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American Family insurance pros and cons
American Family auto insurance review
American Family was first known as Farmers Mutual Insurance in 1927. At the time of opening, Farmers Mutual Insurance exclusively offered auto insurance , specifically for farmers. With one last name change, Farmers Mutual Insurance became known as American Family Insurance.
American Family currently operates in 19 states. It’s ranked #7 in J.D. Power’s auto claims satisfaction survey.
American Family offers multiple opportunities to save on your car insurance policy including good driver, good student, multi-vehicle, loyalty, and auto/full-pay discounts to name a few.
Like most insurance companies, American Family provides discounts for bundling your home and auto policy.
There are four types of insurance coverage: liability insurance (required by most states), comprehensive, collision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.
The difference between the various coverage types is outlined in the table below:
American Family homeowners insurance review
American Family ranked #6 in J.D. Power’s homeowners insurance customer satisfaction survey.
American Family offers home, renters, condo and manufactured/mobile home insurance. American Family also offers insurance for personal property like furniture, clothing, electronics and jewelry.
Homeowners insurance protects your dwelling, personal belongings, and offers personal liability coverage for injuries that happen on your property. Standard homeowners insurance looks like the table below, but coverage varies depending on your provider:
*Available as add-on coverage if not part of policy
**Flood insurance is available through the NFIP and approved insurers
***If you live in hurricane or tornado areas, additional windstorm rider may be required
American Family life insurance review
American Family didn’t make the list for J.D. Power’s life insurance customer satisfaction survey.
American Family offers term and permanent life insurance products. The term life products offered are level term and simplified issue, a no-medical exam policy. The permanent life insurance products include whole life, senior, and children’s whole life insurance.
The two types of life insurance are permanent life and term life. Term life insurance only cover a specific period of time. When your policy is up, you can reapply for coverage. However, the premiums will most likely increase as you age.
Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.
American Family insurance vs. the competition
Is American Family trustworthy?
We checked the NAIC Complaint Index for complaints against American Family Insurance. American Family has slightly more complaints filed against it compared to other top insurers.
American Family’s financial stability is strong, with an A.M. Best’s rating of A (Excellent).
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Alani Asis
Personal Finance Reviews Fellow
Alani Asis is a Personal Finance Reviews Fellow who covers life, automotive, and homeowners insurance. Prior to Insider, Alani was a Mortgage Support Specialist and a personal finance freelance writer based in Hawai’i. You can reach her via email at aasis@insider.com or through Twitter @AlaniAsis.
