American Family Auto Insurance Review: Affordable Rates and Plentiful Discounts

This auto insurer is a good fit for: Teen drivers and anyone looking for an affordable rate on a flexible policy

American Family car insurance snapshot

Pricing

American Family offers more affordable rates than many of its competitors. Its rates for teen drivers are especially affordable, thanks in part to the teen-specific discounts it offers.

Discounts

The company offers more discounts than many of its competitors do, which contributes to its low average premiums. Many of the discounts are easy for drivers to receive, including the paperless, auto pay, and early bird discounts.

Perks

American Family offers flexible policies for all types of vehicles with many optional protections available. It also covers classic cars and drivers who work for ridesharing companies.

Customer service

American Family has fared pretty well in J.D. Power's customer satisfaction surveys. It also has a strong rating with the Better Business Bureau.

American Family auto insurance at a glance

Monthly premium costs:

• 35-year-old female with clean driving record: $139
• 35-year-old male with clean driving record: $144
• 35-year-old female with one accident: $160
• 18-year-old male with clean driving record: $287

Coverage options:

• Bodily injury liability
• Property damage liability
• Uninsured motorist
• Underinsured motorist
• Medical payments
• Personal injury protection (PIP)
• Collision
• Comprehensive
• Gap coverage
• Rental reimbursement
• Emergency road service
• Accidental death and dismemberment
• ForeverCar vehicle service plan

Top perks

Affordable rates

American Family offers competitive auto insurance rates for many drivers. This is due in part to the company's impressive array of discounts, which includes options not offered by many of its competitors. Many of the discounts, including the auto pay, paperless, and early bird discounts are easy for most people to receive.

Strong customer service

American Family fared pretty well in most of the regions where it was featured in J.D. Power's most recent U.S. Auto Insurance Study. It also has a high BBB rating and a below-average complaint ratio with the National Association of Insurance Commissioners (NAIC). This suggests most of its customers are happy with its service.

Great choice for teen drivers

In addition to offering affordable rates to teens, American Family offers a number of teen-specific discounts. This includes the standard good student and student away at school discounts. But there's also young volunteer and generational discounts that are unique to American Family. Teens who qualify for one or more of these discounts could score even lower rates.

Policies for all types of vehicles

Most drivers will probably be looking for a standard car insurance policy, but American Family also underwrites classic car, commercial auto, and ridesharing policies as well as RV, motorcycle, boat, ATV, and snowmobile insurance.

What could be improved

Limited availability

American Family car insurance is only available throughout the Midwest and a handful of other western states. Those who live outside of American Family's service area will have to consider one of the options below.

When looking for great customer service and nationwide availability: State Farm is an industry leader known for offering personalized support and flexible policies. But it doesn't offer quite as many discounts as American Family.

When looking for rock-bottom rates: Geico is another car insurance provider that offers low rates and plentiful discounts. While its rates tend to be below-average for a lot of drivers, it doesn't offer as many teen-oriented savings opportunities as American Family.

American Family's average premium rates were below average for all the driver profiles we looked at. This doesn't factor in many of American Family's discounts. Drivers who qualify for one or more of these could save even more on their rates.

American Family offers an impressive array of discounts, including several that are pretty rare. Here's a full list of available discounts:

• Auto pay
• Auto safety equipment
• Defensive driver
• Early bird
• Generational
• Good driving
• Good student
• Low mileage
• Loyalty
• KnowYourDrive
• Multi-policy
• Multi-vehicle
• Paid in full
• Paperless
• Steer Into Savings
• Student away at school
• TeenSafeDriver
• Young volunteer

Policy types

• Car
• Classic car
• Rideshare driver
• Commercial auto
• Motorcycle
• RV
• Boat
• ATV
• Snowmobile

American Family underwrites all major types of vehicle insurance, including classic car and ridesharing policies. Few other insurers can match this, making American Family a great choice for people looking to insure many types of vehicles.

Coverage types

• Bodily injury liability
• Property damage liability
• Uninsured motorist
• Underinsured motorist
• Medical payments
• Personal injury protection (PIP)
• Collision
• Comprehensive
• Gap coverage
• Rental reimbursement
• Emergency road service
• Accidental death and dismemberment
• ForeverCar vehicle service plan

Drivers can purchase all types of mandatory coverage as well as many common optional protections. American Family also offers a unique ForeverCar vehicle service plan, which is insurance that pays for vehicle repairs not covered by a standard car insurance policy.

American Family insurance has above-average customer satisfaction ratings in several of the regions where it was featured in J.D. Power's most recent U.S. Auto Insurance Study. It also scored above the national average in J.D. Power's U.S. Auto Claims Satisfaction Study.

In addition, the company has an A rating with the Better Business Bureau (BBB) and a below-average complaint ratio with the National Association of Insurance Commissioners (NAIC). This indicates that American Family has received fewer complaints than other auto insurers of a similar size.

American Family is a great fit for:

• Drivers looking for an affordable rate, especially teens
• Those who place a premium on great customer service
• Those seeking specialized coverage for classic cars, ridesharing, or different types of vehicles

But drivers looking for affordable rates outside of American Family's service area should consider State Farm or Geico.