American Family auto insurance review: Discounts & low rates

With an average rate of $1,479 per year for car insurance, American Family offers lots of discounts and decent coverage options, but it is only available in 19 states.

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Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Edited by

Anna SwartzAnna SwartzSenior Managing EditorAnna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

Updated|4 min read

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American Family

American Family logo

Policygenius rating

Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
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4.3

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

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The bottom line

Founded in 1927, American Family, often shortened to AmFam, offers decent auto insurance coverage options and a wide variety of discounts

American Family has seen some marked improvements over time, with a big jump in its J.D. Power Claims Satisfaction Survey ratings from 2021 to 2022, which means AmFam customers were happier with the claims service and settlements they got. 

American Family doesn’t have the same range of car insurance coverage types as its competitors, but it does offer some valuable add-ons, including gap coverage and accidental death and dismemberment coverage. But it’s worth noting that American Family car insurance is only available in 19 states, and is not available to drivers in California, Florida, or New York.

Pros

  • Lower-than-average rates

  • Significant number of discounts

  • Offers gap coverage

Cons

  • Not available in every state

Basic coverages offered

  • Liability coverage: Required in almost every state, liability insurance covers the cost if you hurt someone or damage their property in a car accident.

  • Personal injury protection: Also referred to as PIP or no-fault insurance, personal injury protection covers medical or other expenses, like lost wages, if you or your passengers are injured in an accident, no matter who was at fault.

  • Uninsured/underinsured motorist coverage: Also known as UM/UIM, uninsured/underinsured motorist coverage pays for your repair bills or medical expenses if you’re in an accident caused by a driver who doesn’t have car insurance, or whose insurance doesn’t cover the full extent of the damage.

  • Collision coverage: Covers damage to your own car after a car accident, regardless of who was at fault.

  • Comprehensive coverage: Covers damage to your car that wasn’t caused by a collision, including damage from extreme weather, hail, flood, fire, falling objects, vandalism and theft.

  • Medical expenses coverage: Also known as MedPay, this covers expenses if you or your passengers are hurt or killed in an accident, no matter who is at fault. This tends to be a lower amount of coverage, usually between $1,000 and $10,000.

Additional coverages offered

  • Gap coverage: Pays the difference between the value of your car and the amount you owe on your car loan if your vehicle is totaled in an accident so you aren’t stuck making payments on a totaled car.

  • Rental car reimbursement: Pays for a rental car (up to a certain amount) if your car is in the shop after a covered accident.

  • Roadside assistance: Pays for services if your car breaks down, including towing, lock-out services, flat-tire changes, and fuel or fluid delivery.

  • Accidental death and dismemberment coverage: Helps pay for specific costs, like funeral expenses, if you are killed or suffer certain (unspecified) injuries in an accident, no matter who is at fault.

Ratings methodology

Price

4.3/5

Using Quadrant data, we compared the average cost of a full coverage policy from American Family with 50/100/50 coverage limits and $500 deductibles for comprehensive and collision coverage to competitor rates for the same coverage with the same driver profile (single drivers aged 30, 35, and 45 driving a 2017 Toyota Camry LE about 10,000 miles per year.)

Customer experience

4.3/5

American Family scored 874 out of 1,000 on J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, which is slightly above average for the industry. In J.D. Power’s 2022 U.S. Insurance Digital Experience Study, which looks at customer satisfaction with a company’s digital offerings, American Family received a 702, a very good score. And according to the National Association of Insurance Commissioners (NAIC) National Complaint Index Report, American Family also had significantly fewer customer complaints than average in 2021.

Coverage options

2.9/5

American Family offers 12 different types of auto insurance coverage, giving it a moderate score when it comes to coverage options. In addition to the standard auto insurance coverage types, like liability, comprehensive, and collision coverage, American Family offers add-ons like gap coverage and roadside assistance.

Financial strength

3.6/5

American Family has moderate financial ratings, scoring an A with AM Best, A with S&P, and A1 with Moody’s. This means American Family is in a decent financial position to pay out its customers’ claims, but the company has lower financial strength ratings than many of their competitors in the industry.

How much does American Family auto insurance cost?

American Family costs $123 per month, on average. That’s the rate for a full-coverage policy with bodily injury liability limits of $50,000 per person and $100,000 per accident, so cost can vary by coverage levels. 

But this makes American Family cheaper than the national average rate of $137 per month for a car insurance policy with the same coverage levels.

Coverage amount

Average annual rate for American Family

Required state minimum

$676

Full coverage ($50,000/$100,000)

$1,479

Full coverage ($100,000/$300,000)

$1,557

What discounts does American Family offer?

  • Multi-vehicle discount: Save money by insuring two or more cars on your American Family policy.

  • Loyalty discount: Get a discount for maintaining an American Family policy for a certain amount of time.

  • Early bird discount: Depending on your state, if you have an active policy with another carrier and receive an American Family quote at least seven days before the policy goes into effect, you could get a discount.

  • Multi-product discount: Also called a multi-policy or bundling discount, save money by bundling other American Family insurance policies, like home or condo, with your auto insurance.

  • “Steer Into Savings” discount: If you switch to American Family from another carrier you may be eligible for a discount (depending on your state.)

  • Auto safety equipment: Get a discount for having air bags and other safety features in your vehicle.

  • Defensive driver: Depending on your state, you could get a discount if you are over 55 and complete an approved defensive driving course (you’ll have to show proof to AmFam).

  • Good driving discount: Drivers without accidents, moving violations, or other claims may be eligible for a discount.

  • Low mileage discount: Driving under 7,500 miles per year can earn you a discount on your car insurance.

  • Good student discount: Students who maintain good grades may qualify for a discount.

  • TeenSafeDriver discount: Free to AmFam policyholders with a teenage driver, you may get a discount on your policy for enrolling your teen in the TeenSafeDriver program.

  • Away at school discount: You can earn a discount if you or your child is a student who is under 25, more than 100 miles away at college and their car is parked at home.

  • Young volunteer discount: If you're under 25 and complete 40 hours of volunteer work per year for a non-profit you could save money on your auto insurance.

  • Generational discount: You could save on your auto policy if at least one of your parents is currently an American Family customer.

  • Auto pay discount: Get a discount when you enroll in automatic funds transfer (AFT) or electronic recurring payments.

  • Customer full pay: Save money when you pay your AmFam premium in full at the start of your policy.

  • Paperless discount: Enrolling in online billing and e-delivery of your AmFam policy documents can help you earn a discount.

AmFam’s pay-how-you-drive discount programs

American Family offers three different discount programs that offer savings based on your driving behavior. 

Most car insurance companies offer a version of usage-based insurance, usually through an app that tracks your driving habits and then adjusts your savings depending on how well you drive, but AmFam is unique in that it offers three different versions of usage-based discount, with varying state availability.

DriveMyWay

KnowYourDrive

MilesMyWay

Get a 10% introductory discount on your coverage and a 5% participation discount for continuous use, but unsafe driving behavior will increase your rate

Get a 10% discount for signing up, but the discount does not apply to all types of coverage and can go up or down over time, depending on how you drive

Usage-based coverage for people who drive less than 8,000 miles per year

Offers additional savings based on driving skills (exactly amount not specified)

Get up to a 20% discount, depending on your driving behavior

Save up to 25% on your coverage by driving less

Most customers save between 5% and 20%

Offers tips and advice for improving driving behavior

Does not apply to all types of coverage

Only available in Utah

Not available in Utah

Only available in AZ, CO, IL and OR, but set to be available in every AmFam state by August of 2023

AmFam’s DriveMyWay and KnowYourDrive programs are standard usage-based programs that use a smartphone app to monitor your driving. Safe drivers (meaning people who don’t speed, stop short, or make unsafe choices) will earn bigger discounts.  

DriveMyWay requires a 100 day trial period, during which AmFam tracks your behavior behind the wheel. At the 90 day mark you will receive an email offering you a rate based on your trial period and you have two options: you can continue to track your behavior for an additional 5% participation discount at your next renewal, or you can lock in the rate and turn off the continuous tracking. If the rate they offer you is actually higher than your original rate you can unenroll in the program before the 100 day trial period is over and your DriveMyWay score won’t be used to calculate your rate.

Unlike DriveMyWay, AmFam’s KnowYourDrive program can be started at any time and does not have a trial period. Any discount you receive from using the KnowYourDrive app will stay on your policy as long as you continue to participate and follow the rules of the program (like staying logged into the app) but, if you cancel the program or delete the app from your phone, you will no longer receive the discount. 

Also, your KnowYourDrive discount will change over time as your driving behavior changes, so you can save even more if you become a safer driver over time.  

DriveMyWay is only available in Utah, and KnowYourDrive is available in a number of AmFam states (but not in Utah). 

Although the two programs have most of the same features, there is one important difference between the two beyond state availability: DriveMyWay can cause your rates to go up if you have enough unsafe driving behavior, while KnowYourDrive only offers a potential discount for good drivers and doesn’t increase rates for high-risk drivers.

MilesMyWay is AmFam’s pay-per-mile insurance program. It works by installing a sensor in your car that pairs with the MyAmFamDrive app to track your mileage in that vehicle. This means you can choose pay-per-mile coverage for a second vehicle that doesn’t get much use without paying by the mile for another vehicle that is driven more often.

MilesMyWay won’t ever increase your car insurance costs; your earned savings are applied to a base premium, which won’t go up (no matter how many miles you drive.)

American Family auto insurance state availability

American Family is available in 19 states, including:

American Family is not available in the following states:

What to expect with American Family auto insurance

How to get a quote: American Family sells  car insurance coverage through in-house agents, so the best way to get a quote is to use the AmFam website to find a local American Family agent who can give you a quote, but you can also get a quote online.

Customer service options: The best way to meet your auto insurance customer service needs is to reach out to your American Family agent, but you can also call American Family directly at 800-692-6326.

How to file a claim: Customers can file a claim through the American Family insurance app (known as the MyAmFam app) or by calling 800-692-6326 to speak with a claims representative.

How to cancel your policy: You can contact your American Family agent to cancel your policy. If you don’t have the contact information for your AmFam agent, you can call 833-381-1155 and they will put you in contact with your agent or send a cancellation request to your agent on your behalf.

American Family vs other auto insurance companies

Company

Policygenius rating

AM Best rating

Cost

American Family

4.3/5

A

$$

USAA

5.0/5

A++

$

Erie

4.9/5

A+

$

State Farm

4.8/5

A++

$

Auto-Owners

4.7/5

A++

$

Auto-Owners

4.7/5

A++

$

COUNTRY Financial

4.7/5

A+

$$

Farm Bureau

4.7/5

A

$

GEICO

4.7/5

A++

$

NJM

4.7/5

A+

$

Travelers

4.7/5

A++

$$

Amica

4.6/5

A+

$$

Encompass

4.6/5

A+

NA

MAPFRE

4.6/5

A

$

MAPFRE

4.6/5

A

$

Acuity

4.5/5

A+

$$

American National

4.5/5

A

$

Texas Farm Bureau

4.4/5

A

$

COUNTRY Financial

4.3/5

A+

$$

Costco (from CONNECT by AmFam)

4.3/5

A

$$

Nationwide

4.2/5

A+

$$

Germania

4.0/5

A-

$$

Wawanesa

3.8/5

B

$

Safeco

3.7/5

A

$$

Elephant

3.1/5

NA

$$

Root

3.1/5

NA

$

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Frequently asked questions

Is American Family good at paying claims?

American Family has a score of 874 out of 1,000 on the 2022 J.D. Power Claims Satisfaction Survey, which is about average, but that doesn’t mean its customers are unhappy. American Family also has one of the lowest NAIC complaint scores in the industry, which means customers haven’t reported many complaints about the customer service at American Family.

Is American Family Insurance cheap?

The average rate for an American Family car insurance policy is $1,415 per year. In comparison to competitor rates, American Family falls right in the middle of the pack; there are cheaper options out there, but there are more expensive options, too.

Who is American Family Insurance owned by?

American Family is a mutual company, which means the policyholders are actually the owners of the company. This means shareholders aren’t making a profit on your car insurance premiums.

What kind of insurance is American Family Insurance?

American Family is a property and casualty insurance company, which means it sells insurance that covers you and the property you own. American Family sells coverage for your house, cars, boat, and other personal property, as well as products like pet insurance, life insurance, and travel insurance.

Author

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

Anna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

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