american family insurance review — is this midwestern mutual company the right choice for your car coverage? American Family Insurance has been protecting drivers since 1927. The company is headquartered in Madison, Wisconsin. It operates in 19 states across the Midwest, West, and select Southern regions. With a 1.53% market share, American Family ranks as the 9th largest private passenger auto insurer in the United States. It is a Fortune 500 mutual company, meaning policyholders own it rather than shareholders. This american family insurance review examines their coverage options, discounts, customer ratings, and claims process. We break down exactly what you get and where American Family falls short. Whether you are a parent insuring a teen driver or a longtime homeowner looking to bundle, this guide covers everything you need to know before requesting a quote.
American Family Coverage Options
American Family offers all standard auto insurance coverages. These include bodily injury liability, property damage liability, collision, and comprehensive. You can also add uninsured and underinsured motorist coverage. Medical payments coverage and personal injury protection are available in select states. In most cases, these standard options are enough for the average driver.
However, American Family stands out with several unique add-ons. Their diminishing deductible gives you a $100 credit from day one. It reduces further each claim-free year at renewal. Gap insurance covers the difference between your car’s value and your remaining loan balance. OEM coverage ensures repairs use original manufacturer parts. For example, pet injury coverage pays vet bills if your animal is hurt in a crash. Rideshare insurance protects Uber and Lyft drivers during trips.
Accident forgiveness is another valuable feature in this american family insurance review. You can earn it free after 5 claim-free years. You can also purchase it upfront. Rental car reimbursement rounds out the lineup. As a result, American Family provides more add-on options than many regional competitors.
American Family Discounts Available
Discounts are where American Family truly shines. Bundling home and auto can save you up to 40% on both policies. Bundling renters and auto saves up to 7%. The multi-car discount provides roughly 15% off when you insure two or more vehicles. Paying your full premium upfront also earns a discount. Loyalty rewards are available for long-term customers.
This american family insurance review finds their teen driver discounts particularly impressive. The TeenSafeDriver program offers up to 10% off for completing a free safe driving course. The good student discount applies to drivers ages 16 to 25 who maintain a B average or 3.0 GPA. An away-at-school discount applies when a student lives 100 or more miles from home. The young volunteer discount rewards drivers under 25 who complete 40 hours of community service per year.
Their DriveMyWay telematics program deserves special mention. You get a 15% instant discount just for signing up. Based on your driving habits over a 99-trip trial period, you can save up to 35% total. Typically, safe drivers with smooth braking and consistent speeds earn the highest rewards. A defensive driver course completion earns additional savings in most states.
American Family Customer Ratings and Satisfaction
This american family insurance review reveals strong customer satisfaction scores across the board. In the 2025 JD Power Auto Claims Satisfaction Study, American Family scored 692 out of 1,000. That is above the industry average. In the Central Region Customer Satisfaction Study, they scored 674 compared to a regional average of 647. Their digital experience score reached 715, tying Progressive for third place.
Financial stability is equally strong. AM Best rates American Family an A, which means Excellent. This is the third-highest rating available. The NAIC complaint ratio for auto insurance is just 0.34. The industry average is 1.00, so American Family receives far fewer complaints than most insurers. However, their home insurance complaint ratio is 1.35, which is above average.
Third-party review sites confirm these findings. American Family holds an A+ rating from the Better Business Bureau. Trustpilot reviewers give them 4.7 out of 5 stars. Bankrate rates them 4.5 out of 5. The Zebra gives a slightly lower 3.8 out of 5. For example, most positive reviews cite responsive agents and fast claims handling.
American Family Insurance Review: Rates and Costs
Average rates vary depending on the source and coverage level. For full coverage, expect to pay around $223 per month or $2,676 per year according to NerdWallet. Minimum liability-only coverage averages about $67 per month. A 20-year-old driver pays significantly more at roughly $417 per month for full coverage. A 40-year-old pays about $222 per month. Drivers aged 60 pay approximately $205 per month.
American Family is not the cheapest insurer available. However, their discount stack can bring costs down substantially. As a result, drivers who qualify for bundling, good student, and telematics discounts often pay well below the average. This american family insurance review recommends getting a personalized quote to see your actual rate.
American Family Pros and Cons
Pros:
- Exceptional teen driver discounts including TeenSafeDriver, good student, away-at-school, and young volunteer programs
- NAIC complaint ratio of just 0.34, well below the 1.00 industry average
- DriveMyWay telematics offers up to 35% savings with a 15% instant sign-up discount
- Strong financial stability with an AM Best A rating and $14.3 billion in members’ equity
- Highly rated mobile app with 4.7 stars on iOS from over 87,000 reviews
Cons:
- Available in only 19 states, leaving most of the country without access
- Full coverage averages $2,676 per year, which is higher than budget insurers like GEICO
- Android app ratings lag behind iOS at roughly 3.2 to 3.7 stars
Who Should Choose American Family?
This american family insurance review identifies several ideal customer profiles. Families with teen drivers benefit most from American Family’s unique discount programs. No other major insurer offers a young volunteer discount or a comparable TeenSafeDriver program. If you live in one of their 19 states and have a student on your policy, the savings add up quickly.
Homeowners who want to bundle should also consider American Family. Saving up to 40% by combining home and auto policies is among the best bundle discounts in the industry. Typically, bundling customers see the greatest overall value. The company’s mutual structure means profits go back to policyholders rather than shareholders.
However, this american family insurance review notes that budget-conscious drivers in competitive markets may find lower base rates elsewhere. If you live outside their 19-state footprint, American Family simply is not an option. For example, drivers in Florida, Texas, New York, and California cannot get American Family coverage. In most cases, drivers who value strong customer service and unique add-ons over rock-bottom pricing will be happiest with American Family.
Frequently Asked Questions
What states does American Family auto insurance cover?
American Family operates in 19 states. These include Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin. They have over 2,084 agent locations across these states.
How do I file a claim with American Family?
You can file a claim through the MyAmFam app, the online portal, or by calling 1-800-692-6326. Claims can be filed 24 hours a day, 7 days a week. Most auto accident claims are resolved within approximately 30 days.
Is American Family a good insurance company?
Based on this american family insurance review, yes. They hold an AM Best A rating, a BBB A+ rating, and a NAIC complaint ratio of 0.34. Their JD Power claims satisfaction score of 692 is above the industry average. As a result, American Family ranks among the more reliable auto insurers in their service area.
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Official Sources & Resources
For verified information on auto insurance companies and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- National Highway Traffic Safety Administration (NHTSA): nhtsa.gov
- AM Best — Insurer Financial Strength: ambest.com
Content last reviewed April 2026. If you notice any outdated information, please contact us.