American Family Car Insurance Review January 2026: Pros, Cons, and Alternatives

American Family Affordability

When it comes to pricing, American Family lands somewhere in the middle of the pack, though your mileage may vary depending on your driving history and vehicles. The company’s average monthly premium runs around $75 for basic liability coverage and roughly $150 for a full coverage policy. On an annual basis, that translates to approximately $950 for liability and around $1,800 for comprehensive protection.

Compared to the national average, American Family tends to run slightly higher for many driver profiles. However, they beat the competition in a few key areas. Teen drivers and families with young motorists often find rates that undercut industry averages by several hundred dollars per year. Drivers with a DUI or those dealing with poor credit scores may also discover more competitive pricing here than with other major carriers.

The real magic happens when you start stacking discounts. Bundling home and auto coverage can knock up to 40% off your combined premiums. The usage-based DriveMyWay program rewards safe driving habits with savings up to 25%, while the MilesMyWay option benefits low-mileage drivers who log fewer than 7,500 miles annually. You’ll also find discounts for setting up automatic payments, going paperless, having safety features in your vehicle, completing defensive driving courses, maintaining good grades (for students), and even for getting your quote at least seven days before your current policy expires. Long-term customers earn loyalty discounts, and there’s a switching discount called “Steer Into Savings” for those coming from competitors.

American Family Coverage Options

American Family offers the full spread of auto insurance products you’d expect from a major carrier, with some extras that set them apart. Standard liability coverage protects you when you’re at fault in an accident that injures others or damages property. Collision coverage handles repairs to your own vehicle after a crash, regardless of who caused it. “Full coverage”, or comprehensive coverage, takes care of everything else that might damage your car, from hailstorms and theft to hitting a deer or dealing with vandalism.

For additional protection, uninsured and underinsured motorist coverage steps in when someone without adequate insurance causes you problems. Medical payments coverage helps with healthcare costs after an accident, and personal injury protection is available in states that require it. Rental reimbursement coverage keeps you mobile while your car is in the shop, covering everything from traditional rental cars to rideshares and public transit. Emergency roadside assistance helps when you break down, offering towing, battery jumps, fuel delivery, and lockout services around the clock.

A few standout options distinguish American Family from competitors. Their accident forgiveness program kicks in after five years of clean driving, preventing your rates from spiking after a first at-fault incident. The diminishing deductible option gradually reduces your out-of-pocket costs the longer you go without a claim. Rideshare coverage fills the gaps for Uber and Lyft drivers during periods when the rideshare company’s insurance doesn’t fully protect them. They even offer Mexican car insurance for those road trips south of the border.

American Family Reliability

American Family has built a solid reputation for financial stability over its nearly century-long history. AM Best, the go-to authority on insurance company financial health, has awarded them an “A” (Excellent) rating for 23 years running. This rating represents the third-highest grade on their 13-point scale and indicates a strong ability to meet ongoing policyholder obligations and pay out claims. The company has also earned AM Best’s “Standing the Test of Time” distinction, reserved for insurers maintaining an A rating or better for at least 75 years.

Other major rating agencies agree on American Family’s stability. Moody’s rates them A1, placing them in the fifth tier of their 21-category system. S&P Global assigns an “A” rating based on the company’s strong financial profile and market presence. Fitch Ratings gives them an A+ (Strong), the fifth-highest mark available.

When it comes to customer complaints, American Family performs well. Their NAIC complaint index sits around 0.26 to 0.47, meaning they receive only about a quarter to half the complaints expected for a company their size. This places them significantly below the industry median of 1.0 and suggests they handle customer concerns more effectively than many competitors. The company has been doing business for over 97 years, starting as Farmers Mutual Automobile Insurance Company in 1927, before eventually becoming the American Family we know today.

American Family Customer Service

Overall, customer service experiences with American Family tend to be positive, though results can vary depending on who you work with and what channel you use.

Phone Support: You can reach the company at 1-800-MYAMFAM (1-800-692-6326) any time for claims and automated payment processing. Live representatives are available Monday through Friday from 7 am to 10 pm Central Time, Saturdays from 8 am to 8 pm, and Sundays from noon to 8 pm. For quotes, phone hours run Monday through Saturday from 8 am to 8 pm. Average wait times hover around 4 to 6 minutes, with Wednesdays being the busiest day and Thursdays generally offering shorter hold times. The company emphasizes its extensive network of local agents, so you’ll often work directly with a dedicated representative who knows your account.

Digital Support: The MyAmFam app lets you view policies, access digital ID cards, make payments, file claims, and request roadside assistance from your phone. On iOS, the app earns strong marks with a 4.7-star rating from over 87,000 reviews. The Android experience is less polished, sitting at around 3.2 to 3.7 stars based on roughly 10,000 reviews. Users praise the app for easy bill payment and policy access, but sometimes complain about login issues and technical glitches. The website offers quote calculators, account management, and online claims filing. Live chat isn’t widely advertised, but email support is available through their contact forms.

Third-Party Ratings: While American Family isn’t BBB accredited (a choice they’ve made rather than a reflection of their standing), they still hold an A+ rating on the BBB’s scale. The BBB profile shows about 174 complaints closed over the past three years, which is relatively low for a company this size. On Trustpilot, they’ve earned a solid 4.3 out of 5 stars from approximately 881 customer reviews, with many praising agent relationships and service quality. J.D. Power data shows above-average satisfaction in the Central and Northwest regions where they operate, and they ranked third in J.D. Power’s 2024 insurance shopping study. Comments on Reddit and personal finance forums present a mixed picture, with some customers sharing very positive claims experiences while others report frustrations with rate increases and occasional communication gaps.

American Family Claims Process

Filing a claim with American Family gives you several options to choose from. The fastest method is through the MyAmFam app, which lets you start your claim, upload photos, track progress, find repair shops, and arrange rental cars all in one place. You can also file online through your My Account dashboard, call the 24/7 claims line at 1-800-MYAMFAM, text STORM to 26326 for weather-related damage, or contact your local agent directly.

One standout feature is the Dreams Restored Program, which takes the stress out of finding a trustworthy repair shop. American Family has vetted a network of preferred shops in your area, so you can skip the research and know your vehicle is in good hands. Once you file, a claims adjuster will evaluate the damage and work with you through the process.

Settlement timelines typically fall around 30 days for straightforward claims, though more complex situations involving injuries or disputed liability may take longer. American Family earned a J.D. Power auto claims satisfaction score of 692 out of 1,000 in recent studies, placing them just slightly below the industry average of 697. Their property claims handling receives somewhat better marks, with above-average performance in J.D. Power’s property claims study. Customer reviews about the claims experience are mixed, as is common across the insurance industry. Some policyholders report smooth, hassle-free resolutions, while others describe delays or disagreements over valuations.

American Family Application Process

Getting started with American Family involves a blend of online tools and agent interaction. You can kick off the quote process through their website by entering basic information about yourself, your vehicles, and your driving history. The platform includes helpful calculators and coverage explainers to help you understand your options.

However, you can’t fully complete your purchase online. Once you’ve explored your options and gotten preliminary pricing, you’ll need to connect with a local American Family agent to finalize your policy. This can be done by phone or in person. For some, this feels like an extra step, but others appreciate having a dedicated contact who can answer questions and provide personalized guidance.

The company doesn’t offer instant online binding like some direct competitors, which means you can’t buy coverage at midnight when the mood strikes. You’ll need to work within agent availability hours to get everything set up. That said, the agent network is extensive across their 19-state footprint, so finding someone nearby shouldn’t be difficult. Digital tools like the quote calculator and coverage comparison features help you come prepared for those conversations.

Pros & Cons of American Family Car Insurance

Here’s the bottom line on what you’ll love and what might give you pause about this insurer.

Pros

• Financial strength you can count on, with top-tier ratings from AM Best, Moody’s, S&P, and Fitch backing up their claims-paying ability
• Generous discount opportunities, including usage-based programs, bundling options, and unique savings like the generational discount for customers whose parents are also insured by AmFam
• Lower complaint volumes compared to industry averages, suggesting better customer care and dispute resolution
• Competitive pricing for teen drivers and families with young motorists, often beating national averages for these typically expensive demographics.cs.
• Helpful extras like the Dreams Restored Program for finding vetted repair shops and accident forgiveness after five years of clean driving

Cons

• Geographic limitations restrict availability to just 19 states, leaving the entire East Coast, most of the South, and several other regions without access.s
• No fully online purchasing option means you must work with an agent to complete your policy, adding an extra step compared to direct insurance.
• Above-average rates for drivers with at-fault accidents, making it potentially less appealing if your record isn’t clean
• Mixed digital experience, particularly on Android devices, where the app receives noticeably lower ratings than its iOS counterpart
• Some customers report frustration with recent rate increases and occasional communication gaps.

Our Verdict & Rating for American Family Car Insurance

American Family represents a solid choice for drivers in their service area who value financial stability, agent relationships, and opportunities to save through discounts. The company’s nearly 100-year track record, excellent financial ratings, and low complaint volumes suggest you can trust them to be there when you need to file a claim. Their discount structure rewards loyalty, safe driving, and bundling in ways that can meaningfully reduce what you pay.

The biggest drawback remains their limited footprint. If you don’t live in one of their 19 states, this review is purely academic for you. For those who do have access, the decision often comes down to how you prefer to buy insurance. If you like working with a dedicated local agent who knows your name and situation, American Family excels there. If you want to handle everything through slick apps and instant online purchasing a2 amam, you might find the process more cumbersome than competitors like GEICO or Progressive.

Pricing falls in the mid-range for most drivers, but certain groups can find real value here. Families with teenagers, drivers interested in usage-based discounts, and those looking to bundle home and auto coverage should definitely get a quote before making final decisions.

Who Should Consider This Company?

• Drivers in the 19 states where American Family operates who want a financially stable insurer with a long track record
• Families with teen drivers are looking for competitive rates and helpful monitoring programs
• Customers who prefer working with local agents rather than managing everything online
• Drivers with multiple vehicles or those bundling home and auto insurance to maximize discount stacking
• Safe drivers are interested in usage-based programs that reward good habits with lower premiums.

Who Should Consider Another Provider?

• Anyone living outside their 19-state service area (most of the East Coast, South, and several other regions)
• Drivers who want to purchase and manage policies entirely online without agent involvement
• Those with recent at-fault accidents may find more competitive rates elsewhere.
• Tech-focused customers who prioritize a polished mobile app experience on Android devices
• Shoppers who need coverage immediately and can’t wait to connect with an agent during business hours

How American Family Scored

Financial Stability: 9/10 Coverage Options: 8/10 Affordability & Value: 7/10 Claims Process: 7/10 Customer Service: 7/10

About Our Methodology

We use a weighted scoring system for car insurance reviews. We compared 20 companies on key factors, including their car insurance rates, to inform our ratings. Once we scored each company, we applied a curve based on the best overall product.  Here’s what we look for:

• Financial Strength & Solvency: 20%
• Coverage Options: 10%
• Affordability: 30%
• Claims Process: 20%
• Customer Service: 20%

How American Family Scored

• Financial Stability: 9/10
• Coverage Options: 8/10
• Affordability & Value: 7/10
• Claims Process: 7/10
• Customer Service: 7/10
• Overall: 8.9/10

You can learn more about how each company scored and what curve was applied here:  Car Insurance Reviews.