American Family Insurance

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: 3.4/5

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

No, American Family Insurance rates are not competitive for most drivers. American Family car insurance customers pay around $665 per year for minimum coverage, on average, whereas the average insurer charges $671 per year for the same coverage.

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 does your eligibility for discounts.

American Family Car Insurance Rates vs. Popular Competitors

Note: Rates are an approximation based on a 45-year-old driver in Illinois. Actual rates will vary. For more information, check out the methodology section of our American Family car insurance review.

Other Factors That Make American Family Insurance Competitive    

• American Family offers 18 auto insurance discounts.
• American Family offers 18 different types of insurance.
• American Family has 24/7 customer service.

To learn more, read WalletHub\\\'s complete review of American Family Insurance.

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.

Full coverage car insurance from American Family costs $2,683 per year, on average, and is more expensive than a liability-only policy since it provides more coverage.

Cost of American Family Full Coverage by Driver's Age 

Common American Family Full Coverage Insurance Components

Liability insurance. Almost every state requires drivers to carry liability insurance, which includes property damage liability and bodily injury liability coverage. Liability insurance pays for others' expenses after an accident you are at fault for.

Collision and comprehensive insurance. Collision insurance covers the cost of fixing or replacing the policyholder's vehicle after an accident, regardless of who was at fault. Similarly, comprehensive insurance covers the policyholder's car if it's damaged by something besides an accident, like vandalism, a fire, or a natural disaster. Collision and comprehensive are not mandatory in any state, but they are usually required for leased and financed cars.

Uninsured/underinsured motorist coverage. This type of coverage protects you if you are involved in an accident with a driver who either does not have car insurance or does not have enough coverage. Uninsured/underinsured motorist insurance covers your expenses after an accident that should have been paid for by the at-fault driver's liability insurance. It will automatically be included in your full coverage policy if it is required in your state.

Personal injury protection/MedPay. Personal injury protection (PIP) insurance and MedPay coverage both cover medical expenses for you and your passengers after an accident, regardless of fault. Depending on your state, you may be required to carry one or the other.

Although these types of insurance are commonly included in a full coverage policy, what your specific policy includes will depend on your state. Full coverage is not the official name of any type of insurance, so be sure to clarify whether these types of insurance are included if you're purchasing a American Family policy.

When You Should Consider Full Coverage From American Family

A American Family full coverage policy is a good choice for drivers who don't want to pay for vehicle repairs out of pocket. If you are leasing or financing your car, you may be required to get full coverage.

To get a quote from American Family for a full coverage policy, you can call 1-800-692-6326. To learn more, check out WalletHub's guide to full coverage car insurance and our full review of American Family.

Note: Rates are an approximation based on a driver with full coverage and a clean driving record in Illnois. Actual rates will vary.    

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.

To learn more, check out WalletHub's complete review of American Family car insurance, as well as our guide to accident forgiveness.