American Family Auto Insurance Reviews (2026): Strong Customer Satisfaction and Low Complaints, but Rates Run Above Average
Key Takeaways
- American Family’s full coverage rates average $223 a month ($2,676 a year), about $361 more than the national average of $2,315, according to NerdWallet’s 2026 analysis.
- The NAIC complaint index puts American Family at 0.669, according to Insure.com, meaning it draws fewer complaints than expected for its size.
- American Family sells auto policies in only 19 states, concentrated in the Midwest and West: Arizona, Colorado, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
- J.D. Power’s 2025 U.S. Auto Claims Satisfaction Study scored American Family 692 out of 1,000, ahead of Progressive (672) and Allstate (691) but below the study’s top performers.
- The DriveMyWay and MilesMyWay telematics programs can cut premiums by up to 20 to 25 percent, and bundling auto with a home policy saves up to 29 percent on the auto side, according to American Family’s own discount disclosures.
American Family built its reputation on farm country customer service, and a century later that reputation still shows up more in the complaint data than in the price tag. We pulled rate, ratings, and complaint data from NerdWallet, Insure.com, U.S. News, The Zebra, WalletHub, MoneyGeek, Insurify, AM Best, and J.D. Power to see where the major review sites agree on American Family and where their numbers diverge.
Availability is the first thing to check. American Family sells polaicies in only 19 states, concentrated in the Midwest and West, so the rest of this review only applies if you’re shopping in one of them. American Family offers reliable claims handling and a deep discount list, but rates run above the national average before those discounts kick in. When you’re comparing American Family car insurance against other car insurance companies in 2026, the answer for most shoppers is straightforward: it’s a strong pick if you live in one of its 19 states and value low complaint volume and a wide discount menu, but it’s rarely the cheapest option on the table.
NerdWallet’s 2026 rate analysis puts American Family’s full coverage average at $2,676 a year, roughly $361 above the national average. Insure.com reaches a friendlier number, $159 a month for full coverage, and ranks American Family among the cheaper large insurers in its 2026 survey. U.S. News found a similar gap to NerdWallet, pricing a married 40-year-old’s policy at $2,268 a year, $256 above its national benchmark. The gap comes down to methodology: each site samples different driver profiles, states, and coverage limits, so the dollar figures move around even when the conclusion doesn’t. On service, the sources line up more closely. WalletHub, MoneyGeek, and Insure.com all credit American Family with better than average claims handling and a below-average complaint rate.
American family insurance pros and cons
| Pros | Cons |
|---|---|
| Low NAIC complaint index relative to company size | Full coverage rates run above the national average in most third-party surveys |
| Wide discount menu, including two telematics programs | Sold in only 19 states |
| A (Excellent) financial strength rating from AM Best | J.D. Power claims score is above average but not top tier |
| Below-average rates for teen drivers and drivers with a DUI | Costco members outside those 19 states get a different, Costco-branded version of the policy |
| Broad coverage menu: rideshare, gap, and OEM parts coverage | Rate increases at renewal are a recurring complaint theme |
Is American Family car insurance cheap or expensive?
It depends heavily on who’s asking and which study you check. NerdWallet’s April 2026 analysis found American Family charging $223 a month for full coverage car insurance against a $2,315 national annual average, and $67 a month for minimum coverage against a $621 national average, meaning American Family runs above the national average on both fronts in that dataset. Insure.com’s numbers tell a different story: a 40-year-old driver pays $1,912 a year for full coverage there, close to Erie’s $1,906 and well under Allstate’s $3,205. The Zebra splits the difference, putting a six-month policy at $1,453 against a $1,163 national average rate. Where the sources agree is on the exceptions: American Family is consistently cheaper than average for teen drivers and for drivers with a DUI on their record, and NerdWallet’s data shows 20-year-olds paying $5,002 a year against a $4,712 national figure, a smaller gap than the company shows for other age groups.
| Driver profile | American Family | National average | Source |
|---|---|---|---|
| Full coverage, average driver | $2,676/year | $2,315/year | NerdWallet |
| Minimum coverage, average driver | $801/year | $621/year | NerdWallet |
| Full coverage, 40-year-old | $1,912/year | Erie: $1,906; Allstate: $3,205 | Insure.com |
| Full coverage, 20-year-old | $5,002/year | $4,712/year | NerdWallet |
| Six-month policy | $1,453 | $1,163 | The Zebra |
Sample rates only; actual quotes vary by state, vehicle, driving record, and other factors.
Is American Family a good insurance company?
If judging by complaint volume and financial strength, the answer is yes. AM Best gives American Family an A (Excellent) rating for financial strength, and Insure.com’s NAIC complaint index of 0.669 means the company draws well under the expected number of complaints for an insurer its size. The Better Business Bureau gives American Family’s headquarters an A+ rating, though the company is not BBB accredited, a status BBB notes is separate from its letter-grade rating and simply reflects whether a business has opted into BBB’s accreditation program. WalletHub’s editorial profile scores it 3.8 out of 5 overall, citing strong claims handling alongside criticism of premium levels. J.D. Power’s 2025 claims satisfaction study put American Family at 692 out of 1,000, a few points above the study’s roughly 697-point industry benchmark, and its Central region score of 674 beat that region’s 647 average. MoneyGeek’s customer experience research ranks American Family eighth nationally for overall satisfaction, crediting responsive agent service, while also noting more complaints than average about claim settlement amounts. Insurify’s review of verified customer feedback found drivers praising fast claims processing but flagging repeated rate increases at renewal and inconsistent communication from agents, a theme that shows up across several of the sources.
| Source | Rating | Notes |
|---|---|---|
| AM Best | A (Excellent) | Financial strength rating |
| J.D. Power (2025 Auto Claims Satisfaction Study) | 692/1,000 | Above the study average, below the top tier |
| WalletHub | 3.8/5 | Editorial score based on rates, complaints, and third-party data |
| NAIC complaint index | 0.669 | Below 1.0 means fewer complaints than expected for company size; figure per Insure.com |
| MoneyGeek customer experience | 8th nationally | Strong agent service, weaker marks on claim settlement speed |
What does American Family full coverage include, and does it cover gap insurance?
A standard American Family full coverage policy combines your state’s required liability coverage with comprehensive and collision coverage, protecting your own vehicle against accidents, theft, and weather damage rather than just damage you cause to others. Depending on your state, you may also need to add personal injury protection, which pays medical bills, lost wages, and related costs for you and your passengers after an accident regardless of fault. American Family offers personal injury protection where state law requires it, including in Kansas, Minnesota, North Dakota, and Utah, and it’s available as an optional add-on in some other states, according to FreeAdvice. Gap insurance is a separate, optional add-on. It covers the difference between what you owe on a loan or lease and your car’s actual cash value if it’s totaled, which matters most in the first two or three years of a new-car loan when the balance owed often exceeds the car’s depreciated value. American Family sells gap coverage as an endorsement you can add when you set up your policy, and it’s worth asking for if you financed with a small down payment or a long loan term.
How American Family handles claims, roadside assistance, and rentals
You can file a claim through the MyAmFam app, through the My Account online portal, or by calling 1-800-MYAMFAM, according to American Family’s own claims page. The app lets you upload accident photos, find a shop in the company’s direct repair program, and track claim status without waiting on hold. Rental reimbursement is an optional add-on, not automatic, and it pays for a rental car or rideshare costs up to your policy limit while your car is repaired or being processed as a total loss. Emergency roadside assistance is also optional on most policies. InsurancePanda reports it typically runs $10 to $20 a year to add and covers towing, flat tires, lockouts, and jump-starts, though American Family notes that frequent, non-emergency use of roadside service can affect your rate at renewal.
How American Family compares to Nationwide and State Farm
Against two of its closest large-insurer competitors, American Family comes out as the pricier option in NerdWallet’s July 2026 rate analysis, even though all three earned high marks in NerdWallet’s own quality ratings.
| Company | Average full coverage rate | NerdWallet rating |
|---|---|---|
| State Farm | $2,124/year ($177/month) | 4.8/5 |
| Nationwide | $2,585/year ($215/month) | 4.8/5 |
| American Family | $2,794/year ($233/month) | 4.9/5 |
| National average | $2,300/year ($192/month) | – |
Sample rates only; actual quotes vary by state, vehicle, driving record, and other factors.
State Farm undercuts American Family on price by a wide margin and carries a strong J.D. Power claims score of its own. Nationwide lands in between, with an A rating from AM Best and a J.D. Power claims satisfaction score of 729, ahead of American Family’s 692. American Family’s edge over both shows up less in the sticker price and more in its complaint index and its discount stack for teen drivers, low-mileage households, and Costco members.
Coverage options and discounts
American Family’s coverage menu goes past the standard liability, collision, and comprehensive lineup. Policyholders can add rideshare coverage, gap insurance, and original equipment manufacturer parts coverage, options NerdWallet flags as broader than what many competitors offer.
The discount list runs long. DriveMyWay, the company’s telematics program, tracks driving habits through the MyAmFamDrive app and can save safe drivers up to 20 percent, though FinanceBuzz notes that reckless driving patterns can push a rate up instead of down. MilesMyWay rewards low-mileage drivers, and ConsumerAffairs reports the two programs combined can save up to 25 percent for the safest, lowest-mileage drivers. Bundling matters here more than at some competitors: combining auto with a home policy saves up to 29 percent on the auto side and 20 percent on homeowners coverage, per American Family’s own disclosures cited by ConsumerAffairs. Younger drivers get their own set of discounts, including a good student discount for full-time students age 16 to 25 and a generational discount for young drivers whose parent or guardian already holds an American Family policy.
Costco members can get coverage under American Family, but with some possible policy differences. American Family underwrites the auto policies sold through Costco’s Connect program, and FinanceBuzz notes that policy isn’t identical to the standard American Family product, which matters if you’re comparing quotes side by side.
Where American Family car insurance is available
American Family sells auto policies in 19 states: Arizona, Colorado, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin, according to NerdWallet. If you’re in any other state, the comparison stops there for a direct policy, though the Costco-branded option may still be worth a look depending on your state.
Who American Family fits, and who should look elsewhere
American Family fits drivers in its 19-state footprint who want a wide discount menu, a telematics option that can meaningfully lower a bill, and a carrier with a track record of fewer complaints than its size would predict. It’s a reasonable fit for families bundling their homeowners insurance policy with their auto insurance, for teen drivers whose parents already hold a policy, and for drivers with a DUI looking for pricing that’s more forgiving than the national average. It’s a weaker fit for shoppers chasing the lowest possible sticker price. NerdWallet, MoneyGeek, and U.S. News all found American Family running above the national average on standard adult driver profiles, and Policygenius and FinanceBuzz both point out that competitors regularly beat it on price for drivers with clean records who don’t qualify for the bigger discounts.
FAQ
Is American Family a legit insurance company?
Yes. American Family has sold insurance since 1927, carries an A (Excellent) financial strength rating from AM Best, and operates as a regulated insurer in each of its 19 states, filing rates and complaint data with state insurance departments and the NAIC.
Why do some drivers pay more with American Family than the national average?
Base car insurance rates in American Family’s core Midwest and Western markets tend to run higher than the national blended average used by sites like NerdWallet, and the company relies more heavily on discounts, particularly telematics and bundling, to bring the effective price down. Drivers who skip those programs often end up paying closer to the higher, undiscounted rate.
Is American Family owned by another insurance company?
No. American Family Mutual Insurance Company, S.I. is a mutual insurer owned by its policyholders, not a subsidiary of a larger publicly traded insurance group.
Does American Family raise rates at renewal?
Rate increases at renewal are one of the more consistent complaints across customer review sites, including Insurify and ConsumerAffairs, though the same sources note claims themselves are typically processed quickly once filed.
Can I get American Family insurance if I don’t live in one of its 19 states?
Only through the Costco Connect program, which American Family underwrites in some additional states, and that policy differs from the standard American Family product, according to FinanceBuzz.
Does American Family car insurance cover a rental while my car is repaired?
Only if you added rental reimbursement coverage to your policy. It isn’t included automatically, and American Family’s own coverage page describes it as an optional endorsement that pays for a rental or rideshare costs up to your policy limit.
How much does American Family roadside assistance cost?
Adding emergency roadside assistance to an existing full coverage policy typically costs $10 to $20 a year, according to InsurancePanda, and it covers towing, flat tires, lockouts, and jump-starts.
Does American Family car insurance cover personal belongings stolen or damaged in my car?
No. Personal property coverage isn’t part of American Family’s standard auto policy. A stolen laptop, phone, or other item taken from your car typically falls under your renters or homeowners policy instead, not your car insurance. American Family’s renters coverage extends personal property protection up to $35,000, with an endorsement available to raise that to $50,000, according to Quote.com. If you don’t carry a renters or home insurance policy, belongings left in your car generally aren’t covered by the auto policy alone.
The bottom line
American Family earns its reputation on the service side. The complaint index and J.D. Power’s claims satisfaction numbers back up a carrier that answers the phone, processes claims without excessive delay, and keeps grievances low relative to its size. The price tag is the trade-off: most third-party surveys put its standard rates above the national average, and the gap only closes once you stack up the telematics and bundling discounts. If you’re in one of American Family’s 19 states, it’s worth getting a quote on American Family’s website, especially if you have a teen driver, a DUI to work around, or a home policy to bundle. Compare quotes from at least three carriers, including a national insurer and a regional competitor in your state, before deciding. The rate you’re quoted will depend on your specific driving record, vehicle, and ZIP code more than any of the averages above.
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