American Family Auto Insurance: Quick Answer
American Family (AmFam) is a strong regional insurer for residents of the 19 states where it operates, offering an above-average coverage lineup, excellent NAIC complaint data (0.34 — among the best in the industry), and standout programs for teen drivers and low-mileage users. Rates tend to run slightly above the national average before discounts, but a broad discount menu and two telematics programs (DriveMyWay and MilesMyWay) can close the gap significantly. Best for Midwest and Western families who want broad coverage, especially those with young drivers or low annual mileage.
Key Takeaways
- Average full coverage: ~$223/month (~$2,676/year) — slightly above national average, but competitive after discounts
- NAIC Auto Complaint Index: 0.34 — among the lowest in the industry; only 34% of expected complaints
- J.D. Power Claims Score: 692/1000 — slightly above industry average
- DriveMyWay telematics: 15%+ savings for good driving habits
- MilesMyWay: Up to 25% savings for drivers under 8,000 miles/year
- Regional availability: 19 states only — primarily Midwest and Western states
American Family Auto Insurance: At-a-Glance
Company Overview: Who Is American Family Insurance?
American Family Insurance was founded in 1927 in Madison, Wisconsin, by Herman Wittwer — originally to serve Wisconsin farmers. Over nearly a century, the company has grown into a major regional insurer serving over 13 million customers across 19 states, offering auto, home, renters, life, commercial, and specialty insurance products.
Despite its name, American Family is not a national company. It operates in a focused Midwestern and Western U.S. footprint: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin. If your state isn't on that list, American Family isn't available to you.
American Family sells primarily through captive agents — local agents who represent only American Family. This creates a high-touch service model similar to State Farm and Allstate, where your agent builds an ongoing relationship with you rather than operating as a transactional service provider.
The company has approximately 2% of the U.S. auto insurance market. It's particularly well-regarded in its core Midwestern markets (Wisconsin, Iowa, Minnesota, Kansas) where it has deep community roots and strong name recognition. AmFam has also invested heavily in innovation — acquiring several insurtech startups and launching competitive digital insurance platforms.
How Much Does American Family Auto Insurance Cost?
American Family's rates are slightly above the national average for most driver profiles, though the company is notably competitive for specific segments — especially teen drivers and drivers with less-than-perfect records in certain states.
| Driver Profile | Rate Context | Notes |
|---|---|---|
| Clean record (adult) | ~$223/mo baseline | Above national average; discounts help close gap |
| Teen driver (female) | $796 below national avg | One of the most competitive for teen drivers nationally |
| Teen driver (male) | $241 below national avg | Still meaningfully below average for young males |
| Speeding ticket | 11% below national avg | Competitive for drivers with minor violations |
| Bad credit | 16% below national avg | Better than most for credit-sensitive profiles |
| DriveMyWay (safe driver) | 15%+ off baseline | Behavior-based telematics savings |
| MilesMyWay (<8,000 mi/yr) | Up to 25% off | Pay-per-mile program for low-mileage drivers |
Coverage Options
Standard Coverage
American Family offers all standard auto insurance coverages:
- Bodily Injury Liability — Covers injuries to others when you're at fault
- Property Damage Liability — Covers damage to others' property
- Collision — Repairs your vehicle after an accident
- Comprehensive — Covers theft, weather, vandalism, and animal collisions
- Uninsured/Underinsured Motorist (UM/UIM) — Protects you when at-fault drivers lack coverage
- Medical Payments / PIP — Covers medical expenses for you and passengers
Unique and Standout Coverage Options
American Family offers more coverage options than many competitors, including several specialty features:
- OEM Parts Coverage: Ensures repairs use Original Equipment Manufacturer parts rather than cheaper aftermarket alternatives — valuable for newer or higher-value vehicles.
- Diminishing Deductible: Similar to Nationwide's Vanishing Deductible — your deductible decreases over time with safe driving, reducing your out-of-pocket cost when you need to file a claim.
- Accident Forgiveness: Prevents your first at-fault accident from raising your premium — available as a policy feature after a qualifying period.
- Pet Injury Coverage: Covers veterinary costs for your cat or dog if they're injured in a covered accident. This is a relatively rare coverage that pet owners often overlook and appreciate when they need it.
- Rideshare Coverage: NerdWallet rates American Family highly (4.9/5) for rideshare insurance — one of the best options for Uber and Lyft drivers who need gap coverage.
- Gap Insurance: Covers the difference between your loan balance and actual cash value on a totaled financed vehicle.
- Roadside Assistance: 24/7 towing, battery service, fuel delivery, and flat tire assistance.
- Rental Reimbursement: Covers rental costs while your vehicle is being repaired after a covered claim.
- New Car Replacement: Available to protect new vehicle purchases.
What's Missing
- Coverage options vary significantly by state
- Limited to 19 states; not a national option
- No better car replacement option (unlike Liberty Mutual)
Discounts Available
American Family offers one of the longer discount menus in the industry, with particular strength in loyalty and safe driving categories:
| Discount | Estimated Savings | How to Qualify |
|---|---|---|
| DriveMyWay Enrollment | 15%+ for safe driving | Download app; safe driving behavior tracked |
| MilesMyWay (low mileage) | Up to 25% | Drive fewer than 8,000 miles per year |
| Multi-Policy Bundle | Varies | Bundle auto + home, renters, or life insurance |
| Multi-Vehicle | Varies | Two or more vehicles insured on one policy |
| Good Student | Varies | Full-time student with qualifying GPA |
| Young Volunteer | Varies | Young drivers who volunteer in the community |
| Loyalty | Varies | Long-term AmFam customers |
| Homeowner | Varies | Own your home (any insurer) |
| Safety Device | Varies | Airbags, anti-lock brakes, passive restraints |
| Anti-Theft Device | Varies | Approved vehicle anti-theft system |
| Steer into Savings | Varies | Complete an online driving course |
| Autopay / EFT | Varies | Automatic payment setup |
| Pay in Full | Varies | Pay full annual premium upfront |
DriveMyWay and MilesMyWay: Usage-Based Programs
American Family offers two distinct usage-based programs depending on your primary saving goal:
DriveMyWay: Behavior-Based Savings
DriveMyWay tracks driving behavior through a smartphone app and rewards safe driving with discounts of 15% or more. The program monitors:
- Speeding and speed management
- Hard braking and rapid acceleration
- Time of day driven
- Phone use while driving
Unlike Liberty Mutual's RightTrack (which has a fixed 90-day period), DriveMyWay is an ongoing program where your driving score continuously influences your discount potential. Safe drivers who consistently score well can maximize savings over time.
MilesMyWay: Low-Mileage Savings
MilesMyWay is American Family's pay-as-you-drive option for low-mileage drivers. If you drive fewer than 8,000 miles per year, MilesMyWay can save you up to 25% compared to standard pricing. It uses a combination of mileage tracking and driving behavior to calculate your personalized rate.
Ideal candidates for MilesMyWay: remote workers who rarely commute, retirees who drive primarily for errands, urban dwellers who use transit for most trips, and families with a secondary vehicle that rarely gets driven.
Claims Experience & Customer Service
American Family's service metrics are solid across the board — not industry-leading, but consistently above average with an exceptional complaint ratio.
J.D. Power & Industry Scores
American Family scored 692 out of 1,000 in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study — slightly above the industry average of approximately 697. This places AmFam in a respectable middle tier, above several major national competitors including Progressive (672) and Allstate (691).
The NAIC Auto Complaint Index of 0.34 is outstanding — meaning American Family receives only about 34% of the complaints you'd expect for a company of its market size. This is one of the lowest complaint ratios among major auto insurers and reflects genuine customer satisfaction in billing and coverage handling.
Claims handling scoring (82% — 4 points above category average) suggests AmFam handles claims effectively for most customers. Complex claims may still vary, but the data indicates above-average outcomes.
How to File a Claim
- Mobile app: File claims, submit photos, track status in real time
- Online: Via AmFam.com account portal
- Phone: 1-800-374-1111, available 24/7
- Local agent: Your captive AmFam agent can assist with claims guidance
Mobile App & Digital Experience
American Family has invested significantly in its digital capabilities. The AmFam app lets you manage policies, file claims, download ID cards, and track your DriveMyWay or MilesMyWay scores. The app is generally well-reviewed for core functionality.
AmFam has also made notable insurtech investments — the company acquired several digital insurance platforms including Homesite and Connect, which has enhanced its digital quoting and policy management capabilities. For a regional insurer, the digital experience is more sophisticated than you might expect.
Financial Strength & Stability
American Family holds an AM Best A (Excellent) financial strength rating, reflecting solid financial stability and a reliable capacity to pay claims. As a mutual holding company with over $16 billion in assets, AmFam has the reserves to handle claims obligations through challenging loss environments.
The company's mutual structure means it's technically owned by policyholders rather than outside shareholders — a similar model to Nationwide and Erie that typically encourages longer-term, customer-focused decision making.
American Family vs. Competitors
| Company | Avg Annual Full Coverage | AM Best | J.D. Power Claims | NAIC Auto Complaint | Best For |
|---|---|---|---|---|---|
| American Family | ~$2,676 | A | 692/1000 | 0.34 | Families, teen drivers, Midwest |
| State Farm | ~$2,166 | A++ | 710/1000 | 0.66 | National agent service, overall value |
| Nationwide | ~$2,794 | A+ | Below avg | Below avg | Safe drivers, digital experience |
| Allstate | ~$2,280 | A+ | 691/1000 | 1.44 | Local agents, bundling |
| Farmers | ~$2,520–$4,007 | A | 626/1000 | 0.36 | Specialty coverage, OEM parts |
State Farm is the primary benchmark for AmFam: both use captive agent networks and have broad coverage, but State Farm consistently offers lower average rates, higher financial strength, and broader national availability. For most Midwest residents, getting competing quotes from both is worthwhile.
AmFam's clearest competitive advantages over State Farm: much lower NAIC complaint ratio (0.34 vs. 0.66), better teen driver pricing, and the MilesMyWay pay-per-mile program (State Farm's equivalent, Drive Safe & Save, is a different structure). For low-mileage drivers and families with teenagers, AmFam can win the comparison.
Pros
- NAIC Auto Complaint Index of 0.34 — exceptional; only 34% of expected complaints
- Standout teen driver pricing — $796 below national average for female teens, $241 below for males
- MilesMyWay — up to 25% savings for low-mileage drivers; well-designed pay-per-mile program
- Strong coverage lineup — includes OEM parts, pet injury coverage, rideshare, and diminishing deductible
- Pet injury coverage — rare benefit that pet owners traveling with animals will appreciate
- Competitive for bad credit drivers — 16% below national average for credit-sensitive profiles
Cons
- Only available in 19 states — Midwest and West only; not accessible to most of the country
- Above-average base rates — ~15% above national average without discounts applied
- AM Best A (not A+ or A++) — lower financial strength rating than State Farm, GEICO, or Travelers
- J.D. Power claims 692/1000 — above average but not top-tier like Erie (743) or State Farm (710)
- Captive agent model only — no direct online purchase; must go through an AmFam agent
Who Should (and Shouldn't) Choose American Family?
Great Fit If You...
- Live in one of American Family's 19 states (primarily Midwest and West)
- Have teenage drivers on your family policy — AmFam is consistently competitive for young drivers
- Drive fewer than 8,000 miles per year and want pay-per-mile pricing (MilesMyWay)
- Travel with pets and want vehicle insurance that covers veterinary costs if they're injured in a crash
- Have a less-than-perfect credit score and need competitive pricing (16% below national average for bad credit)
- Want OEM parts coverage to protect the integrity of a newer or higher-value vehicle
Look Elsewhere If You...
- Live outside AmFam's 19-state coverage area
- Want the lowest possible base rate — State Farm, GEICO, and Travelers will likely be cheaper
- Need maximum financial strength (A++ from GEICO, State Farm, Travelers, or USAA)
- Prefer fully digital, self-service insurance without agent involvement
- Want the best possible claims satisfaction (consider Erie Insurance if you're in its 12-state footprint)
How to Save the Most with American Family
5 Steps to Maximize Your American Family Savings
- Assess your annual mileage first — If you drive under 8,000 miles per year, MilesMyWay may be your best savings lever (up to 25%). Before defaulting to standard pricing, ask your agent specifically about MilesMyWay and run the comparison to see which structure saves you more.
- Enroll teens in DriveMyWay — American Family's teen driver pricing is already competitive, but adding DriveMyWay for a young driver who's actually careful can stack meaningful additional savings. The combination of AmFam's favorable teen base rate plus DriveMyWay discounts is hard to beat anywhere.
- Bundle aggressively — American Family writes home, renters, life, and commercial insurance. Every product you consolidate with AmFam adds multi-policy discount potential. If you currently split your home and auto between different carriers, calculate whether bundling makes sense.
- Take the Steer into Savings course — American Family's online driving course discount rewards you for completing a simple safety refresher. It takes an hour and often provides a persistent discount — minimal effort for a permanent savings.
- Ask about the young volunteer discount — If you have younger drivers in the household who volunteer in the community, this is an unusual discount that most people don't know exists. It's a genuine savings opportunity for families whose kids participate in community service.
The Final Verdict
American Family is a solid, above-average regional insurer that excels in specific niches — particularly families with teen drivers, low-mileage drivers, and customers in its Midwestern core markets where its agent network is strongest. The NAIC complaint ratio of 0.34 is genuinely excellent and reflects a company that treats customers well in billing and coverage handling. The coverage lineup, including pet injury coverage and OEM parts, is more thoughtful than many competitors.
The limitations are meaningful. Above-average base rates, regional availability, and AM Best A (rather than A+ or A++) put AmFam in the "worth comparing" category rather than a first recommendation for most buyers. If you're in AmFam's footprint and have teenagers or drive very little, it absolutely deserves a quote. If you have a clean record, drive a standard amount, and want the lowest rate, State Farm or Travelers will likely win the comparison.
Frequently Asked Questions
What states does American Family Insurance operate in?
American Family auto insurance is available in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin. If your state is not on this list, American Family is not available to you.
Is American Family good for families with teen drivers?
Yes — American Family is one of the most competitive insurers for teen drivers nationally. Female teen drivers pay an average of $796 less than the national average with AmFam, and male teens save about $241 below average. Combined with the good student discount, young volunteer discount, and DriveMyWay telematics for the teen driver, families can achieve significant savings compared to other insurers.
What is MilesMyWay and who should consider it?
MilesMyWay is American Family's pay-per-mile insurance program for drivers who drive fewer than 8,000 miles per year. It can save low-mileage drivers up to 25% compared to standard pricing. It's ideal for remote workers who rarely commute, retirees, urban dwellers who primarily use public transit, or anyone with a second or third vehicle that rarely gets driven. Ask your agent to run a comparison of standard vs. MilesMyWay pricing with your actual annual mileage.
Does American Family offer pet injury coverage?
Yes. American Family offers pet injury coverage that pays veterinary costs for your cat or dog if they're injured in a covered accident while riding in your vehicle. This is an uncommon coverage that most auto policies don't include. If you frequently travel with pets, it's worth adding — unexpected vet bills after an accident can be substantial.
How does American Family's diminishing deductible work?
American Family's diminishing deductible (similar to Nationwide's Vanishing Deductible) reduces your collision deductible over time as you maintain a claim-free record. Each qualifying year without an at-fault claim, your deductible decreases. This means the longer you drive safely with AmFam, the less you'd pay out of pocket if you eventually need to file a collision claim.
Is American Family available online without going through an agent?
American Family primarily sells through captive agents. While the company has improved its digital quoting tools and you can research coverage options online, you'll typically work through a local AmFam agent to complete your policy purchase. Your agent can also help optimize your coverage and ensure all available discounts are applied to your policy.
Sources
- American Family Insurance Official Auto Page
- NerdWallet: American Family Auto Insurance Review 2026
- The Zebra: American Family Insurance Review 2026
- Bankrate: American Family Insurance Review
- Insurify: American Family Auto Insurance Review 2026
- J.D. Power 2025 U.S. Auto Claims Satisfaction Study
- AM Best Financial Strength Ratings
- Insure.com: American Family Auto Insurance Review 2026