American Family Insurance Review 2019: Home & Car - Bankrate.com

Posted: 06 Aug 2019 04:33 PM PDT

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Launched by an insurance agent in 1927, American Family Insurance or AmFam has grown to become the tenth-largest insurance company in the United States, generating $8.8 billion in revenue in 2017.

While they started by helping farmers, they're now the ninth-largest car insurance company in the United States. They're known for offering a wide range of policies but keeping premiums low.

American Family car insurance coverage options and discounts

You can get an American Family insurance quote on some or all of their car insurance coverage options:

Comprehensive and collision coverage: Comprehensive coverage protects your vehicle if stolen or damaged, whereas collision coverage protects it in an accident.
Bodily injury liability: Pays for the other driver's property and medical bills if you're at fault in an accident.
Rideshare: If you drive for a rideshare company such as Lyft or Uber, you can receive coverage.
Lease and loan gap coverage: If you're leasing a car, gap insurance covers the gap between the amount owed on it and its actual value.
Uninsured and underinsured motorist damage: Helps pay for repairs if you're hit by someone who doesn't have car insurance or who is underinsured.
Medical payments coverage: Will cover the medical bills if either you or a passenger is injured in an accident.
Emergency roadside assistance: Help if your car breaks down by the side of the road. American Family car insurance offers 24/7 emergency roadside assistance.

Car insurance companies offer discounts on their policies to incentivize safe driving or capture more of their policyholder's business. It's almost a guarantee that one of AmFam's many discounts will apply to your policy when you request an American Family insurance quote.

KnowYourDrive: Enrolling in and installing the KnowYourDrive adaptor in your car automatically reduces premiums by 5%. Their adaptor tracks your driving behavior, and safe drivers could get up to a 20% discount.
Multi-vehicle and multi-product: Discount for insuring multiple vehicles or buying multiple products.
Defensive driver: This discount applies in some states if you're over 55 and take a defensive driving course.
Good driving: If you've had no accidents or tickets and filed no claims, you could get a good driving discount.
Low Mileage: Discount available for those who drive fewer than 7,500 miles/year.
Loyalty: Available if you've been with American Family for years. The discount amount depends on how long you've been a customer.
Early-Bird: Choose within seven days of requesting an American Family Insurance quote, and you'll get a discount.
Steer into Savings: Reduced premiums if you leave a competitor and steer your car into AmFam's policy.
Generational: Available to the children of insured parents.
Teen Safe Driver: The program tracks teen drivers with a mobile app. After one year or 3,000 miles driven, they'll get a 10% discount.
Good Student: Discount for teens who maintain good grades.
Away at School: If you have a child under 25 on your policy, but they're more than 100 miles away at college, while their car stayed home, AmFam won't charge you the full policy amount.
Young Volunteer: Discount for drivers under the age of 25 who volunteer 40 hours a year with a nonprofit organization.
Autopay: Discount for signing up for auto-payments from a checking account or credit card.
Full Pay: Total premiums are reduced when paid in full.
Paperless: Sign up to have your statements delivered by email to get this discount.

American Family home insurance coverage and discounts

Since bundling policies will save you money, it's worth looking at AmFam's home insurance coverage in addition to car insurance. AmFam offers the following home insurance coverage options:

Standard home insurance: Covers damages to your home.
Personal items: Personal effects within your home.
Sewer and sump pump overflow: Covers damage caused by sewer backup.
Loss of use: If your home becomes inhabitable, American Family home insurance covers expenses of living elsewhere.
Medical payments: Pays the medical bills if someone is injured on your property.

These are the discounts specific to home insurance that AmFam offers:

Age of home: Newer homes have more safety features, and thus could qualify for discounts.
Home purchase: If you bought your home in the past three years, you're eligible for this discount, regardless of your home's age.
Renovated home: Discounts for plumbing, electrical and heating systems that've been replaced in the past 15 years.
Safe, Secure, Smart Home: A smart device, such as a video doorbell or security systems, could earn you a 5% reduction on your insurance rates.

American Family ratings, reviews, customer satisfaction and complaints

American Family customer service doesn't receive high marks. Customers have given AmFam a little over two stars on Consumer Affairs, mainly due to their slow claims processing. While the organization as a whole has an A+ Better Business Bureau rating, look up your local office's rating when requesting an American Family insurance quote.

It can be challenging to maintain service consistency between agents. Before ruling AmFam out altogether, look up the reviews for your local agent.

Reasons why American Family is a great option

Premiums and discounts offered by insurance companies vary, so it pays to compare insurance companies when you're shopping for insurance.

AmFam has 24/7 claims support available by phone or online. They provide a wide range of policies, so getting a multi-product discount should be a breeze.

Who is American Family insurance best for?

If you're a safe driver or have a teenager, American Family Insurance could be your best option. Often, adding a teen to your car insurance can send your premiums sky-high, but young drivers with AmFam could qualify for up to four discounts.

Safe drivers with clean driving records should get an American Family insurance quote. With three discounts related to safe driving, you could pay low policy premiums.

Average rates available from American Family

According to U.S. News and World Reports, the average cost for car insurance through AmFam is $3,443.09. Rates drop much lower for older and married drivers. Their average renter's policy is less than $15 a month.

Additional policies offered by American Family

AmFam also covers;

Renters
Snowmobile, Motorcycle, Boat, ATV, and RV
Manufactured home and condo
Life
Farm
Business
Travel
Health
Flood
Umbrella

Frequently asked questions

What do I need to get a quote from American Family?

Apply for an American Family insurance quote online with just your ZIP code and type of car. Or, input your ZIP code to find a local agent. You can also call or chat.

How do I file a claim with American Family?

Call their toll-free number or complete an online claim form. You'll need your name, address and phone number, your policy number, the date and time of your loss and the contact information for anyone else involved.

Phoenix, Arizona: Car Insurance by the Numbers

Number of vehicles per household: 1.71
Minimum state insurance requirements
- Bodily Injury Liability (BIL) $15,000 per person and $30,000 per accident
- Property Damage Liability (PDL) $10,000
Average rate with a clean driving record – $1297 for the state minimum insurance

Arizona's Minimums & Laws: What You Need to Know Before You Get Covered

Having a full understanding of Ohio's state minimums and driving laws will put you in a position to get the best coverage possible.

Arizona's Minimum Car Insurance Explained

The minimum insurance limits in Arizona are quite low at $15,000 (per person) and $30,000 (per accident) BIL and $10,000 PDL. On the road, this means the limit might get exhausted easily in the event of a collision.

This is many people go for higher coverage to have a financial safety net. For example, increasing the liability limits to 50/100/50 can really help you in the care of an accident.

Arizona Driving Laws To Know

Teen driver's licenses. Teenagers as young as 15½ are eligible to apply for a Graduated Instruction Permit, which they can upgrade to a real driver's license at the age of 16. For that, they need to complete 30 hours of supervised driving in at least 6 months of holding the instruction permit.

DUIs in Arizona. Arizona has strict DUI laws that stipulate automatic jail time for offenders. Depending on the severity a first-time offender can receive 24 hours to one week in jail, a mandatory 90 – 365 days driver's license suspension, plus fines and court costs. A DUI on your record can have financial repercussions for years to come. Repeat offenders will also have limited options when it comes to car insurance and will most likely have to purchase high-risk insurance.

Distracted driving The state also prohibits using your phone while driving unless it is in hands-free mode. You can be ticketed for using social media, recording video, talking and texting while driving. You can also get pulled over for applying makeup, eating, or anything else an officer feels under the distracted driving law.

Speed limit. The speed limits are 55 or 65 mph for roads within the city limits. On control-access highways, you can drive up to 75 mph legally.

What You Can Expect to Pay for Car Insurance in Phoenix

There's a lot that goes into determining your car insurance rate. And things like your car's make and model, your credit score and your driving record play a big role in how much you end up paying.

Car Insurance Rates Per Vehicle

Larger vehicles and some SUVs are more expensive to insure because of the damage they might cause in a collision.

Those who have their eyes set on a luxury import can expect the insurance premium to go up accordingly. On the bright side, most insurance companies offer some discounts for eligible vehicles. This usually applies to cars that feature today's safety standards.

Besides the type of vehicles, insurance providers consider the make, model, and production year. With this in mind, most of the newer 4-door sedans shouldn't be too expensive to insure. But which models are the most popular in Phoenix?

On a whole for a state where vast expanses of desert land are to be found, the Ford F150 truck wins by a landslide. Other pickups like the Nissan Titan are not far behind. Obviously, Phoenix drivers rank utility over any potential insurance cost increase for pickup trucks.

However, those who opt for an electric vehicle can get some incentives. You pay less on vehicle license tax and there's a $75 Home Charging rebate. Plus, you get to access the carpool lane even if you are driving solo.

Car Insurance Rates by Credit Score

It's not a secret that car insurance providers factor your credit score to determine the insurance rates. And Arizona is one of the 47 states where they are legally allowed to do so. What does this mean to you?

As a rule, the better your credit score, the less you need to pay for car insurance. The additional expenses for those with a poor score might be well above $1,000. At this point, you are probably wondering why.

From data collected over the years, insurance companies have come to the conclusion that people who don't take care of their credit also don't take as much care when driving and are more likely to file claims for damages.

If you have good credit, you no longer have to subsidize those with poor credit. If you have poor credit, there are ways to work on your credit score. Some easy tips are simply paying down debts and paying your monthly bills on time.

The table below features the most affordable quotes for different levels of credit score.

Car Insurance Rates for Clean Driving Records

Aside from credit score, your driving record also influences the insurance rate. Having a clean driving record means not getting involved in at-fault accidents or not getting caught for any traffic violations, misdemeanors, or felonies.

That said, you can get away with parking and other non-moving violations. But your insurance company isn't going to like serious offenses like DUI, excessive speeding, reckless driving, and such.

Here's a snapshot.

Insurance Agency	State Minimum Insurance	Standard Coverage	Full Coverage
GEICO	$1,050	$1,200	$1,470
State Farm	$1,115	$1,375	$1,600
Progressive	$1,090	$1,399	$1,589
American Family	$1,345	$1,400	$1,629
USAA	$747	$820	$1,230

Car Insurance Rates with Driving Infractions

Accidents do happen and some drivers may be of the opinion that traffic regulations are meant to be broken.

Besides more benign infractions like failing to signal, sudden lane changes, and running the red light, Arizona residents seem prone to aggressive driving. This may include speeding and tailgating and so on. One can assume that aggressive driving contributes to the more than 120,000 crashes in Arizona in 2017.

Alarming statistics aside, you can always get auto insurance with or traffic infractions. That is unless your license gets suspended.

The following table shows the most affordable providers and the rates in Phoenix for different classes of violations.

Insurance Agency	At-Fault Accident	Speed Violation	DUI
GEICO	$2,373	$1,757	$3,173
USAA	$3,214	$2,640	$4,240
Travelers	$3,216	$3,077	$3,578
American Family	$4,577	$3,417	$5,677
Nationwide	$3,110	$3,310	$4,606

Best Auto Insurance Providers in Phoenix

Judging by the rates presented in this article, it's not hard to see that GEICO, State Farm, and Progressive stand out. While you can't go wrong with any of them, which one is the best overall?

Best Overall: State Farm

When it comes to the variety of coverage options and potential bonuses, State Farm is hard to rival. While the company may not be the most affordable in every aspect, it comes out on top overall.

For a start, take a look at the rates for those with fair and good credit. You might find that they are close to the average rate in Arizona. In addition, the company's state minimum coverage of $1,009 is among the most affordable.

For those who prefer to configure their coverage, State Farm allows you to cover all the loose ends. Besides liability, you can get comprehensive coverage that covers collision and non-collision accidents, emergency roadside service, etc. There are eligible discounts for different classes of drivers.

Cheapest Car Insurance in Phoenix: GEICO

Without a doubt, GEICO triumphs in this category with its attractive prices.

It offers the most affordable option for drivers with infractions, as well as those with poor credit rating.

However, people opt for GEICO for more than affordability. The company offers 24/7 support every day of the year and a user-friendly app which you can use to configure your policies.

Read Benzinga's full GEICO Auto Insurance Review

Car Insurance for Multiple Cars: GEICO

As the cheapest provider in Phoenix over, it's not surprising that GEICO also offers the best deal for those who are looking to insure multiple vehicles. You may get up to a 25% discount on everything and not just the additional policies.

Since GEICO insures almost everything under the sun, you can add home, renters', mobile home, boat, motorcycle, and more to your car insurance, making it easy to keep track of payments.

Read Benzinga's full GEICO Auto Insurance Review

Best Premium Car Insurance in Phoenix: State Farm

Looking at State Farm's offer for sports and antique vehicles, it's easy to understand they offer the best premium options. In fact, you may even get a very good quote on a sports car if you meet some requirements.

That's if the sports car isn't your everyday car and you can reduce the annual mileage to way below the 12,000 average. Most of all, you'd better have an anti-theft device and a clean driving record. Similar rules apply to insuring classic and antique cars, but they vary depending on the model.

Best For Military and Military Families: USAA

One of the best insurance companies in the country is USAA. Providing above average service, policy offerings, and a large suite of products, USAA makes the list.

Typically USAA customers pay significantly less for auto insurance but you must qualify by having served in the military or have a direct family member serve in the armed forces. With USAA you can bundle home, auto, life, and health in one money-saving policy.

Read Benzinga's full USAA Auto Insurance Review

Get Quotes from Additional Providers

Check 2-3 companies to get the best quote

Find the Right Car Insurance in Phoenix

Those who are new to car insurance might want to learn more about car insurance to get a better understanding of all the options. Hopefully, this article provides you with enough information to find your ideal car insurance provider in Arizona.

When all is said and done, drive safely and with a little bit of research, you'll get to save money on car insurance.

Want to learn more about finding the best insurance coverage? Check out Benzinga's guides to the best homeowners insurance, best classic car insurance, and the best commercial car insurance companies.