American Family Insurance presents an enticing option for individuals seeking affordable full-coverage rates, especially for teens and high-risk drivers. While it may align with your needs and budget, it’s prudent to compare it with other providers to ensure you’re getting the best deal.
Unveiling American Family Insurance: A Comprehensive Review
1. Cost-Efficiency Beyond Compare
American Family Insurance shines in the affordability department. Their full-coverage plan averages at $1,851 per year, a rate that is significantly competitive. Even for minimum coverage, the average yearly cost stands at an enticing $810.
2. Tailored for the Young and High-Risk
For young and high-risk drivers, American Family Insurance goes the extra mile by offering remarkably low average rates, making it a strong contender in this category.
3. Unlocking Savings with Discounts and Add-Ons
Policyholders have the opportunity to further economize on premiums through a plethora of discounts and customizable policy add-ons that American Family Insurance provides.
Evaluating American Family Insurance: A Scorecard
- Overall Rating: 9.1
- Cost: 9.5
- Coverage: 9.4
- Reputation: 8.4
- Availability: 8.1
- Customer Experience: 9.2
All ratings are substantiated by our meticulous editorial review process. For further insights into our scoring methodology, refer to our detailed explanation below.
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The Stalwart: American Family Insurance
- Established: 1927
- Better Business Bureau (BBB) Rating: A
- AM Best Financial Strength Rating: A
American Family Insurance, originating from Farmers Mutual Automobile Insurance Company in 1927, has solidified its place as the ninth-largest car insurance company in the U.S. The company extends its coverage to 19 states, making it a prominent player in the market. In 2021, it underwrote over $5.4 billion in direct auto insurance premiums, accounting for 2.1% of the nation’s market share.
Pros and Cons: A Balanced View
Pros:
- Diverse policy options
- Multiple car insurance discounts
- Extensive add-on coverage choices
Cons:
- Subpar customer reviews from BBB and Trustpilot
- Limited availability in only 19 states
Deciphering Customer Sentiment
Reviews of American Family Insurance indicate moderate satisfaction levels among customers. Positive feedback lauds the affordability of coverage and exceptional customer service. However, there are instances of discontentment, particularly regarding denied claims and inconsistencies in the payout process.
Performance in Customer Satisfaction
- J.D. Power 2023 U.S. Insurance Shopping Study: Ranked fourth with an impressive score of 855 out of 1,000 points.
- J.D. Power 2022 U.S. Claims Satisfaction Study: Scored above industry average at 874 points.
Ratings: BBB, Trustpilot, and Reddit Insights
While American Family Insurance garners some positive feedback for its claims process, it’s important to acknowledge that there are grievances. The BBB rates it at 1.1 stars out of 5.0, with over 183 complaints addressed in the last three years. Trustpilot presents a more favorable outlook, awarding it a 4.2-star rating out of 5.0. Negative reviews are not uncommon for an insurer of this magnitude.
Our attempts to solicit a response from American Family Insurance regarding these negative reviews were unfortunately unfruitful.
Real Perspectives from Reddit
Reddit provides an unvarnished platform for users to share their unfiltered experiences. Many policyholders express contentment with American Family Insurance, praising its affordability. However, some drivers recount encountering unexpected rate hikes, prompting exploration of alternatives like Geico and other providers. It’s crucial to remember that rates are contingent on location, driver history, and other variables.
Delving into American Family Insurance Coverage
American Family Insurance extends six standard car insurance options:
- Liability car insurance (Bodily injury liability and property damage liability coverage)
- Collision insurance
- Comprehensive insurance
- Personal injury protection (PIP)
- Medical payments coverage (MedPay)
- Uninsured motorist coverage
Amplifying Coverage with Add-Ons
Policyholders have the option to augment their coverage with the following insurance products:
- Gap insurance
- Rental car reimbursement coverage
- Emergency road service coverage
- Accidental death and dismemberment coverage
Additionally, American Family Insurance provides complimentary access to the KnowYourDrive mobile app, offering up to a 20% discount based on safe driving behavior, along with a 10% introductory offer upon enrollment.
Budgeting for Protection: American Family Prices
For a married 35-year-old driver with an untarnished driving record and favorable credit, full coverage averages at $1,851 annually. This figure stands 8% below the national average of $2,002 per year for comparable coverage.
Tailored Quotes for Varied Circumstances
Car insurance premiums, as with any provider, are subject to an array of factors. Poor credit may lead to higher premiums, except in California, Hawaii, Massachusetts, or Michigan. Young or less-experienced drivers, as well as those with suboptimal driving records, can anticipate higher costs.
Minimum-Coverage Quotes: A Comparative View
For a driver with good credit and a clean record, American Family Insurance’s annual minimum-coverage rates are 8% above the national average.
- Average Monthly Cost (AmFam): $68 | National Average: $52
- Average Annual Cost (AmFam): $810 | National Average: $627
Tailoring Rates for High-Risk Drivers
American Family Insurance’s rates for a 35-year-old male driver with good credit may escalate by up to $400 or more post a speeding ticket. Nevertheless, rates for high-risk drivers persistently undercut the national average by 11% or more.
- Clean Driving Record: $1,851 | Recent Speeding Ticket: $2,333 | Recent Accident: $2,169 | DUI: $2,457
Geography Matters: American Family Quotes by State
Estimates for annual costs differ by state:
- Arizona: $1,569 | Nevada: $2,887
- Colorado: $2,511 | North Dakota: $1,156
- Delaware: $2,828 | Ohio: $980
- Idaho: $1,040 | Oregon: $1,377
- Illinois: $1,161 | Rhode Island: $2,401
Please note that these figures are estimates and not indicative of precise costs.
A Focus on Age: American Family Quotes by Age
American Family Insurance extends attractive rates for teens and young drivers. A 16-year-old new driver, for instance, can expect to pay an average of $5,535 annually, a 34% reduction compared to the national average.
- 16: $5,535 (AmFam) | $7,581 (National Average)
- 25: $2,023 (AmFam) | $2,336 (National Average)
- 35: $1,851 (AmFam) | $2,008 (National Average)
- 45: $1,746 (AmFam) | $1,923 (National Average)
- 55: $1,651 (AmFam) | $1,767 (National Average)
The Verdict on Affordability
American Family Insurance presents a cost-effective option for high-risk drivers and those with recent DUIs. The premium you’ll pay hinges on several variables including age, gender, marital status, location, driving history, credit score, and the vehicle you drive.
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Unlocking Savings: American Family Insurance Discounts
American Family Insurance’s extensive range of discounts has resonated positively with its customer base. Here’s a glance at the discounts on offer:
- Multi-vehicle Discount
- Loyalty Discount
- Early Bird Discount
- Multi-product Discount
- Steer into Savings Discount
Final Assessment: American Family Insurance
We bestow a commendable rating of 9.1 out of 10.0 upon American Family Insurance. While it boasts a plethora of discounts and potential add-ons, it’s important to note that coverage is available in only 19 states and customer reviews exhibit a mixed sentiment. We encourage exploring other options to secure coverage tailored to your specific needs.
In addition to auto insurance, American Family Insurance extends its services to include home insurance, renters insurance, business insurance, landlord insurance, life insurance, credit monitoring, identity theft insurance, health insurance, travel insurance, and umbrella insurance.
Considering Alternatives: American Family Insurance in Comparison
While American Family Insurance is a reputable insurer, it’s not the sole option at your disposal. We recommend obtaining car insurance quotes from other well-regarded providers before making a final decision.
- Geico: Ideal for Budget-Conscious Drivers
- Market Share: 13.8%
- Premiums Written: $38 Billion
- State Farm: Exemplary Customer Experience
- Market Share: 16.8%
- Premiums Written: $46.6 Billion
FAQs: American Family Auto Insurance
- How does American Family Insurance fare as an insurance company?
- Is American Family Insurance considered a large-scale company?
- Is American Family Insurance pricier compared to other providers?
- Is Geico a more economical option than American Family Insurance?
Our Methodology: An In-Depth Insight
In order to deliver reliable and unbiased information, our rating system encompasses an extensive range of factors. These include cost, coverage options, reputation, availability, and customer experience. We invested 800 hours in research, reviewing 45 companies and surveying over 8,500 consumers to ensure our ratings provide accurate guidance in selecting the best car insurance provider for your specific needs.