out of 5. However, AmFam did not score as favorably in areas such as state availability.

AmFam home insurance may be a good option for homeowners looking for unique opportunities to extend their financial protection beyond the standard homeowners insurance coverage. Beyond coverage for dwelling, personal property and liability, homeowners insured with AmFam may add hidden water damage protection to cover water damage caused by leaks within a home’s plumbing system or household appliances, or opt for equipment breakdown coverage. AmFam’s matching siding protection will also cover the replacement of damaged siding after a covered loss.

American Family home insurance cost

On average, an American Family home insurance policy with $250,000 in dwelling coverage cost $1,106 per year. This is considerably lower than the national average cost of home insurance at $1,383 per year. However, the final premium for your homeowners insurance policy will vary based on a variety of factors unique to you and your home.

Dwelling coverage limit
American Family average annual premium
National average annual premium

$150,000
$864
$980

$250,000
$1,106
$1,383

$350,000
$1,427
$1,887

$450,000
$1,711
$2,351

$750,000
$2,306
$3,414

American Family home insurance discounts

To save money on home insurance, AmFam provides some unique discount opportunities. These home insurance savings include:

• Loyalty discount: Those who have been insured with American Family for one year or more may be able to earn a discount on their home insurance premium.
• Generational discount: Policyholders whose parents have a home or auto insurance policy with American Family and are between the ages of 18 and 30 could be rewarded with this discount.
• Renovated home discount: This discount could be added to your policy if you have completely replaced the plumbing, electrical and heating systems in your home within the last 15 years.

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American Family home services

AmFam customers valuing home security may benefit from AmFam’s partnerships with other companies. For example, policyholders can purchase Hedge’s smart home devices at a discounted price and also earn a monthly discount with ADT Home Security’s professional monitoring and free installation.

In addition to home security, AmFam has also partnered with CyberScout — a service that offers AmFam customers a discount on credit monitoring services.

American Family life insurance

The best life insurance companies structure policies in a way that allows policyholders to protect their loved ones’ financial future in the event of an untimely death. AmFam offers term life insurance and whole life policies, as well as some carrier-unique policies, like simplified term, flexible life, senior whole life and children’s whole life policies. Whether you want to purchase life insurance for mortgage protection, income replacement or for future tuition costs, AmFam’s different policy offerings and coverage options could provide solutions for your financial situation.

American Family life insurance endorsements

Available endorsements for an American Family life insurance policy depend on the policy type. For example, with an AmFam whole life insurance policy, policyholders can add a guaranteed purchase option, which removes the requirement for medical questions or a health exam in certain situations. Policyholders could also opt for a children’s insurance rider, which gives natural, adopted and stepchildren $15,000 in coverage.

These are only a few of the options available with AmFam’s whole life insurance policies. Speaking with an American Family insurance agent can help provide a full breakdown of endorsements on each of its policies.

American Family life services

American Family does not currently indicate whether it provides any additional financial planning services to its life insurance customers.

Other American Family perks worth considering

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In addition to these three types of insurance, American Family also offers:

• Renters insurance: If you rent your home, this policy type is best suited to insure your personal belongings and provide liability coverage.
• Umbrella insurance: This policy will extend the liability portion of your existing personal insurance policies by a specified amount that you can choose.
• Pet insurance: Owning a pet can come with many expenses, but having pet insurance could help offset some of the costs.

American Family social responsibility

American Family’s DreamBank Community strives to empower individuals to stay motivated and pursue their business and personal dreams. The program hosts three experiences: Dream Camp, Dream Summit and Dream Academy to support this initiative. It also has a physical location in Madison, Wisconsin called DreamBank Madison which serves as a co-working and community center to give participants a place to work, network with others and listen to invited speakers.

Not sure if American Family is right for you? Consider these alternatives

It may help to compare American Family to similar insurers to be sure it’s the right fit for your insurance needs. With that in mind, you may find these insurers are also worth considering:

• Liberty Mutual: Liberty Mutual is another insurer with a long list of coverage endorsements for home and auto insurance that you may find worth exploring.
• The Hartford: The Hartford specializes in providing home and auto insurance for AARP members. AARP members may receive discounts and unique financial services as well.
• USAA: Intended for military and qualified family members, USAA offers some of the cheapest home and auto insurance in the nation, on average.

• • Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

    Auto

    • $100,000 bodily injury liability per person
    • $300,000 bodily injury liability per accident
    • $50,000 property damage liability per accident
    • $100,000 uninsured motorist bodily injury per person
    • $300,000 uninsured motorist bodily injury per accident
    • $500 collision deductible
    • $500 comprehensive deductible

    To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

    Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

    Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and a single DUI conviction.

    Homeowners

    • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
    • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
    • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
    • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
    • Coverage E, Liability: $300,000, $500,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    These are sample rates and should be used for comparative purposes only. Your quotes will differ.

  • Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers and homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

    To determine how well the best car and home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers and homeowners, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry, as well as 40-year-old male and female homeowners with $250,000 in dwelling coverage. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers and homeowners may compare each provider.

    While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.