Is American Family Car Insurance Good? Reviews and Expert Insights

American Family car insurance is a strong choice for safe drivers, multi-policy households, and young drivers in the 19 states where it sells directly. 

The carrier holds an AM Best financial strength rating of A (Excellent) and earns low consumer-complaint ratios from state regulators. Its base rates run above the national average, but a deep discount menu and two telematics programs can bring the net price down.

American Family sells its branded auto policies directly in 19 states, using an exclusive network of local agents. 

The 19 states where American Family writes direct auto coverage are:²

• Arizona

• Colorado

• Georgia

• Idaho

• Illinois

• Indiana

• Iowa

• Kansas

• Minnesota

• Missouri

• Nebraska

• Nevada

• North Dakota

• Ohio

• Oregon

• South Dakota

• Utah

• Washington

• Wisconsin

Drivers outside this footprint cannot buy a traditional American Family auto policy, though related companies extend the group’s reach nationally. 

Homesite writes homeowners insurance in all 50 states, and CONNECT, powered by American Family, serves members in nearly every state, including as the auto and home provider for Costco members.³

American Family car insurance costs $86 per month for minimum coverage and $250 per month for full coverage.

American Family’s base rates tend to run above the national average, but its discounts and usage-based programs can lower the net price significantly for drivers who qualify. 

Because American Family concentrates in Midwestern, Western, and Pacific Northwest states, its averages reflect the loss costs of that footprint rather than higher-cost coastal markets. Your actual cost depends on your state, driving record, vehicle, age, and credit, where allowed.

• Driving record: accidents, tickets, and violations raise rates

• Credit history, in states where insurers are allowed to use it

• Vehicle type, age, and annual mileage

• Coverage levels, deductibles, and available discounts

The most reliable way to see your price is to request a quote at the coverage level you actually want. Comparing that quote against other carriers through Luva can help.

American Family offers more than a dozen discounts that policyholders can stack, from multi-policy bundles to student and safe-driving credits.⁴

The main discounts and programs include:

• Good Student discount: For full-time students under 25 who maintain a 3.0 grade point average, rank in the top 20% of their class, or make an honor roll⁵

• Student Away at School discount: For students under 25 who attend school more than 100 miles from home and leave the insured vehicle at home⁴

• Generational discount: For young adults ages 18 to 30 whose parents hold an active American Family policy⁴

• DriveMyWay: A behavior-based telematics program⁶

• MilesMyWay: A low-mileage program⁷

• Multi-policy bundling: Bundle a home and auto policy to save up to 40% across both policies together⁴

American Family also offers billing-related credits for autopay, paperless statements, and paying in full, along with safe-driving rewards.

How does American Family’s General Loyalty discount work?

The General Loyalty discount, which American Family brands as the Generational discount, rewards young adults ages 18 to 30 who open their first standalone policy while their parents remain active customers.⁴ The young adult inherits a loyalty credit on a new auto, renters, or home policy.

This helps newly independent drivers, who are usually rated as higher-risk, secure more competitive starting rates than they might find on their own.

How does American Family’s MilesMyWay program work?

MilesMyWay is a low-mileage program for drivers who travel under about 8,000 miles per year, or roughly 20 miles per day, and it can save up to 25% on variable coverages.⁷

Instead of continuous tracking, you submit a photo of your odometer twice a year through the mobile app. The program starts with a 10% introductory discount, and exceeding the mileage threshold means losing the discount rather than paying a surcharge.⁷

DriveMyWay works differently. It is a continuous, app-based telematics program that monitors driving habits such as braking, speed, and phone use, with a 15% enrollment discount and personalized savings of 10% to 35%.⁶

MilesMyWay rewards how little you drive; DriveMyWay rewards how safely you drive. Drivers who are both low-mileage and safe can enroll in both.

American Family offers the standard auto coverages required and recommended for most drivers, plus optional add-ons that protect against specific risks.⁴

Standard coverages include:

• Bodily injury and property damage liability: Covers others’ medical costs, legal defense, and property damage after an at-fault accident

• Collision coverage: Repairs or replaces your vehicle after a collision, regardless of fault

• Comprehensive coverage: Covers non-collision damage such as theft, vandalism, hail, fire, and animal strikes

• Medical expense and personal injury protection (PIP): Covers medical bills and related costs regardless of fault

• Uninsured and underinsured motorist coverage: Protects you when an at-fault driver has too little or no insurance

Optional add-ons include:

• Diminishing deductible: Reduces your deductible by $100 for each claim-free year, up to $500⁴

• Accident forgiveness: Protects your rate after a first at-fault accident if you meet the eligibility requirements⁴

• Original equipment manufacturer (OEM) parts coverage: Uses factory parts for covered repairs

• Gap and new car replacement coverage: Covers the gap between a loan balance and a totaled car’s value, or replaces a new car after an early total loss

American Family earns solid marks for customer satisfaction and low complaint volumes, with claims service just above the industry average. State regulators and J.D. Power both provide useful, independent measures.

For the NAIC Complaint Index, lower is better. A score below 1.00 indicates fewer customer complaints than expected for a company of its size.

Some customers note that physical claims can take longer than with larger national carriers, a pattern consistent with industry-wide repair delays as vehicles grow more complex to fix.

American Family’s strengths center on discounts, bundling, and programs for young and low-mileage drivers, while its trade-offs are limited availability and above-average base rates.

The table below compares American Family with Travelers, Nationwide, and Erie on factual, published characteristics. Figures reflect each carrier’s own program details and availability; pricing varies widely by driver and state.

American Family is worth it for drivers in its 19-state footprint who can use its discounts, especially homeowners who bundle, low-mileage drivers, and young adults.

It tends to be a strong fit for:

• Multi-policy households: Families who bundle home and auto to capture the up-to-40% discount⁵

• Low-mileage drivers: People who drive under about 8,000 miles a year and want savings without continuous tracking⁷

• Young drivers under 30: Students and young adults who qualify for the Generational and student discounts⁴

Drivers with recent accidents or violations may find American Family’s base rates less competitive, since its starting full coverage average runs above the national average. 

As with any carrier, comparing quotes at the same coverage levels is the most reliable way to see where you land. Compare carriers on Luva to find the right coverage for you.

You can request an American Family quote online or through a local agent. A little preparation helps you get an accurate price and capture every discount.

1. Gather your information: collect each driver’s details, your vehicle identification number (VIN), and any student academic records.

2. Start early: request your quote at least seven days before your current policy ends to qualify for the early-shopping discount.⁴

3. Consider DriveMyWay: enrolling at the quote stage adds a 15% introductory discount on your first term.⁶

4. Confirm discounts with an agent: ask an agent to verify niche credits such as the Generational discount are applied and stacked.