American Family Insurance Review August 2022

American Family is the nation’s ninth-largest auto insurance seller and has far fewer than the expected number of auto insurance complaints for a company its size.

American Family is among NerdWallet’s Best Car Insurance Companies.

Is American Family a good insurer?

Yes, American family is a good auto insurer for most customers. The company also offers a wide selection of other insurance products, so if you're looking for a one-stop shop for insurance, American Family might be a good fit for you.

American Family auto insurance coverage

American Family offers a standard suite of auto insurance coverage types plus a few additional options, including these:

• Gap insurance will pay out if your car is totaled and it is leased or has a loan balance. Without this coverage, you would receive only the depreciated value of the car minus any deductible — leaving you to pay off the rest.

• Accidental death and dismemberment coverage pays out if a car accident causes death or certain injuries, regardless of who’s at fault.

• Ridesharing insurance is available for customers who drive for services such as Uber or Lyft, but not in every state. It can be added to your personal auto policy and fills a coverage gap while you’re waiting for customers, so you’re fully insured the entire time the app is on.

• Original equipment manufacturer coverage pays for your vehicle to be repaired with parts made by your car’s manufacturer rather than aftermarket parts.

• Accident forgiveness coverage can be purchased to ensure your premium won’t go up if you’re at fault for a wreck. (Note that you can earn accident forgiveness for free if you go five years without a claim.)

» MORE: Compare car insurance rates

Auto insurance discounts American Family offers numerous ways to save on your auto policy, including:

• Multiple policy (bundling) discount.

• Multiple vehicle discount.

• Good driver discount.

• KnowYourDrive app discount, based on your driving behavior.

• Loyalty discount.

• Discount for switching to American Family from another insurance company.

• Early bird discount for getting an American Family quote at least seven days before your policy takes effect, if you’re switching from another insurer.

• Safety discount for equipment like air bags.

• Defensive driving course completion discount for drivers 55 and older.

• Low-mileage discount if you drive less than 7,500 miles per year.

• Good student discount.

• Discount for teen drivers who enroll in a safe driver program.

• Student away at school discount.

• Discount for drivers under age 25 who complete 40 hours of volunteer work a year for a nonprofit.

• Discount for young drivers whose mom or dad is an American Family customer.

• Discounts for going paperless, setting up automatic payments or paying your premium in full, upfront.

Pricing based on tracked driving habits

If you’re willing to let American Family track your driving behavior, you could save up to 20% on your auto policy. The KnowYourDrive app monitors actions like speeding, hard braking and distracted driving (such as sending a text). Your rate won’t go up for unsafe driving.

American Family home insurance coverage

American Family Insurance offers standard homeowners insurance and the following types of optional coverage:

• Sump pump failure and water backup: Pays out if your sump pump overflows or your sewer backs up.

• Identity theft: Pays for costs associated with restoring your finances if you become a victim of identity theft.

• Home-based businesses: Provides additional liability and personal property coverage if you run a business from your home.

• Equipment breakdown: Pays out if your appliances, home systems or smart home devices are damaged due to a sudden mechanical, electrical or pressure systems failure.

• Matching siding protection: When an event like a storm or a fire damages your siding, your home insurance will cover the costs. Matching siding protection reimburses you for up to $20,000 to replace the remaining undamaged siding so everything matches.

• Service line: Pays for repairs to water, power or other underground lines that run to your house.

• Senior living: Covers liability and personal belongings for seniors in nursing homes or assisted living facilities.

• Vacant home: Available for three-, six- or 12-month periods, this coverage pays for damage if your house is unoccupied during renovations or while it’s on the market.

• Hidden water: Covers up to $25,000 worth of damage, including mold, resulting from hidden water leaks.

• Short-term rental: If you rent your home out to others on a temporary basis (no more than 62 days a year total), this coverage pays for damage that happens during those rental periods.

• Scheduled personal property: If you have individual items that are particularly valuable — such as an engagement ring or pricey musical instrument — you can buy separate insurance that covers those items for a wider range of potential disasters.

» MORE: The best homeowners insurance companies

Home insurance discounts

Depending on where you live, you may be eligible for some of the following discounts:

• Discounts for safety features or smart devices such as a video doorbell.

• Multiple policy (bundle) discount.

• Discount if you purchased a home within the past three years.

• Discounts for going paperless, setting up automatic payments or paying your premium in full, upfront.

• Loyalty discount for those who’ve been insured with American Family for at least a year.

• Discount for insuring a home under 15 years old.

• Generational discount if you’re between 18 and 30 and your mom or dad is an American Family customer.

• Discount for replacing your home’s plumbing, heating or electrical systems in the past 15 years.