American Family Insurance History
American Family Insurance was founded by insurance salesman Herman Wittwer on October 3, 1927, in Madison, Wisconsin. The company was originally known as Farmers Mutual Insurance Company – not to be confused with Farmers Insurance Group, which would be founded one year later.
At launch, the company only sold car insurance to farmers. The company believed farmers were ideal car insurance customers because they drove less often than city drivers and rarely drove during winter.
In 1963, Farmers Mutual Insurance Company changed its name to American Family Mutual Insurance Company. The company had grown to offer a wider range of insurance products to a wider range of customers.
Today, American Family Insurance has four regional corporate headquarters across the United States, including offices in Eden Prairie, Minnesota; Saint Joseph, Missouri; Denver, Colorado; and Columbus, Ohio, among other smaller offices and the corporate headquarters in Madison, Wisconsin.
American Family Insurance plays a crucial role in Wisconsin’s economy, employing thousands of people in Madison alone. As a testament to the company’s connection to Wisconsin, American Family Insurance and the Milwaukee Brewers announced a fifteen-year naming rights partnership over the stadium currently known as Miller Park. That partnership is scheduled to begin in 2020.
American Family Insurance Rankings
American Family Insurance tends to be one of the highest-rated major insurance companies in the United States. It consistently achieves average to strong ratings from J.D. Power and other rankings organizations.
In 2018, for example, American Family Insurance earned the following ratings from J.D. Power:
Insurance Shopping (Auto): Better than most
Auto Insurance Claims Satisfaction: About average
Home Insurance: About average
Property Claims: About average
Additionally, American Family Insurance earned an “Excellent” financial strength rating from A.M. Best. An “Excellent” financial strength rating means that American Family Insurance should have no issues paying off its liabilities.
What Makes American Family Insurance Unique?
American Family Insurance functions like most other car insurance companies in the United States. Some of the differentiating factors include:
MyAmFam Mobile App: American Family Insurance has a surprisingly good mobile app called MyAmFam. The app lets you manage your claim, pay your insurance bill, find an agent, view your policy documents, and even download proof of insurance on-the-go. You can also use the app to contact roadside assistance or find an authorized auto or glass repair shop nearby.
Multiple Types of Insurance: Some car insurance companies focus exclusively on car insurance. American Family Insurance, however, offers auto, home, and life insurance. The company also sells health insurance through its agents, although this insurance is technically offered through third party companies.
Available in 19 States: American Family Insurance is not available nationwide. It’s available in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
Is American Family a Good Insurance Company? Our Review
American Family Insurance is generally recognized as one of the best insurance companies in the country, typically ranking within the top 10 or 15 best insurers nationwide. Generally, customers are satisfied with their claims, and American Family Insurance’s ‘Average’ rating in the latest J.D. Power study reinforces that rating.
One of the main things holding American Family Insurance back from some of its larger, better-known competitors is the lack of nationwide coverage: American Family Insurance is only available in 19 states, while most larger competitors are available in all 50 states.
However, those who live in one of the 19 states can enjoy powerful insurance coverage for all aspects of their lives. American Family Insurance offers car, motorcycle, ATV, RV, snowmobile, and boat insurance, for example, along with condo, mobile home, homeowner’s, and renter’s insurance. You can also buy umbrella insurance, flood protection, business insurance, and ranch/farm insurance, among other insurance products.
By bundling multiple insurance policies together with American Family Insurance, you can save money on each individual policy. Many policyholders enjoy popular insurance products like the DreamSecure Simplified Term life insurance, for example, which offers life insurance payouts of $50,000 to $150,000 with no medical exam required.
American Family Insurance is also ideal for drivers working for Uber, Lyft, and other rideshare companies. American Family Insurance offers ridesharing insurance in certain states. It can be easily added to your policy to fill in the coverage gaps left by Uber or Lyft’s insurance.
American Family Auto Insurance Policies and Products
American Family Insurance offers a standard set of auto insurance coverage options along with a few additional options. Some of the features that make American Family car insurance policies unique include:
Gap Insurance: American Family Insurance will cover the gap if your car is totaled while it’s being leased or financed. Without gap coverage, drivers would have to pay the remaining balance of the vehicle even when the actual cash value of the vehicle is much lower.
Rideshare Insurance: As mentioned above, American Family Insurance allows rideshare drivers to add insurance to their existing policies, filling in the gaps left by Uber and Lyft.
American Family Insurance is one of America’s top insurance companies, frequently ranking among the best in terms of claims satisfaction. It doesn’t quite compete with the best and biggest companies in America, nor is it available in every state, but American Family Insurance provides comprehensive coverage to policyholders in 19 states across America.
American Family Company Facts
American Family Insurance Group
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
- Bodily Injury and Property Damage Liability
- Uninsured / Underinsured
States licensed to sell insurance in:
AZ, CO, GA, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI
A.M. Best Company Rating: A