AutoInsurance.com
January 19, 2023

American Family Car Insurance Pricing

Is American Family right for you?

American Family Insurance Group has been selling car insurance for nearly a century. The company’s auto insurance policies are available in 19 states. American Family’s specialized discounts may appeal to teenagers and other young drivers as well as their families especially, but the company also offers a wide variety of car insurance coverage and savings opportunities for many types of drivers. Keep reading to learn more about some of our favorite features of American Family car insurance.

American Family Car Insurance Rates

Our market analysis found that the average annual cost of car insurance from American Family is $1,400 per year. While this is comparatively higher than the average annual cost of all car insurance in the United States, which is $1,070 per year, it’s important to understand some important context.

The cost of auto insurance for teens is one of the highest of any age group. American Family offers a variety of discounts and other programs catering to young drivers, who have some of the highest insurance rates out of any age group. This specialty means that the company’s average annual rate may skew higher than what your personal rate will be.

CheckKEEP IN MIND:

Car insurance prices aren’t one-size-fits-all, and many different factors will influence your specific rate. These include demographic information like your age, gender, location of residence, driving record, the make and model of your car, and financial information like your credit score. Don’t write off a car insurance provider until you get a personalized quote from it, and always compare quotes.

Saving Money With American Family Discounts

American Family offers a variety of auto insurance discounts to help you save.

Policy Type and Joining Discounts

  • Multivehicle: This discount applies to individuals and families who insure multiple vehicles with American Family.
  • Multipolicy: Drivers who bundle their auto insurance with homeowners, renters, and/or life insurance can save on all of their policies from American Family.
  • Loyalty: American Family offers renewal discounts to reward loyal customers. The amount you save will depend on the length of time you’ve been a customer.
  • Early bird: You can earn this discount by getting a quote from American Family and purchasing an auto insurance policy from the provider within seven days.
  • Carrier switch: You could qualify for this discount if you have an active policy with a competing auto insurance carrier and switch to American Family. The company also calls this discount its “Steer into Savings” offer.

Safe Car and Safe Driving Discounts

  • Auto safety equipment: This discount applies to vehicles with factory-installed airbags, anti-lock brakes, and passive restraint systems.
  • Defensive driver: Drivers age 55 or older can save by participating in an approved defensive driving course and submitting proof of completion to American Family.
  • Good driving: Drivers without histories of accidents, traffic violations, and claims may qualify for reduced premiums.
  • Low mileage: American Family offers this discount to customers who drive fewer than 7,500 miles per year.
  • Pay-how-you-drive program: This safe driving program uses KnowYourDrive, a telematics app, to monitor your driving habits. You’ll save 10 percent for signing up and can save up to 10 percent more depending on how safely you drive. KnowYourDrive is available in all states American Family serves except Utah. For Utah residents, American Family offers a nearly identical pay-how-you-drive program called DriveMyWay.

Discounts for Young Drivers

  • Good student: This discount applies to students between the ages of 16 and 25 years old who are high school students or enrolled full-time in two-year to four-year colleges or universities, online school programs, or vocational-technical schools. Students must maintain a GPA of at least 3.0 or rank in the upper 20th percentile of their class. Homeschooled students can qualify by providing proof that they scored in the top 20 percent in a national scholastic achievement test, such as the SAT or ACT, within the previous 12 months.
  • Teen safe driver: American Family offers a free driving monitoring app called Teen Safe Driver to discourage teen distracted driving, a common cause of accidents. Teenage drivers who use the app and drive safely for a year or safely complete 3,000 miles of driving using the app (whichever comes first) can earn up to 10 percent off their car insurance policies.
  • Student away at school: Students who are under the age of 25 and live more than 100 miles away from home to attend college can save by leaving their cars at home and not bringing them to school.
  • Young volunteer: Drivers under age 25 who complete 40 hours of volunteer work per year for a registered nonprofit organization can save on American Family insurance.
  • Generational: If you are between the ages of 16 and 25 and your parent or guardian is already an American Family customer, you can qualify for this loyalty-based discount.

CheckGOOD TO KNOW:

All of these discounts apply both to young drivers with their own American Family insurance policies, as well as to households with young drivers who have American Family car insurance policies for the whole family.

Payment Discounts

  • Auto pay: If you pay for your policy with automatic funds transfer (ATF) or signing up for electronic recurring payments, you can qualify to save.
  • Full pay: This discount kicks in when you pay for your entire policy in full upfront, rather than paying in installments over the course of the policy.
  • Paperless: You can qualify for this discount by enrolling in online billing and signing up for the e-delivery of policy documents.

Favorite Features

Two Types of Accident Forgiveness

If you’re worried that your rates will rise after an accident, American Family offers two different options for accident forgiveness policies. Both types allow you to avoid premium increases following your first at-risk accident, and you won’t lose any safe driving discounts you’ve earned.

  • New customers: American Family sells accident forgiveness coverage to drivers and households who meet the following criteria: no at-fault accidents or driving violations in the last 12 months, and no more than one at-fault accident in the last three years.
  • Existing customers: Loyal American Family policyholders can earn a free accident forgiveness policy by staying claim-free for five years. If you file a claim, however, you will lose this option, and your premium might increase following an accident.

Drive Less, Save More

American Family offers usage-based car insurance for drivers in Arizona and Oregon. The program uses a smartphone app called MilesMyWay and a telematics sensor attached to your vehicle to transmit mileage data to American Family. If you drive fewer than 8,000 miles per year (about 667 miles per month), you can receive savings totaling up to 25 percent of your monthly premiums. MilesMyWay is an earned savings program, meaning you won’t be penalized or charged for driving more, but you’ll save by driving less.

For policyholders outside of Arizona and Oregon, American Family also offers a discount for customers who drive fewer than 7,500 miles per year.

Rideshare Driver Insurance

Many drivers for rideshare services like Uber and Lyft use their personal vehicles to earn money. However, keep in mind that this flexibility requires specialized insurance coverage. Your personal auto insurance policy does not cover your vehicle during commercial activity, such as giving rides for money.

Rideshare services usually offer insurance coverage to a driver while there is a passenger in the car, but that coverage turns off when the passenger gets out of the vehicle. Specialized rideshare insurance covers the period when the driver is working but doesn’t have a passenger in the car, such as when they’re waiting to be assigned a ride or driving to pick up a passenger.

This kind of coverage is necessary to make sure there are no lapses in protection. American Family is one of our picks for the best auto insurance for rideshares, with great accident forgiveness options for rideshare drivers.

Availability

As of January 2023, American Family auto insurance is available in the following 19 U.S. states:

  • Arizona
  • Colorado
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Minnesota
  • Missouri
  • Nebraska
  • Nevada
  • North Dakota
  • Ohio
  • Oregon
  • South Dakota
  • Utah
  • Washington
  • Wisconsin

Cancellation Policy

American Family does not charge a cancellation fee if you choose to cancel your auto insurance policy from the company. You are free to cancel your policy at any time and can do so by contacting your local agent and telling them the exact date you’d like your coverage to end. You can also cancel your policy by calling American Family’s customer care center at 1-800-692-6326 at any time.

CheckQUICK TIP:

If you paid for your whole policy up front and canceled before your policy term is over, you may be eligible for a refund. Be sure to check with your agent or customer service to find out if you’re eligible for a refund.

Company Background

American Family was founded in 1927 in Madison, Wisconsin. At the time, the company sold auto insurance to agricultural workers exclusively and was named Farmers Mutual Insurance Company. In 1963, it changed its name to American Family Mutual Insurance Company to reflect its newly widened mission of providing a variety of insurance products to an expanding customer base.

The company has expanded into new states and business areas in the nearly 100 years since it was founded. In 2021, the most recent year for which data is available, American Family Insurance Group was the ninth-largest writer of private passenger auto insurance policies in the United States.1 The same year, American Family passed 13 million policies sold.2

American Family owns the following subsidiary auto insurance companies:

  • American Standard
  • Ameriprise Auto and Home
  • Amfam.com Inc.
  • CONNECT
  • The General
  • HomeGauge
  • Homesite Group Incorporated
  • Main Street America
  • Moonrise, Inc.
  • Networked Insights
  • PGC Holdings Corporation

American Family Contact Information

Call the customer care center at 1-800-MYAMFAM (1-800-692-6326) toll-free, 24 hours a day, seven days a week. Alternatively, use the virtual assistant chat at https://chat-ui.amfam.com/ or find a local agent: https://www.amfam.com/agent-locator.

The mailing address is as follows:

  • American Family
  • 6000 American Parkway
  • Madison, WI 53783

Connect with American Family on social media:

  • Facebook: https://www.facebook.com/amfam
  • Instagram: https://www.instagram.com/amfam/
  • LinkedIn: https://www.linkedin.com/company/american-family-insurance/
  • Pinterest: https://www.pinterest.com/amfaminsurance/
  • Twitter: https://twitter.com/amfam
  • YouTube: https://www.youtube.com/user/amfam/custom

Conclusion

American Family offers a wide variety of coverage options and opportunities to save. Its policies may appeal to young drivers and their families thanks to its many discounts for drivers under age 25. It’s also a great option for drivers seeking accident forgiveness coverage and/or rideshare coverage. If you live in a state where American Family offers auto insurance policies, consider getting a car insurance quote.

Frequently Asked Questions

Does American Family check credit?

Yes, American Family checks customers’ credit scores to help determine how much to charge for insurance. Getting a quote won’t affect your credit score, though.

Does American Family insurance cover renting a car?

Yes, American Family offers rental reimbursement coverage, which can pay the cost of renting a car if your own vehicle is totaled or is in a repair shop due to a covered accident.

What types of insurance does American Family offer?

American Family offers insurance in the following categories:

  • ATVs
  • Autos
  • Boats
  • Businesses
  • Condos
  • Farms and ranches
  • Health
  • Homeowners
  • Life
  • Mobile homes
  • Personal property
  • Pets
  • Renters
  • RVs and campers
  • Snowmobiles
  • Travel

Is American Family the same as AFLAC?

No, American Family Insurance Company is not related to American Family Life Assurance Company, also known as AFLAC. Though their names are similar, the two car insurance companies have no relationship and were founded in different states nearly 30 years apart.

Citations

  1. Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2021).
    https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings

  2. American Family group reports balanced success for 2021. American Family Insurance. (2022, Mar 1).
    https://newsroom.amfam.com/american-family-group-reports-balanced-success-for-2021/