American Family has a strong history in the insurance industry. But is the best option for you? Our American Family car insurance review has all the answers.
In this American Family car insurance review, we will explore its policies, its premiums, discounts, availability, as well as pros and cons. We will also take a closer look at how it compares with other auto insurers nationwide, to help you determine whether it’s the best company for your needs.
American Family offers a vast assortment of car insurance coverages, including liability, collision, comprehensive, medical expense, personal injury protection, uninsured and underinsured motorist coverage, and rental reimbursement coverage. It also offers several additional coverages like classic car insurance, commercial vehicle insurance, rideshare insurance, travel coverage, and OEM coverage, among others.
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American Car Insurance offers a comprehensive range of coverage options, both standard and optional.
Therefore, you will not have a hard time putting together a package that aligns best with your car insurance coverage needs.
So, what car insurance coverage does American Family Insurance offer? Here is the full list:
Liability coverage is, without a doubt, one of the most important components of your car insurance policy.
It will provide coverage for you, in case you cause an accident that leads to injuries, death or property damage.
American Family Insurance offers both bodily injury liability coverage and property damage liability coverage, which are required in almost all states.
Property Damage Liability Coverage
As the name suggests, property damage liability coverage will cover you in are at fault for a car accident that causes property damage.
So, if you cause a car accident that damages another party’s vehicle, house, telephone poles, mailboxes, fences or buildings, then American Family’s car insurance will help to cover the repair costs.
However, you should note that this coverage will not pay for your vehicle’s repair or replacement costs.
Bodily Injury Liability Coverage
If you cause a car accident that causes injuries or death to another party, American Family car insurance will cover the associated costs through this coverage.
Bodily injury liability coverage can also help to cover medical expenses for pedestrians if you hit someone while driving. It will also cover legal fees, in case the other party takes you to court after an accident.
American Family’s bodily injury liability insurance will cover both short-term and long-term expenses associated with the injuries the other party may have sustained from the accident. It will cover things like:
- Medical expenses
- Pain and suffering
- Legal fees
- Lost wages
American Family’s bodily injury liability coverage will also pay for funeral costs if the car accident you caused leads to death.
Liability coverage is required in almost all states, apart from Virginia and New Hampshire. So, if you live in a state where liability coverage is mandatory, then you will have to add it to your American Family car insurance policy.
Collision coverage will help to pay for your vehicle’s repair or replacement costs, if it’s damaged during a car accident, regardless of whether you are at fault or not.
For instance, if your car gets rear-ended, T-boned or sideswiped, then your American Family’s collision coverage will help to pay for your vehicle’s repair or replacement costs.
This coverage will also cover your vehicle from damages arising from single-car accidents such as rolling over or hitting a stationary object on the road.
However, collision coverage will not pay for repair or replacement costs, if your vehicle is damaged due to non-driving-related incidents.
So, if your vehicle is damaged by hail, storms, vandalism or theft, then your American Family collision insurance will not pay for its repair or replacement costs.
American Family’s collision coverage comes with a deductible. For example, your car may skid on a slippery highway leading to damage worth $3000 to your car. Assuming that your deductible is $500, then American Family Insurance will pay you up to $2,500 to cover your vehicle’s repair costs.
Collision coverage is an optional coverage, meaning it’s not required in any state. So, whether you decide to add it to your American Family car insurance policy or not will depend on your situation.
As highlighted above, your collision car insurance will not cover your vehicle’s repair or replacement costs, if it’s damaged by external events. And this is where American Family’s comprehensive car insurance comes in.
It will cover damage caused by accidents or incidents that are not covered under your collision car insurance. American Family’s comprehensive car insurance will pay for damage caused by things like:
- Collision with wild animals
- Explosions or fire
- Natural disasters like hail or storms
- Falling objects
For instance, a tree may fall on your parked car, causing damage worth $5,000. Assuming that your American Family comprehensive insurance has a deductible of $1,000, then your policy will cover the remaining $4,000.
American Family’s comprehensive car insurance will not cover your vehicle’s wear and tear, theft of possessions inside your car, hitting a pothole or collisions with other vehicles or stationary objects.
Underinsured and Uninsured Motorist Coverage
Underinsured motorist coverage will protect you financially if you are involved in a car accident and the at-fault driver doesn’t have adequate car insurance to cover your costs or has no car insurance at all.
American Family’s underinsured motorist coverage works similarly to liability coverage. Therefore, it comes with bodily injury liability coverage and property damage liability coverage.
If you are involved in a car accident and the at-fault driver doesn’t have enough liability to cover your costs or has no car insurance at all, then American Family Insurance will help to cover your costs.
It will cover your vehicle’s repair or replacement costs, medical bills, lost wages, pain and suffering, as well as funeral costs.
Whether to purchase this car insurance coverage will depend on the state where you live as well as your coverage needs.
Currently, 22 states require uninsured motorist coverage while 14 jurisdictions require underinsured motorist coverage. So, if your state mandates this coverage, then you will have to purchase it as part of your American Family car insurance policy.
Medical Payments Coverage
Also known as MedPay, medical payments coverage will help to cover your medical expenses if you sustain injuries during a car accident, regardless of whether you were at fault or not.
Medical payments coverage will cover you, your family members as well as the passengers in your car at the time of the accident.
Also, American Family’s medical payments coverage will cover your medical expenses in the event you are hit by another car while biking or walking. Its coverage extends to:
- Doctor visits
- EMT and ambulance fees
- Hospital stays and visits
- Professional nursing care and services
- Surgery and X-rays
- Dental procedures required after the accidents
- Prosthetic limbs
Medical payments coverage will also include funeral expenses, if you, your family member or your passenger dies as a result of the accident.
Medical payments coverage is not required in any state. So, if you cause a car accident and you don’t have this coverage, then you will have to take care of your medical bills out of your own pocket.
Personal Injury Protection
Personal injury protection or PIP will cover your healthcare expenses if you are involved in a car accident, regardless of whether you were at fault or not. American Family’s PIP coverage will pay for:
Personal injury protection will pay for your medical bills, your passengers as well as those of other individuals covered under your American Family’s car insurance policy.
This coverage will extend to you, even if you were not driving your car during the accident. So, if you are hit while traveling as a passenger in another vehicle, as a pedestrian or when riding a bike, then your PIP coverage will cover your medical bills.
It will cover medical bills defined as necessary and reasonable, which may include expenses like:
- Nursing, surgery, X-rays, emergency care services, dental care, prosthetics and prescriptions
- Therapy and rehabilitation
- Optometry services
- Psychiatric and psychological care
- Audiological and speech services
If you can no longer engage in productive work due to the injuries sustained during the car accident, then your PIP insurance may replace or cover some of your lost wages. The compensation amount for lost wages you will receive will depend on your policy.
Your American Family car insurance PIP coverage may also cover funeral expenses, in case someone covered under the policy died during the accident. The coverage reimbursement amount will depend on the terms of your policy.
PIP coverage will also pay for essential services if you are unable to perform them due to the injuries sustained during the accident.
It will pay for services like childcare, lawn care and maintenance, shoveling snow, laundry and house cleaning, among others.
You should note that PIP coverage will not cover your expenses in all situations, meaning there are some exclusions.
For instance, if you caused the car accident intentionally, you were committing a crime or you were driving for a ridesharing company during the car accident, then your PIP coverage will not cover your medical expenses.
Classic Car Coverage
American Family Insurance is one of the few insurance companies that offer classic car coverage. For your car to be eligible, it should meet the following conditions:
- Must be 20 years or older
- A reproduction or a replica of a classic or antique vehicle
- A rarity due to its exceptional craftsmanship, unique design or conditions
- Maintained for occasional use in club activities, exhibitions, parades or for pleasure
You will also be required to have another supporting daily driver vehicle, which you can use for your daily commutes, to be considered for American Family’s classic car insurance coverage.
American Family’s classic car insurance also comes with some additional coverages, which you can add to your policy based on your needs. These include:
Zero-Deductible Windshield Repair
If your classic car’s windshield is repaired and not replaced for a covered loss, then American Family Insurance will waive your deductible.
On the other hand, if the repair fails to address the issue properly, then American Family Insurance will replace the windshield and the deductible will kick in.
Personal Property Coverage
If your possessions are stolen or damaged in a covered loss, then this company will cover the loss up to a limit of $200.
Limited Pet Coverage
If your pet is traveling in your classic car and the car gets stolen or involved in an accident, then this coverage will compensate you and help you cover the costs.
American Family’s classic car insurance cost will vary from one car to the other, depending on its value, among other rating factors.
Unlike other car insurance companies, American Family classic car insurance doesn’t come with annual mileage limits. Therefore, you can drive your car anywhere or as long as you like, as you as you are not using at as your daily commuting vehicle.
Commercial Auto Insurance Coverage
As the name suggests, commercial auto insurance coverage will protect the vehicles that you use for business purposes.
It works just like personal auto insurance. American Family’s commercial auto insurance includes coverage for:
- Bodily injury liability coverage
- Property damage liability coverage
- Comprehensive coverage
- Collision coverage
- Underinsured and uninsured motorist coverage
- Medical expense coverage
- Loading and unloading coverage
If you are using your vehicle to do business, then you need to purchase this insurance coverage.
American Family’s commercial vehicle insurance can cover almost all types of vehicles used to conduct business such as pickup trucks, cars, vans, box trucks, light SUVs and trailers, among others.
If you use your car to drive for a ridesharing company like Lyft or Uber, then this insurance is meant for you.
It’s designed to fill the gap between the insurance provided by your ridesharing company and your personal car insurance policy.
For instance, when the rideshare company’s app is off, then you will be covered by your personal car policy.
On the other hand, if your Uber or Lyft app is on and you are waiting for a ride request, you are not covered by your personal car insurance policy.
But once you accept a ride request and you start driving to the customer, then you are covered under your ridesharing company’s insurance.
Your rideshare company’s insurance will also cover you when you have a passenger in the car.
American Family’s rideshare insurance helps to fill the gap between your personal car insurance policy and your rideshare company’s auto policy. It provides the same coverage as your personal car insurance policy, including:
- Property damage liability
- Bodily injury liability
- Comprehensive and collision
- Personal injury protection
- Medical expense
- Underinsured motorist coverage
- Uninsured motorist coverage
American Family’s rideshare insurance cost will depend on your location and your monthly car insurance rate.
For instance, if you live in Georgia and your monthly car insurance cost is $100, then it will cost you approximately $20 per month to add the rideshare coverage to your American Family car insurance policy.
Car Rental Reimbursement Coverage
You may sometimes be involved in a car accident, and your car may require a couple of weeks or days to be repaired.
During this period, you may be forced to use a rental car or alternative transportation means. And as you probably know, these costs can add up quite fast, especially if your car will be staying in the repair shop for several weeks.
This is where American Family’s rental reimbursement coverage comes in. It will help to keep you moving as your car is being repaired under a covered loss.
It will cover your transportation costs, which means you will not incur out-of-pocket expenses as your vehicle is being repaired.
With this coverage, you will be reimbursed for using a rental car or traveling using rideshare services, city buses, taxis, commuter trains and light rail.
It’s important to note that American Family Insurance will only allow you to add this coverage to your car insurance policy if you have collision insurance or comprehensive insurance.
Under this coverage, you can opt to use any of the company’s approved rental car providers or work with a rental car company of your choice.
If you choose one of the company’s approved providers, they will be sending your rental bills directly to American Family Insurance.
On the other hand, if you opt to choose a rental car company of your choice, you will cover the rental expenses upfront. From there, you will have to submit the receipts and claim form to American Family Insurance so that they can reimburse you the costs.
American Family’s rental car reimbursement coverage comes with a per-accident limit and a daily limit.
Hence, if your car is going to be in the repair shop for a while, then you should rent a lower-cost car, to ensure your coverage doesn’t deplete before you get back your car.
American Family’s rental car reimbursement coverage starts from $25 per day. You can choose your coverage limit based on your budget and your needs.
Original Equipment Manufacturer coverage or OEM coverage is an optional car insurance coverage, which you can purchase to ensure your vehicle is not repaired using aftermarket parts.
So, whenever you take your vehicle to the auto shop for covered repairs, the repair shop will only use OEM parts.
If you want to ensure that your vehicle maintains its original parts, then this additional car insurance endorsement is designed for you.
American Family’s OEM coverage is only available to policyholders with collision and comprehensive car insurance. Also, your vehicle should not be more than seven years older than the current model year.
You may be going on a road trip with your family or friends, and unfortunately, your vehicle breaks down or you are involved in an accident.
In such an unfortunate situation, you may be forced to cancel your trip and head back home. However, American Family’s Travel Peace of Mind Package can get you back on track.
This package features 4 vital coverages, which can help to cushion you against unforeseen bumps in the road. It features:
Emergency Roadside Service
This service will help to repair or fix your vehicle if it breaks down when you are on the road. And if your vehicle is not repairable on the spot, then it will be towed to the nearest repair facility. Available 24/7, this service covers:
- Towing to the nearest repair shop
- Battery jump
- Gas and oil delivery
- Tire patch or tire change
- Lockout services
Road Trip Accident Accommodations Reimbursement
Road trip accident accommodations will help to cover or reimburse some of your transportation, meal and lodging expenses if your vehicle breaks down when you are 100 miles or more away from home.
It will provide $100 per day, which will go towards your meals, $100 per day towards lodging costs, and $50 per day, which will go towards alternate transportation.
Forever Car Coverage
American Family also offers car repair insurance, designed to pay for costly repairs for a covered vehicle.
Under this insurance coverage, you will be paying a fixed monthly fee of between $45 and $75.
If your vehicle needs to be repaired under a covered mechanical breakdown, then you will just need to pay a small deductible of up to $250 and American Family will take care of the rest.
In case your car is still under your manufacturer’s warranty, then this service will cover basic items like wiper blades, brake pads and light bulbs.
But once your car’s manufacturer’s warranty ends, then the coverage will move to the Platinum level, which is almost similar to your manufacturer’s warranty.
From 105,001 the coverage will shift to the Powertrain level, where it will be covering parts that are vital to your car’s operation and movement.
For your vehicle to be eligible for this plan, then it should meet various conditions such as:
- The vehicle shouldn’t be older than 10 years
- It should have an odometer reading of less than 175,000 miles
- It shouldn’t have outstanding recalls or known defects
- It shouldn’t be used for commercial purposes
- The vehicle shouldn’t be used for towing, hauling or other strenuous activities
Also, some particular makes and models may not be eligible for this service such as BMW, Audi, Jaguar, and Mercedes Benz, among others.
What is the Cost of American Family Car Insurance?
According to the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in the country is approximately $100 per month or $1,200 annually.
American Family car insurance costs approximately $1,450 annually, making it one of the most car insurance companies in the country.
Does American Family Car Insurance Offer Car Insurance Discounts?
American Family offers a vast assortment of discounts. While its car insurance premiums are above average, most of its car insurance policyholders will find a means of saving money. Some of the discounts you may qualify for include:
American Family will give you a discount when your purchase both your car insurance policy and your homeowners insurance policy from this company.
According to the information posted on its website, you will earn a discount of up to 29% on your car insurance and up to 20% on your homeowners insurance policy if you purchase both of them from American Family Insurance.
Bundling your auto insurance with renters insurance will also earn you a discount of up to 29% on your American Family car insurance policy.
Insuring more than one vehicle with American Family Insurance will also earn you a discount on your car insurance policy.
Early Bird Discount
If you have an active car insurance policy with another insurer and you receive a quote from American Family for at least 7 days before your policy becomes effective, then you may be eligible for this discount. The discount amount varies from state to state.
Steer Into Savings Discount
American Family Insurance may also give you a discount on your car insurance policy if you shift from one of its competitors like Liberty, State Farm, or Geico. Similar to other discounts that American Family offers, the actual amount will depend on your state.
Good Driving Discount
American Family Insurance will also give you a discount on your car insurance policy if you display good driving habits.
To be eligible for this discount, you will need to have a clean driving record for 5 consecutive years, meaning no accidents, claims or moving violations.
Defensive Driver Discount
If you are above the age of 55 and you live in one of the qualifying states, then you can save money on your American Family car insurance policy.
You just need to complete a state-approved defensive driving course and you will be eligible for this discount.
Currently, this discount is only available in 12 states namely Georgia, Colorado, Idaho Illinois, Kansas, North Dakota, Minnesota, Nevada, Ohio, Utah, Washington and Oregon.
Good Student Discount
Adding a teen driver to your American Family car insurance policy can push up your premiums. However, this company offers some discounts, if the student earns good grades in school.
To be eligible for this discount, the student must be:
- A full-time student in high school or doing a two- to a four-year course in college or university, vocational training school, or an eligible online schooling program
- Aged 16 to 25
- Maintain a B average, a GPA of 3.0 or rank among the upper 20% in the class
- Be on the school’s list indicating excellent scholastic achievement
- Homeschooled students should have scored in the upper 20% in a nationally recognized exam such as ACT or SAT. The discount amount varies from state to state.
American Family Insurance also gives discounts based on how you pay for your car insurance premiums.
For instance, if you pay for your policy in full at the time of purchase, then you may qualify for a discount. Also, enrolling in the company’s online billing system will earn you the paperless discount.
Know Your Drive
KnowYourDrive is a usage-based car insurance program, which gives you an opportunity to earn discounts if you display good driving habits.
To join this program, you simply need to download the KnowYourDrive smartphone app. From there, it will monitor your driving behavior. It will track things like your speed, braking as well as your recent trips.
According to the information posted on its website, you can earn a discount of up to 20% if you display good driving behaviors. Signing up for the program will automatically earn you a 10% discount on your American Family car insurance premiums.
While your discount can fluctuate over time, participating in this program will not increase your premiums.
American Family Car Insurance Availability
American Family is currently available in 19 states only. These are Wisconsin, Washington, Arizona, Georgia, Colorado, Idaho, Indiana, Kansas, Iowa, Illinois, Nebraska, Minnesota, Missouri, Ohio, Nevada, North Dakota, Utah, South Dakota and Oregon.
American Family Car Insurance Customer Service
American Family has several channels, which you can use to get in touch. First, you can get in touch with the company via phone call, which is available 24/7.
Second, you can contact the customer support team using the Live Chat feature on the website. American Family’s representatives are available via Live Chat from Monday through Friday, between 8 am and 8 pm CST.
Third, you can send an email, physical mail, or just contact your local representative via phone.
American Family also has a mobile app, known as the MyAmFam app. Available on both Android and iOS platforms, you can use this mobile app to report a claim, track your claim’s status, schedule payments, view your insurance IDs and get roadside assistance.
How Does American Family Car Insurance Compare
Third-party rating companies like J.D Power, the National Association of Insurance Commissioners (NAIC) and AM Best collect, analyze and publish data on how insurance companies perform every year. So, how does American Family perform?
According to the 2020 J.D Power customer satisfaction survey, American Family Insurance earned a score of 862 out of 1000.
The national average for the same study was 872 out of 1000, which shows that American Family’s customer satisfaction rate is below average.
Customer Complaint Ratio
According to NAIC, American Family Insurance earned a score of 1.78 in 2020. The national complaint index is always 1. This is to show that this company received a higher than the average number of customer complaints in 2020.
AM Best rates the financial strength of insurance companies and gives them a score, with A++ being the highest.
American Family Insurance earned a score of A, which shows it’s in a strong financial position its ongoing obligations to its policyholders.
- Great customer service
- Plenty of discounts
- Strong financial outlook
- ·Only available in 19 states
- Above-average rates
- Below-average customer satisfaction rating
American Family Insurance will be a good choice for parents with teens on their car insurance policies. It offers numerous discounts for teen drivers, which can help you to save money on your auto insurance policy. It’s also a good choice for ridesharing drivers looking for reliable coverage.
On the other hand, it may not be the best choice for someone looking for the cheapest car insurance rates. Also, American Family Insurance is only available in 19 states. So, if you live in a state where it’s not available, then you will have to explore other options.
About THE AUTHOR
I've spent many years selling cars, working with auto detailers, mechanics, dealership service teams, quoting and researching car insurance, modding my own cars, and much more.Read More About Charles Redding