American Family insurance review: Regional carrier with great discounts

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American Family insurance pros and cons

Pros	Cons
Wide array of discounts for teens and safe drivers In regions where coverage is offered, American Family is ranked #7 in J.D. Power’s auto claims satisfaction survey In regions where coverage is offered, American Family is ranked #6 in J.D. Power’s homeowners insurance customer satisfaction survey Discounts for bundling insurance products	Only available in 19 states  Failed to rank in J.D. Power’s life insurance customer satisfaction survey

American Family auto insurance review

American Family Auto Insurance was first known as Farmers Mutual Insurance in 1927. At the time of opening, Farmers Mutual Insurance exclusively offered auto insurance, specifically for farmers. With one last name change, Farmers Mutual Insurance became known as American Family Insurance. 

American Family Auto Insurance currently operates in 19 states. It’s ranked #7 in J.D. Power’s auto claims satisfaction survey. 

American Family Auto Insurance offers multiple opportunities to save on your car insurance policy including good driver, good student, multi-vehicle, loyalty, and auto/full-pay discounts to name a few. 

Like most insurance companies, American Family Auto Insurance  provides discounts for bundling your home and auto policy. 

There are four types of insurance coverage: liability insurance (required by most states), comprehensive, collision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.

The difference between the various coverage types is outlined in the table below:

Damage	Comprehensive	Collision	Liability	Full
Theft	Yes	No	No	Yes
Vandalism	Yes	No	No	Yes
Fire	Yes	No	No	Yes
Natural disaster	Yes	No	No	Yes
Falling objects (tree)	Yes	No	No	Yes
Animal damage	Yes	No	No	Yes
Collision/accident	No	Yes	No	Yes
Rollover	No	Yes	No	Yes
Bodily injury/medical bills	No	No	Yes	Yes
Physical damage	No	No	Yes	Yes
Property damage	No	No	Yes	Yes
Uninsured motorist	No	No	Yes	Yes

American Family homeowners insurance review

American Family Homeowner ranked #6 in J.D. Power’s homeowners insurance customer satisfaction survey. 

American Family Homeowner offers home, renters, condo and manufactured/mobile home insurance. American Family Homeowner also offers insurance for personal property like furniture, clothing, electronics and jewelry. 

Homeowners insurance protects your dwelling, personal belongings, and offers personal liability coverage for injuries that happen on your property. Standard homeowners insurance looks like the table below, but coverage varies depending on your provider:

Coverage	Included with homeowners insurance?
Dwelling/structure	Yes
Personal liability	Yes
Personal belongings	Yes
Loss of Use (additional living expenses)	Yes
High-end electronics/special jewelry	Limited, requires add-on*
Equipment breakdown	Yes
Electrical outage	Yes*
Service lines	Yes*
Cyber liability	Yes*
Water damage	Yes
Flood	No**
Wind or hail	Yes, but not high winds***
Earthquake	No*
Pets	Yes*

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

American Family life insurance review

American Family Life Insurance didn’t make the list for J.D. Power’s life insurance customer satisfaction survey.

American Family Life Insurance offers term and permanent life insurance products. The term life products offered are level term and simplified issue, a no-medical exam policy. The permanent life insurance products include whole life, senior, and children’s whole life insurance. 

The two types of life insurance are permanent life and term life. Term life insurance only cover a specific period of time. When your policy is up, you can reapply for coverage. However, the premiums will most likely increase as you age.

Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.

Types of Term Life Insurance	Types of Permanent Life Insurance
Level premium	Whole life
Annual renewal (ART)	Universal life
Return of Premium	Guaranteed Universal
Convertible	Indexed Universal
Group life insurance	Variable life
Guaranteed issue	Variable universal life
Simplified issue
Final expense

American Family insurance vs. the competition

Availability	Regional presence	Regional presence	Regional presence
Types of insurance offered	Auto, homeowners, life	Auto, homeowners, life	Auto, homeowners
Claims and customer satisfaction	Ranked #7 in J.D. Power’s auto claims satisfaction survey Ranked #6 in homeowners insurance customer satisfaction survey	Ranked #2 in J.D. Power’s auto claims satisfaction survey Ranked #21 in J.D. Power’s homeowners insurance customer satisfaction survey Ranked #1 in J.D. Power’s life insurance customer satisfaction survey	Ranked #1 in J.D. Power’s auto claims satisfaction survey Ranked #21 in J.D. Power’s homeowners insurance customer satisfaction survey

Is American Family trustworthy?

We checked the NAIC Complaint Index for complaints against American Family Insurance. American Family has slightly more complaints filed against it compared to other top insurers. 

American Family’s financial stability is strong, with an A.M. Best’s rating of A (Excellent).