American Family Insurance – An Overview

American Family Insurance is a large company that offers multiple insurance products, including auto insurance coverage. It has been around since 1927, and has grown and expanded significantly over the years. It is always on Fortune magazine’s Fortune 500 list – a sure sign of its financial vitality. In addition to insurance policies, American Family Insurance also offers other financial tools such as investment and retirement financial products.

American Family Insurance – Its History

American Family started out as Farmers Mutual Automobile Insurance Company in 1927. It was founded by Herman Wittwer, who wanted to sell auto insurance to farmers at a discounted rate. At the time, farmers were charged the same rates as city drivers even though they didn’t drive in much traffic and drove very little in the winter, and Wittwer wanted to change that.

The company was successful and expanded its reach to include small towns and then major cities. Indeed, in 1938, it had over $1 million in assets and premiums. The company had different names and branches over the years. In 1963, it became American Family Mutual Insurance Company in order to represent its larger range of insurance policies and financial instruments offered.

American Family Mutual Insurance entered the Fortune 500 list in 1996. It is now available in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.

Differentiating Factors

American Family Mutual Insurance is sold only through agents and they have fewer agents than other insurance companies – only 3,500 in the country. The rarity of American Family Mutual Insurance’s agents is their trump card – agents are knowledgeable in the products and are able to communicate effectively with clients.

The agents live in the communities where they work so clients can deal with the same agent each time they deal with their insurance. Clients know their insurance agents names, which is quite different from companies that are largely Internet or phone-based. However, rates are not usually as low as other companies, especially those that rely heavily on the Internet for transactions and insurance applications.

Let’s Hear What Their Customers Says…

American Family has a 3.4 out of 5 rating with insuranceusa.com and a 2.5 out of 5 star rating with epinions.com. These ratings are better than some other major insurance companies’ rates, but they show that customers are not completely happy with the organization.

Many customers are happy with the service and feel they were treated fairly during claims. These customers feel that the rates are a little higher than other companies rates, but they pay more for better service.

Conclusion

American Family is a viable option if you live in one of the states where it’s available. American Family is particularly good if you prefer one-on-one contact with your agent. This allows you to develop a relationship and the agent can better understand your needs. Many people prefer this to the non-existent relationship that Internet-based insurance companies give clients.

American Family Company Facts

Parent Company:
American Family Insurance Group

Insurance subsidiaries:
American Family Mutual Insurance Company
American Standard Insurance Company of Wisconsin
American Family Life Insurance Company
American Family Insurance Company (OhioAmerican Family Ins. Co. of Ohio)
American Standard Insurance Company of Ohio

Lines of Insurance
Vehicle Coverage: Car/Truck/SUV, RV, Motorcycle, ATV, boats
Other Coverages: Health, Life, Homeowners, Renters,Travel, Business

Coverage Options:

  • Bodily Injury and Property Damage Liability
  • Uninsured / Underinsured
  • Collision
  • Comprehensive

States licensed to sell insurance in:
AZ, CO, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA

A.M. Best Company Rating: A
(Rating Explained)

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