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American Family Auto Insurance review

Mid-level insurance ideal for those who want to bundle

Our Verdict

As a mid-sized provider, American Family Auto Insurance is a great option for those who want to make a saving over the bigger-name companies. It offers benefits for those who can take out multiple policies and delivers friendly customer service with years of great reports from happy customers.

For

  • Friendly, local customer service
  • Gap insurance
  • Death payout

Against

  • Claims processing times vary

American Family Auto Insurance: What you need to know

American Family Auto Insurance is the nation's tenth-largest auto insurance seller yet offers a more personalised service and, apparently as a result, has fewer complaints compared to other insurers.

The customer service isn't the only reason this is a well-liked service, though. American Family Auto Insurance also offers a wide selection of insurance products with handy bundling options. It does all this while managing to keep prices competitive too.

Despite its size, insurance still has more cutting edge with features on offer like ridesharing insurance for professional drivers. The use of a smart app is also a nice touch to allow for faster controls in a claim situation.

American Family Auto Insurance offers a program, KnowYourDrive, that lets you be tracked in order to potentially save money on your policy. That's presuming you're rated as a safe driver after the analysis period is over, of course. 

Rental car reimbursement is another nice feature, as is gap cover and the addition of accidental death reimbursement. But more on all that below.

Policies: How much does American Family Auto Insurance cost?

  • Minimum coverage: $811
  • Comprehensive coverage: $2041
American Family Auto Insurance: Key features

Gap insurance: This pays off the difference between the depreciated value of your totaled vehicle and the amount that’s owed

Roadside assistance: 24/7 help contactable by phone or app with towing, battery restart, tire repair and more on offer

KnowYourDrive: Let American Family track your driving to save up to 40%

Pricing varies depending on a lot of factors including age, driver history, credit rating, location, car type and more. But these numbers give you a rough idea of pricing compared to the competition out there. These use the average for all numbers to give you a broad idea of pricing.

For minimum coverage the cost from American Family sits at $811 compared to $819 for Geico, $1390 for Allstate and $1469 for Farmers.

If you opt for full coverage policies then an American Family customer is looking at paying an average of $2041 compared to $3545 at Allstate, $4280 at Farmers and $2158 at Geico.

American Family Auto Insurance: KnowYourDrive

  • Earn discounts for safe driving using a tracking app
  • Can save you up to a whopping 40% off your premium

One of the most standout features that American Family offers is its KnowYourDrive setup. This is a system that allows the company to track your driving for a period of time to assess how safe you are on the roads. The idea is to potentially offer you a saving on your policy if you are a safe driver.

KnowYourDrive is something you enroll in if you want. You can then have a tracker placed in your car which collects data like speed, braking and accelerating, plus time of day for your driving. 

These habits help to paint a picture which, if safe, can save you up to a whopping 40% off your premium. This can be as low as two percent though, so don't expect too much off if you're a heavy-footed driver.

American Family Auto Insurance: Rental car replacement

  • Get reimbursed $25 to $750 per day for rental car replacement costs
  • Depends on your policy type and can be adjusted as you like

If your car ends up in the shop then you can be eligible for a rental car replacement to keep you moving while work is being carried out. This is a reimbursement service that will give you money back for that spent on the rental and applies to both comprehensive and collision coverage plans.

At the lowest end you'll get $25 per day towards the car rental but this can go all the way up to $750 per day. This depends on your policy type and can be adjusted as you like but just means you will need to pay more on your premium for that higher-end offering.

It can be easier to select a rental company approved by American Family as this allows that company to charge the insurer directly, saving you hassle.

Car damage

(Image credit: Pixabay)

American Family Auto Insurance: Roadside service

  • Emergency roadside assistance
  • Covers a wide range of services

American Family offers emergency roadside assistance that covers a lot of issues you may suffer when driving. This is a 24/7 roadside assistance service that can be contacted via the phone or by using the MyAmFam app.

Services include cover for towing, battery restart, tire repair, gas or oil delivery, locksmith services, and roadside repairs.

American Family Auto Insurance: Ridesharing insurance

  • Applies to taxi drivers who work using app-based services
  • Fully covered all the time even when going to or from a job

Ridesharing insurance is covered by American Family. This applies to taxi drivers who work using app-based services like Uber and Lyft. While these offer cover when on a job, that doesn't cover in-between times. 

The American Family ridesharing insurance means you're fully covered all the time even when going to or from a job.

American Family Auto Insurance: MyAmFam app

  • Great app makes up for subpar website
  • Can carry out lots of actions right there from your phone 

American Family Auto Insurance doesn't have the best website out there but all is not lost as it helps make up for this with its app, called MyAmFam.

The MyAmFam app allows you to carry out lots of actions right there from your phone wherever you are. This includes processing payments, downloading proof of insurance, tracking claims and even getting roadside assistance when you need it.

American Family Auto Insurance: User Reviews

  • 3 star rating overall from J.D. Power
  • 2 star rating from ConsumerAffairs

(Image credit: JD Power)

American Family Auto Insurance has a wide range of reviews online as it's a sizeable company and has a regular set of customers that return year after year.

According to the 2018 J.D. Power study, American Family Auto Insurance got a three-star rating out of five in claims processing but a four-star mark for the insurance shopping department.

ConsumerAffairs typically gives lower ratings as it's populated by customers making complaints more often than not. So, American Family Auto got two stars based on 302 reviews with positives for customer care but negatives for claims-processing times. 

American Family Auto Insurance: Verdict

American Family Auto Insurance isn't the biggest or the smallest auto insurer out there, and as such manages to strike the balance between good prices and services on a wide scale. It also offers financial strength that can be relied upon by customers.

The app is a really useful way to access any services needed and is only let down by some complaints about the claims processes themselves taking longer than expected. Thanks to friendly and helpful customer service this is something that is made less painful as the process is one you can be guided through caringly. 

Competitive on pricing, this is a compelling offering that uses some great features to attract customers nationwide.