American Family Insurance Review

No, American Family insurance rates are not competitive for most drivers. American Family car insurance costs an average of $903 annually, or $75 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

These sample quotes are representative of American Family's insurance prices, but individual results 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: 2.7/5

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 with American Family Insurance, call customer service at 1-800-692-6326 talk to a representative through American Family's online portal, post about the company on social media, email the company, or mail a written complaint. Customers can also file a complaint about American Family Insurance with the Better Business Bureau or their state's insurance regulator.  

How to File a Complaint With American Family Insurance

1. Call American Family Insurance. Customers can call American Family Insurance at 1-800-692-6326 to speak with a customer service representative and report the details of their complaint.
2. File your complaint online. Customers can file a complaint with American Family Insurance through the company's website.
3. Write American Family Insurance a letter. Customers can mail a written complaint to American Family Insurance at 6000 American Parkway / Madison, WI 53783. They must indicate the specific department the complaint is about in the address, such as car or home insurance.
4. Tweet. If you can't get the company's attention elsewhere, you can tweet @amfam, the company's official customer service Twitter.

What You Need to File a Complaint With American Family Insurance

• 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

Other Ways to File a Complaint Against American Family Insurance

Customers can file a complaint against American Family Insurance with the Better Business Bureau (BBB) using the Bureau's online claim submission process. 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.

Lastly, you can write a review of American Family Insurance on WalletHub. 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 up to 30 days for payments, with specific timeframes varying by state law. During the American Family 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 a late fee, though the exact amount depends on the policy and the state.

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 1-800-692-6326. The cancellation can be arranged for a future date or set to take effect immediately. You will need your name, policy number, and the date you want your policy to end.

• Cancel by phone by calling 1-800-692-6326.
• Cancel by 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.
• You cannot cancel an American Family policy online.

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.

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, you should have American Family update your mailing address or vehicle information if you're moving or buying a new car.

If you're canceling your current policy in order to switch to another company, be sure to activate your new policy before canceling the old one. This prevents a lapse in coverage, which would lead to higher premiums in the future.

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.