American Family Car Insurance Review

Initial affordability attracts customers, but rate increases over time create frustration, particularly for long-term policyholders with clean records:

"I have been American Family for long time customer. My car insurance premium is up 146%!!! We did not have any traffic tickets and any car accidents in past 20 years. The mileage is about 3500/year. This increase is awful and ridiculous."

"I have had all my insurance (primary home, lake cabin, cars, boats, boat dock, boat house, golf cart) all insured with American Family for the past nine years. I have had NO claims in that nine years. This past April I received the quote for my primary home for 2024-2025. The rate went UP an astounding 49%. 49% with NO claims. I am very upset."

American Family ranked below average in J.D. Power's 2024 Claims Satisfaction Study, though experiences vary widely between simple and complex claims:

"I had an awesome experience with American Family. My wife and I were rear-ended by an uninsured driver near Chicago… American Family's claims department was actually able to chase down the other party and get us compensated."

"We were rear-ended by an insured with American Family. It has been 3 weeks and we received an estimate from them for 12k, our Tesla has structural damage and the estimate is $17,500. This is ridiculous, especially since they sent us to a shop that can't work on Teslas."

Agent interactions receive mixed reviews, with local agents generally praised but corporate customer service showing significant gaps:

"Insurance agents are always very helpful in answering questions and filing claims. Quick response and payments when needed."

"I am extremely dissatisfied with the service I have received from American Family. When I contacted customer service, I was repeatedly informed that the payment was 'returned by my bank,' despite my repeated explanations that the account had been closed months prior. The lack of comprehension and inability to address the issue was incredibly frustrating."

American Family earned second place in J.D. Power's 2024 Insurance Digital Experience Study and a 2025 Bankrate Award for Best Digital Home Insurance Company, with positive app reviews:

"The AmFam app gives you easy access to all policy documents, and you can use it to obtain a quote and manage payments. You can also file and manage claims through the app."

American Family's NAIC complaint index of 0.47 indicates fewer complaints than expected for its size, but trust issues emerge around policy drops and billing practices:

"In one year, 2024, we had a stolen Kia car, damaged roof and ice dam damage from the roof. We expected our insurance cost would go up, but instead, we were dropped by AmFam. We were always an on-time paying customer. It really shows AmFam is not in the business of insuring people's belongings but a machine to take your money."

"I was insured with American Family for about 12 years for auto and homeowners. Last year, they abruptly dropped us after we filed two water damage claims, which were totally out of our control. This seemed especially cold and abrupt, and cost us a lot of extra time and money."

Customers appreciate the variety of coverage options and bundling discounts, though some find the underwriting process overly restrictive:

"American Family offers a wide variety of coverage options for add-ons at their disposal, plus solid bundling discounts up to 23% when you combine home and auto."

"Stay far away from American Family. This company treats its customers horribly and will go out of its way to push you off your policy. They demanded proof that my roof was replaced. I gave them an invoice from the licensed contractor who did the work. That should have been more than enough—but no. They demanded photos, so I took photos from the ground. Still not good enough."

Yes, American Family is a legitimate car insurance company that ranked 21st overall in our comprehensive car insurance provider study. The insurer particularly stands out in customer experience, where it earned an 8th place ranking among all providers we evaluated.

Based on our comprehensive analysis, American Family does not rank as the number one car insurance provider in any state. The company ranks 21st nationally and operates in 19 states across the Midwest and Western United States.

American Family achieves its strongest performance in customer experience (eighth place nationally) and coverage options (11th place), demonstrating solid service quality despite ranking 23rd for affordability overall.

American Family charges adults an average of $784 annually for state minimum coverage and $1,424 for full coverage. Annual premiums range from $744 to $6,434 for minimum and $1,199 to $11,785 for full coverage.

Customer feedback suggests American Family faces criticism for claim denials, with some policyholders reporting rejected claims for weather damage and vehicle incidents that seemed covered under their policies. However, comprehensive data on their claim denial patterns remains limited beyond individual customer experiences.

American Family offers solid value for drivers with a DUI, ranking 16th overall for affordability, making it a reasonable choice for this high-risk category.

Yes, American Family raises rates over time due to inflation impacting repair and medical expenses, higher claim volumes from distracted driving and severe weather, plus expensive vehicle technology costs. They also modify pricing based on area risk evaluations, regulatory changes, and personal factors like credit shifts.

No, American Family isn't the best choice for young drivers, ranking 21st for overall affordability with monthly premiums averaging $257 for full coverage.