Customers mostly give the company, also known as AmFam, high marks for service and satisfaction. That, coupled with the lower-cost car insurance rates, should make this car insurer a contender in your search if you’re in one of the states where it does business.
This review explores the types of car insurance that American Family offers, the company’s rates, and more.
Besides covering typical cars, American Family also offers other types of vehicle insurance, including motorcycles, RVs, ATVs, and more. Like most insurance companies, American Family also provides other products, like homeowners insurance, life insurance, travel insurance, identity theft insurance, and more.
AmFam offers a range of car insurance coverage, including some required and optional others like:
AmFam also provides add-on insurance options such as:
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American Family is popular with its wide range of car insurance discounts that help auto insurance shoppers lower their rates.
Always remember to contact the company directly with any discount-related questions and shop competitors like GEICO, State Farm, and others for car insurance quotes to determine the best policy and discounts for you.
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According to The Zebra, American Family car insurance costs an average of $117 per month. However, you might get a different quote based on your age, gender, and average annual miles. Other factors, including your geographic location, and driving and credit history, also affect rates. Let’s take a closer look.
Other Factors that Impact Car Insurance
Living in a city with high crime and car accident rates will affect how an insurance policy gets quoted. If you live in an area prone to flooding, that will impact your policy quote.
According to Savvy, which collects rate information data from consumers’ current policies, Maine is the cheapest state for car insurance. Car insurance in New York is the most expensive.
| Least Expensive | Most Expensive |
| 1. Maine | 1. New York |
| 2. Hawaii | 2. Rhode Island |
| 3. Idaho | 3. Washington, D.C. |
| 4. Wyoming | 4. Maryland |
| 5. Iowa | 5. Louisiana |
Source: Savvy
Savvy’s statistics offer a representative sample used as a general guide. This example does not break out information by the insurer. See more about Savvy’s methodology.
A DUI, or driving under the influence of alcohol or drugs violation, can significantly impact your premium. Insurance companies usually quote higher premiums to drivers with DUIs, and rates typically increase between 30% and 100%.
However, the good news is that according to The Zebra, American Family rates fall below the national average of $205 per month compared to its competitors after a DUI penalty.
| Car Insurer | Average Monthly Premium after DUI |
| American Family | $137 |
| Progressive | $153 |
| State Farm | $157 |
| GEICO | $229 |
| Allstate | $356 |
Source: The Zebra
Driving history plays a major role in insurance rates, too. Overall, individuals with poor driving histories can expect their rates to be much higher on average than those with good driving histories.
At-fault collisions and other accidents can have a massive impact on your car insurance premiums. According to The Zebra, drivers with an at-fault accident can expect rates to increase by $757 each year for up to five years.
American Family drivers in an at-fault accident can expect to pay $147 per month, well below the national average of $179 a month.
Another major factor insurers take into consideration: a person’s credit history. A very poor FICO credit score can cost a driver as much as 165% more for the same car insurance policy than someone with exceptional credit. FICO scores help lenders, and car insurers make accurate, reliable, and fast credit risk decisions for car buying and auto policy rates, among its many uses.
According to the J.D. Power 2021 U.S. Auto Insurance Study of nearly 40,000 people evaluating customer satisfaction, American Family ranked as the number one auto insurance brand in the Southwest region for the second year in a row. The study looked at criteria like auto insurance claims, policy offerings, billing process and policy information, customer interactions, and price.
In J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study, American Family ranked 889 of 1,000, above the industry average of 880. The study looked at 7,345 auto insurance customers settling claims.
American Family was founded in 1927 as Farmers Mutual Insurance Company in Madison, Wisconsin. Initially, it only offered car insurance to farmers.
The company has since grown to cover drivers in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
In assessing the company’s financial strength, A.M. Best gives the company an A rating, which is considered very strong. Financial strength determines a company’s stability and ability to pay out claims. Consumers shopping for car insurance rates need to know a company can pay those claims when they need it most, such as during a flood, a tornado, or a major car accident.
Before determining which auto insurance provider to go with, it’s essential to shop for quotes from several providers so you can choose which insurer works best for you.
