Is American Family Good for Car Insurance?
Last Updated on November 25, 2020
Wisconsin-based American Family Insurance provides several forms of insurance including automobile insurance. American Family’s auto insurance rates are fairly low compared to the competition, partially because it has been in business for nearly a full century. American Family’s financial success is passed on to its customers in the form of affordable insurance rates. Furthermore, the company’s clients are empowered to customize their auto insurance plans for even more savings.
American Family’s Background
American Family has grown steadily across the past 90+ years. Though the company originally started on a farm in Wisconsin way back in the early 20th century, it is now a massive insurance company. American family provides auto, commercial, medical, life, and homeowners insurance. All in all, the company has more than 10,000 employees, 3,000 agents, and offices in 19 states. American Family is consistently ranked in the top 10 of auto insurance providers for the reasons detailed below.
American Family Customer Service
Obtain an auto insurance policy with American Family and you will find its customer service is second-to-none. Though American Family’s coverage options and discounts are far from extraordinary, the company makes up the difference in its exemplary customer service. Nearly every customer surveyed after interacting with an American Family representative raves about the quality of service. You will not find a friendlier or more accommodating team of customer service representatives.
American Family Auto Insurance Coverage
As noted above, American Family does not exactly outshine the competition in the context of coverage options. The standard coverages for property damage, collision, damage liability, personal injury, and rental reimbursement are available to customers. The company’s auto insurance coverages are indistinguishable from those of the competition. American Family falls short in relation to the rest of the pack when it comes to additional benefits. The sole additional benefit provided by this auto insurance company is reimbursement for the use of a rental car after an accident.
Frequency of Customer Complaints
The National Association of Insurance Commissioners (NAIC) publishes its complaint ratio for auto insurers on a yearly basis. The average NAIC auto insurance complaint ratio is determined by the number of customer complaints auto insurers receive compared to the total number of premiums issued in a single year. The median NAIC complaint ratio across the entirety of American car insurance businesses is 1. American Family’s NAIC complaint ratio is a mere 0.64. In other words, American Family receives fewer complaints than other auto insurance companies. Furthermore, American Family has an A+ Better Business Bureau rating.
American Family auto insurance discounts are divided into three distinct categories: policy, vehicle, and driver. Discounts for drivers are dictated by the customer’s driving history as well as his or her status as a student or non-student. With American Family’s new KnowYourDrive program, good drivers can actually get a discount by installing a mobile phone app and letting the company monitor their driving habits. The company’s lone vehicle discount is triggered by the safety rating of the vehicle to be insured. However, it is possible to qualify for the company’s overarching insurance discounts through bundling of insurance policies or covering several vehicles.
What Matters Most: Pricing
The average American Family auto insurance premium is $3,443. However, this is not to say you will likely pay several thousand dollars or more for an auto insurance policy through this provider. Your driving history, vehicle make and model, age, and location all play a part in determining your auto insurance rate. Let’s take a look at American Family’s auto insurance pricing in relation to the competition. The average GEICO auto insurance policy runs $3,215 per year. The average annual auto insurance rate paid by State Farm customers comes in even higher at $3,260. USAA has American Family, GEICO and State Farm beat with an average auto insurance rate of $2,537.
Though American Family’s average annual car insurance rate is slightly higher than other providers, this figure is skewed by the fact that its young drivers are particularly expensive to insure. The average teenage male driver pays a whopping $8,130 for yearly auto insurance through American Family. The company’s teenage female drivers pay about $2,000 less per year for auto insurance. However, American Family auto insurance rates dramatically decline for those beyond the teenage age cohort. As an example, a single woman who is 25 years of age pays an annual auto insurance rate of $2,289 with American Family. American Family really is one of the most affordable auto insurance providers for women in their 20s and 30s.
What About the Cost of Coverage Levels?
American Family should be commended for keeping its elevated coverage amounts at reasonable prices. American Family customers who have minimal coverage pay about $3,300 per year on average. The company’s customers who pay for high coverage pay about $50 more per year on average. This minuscule price difference for varying coverage levels is a bargain few other auto insurance companies can match. If you are on the prowl for high levels of coverage, it will be difficult to find a better deal than American Family. In fact, only USAA provides a cheaper average annual rate for high coverage levels.