Insurance » Auto Insurance Reviews » American Family Car Insurance Review 2021 – good for high risk drivers
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American Family Car Insurance Review 2021 – good for high risk drivers

With its many discounts for teens and students, it's great coverage option for customers who have children they want to include in their auto insurance policies.

We may receive compensation from companies that appear on this page. It doesn’t affect our unbiased editors’ opinions. our opinions are our own.

American Family Car Insurance Review

If you’re looking for an auto insurance provider with great discounts, American Family Insurance is one company that offers very high savings opportunities to its customers. The steep discounts make up for its relatively expensive coverage rates.

American Family (AmFam) will give you reasonable rates regardless of your driving history – this is one of the reasons why the coverage provider is attractive, especially to high-risk drivers. But when it comes to online service or customer support, AmFam might not be so appealing. Although, the insurer's over 3500 agents across the states where the company functions assure that customer service will be personal and relatively reachable. 

With its many discounts for teens and students, this car insurer might serve as an efficient coverage option for customers who have children they want to include in their auto insurance policies.

Despite its limitations, especially in terms of coverage options, AmFam still ranks as one of America's top ten insurance providers. 

Only residents of 19 American states can enjoy the services of this company, and they include the following: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.

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On American Family Secure Website

Better Business Bureau

A

NAIC Complaint Index

Below average

J.D. Power satisfaction

3/5

PROS

CONS

Basic Coverage

American Family offers the traditional suite of auto insurance products that most other insurers provide. These include: 

  • Car Protection Coverages: These include “Collision Coverage” that protects you in the event of a collision regardless of who caused the accident. The second protection option for your car is the “Comprehensive Coverage” that pays for damages done to your vehicle in incidents such as flooding, theft, fire, vandalism, or hitting animals.
  • Discount Coverages: These products are designed to protect your spending, such as “Property Damage Liability Coverage” that pays for any damages you do to the properties of others. “Bodily Injury Liability Coverage” is another standard option that foots the bills for treating others when you hurt them in an accident.
  • Personal Protection Coverages: These options cover you regardless of who caused the accident. “Medical Expense Coverage” pays for healthcare costs for you and your passengers while “Personal Injury Protection Coverage” refunds any costs related to lost incomes or hospital bills.

Extras

As for the additional coverage options that you can add to your existing insurance policy, American Family has quite a number of extras for you. Here are the advertised add-ons by this insurer: 

  • Gap Coverage: Pays for the difference between the current market value of your car and what you owe in the event of a complete loss.
  • Underinsured Motorist Protection Coverage: Pays the difference between what the insurance policy of another driver can cover and the actual damage done.
  • Rental Reimbursement Coverage: Foots the bills for a rental vehicle for the duration of your car's repair after a loss.
  • Emergency Road Service Coverage: Pays for fixing your car in the event of a breakdown mid-travel.

How to Get a Quote

step 1: On the American Family website, type in your zip code in the space provided and select “Car” from the drop-down menu right next to zip code space, then click “Start Quoting”.

American Family auto insurance - How to get a quote 1

step 2: Next, fill out some requested information about you, such as your full name, address, date of birth, etc. Then select “continue”.

American Family auto insurance - How to get a quote 2

step 3: Next, you will be required to enter details about the vehicle(s) you want to protect. Fill in all requested information and click on “Add Vehicle” when you’re done.

American Family auto insurance - How to get a quote 3

step 4: Next, you will be required to enter details about the driver(s) of the vehicle(s) in question. When you are through, click “Continue”. Afterward, type in your Social Security Number and details about you’re current provider (if you have one). AmFam will give you the chance to customize your policy or go ahead without making any changes. You will then be required to enter information regarding your driver's license, VIN, and tell AmFam if you own, finance, or lease the car(s). Your quote will then appear, and you can proceed to make the payment if you're satisfied with the rate.

How to File a Claim

 To file a claim, you can do so on the website or through the MyAmFam App. On the website, click “Claims” on the navigation bar, then “File a Claim” in the drop-down menu that appears. You will be asked to log in, but you can also choose to continue with the claims process without logging in. Next, select “car” from the claim types available.

American Family auto insurance - How file a claim 1

 Next, fill in the required details as it appears on your insurance policy documents.

American Family auto insurance - How file a claim 2

 Continue following the prompts and fill in all other required information. Once you complete the filing process, an AmFam representative will review the claim, and in two days, a claims adjuster will contact you. 

Here are the essentials you need to submit to file a claim:

  • Date and time of the incident
  • Brief description of the incident
  • Photos of damages
  • Insurance and contact details of all involved parties

Here are some advantages of American Family Insurance as well as some disadvantages: 

Benefits

When it comes to one of the strengths of American Family, discounts top the list. From bundling policies to adding several cars or driving safely to volunteering, there are many things you can do to receive the money-savers offered by American Family.

The Teen Safe Driver Program enables parents to watch videos of their teenage drivers on the road.

While several auto insurers might offer coverage services to high-risk drivers at relatively high rates, AmFam gives such motorists quite low quotes.

AmFam has a number of products and discounts that encourage safe driving such as the Good Driving Discount, Auto Safety Equipment Discount, Defensive Driver Discount, and the Teen Safe Driver Program.

AmFam has a number of products and discounts that encourage safe driving such as the Good Driving Discount, Auto Safety Equipment Discount, Defensive Driver Discount, and the Teen Safe Driver Program.

Drawbacks

AmFam’s website can prove quite difficult to navigate and even requires your VIN before you can get a quote.

Requesting a quote and filing a claim on the American Family website are quite tiresome and lengthy processes.

American Family is only available in 19 states of the US, which means you will need to look for another provider if you don't reside in those jurisdictions.

Customer Satisfaction Ratings

    • A on BBB: BBB assigns ratings from A+ (highest) to F (lowest). BB ratings are based on information in BBB files with respect to factors such as business's complaint history with BBB, type of business, time in business, transparent business practices and more.
    • 1.05/5  on BBB customers reviews (42 reviews): BB customer reviews allow customers to post positive, negative or neutral reviews about marketplace experiences.
    • A on A.M Best: AM Best uses its rating system to judge the strength of a company’s financial holdings and assets.
    •  3/5 on J.D Power: We considered J.D. Power’s regional auto insurance study as well as J.D. Power’s claim satisfaction survey.

J.D Power offers the most comprehensive and independent study of customer satisfaction. The study aims to help consumers and issuers to understand user opinions and ratings of the largest car insurance companies. It covers customer satisfaction, terms, coverage options, communication, rewards and more.

J.D Power’s claim satisfaction survey rates companies on customer’s claims experiences.

Auto Insurance Discounts

American Family has some of the steepest discounts in the auto insurance industry. You can enjoy as much as 40% savings for meeting some of AmFam’s discount requirements.

However, you should note that some of these discounts are location-dependent, meaning that you might not be able to receive certain discounts in some covered states. Here are the money-savers offered by American Family: 

DiscountHow do you receive it?
Auto safety equipmentYour car must possess factory-installed airbags. (For select states only).
Low mileageDrive fewer than 7500 miles yearly.
Good drivingStay without accidents, violations, or any claims.
Defensive driverBe above 55 years of age and complete a recognized course in defensive driving.
MultivehicleProtect two or more cars with American Family.
Multi-productBundle several insurance policies with AmFam.
LoyaltySpend a considerable length of time being covered by AmFam.
GenerationalAmFam must insure your parents.
Early-BirdPay for your quote within seven days of receiving it.
Steer into savingsLeave a competing insurance provider for American Family.
PaperlessSign up to receive your statements via email.
Auto paySubscribe to be billed automatically.
Customer full payCompletely pay for your policy costs at once instead of paying monthly.
Away at schoolStudents should be below 25 years, be at a college situated over 100 miles from home, and leave the car at their house.
Good studentMaintain good grades in school.
Young volunteerComplete 40 hours of volunteering per year and be under 25 years old.
KnowYourDriveUtilize AmFam’s program for tracking your driving.

American Family FAQs

American Family does have a limited coverage area. Currently, the insurer only offers coverage in 19 states. In addition to directly writing policies, it also has several subsidiaries, which can make the system slow to use, particularly for quotes and claims. So, if you are not in one of the main coverage states, you may find American Family difficult to access.

If you’re within its coverage area, American Family is a solid provider for car insurance. While it may not offer the best rates, there are some excellent discounts, which can bring the costs of auto insurance down. Additionally, American Family has a solid support team and a mobile app, which makes managing your policy and making a claim easier.

Although American Family has a small coverage area of 19 states, Direct Car Insurance is even smaller. This insurer operates in just 11 states, which may make obtaining a policy even more difficult. Additionally, while American Family has a reputation for excellent discounts, Direct Car Insurance rates are considered to be merely average.

The main advantage Direct Car Insurance has is that it advertises highly flexible payment options. However, this is offset by American Family’s mobile app that makes policy management and premium payment simple. So, overall, American Family is likely to be the better choice.

The main difference between American Family and Allstate is in the coverage area. While both companies offer some great discount options and policy add ons, American Family is only available in 19 states.

Additionally, Allstate has a reputation for offering great rates even if you have a less than perfect driving record or credit history.

Finally, while Allstate has solid reviews for its claims process, American Family has reviews that suggest it is slow to process paperwork. This means that overall Allstate is likely to be the better option. 

Unlike AAA, American Family has a limited coverage area, only operating in 19 states. Additionally, American Family has a reputation for being slow to deal with paperwork. From quotes to processing claims, reviews suggest that American Family can be ponderous to deal with.

While American Family does offer some great discount options, the geographic restrictions and admin delays mean that existing members are likely to find a better deal sticking with AAA. AAA also offers access to discounts and you can access insurance services in all 50 states.

Alternatives

Here are our 2 choices of car insurance companies which can use as a great alternative to American Family Auto Insurance:  

Travelers offers the staple insurance products along with some coverage add-ons. While it is true that the rates are quite high when compared to other leading policy providers, the discounts offered by the insurer make the prices competitive. If you are a safe driver, Travelers will prove to be a worthwhile insurance provider – however, if you don't have a clean motoring record, this company might not be so favorable – it is better you look for coverage elsewhere.

Allstate's customer convenience drive, discounts, and a wide range of coverages are probably responsible for its popularity among Americans. Allstate is also famous for its personalized support, and it even offers a customer satisfaction guarantee in terms of its claims process.

You should note, however, that the rates offered by Allstate are somewhat more expensive than the provisions of other top insurers. As long as you meet the requirements to partake of the discounts offered by the company, you will enjoy a more balanced rate with Allstate.

If you're a driver with a clean record, Allstate will treat you with fairly decent rates

Car Insurance Companies Review – Methodology

Our expert review team gathers data from many auto insurance providers in order to create rankings of the top insurers. Each company receives a score from each category, along with a overall weighted score of 5.0 stars.

Financial Stability: The highest score in this category goes to insurers with high financial ratings and customer-first practices. Although insurance marketplaces do not have financial strength ratings they can still be useful tools for drivers who are looking for premiums at competitive rates. If you are looking for an insurer that doesn’t underwrite your policies, be sure to check the rating of the partner company.

Coverage: The rating is based upon the types of insurance that are available, their maximum coverage limits and any add-on policies. We also consider exclusions that are applicable to certain drivers.

Cost and Discounts: We review auto insurance rates estimates for many drivers across every state. The best scores are awarded to companies that offer lower rates and have many discount options for car insurance. You can lower your insurance premium by qualifying for any driver discounts. Car insurance companies often offer discounts up to 25%-35% for eligible policyholders. 

The discount percentages offered vary depending on where you live and some companies restrict the amount of discounts that can be applied to your premium. We looked at the discounts offered in the various companies that we reviewed. Many allow you to combine different insurance policies to save on premiums. There are many savings options for drivers shopping for car insurance. These include discounts based on the type of car, profession, driving record, and other factors. Companies that offer a variety of options could lead to a lower premium for drivers were favored by us.

Customer Service: We review customer feedback and reviews from J.D. Power. Data such as market share, complaints to the National Association of Insurance Commissioners for private passenger car insurance (2020) and overall ratio of those complaints to the industry average. 

We took into account parameters such as companies mobile apps, advanced online services, and telematics make it easier for auto insurers to respond to consumer needs. Many providers offer support via phone, email and agents. Some even offer live chat and 24/7 support via phone, email, or mobile app, while some provide social media responsiveness during weekends and after-hours hours.