American Family Insurance Review

No, American Family insurance rates are not competitive for most drivers. American Family car insurance costs an average of $665 per year, or $55 per month.

American Family's car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.

Sample American Family Car Insurance Rates

Note: These rates are approximations based on sample quotes from American Family. Actual rates will vary.

To learn more about how we obtained these sample quotes, check out the methodology section of our complete American Family car insurance review. 

American Family is rated 2.8 out of 5 by WalletHub's editors, based on factors such as customer reviews and watchdog-group ratings. For example, American Family has a rating of 1.18 from he National Association of Insurance Commissioners (NAIC), meaning it has more customer complaints than the average insurer its size.

American Family Insurance Ratings

• WalletHub Editors: 2.8
• A.M. Best: A
• J.D. Power: 4.1
• NAIC: 1.18
• BBB: A
• Standard & Poor's: A
• Moody's: Aa3
• Average User Rating on WalletHub: 3.5/5

To learn more, check out WalletHub's complete American Family car insurance review.

American Family is so cheap because the company offers a wide variety of discounts that almost anyone can get. A minimum coverage policy from American Family costs an average of $67 per month, and American Family premiums can be made even cheaper by taking advantage of discounts such as safety features discounts and low mileage discount. Plus, American Family rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.

Average Monthly Rates for American Family vs. Top Competitors

Note: Premiums are representative of a 45-year-old good driver in IL; individual premiums will vary.

American Family is especially cheap for young drivers in particular. That's because American Family has special savings opportunities for drivers in this category, such as discounts for drivers under 25 years old who volunteer for non-profits, and savings for students who maintain at least a B average.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though American Family is among the cheapest car insurance companies, the only way to confirm you've found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub's review of American Family and see American Family's full profile.

To file a complaint about American Family Insurance, go online and submit your issue to the Better Business Bureau as well as your state's insurance regulator, then write a review of American Family Insurance on WalletHub. This will either allow American Family Insurance to fix their mistake or it will warn other consumers of potential problems with American Family Insurance's service.

How to File a Complaint About American Family Insurance

1. File a complaint with the Better Business Bureau (BBB). Use the Bureau's online claim submission process to file your claim. The Better Business Bureau forwards complaints within two days, and customers will be notified of any response from American Family Insurance or if they fail to respond.
2. Submit a formal complain to your state's insurance regulator. Click here to find the database of the state insurance departments. Select your state and complete the online consumer complaint form.
3. Write a review on WalletHub. American Family Insurance customers can voice their opinion by going to American Family Insurance's profile on WalletHub and clicking “Write a Review.” At the very least, this will help other consumers thinking about doing business with the company.
4. Complain on social media. Use whatever social media platforms you have to your advantage. This can help build awareness for your issue, including from American Family Insurance. If you have the ability to contact the company directly via social media, that's a good idea too.

What You Need to File a Complaint About American Family Insurance With Regulators

• Your name, address, and phone number
• The name of any specific agent/broker
• Your policy number
• Any relevant claim number
• The details of your complaint/concern

So, if you're disappointed with any element of American Family Insurance's service, you can rest easy knowing that you have several options for filing a complaint.

The main American Family NAIC number is 19275. American Family's NAIC number is the five-digit code given by the National Association of Insurance Commissioners (NAIC), which assigns numbers to authorized insurance providers in order to track customer complaints and ethics violations across state lines.

With American Family's NAIC number, anyone can learn more about the company's financial data, the kinds of complaints that have been filed by customers, and any enforcement actions taken against the company. Customers will need American Family's NAIC number to report fraud or file an insurance claim, as well.

Although the main American Family NAIC number is 19275, the NAIC has assigned a separate code for each of American Family's affiliate companies, which are listed below. You can find the number that applies to your particular policy on your American Family insurance card. 

American Family NAIC Numbers

American Family's NAIC number is not the same thing as the three-digit code assigned by each state's department of motor vehicles. These numbers, issued by state insurance commissioners, are given to the companies that have been authorized to sell insurance policies in a particular state. However, they are not standardized across state lines, like NAIC numbers are.

Yes, American Family has a grace period of 9 days for payments. During the grace period, policyholders can pay their past-due premium in order to avoid a lapse in coverage. If the grace period ends without the necessary payment being made, American Family will cancel the policy. Even if the policyholder pays the balance within the grace period, American Family will still charge them $10.

If you miss a car insurance payment, American Family will usually send you a notice of cancellation that includes the final date that they will accept payment before your coverage lapses. Since almost every state requires you to have car insurance, a lapse in coverage could lead to serious consequences, including fines and even a license suspension if you're caught driving. Additionally, going without insurance designates you as a high-risk driver and can make car insurance more expensive in the future, so it's important that you pay your car insurance premium prior to the final cancellation date.

American Family insurance rates go up by an average of 24% after an accident. Drivers who have American Family accident forgiveness will not see their car insurance rates go up at all after their first accident in 1-5 years, depending on whether the accident forgiveness was earned or purchased. Even if the accident can't be forgiven, it will only affect your insurance rate for 3-5 years, depending on your state.

The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder's driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.

American Family is owned by American Family policyholders, since it is a mutual insurance company and its shares are not available to investors on the public market. Among the 10 largest car insurance companies in the U.S., four are mutual insurance companies.

For more information, check out WalletHub's full American Family review.

To cancel American Family insurance, the policyholder must contact their agent directly or call customer service at 1-833-381-1155. You will need to provide basic information about yourself, your American Family policy number, and the date you would like your policy to end. American Family may also ask for the details of your new car insurance policy to verify you won't be driving without insurance.

How to Cancel American Family Insurance Policies 

• Cancel by phone by calling your agent or 1-833-381-1155.
• Cancel my mail by writing a letter that includes your name, policy number, and the date you want your policy to end. Sign, date, and mail your letter to: American Family Insurance / 6000 American Parkway / Madison, WI 53783.
• Cancel in person by visiting your nearest American Family insurance office and speaking with an agent.

If you've sold your vehicle, you may be asked to provide a bill of sale. If you've already paid your premium for the policy period in full, American Family will refund the unused portion. American Family does not impose a cancellation fee or penalty for early termination.

Finally, it's important to remember that you don't need to cancel your policy just because you're going through some life changes. For example, if you're moving or buying a new car you can just have American Family update your mailing address or vehicle information.

American Family is so expensive because of agent commissions and rising costs overall for insurance companies. At $903 per year, the average American Family car insurance policy is more expensive than the national average of $720 for a policy with minimum coverage.

American Family insurance is even more expensive for drivers with certain characteristics, including young drivers and drivers who have recently caused an accident. For example, teenagers pay an average of $4,111 for American Family insurance, compared to $989 for older drivers. Additionally, drivers who have recently had an at-fault accident pay an average of $1,121 for American Family coverage, which is 24% more than drivers with a clean record.

Factors That Can Make American Family Insurance More Expensive

• Commissions for agents
• Rising costs overall for insurance companies
• Being a young or inexperienced driver
• Purchasing a full coverage policy versus minimum coverage
• Causing an accident or being convicted of a moving violation
• Living in a high-risk ZIP code
• Driving an expensive vehicle
• Having a poor credit-based insurance score

If you're struggling to afford your American Family policy, there are ways for you to lower your rate. For example, you can take advantage of American Family discounts or reduce your coverage. In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if American Family is charging you a high premium, you may be able to find a cheaper policy with another insurer.

To learn more, check out WalletHub's American Family insurance review.