THE VERDICT
American Family is a better insurance company than USAA, per WalletHub’s grading criteria. American Family beats USAA when it comes to transparency, discounts offered, its claims process, and it also 24/7 live customer support, while USAA does not. The two companies are comparable when it comes to the types of insurance options available, too, but USAA bests American Family in terms of customer reviews and cost. The average American Family car insurance premium is $1,290 per year for a good driver in Illinois, while the average USAA car insurance premium is $982 per year.
USAA is available to customers in every state and Washington D.C., while American Family Insurance is only available 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. However, American Family policies aren’t limited to members of the military community, like USAA insurance plans are.
Compare USAA vs. American Family Insurance
- Types of Insurance: USAA beats American Family
- Cost: USAA beats American Family
- Discounts: American Family beats USAA
- NAIC Rating: American Family beats USAA
- J.D. Power Rating: USAA beats American Family
- Customer Reviews on WalletHub: American Family beats USAA
- WalletHub Editor's Review Rating: American Family beats USAA
- Market Share: USAA beats American Family
USAA has higher customer satisfaction ratings across a variety of platforms, including J.D. Power, the National Association of Insurance Commissioners (NAIC), and user reviews on WalletHub. However, both companies have received more complaints than average, according to the NAIC. Customer complaints for USAA have been about unexpected delays and denials in the claims process, and complaints about American Family have centered on problems with customer service and unsatisfactory settlement offers.
Fortunately, USAA and American Family are both in good standing with leading financial research/commercial credit rating agencies like AM Best, S&P, and Moody’s Investors Service. The good scores are a show of the financial strength and claims-paying ability of both companies.
USAA ultimately wins out when it comes to attracting customers, though. USAA was the fifth-largest private-passenger car insurance provider in 2021, capturing 6% of the market, according to the Insurance Information Institute. American Family Insurance ranked ninth overall, having earned 2.1% of personal auto insurance premiums written in 2021.
USAA vs. American Family Insurance: Customer Satisfaction Ratings
| Source |
USAA |
American Family |
| NAIC Complaint Index |
2.27 |
0.43 |
| J.D. Power Rating (Customer Satisfaction) |
4.4/5 |
4.2/5 |
| J.D. Power Rating (Claim Satisfaction) |
4.5/5 |
4.4/5 |
| WalletHub Editor's Rating |
3.5/5 |
4.3/5 |
| WalletHub User's Rating |
2.7/5 |
3.4/5 |
The NAIC calculates its Complaint Index score by dividing a company’s number of complaints by its share of market premiums. If that score is higher than the national average of 1.00, then the company in question has received more complaints than normal for an insurance company of a similar size. WalletHub and J.D. Power use standard 5-star rating scales.
To learn more about what sets these two companies apart, check out WalletHub’s full
USAA review and
American Family review.
