American Family Insurance, also known as AmFam, is one of the prominent auto insurance providers in the United States. Known for its variety of coverage options and numerous discounts, American Family Insurance caters to a broad spectrum of customers, including high-risk drivers, teens, and those looking for customizable policies. This article provides an in-depth review of American Family Car Insurance, drawing on multiple sources to offer a comprehensive understanding of its offerings, customer satisfaction, and pricing.

Overview of American Family Car Insurance

Founded in 1927, American Family Insurance initially focused on serving farmers but has since expanded its services to a broader customer base. Today, it stands as the ninth-largest auto insurance provider in the U.S., offering coverage in 19 states. The company is noted for its financial strength and a solid reputation in customer service and claims handling.

Key Features

• Wide Range of Coverage Options: American Family offers standard auto insurance coverages such as liability, comprehensive, collision, medical payments, and uninsured/underinsured motorist coverage. Additionally, it provides various optional coverages, including gap insurance, accidental death and dismemberment coverage, and rideshare insurance.
• Discounts and Telematics Programs: The company boasts a robust set of discounts and telematics programs like KnowYourDrive and Teen Safe Driver, which can help policyholders save significantly on their premiums.
• Customer Satisfaction: American Family has received favorable ratings for customer satisfaction and claims handling, although it is only available in 19 states.

Customer Reviews and Satisfaction

American Family has garnered mixed reviews from its customers. While many appreciate its comprehensive coverage options and competitive pricing, some have expressed dissatisfaction with the claims handling process and rate increases.

Positive Reviews

Customers often praise American Family for its excellent customer service and comprehensive coverage options. Here are some highlights:

• Customer Service: Approximately 57% of survey respondents reported being completely satisfied with American Family's customer service. Moreover, 59% found the ease of reaching customer service satisfactory (U.S. News & World Report).
• Claims Handling: American Family ranks third for claims handling, with 53% of respondents expressing complete satisfaction with how their claims were resolved (U.S. News & World Report).
• Discounts: The company is also praised for its discounts, with 43% of survey respondents being completely satisfied with the policy discounts offered (U.S. News & World Report).

Negative Reviews

On the flip side, some customers have pointed out areas where American Family falls short:

• Rate Increases: Unexpected rate increases have been a common complaint, particularly among drivers with minor infractions or those enrolled in the IntelliDrive program but exhibit risky driving behaviors.
• Claims Process: Some policyholders have expressed frustration with delays and lack of communication during the claims process.

Customer Ratings

Here are some ratings from various review platforms:

• U.S. News & World Report: American Family ranks tied at No. 6 in the best car insurance companies and No. 3 for claims handling. It has an overall rating of 3.8 out of 5 (U.S. News & World Report).
• MarketWatch: American Family received an overall rating of 9.1 out of 10, with high scores in cost, coverage, and customer experience (MarketWatch).
• Bankrate: American Family earned a Bankrate Score of 4.2 out of 5, highlighting its lower-than-average premiums and high customer satisfaction ratings (Bankrate).
• NerdWallet: American Family scored 5 out of 5 stars for overall performance, emphasizing its fewer-than-expected consumer complaints and extensive coverage options (NerdWallet).

Pricing and Discounts

American Family's pricing is generally competitive, particularly for high-risk drivers and teens. However, its rates can vary significantly based on the driver's profile and location.

Average Rates

• Full Coverage: The average cost of full-coverage insurance from American Family is $1,851 per year, which is about $200 less than the national average (NerdWallet).
• Minimum Coverage: The average rate for minimum coverage is $810 per year (MarketWatch).

Rate Comparisons

To provide a clearer picture, here are American Family's average annual rates compared to national averages for different driver profiles:

Data from NerdWallet (2024)

Rate Variations by Age

Age significantly impacts car insurance rates. Here are the average annual rates for different age groups:

Data from Bankrate (2024)

Discounts

American Family offers a wide range of discounts that can help reduce premiums:

• Multi-Vehicle: Discount for insuring more than one vehicle.
• Multi-Product: Discount for bundling auto and homeowners insurance.
• Good Student: Discount for students with good grades.
• Defensive Driver: Discount for completing an approved defensive driving course.
• Telematics Programs: Discounts through programs like KnowYourDrive and Teen Safe Driver.

Coverage Options

American Family offers a variety of coverage options to suit different needs:

• Liability Coverage: Covers bodily injury and property damage you cause to others.
• Collision Coverage: Pays for damage to your car from a collision.
• Comprehensive Coverage: Covers non-collision-related damages like theft, fire, and natural disasters.
• Personal Injury Protection (PIP): Covers medical expenses for you and your passengers.
• Uninsured/Underinsured Motorist Coverage: Protects you if you're hit by an uninsured or underinsured driver.
• Gap Insurance: Covers the difference between what you owe on your car and its depreciated value if it's totaled.
• Rideshare Insurance: Provides coverage for drivers working for rideshare companies like Uber and Lyft.
• Accidental Death and Dismemberment Coverage: Pays out if a car accident causes death or certain injuries.

Additional Services and Tools

American Family offers several tools and programs to enhance the customer experience:

• KnowYourDrive: A telematics program that tracks your driving behavior and offers discounts based on safe driving.
• Teen Safe Driver: A program designed for young drivers that tracks their driving habits and provides feedback to improve safety.
• Dreams Restored Program: Pairs drivers with trusted repair shops in their area for faster, guaranteed repairs.
• Safelite Partnership: Provides convenient windshield repair and replacement services through Safelite.

Conclusion

American Family Insurance offers a robust array of coverage options and competitive pricing, particularly for high-risk drivers and teens. The variety of discounts and telematics programs like KnowYourDrive provide opportunities for significant savings, especially for safe drivers. However, potential customers should be aware of the mixed reviews regarding customer satisfaction and claims handling. Comparing quotes from multiple providers and considering personal priorities can help determine if American Family is the right fit for your insurance needs.

Final Recommendations

• Get Multiple Quotes: Always compare quotes from several insurance companies to ensure you get the best rate and coverage for your needs.
• Consider Discounts: Take advantage of the various discounts offered by American Family to lower your premiums.
• Evaluate Coverage Needs: Assess your specific coverage needs and choose a policy that offers the best protection for your situation.
• Read Reviews: Look at customer reviews and ratings to get a sense of other policyholders' experiences.

Frequently Asked Questions:

What types of coverage does American Family Insurance offer?

American Family Insurance offers a range of coverage options, including liability, comprehensive, collision, medical payments, uninsured/underinsured motorist, gap insurance, rideshare insurance, and accidental death and dismemberment coverage.

What discounts are available with American Family Insurance?

American Family Insurance provides several discounts such as multi-vehicle, multi-product, good student, defensive driver, and discounts through telematics programs like KnowYourDrive and Teen Safe Driver.

How does American Family Insurance handle claims?

American Family Insurance has received favorable ratings for claims handling, with many customers expressing satisfaction with the resolution process. However, some customers have reported delays and communication issues during the claims process.

What is the average cost of American Family car insurance?

The average cost of full-coverage car insurance from American Family is $1,851 per year, which is about $200 less than the national average. For minimum coverage, the average rate is $810 per year.

In which states is American Family Insurance available?

American Family Insurance is available in 19 states, offering a variety of auto insurance products and services to residents within these states.