What Is American Family Insurance ?
American Family Insurance is a Fortune 500 mutual company that was originally founded on October 3, 1927 with three employees and 346 charter member policyholders. Since that date it has grown into the nation’s third largest mutual property and casualty insurance company boasting approximately 4000 agents. In addition to offering cheap auto insurance, American Family also offers comparison rates for recreational vehicles such as snowmobiles and RV’S. However, it has been their proven track record with car insurance that has galvanized their substantial financial growth over the past 83 years.
Is American Family Car Insurance Good?
There are several advantages to doing business with American Family Insurance company. Chief among these is the fact that as a mutual company, the policyholders actually have ownership in the company. This allows the profits to be reinvested into the company spurring additional growth while offering a guarantee against unexpected losses and expenditures. Numbers provide the evidence of this framework showing American Family profits totaling $16.3 billion in assets under management and approximately $4.8 billion in policyholder equity. American Family also offers discounts to its policyholders for multiple vehicle coverage as well as combining home and auto insurance. When calling for a quote, American Family compares rates from over 15 insurance companies to ensure that the customer is given the best quote.
Bad Things About American Family Insurance
There are, however, also disadvantages to American Family Insurance. While certainly widespread, the fact remains that American Family is available in only 19 states specifically in the Central and Western United States. Another aspect to certainly be considered is the fact that American Family reviews clients with credit based insurance scoring. This means that before they write a policy on a potential client, that person’s credit score is first evaluated. While this may provide the credit worthy with lower rates it offers no option for those who are rebuilding their credit due to unforeseen circumstances. While there are studies that show a connection between insurance and credit history, to formulate that this is a pattern across the board lacks merit especially in light of our current economic challenges as a nation.
There can be no argument that American Family lives up to its name when you consider one of it’s specialty services called an In-car DriveCam. This is especially of interest to adult policyholders with teen drivers. The purpose of this service is to capture on film any risky or potentially dangerous behavior while teens are behind the wheel. American Family offers this service free for the first year to its clients. Statistics show that up to 70% of at risk driving habits are reduced in the first six weeks of the service and the rate of seatbelt usage increased from 40% to 100%.
What States Does American Family Insurance Cover?
States included in the American Family Insurance network are: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
The S&P rated American Family with a AA- and A.M. Best gave them an A+. Customers agree that the personalized service is exceptional.