While we like that American Family Insurance ranks above average with third-party sources such as J.D. Power (874 out of 1000) and the BBB (A rating), we found that it often falls below competitors like Allstate or Farmers when it comes to customer satisfaction.
Some complaints from the BBB about American Family center on poor customer service and a lack of transparency as reflected in its customer rating of 1.16 out of five stars. Keep in mind that many insurance companies have low customer ratings on BBB as people mostly come there to complain. For example, Allstate Insurance has a higher rating from the BBB (A+), but its average customer rating is lower than American Family’s at 1.09 out of five stars.
J.D. Power derives its annual rankings from a survey of more than 8,000 drivers, which could be a better indicator of overall satisfaction than the BBB’s much smaller pool of customer ratings. Compared to the industry average ranking of 873 out of 1,000 points, American Family scored slightly higher at 874.
While this is good, it’s much lower than Allstate’s (889 out of 1,000) or Farmers’ (882 out of 1,000). If customer satisfaction is your top priority when shopping for auto insurance, you may want to take these ratings into account and look at insurance quotes from other companies.
American Family is a good choice if you’re looking for affordable auto insurance. The average cost of coverage with American Family is $1,371, which is below the industry average of $1,442 and significantly cheaper than Allstate ($1,673) and Farmers ($1,878). AmFam also offers discounts for policyholders and their family members, but the company does not offer discounts for military members. If that is important to you, consider other insurance providers like Farmers, GEICO or Liberty Mutual.
In terms of availability, American Family is more limited compared to its competitors. If there’s a chance you might move to a state that American Family does not cover, we suggest purchasing auto insurance from a company with coverage in all 50 states, like GEICO, State Farm or Progressive.