American Family Insurance Review

The 14th-largest casualty and property insurance company in the United States, American Family Insurance issues every major type of insurance as well as retirement investment products. Read our American Family Insurance review to determine if AmFam is the right choice for you.

Company Overview

An insurance salesman named Herman Wittwer started AmFam as Farmers Mutual Insurance Company in 1927. Like many other American insurance carriers, American Family got its start issuing auto insurance policies to farmers. Currently, American Family issues policies in 19 states and has more than 4,000 agents. American Family Insurance provides property, auto, farm, health, and life insurance as well as financial products geared toward retirement investors.

Insurance Rates and Discounts

American Family Insurance issues traditional car insurance in addition to boat, motorcycle, and RV insurance. AmFam's property insurance products include home, renters, and condo insurance. Policyholders can also purchase whole, term, universal, and other forms of life insurance coverage through AmFam. Available car insurance discounts include the good student, air bag, good driver, and accident-free discounts.

Ratings and Awards

American Family Insurance's ratings on the 2009 J.D. Power National Auto Insurance Study were consistently average. AmFam earned three out of five stars in every category, including overall customer satisfaction. Financially, American Family Insurance has received solid marks. A.M Best rated American Family Insurance as "A" (excellent), Moody's as "A1" (good), and Standard and Poor's as "A+" (superior).

Company Health

As with most American insurance companies, American Family experienced record-breaking storm and catastrophe losses in 2008. The extraordinary number of losses coupled with poor investment returns made 2008 a challenging year for AmFam. The company's equity dropped significantly from 2008-2009, something it hopes to turn around with better investments and more efficient operations. For additional financial information, consult American Family Insurance's current annual report online.

How to File a Claim

American Family policyholders have three options to file a car insurance claim. First, they can file a claim online. Alternatively, policyholders can report the claim via telephone by calling 1-800-692-6326. Finally, AmFam customers can also call or visit their local agent to file their claim. When filing a claim, policyholders should have their contact information and policy number handy for faster processing. After filing the claim, policyholders have the option to track its progress online.

Summary

American Family Insurance has a small-town reputation and prides itself on individualized attention. However, because the auto insurer is much smaller than other carriers, it does not have the agent or support network policyholders may expect. American Family's reputation for customer service is also unremarkable according to the latest J.D. Power survey, although the insurer has maintained its financial stability well.