American Family Insurance, often called AmFam, is a strong player in the US insurance market, but is it the right choice for your clients? Looking at the latest data from 2025, the company scores well in financial strength and customer satisfaction, especially in the 19 states where it operates.
When it comes to financial stability, American Family Insurance holds solid ratings from the main insurance watchdogs. A.M. Best gave it an “A” for financial strength with a stable outlook, showing it can handle claims and has a healthy business. Fitch rated it “A+” but noted a negative outlook in 2020 due to challenges like the pandemic and company changes at that time. Moody’s scored it an “A1,” highlighting a strong balance sheet and good investments. S&P Global also affirmed an “A” rating based on the company’s steady financial profile. Together, these ratings paint a picture of a reliable insurer that brokers and clients can trust.
Customer satisfaction is another matter that makes a difference. The 2025 J.D. Power studies show American Family Insurance getting decent marks. Regionally, it scored above average in the Central area with 674 points out of 1,000 and had solid scores in other regions too. Its auto claims satisfaction rating was 692, which is better than average but not top-tier. For digital experience, AmFam ranks third in both service and shopping segments, but still lags a bit behind larger competitors. Consumer Reports backs this up, calling the company trustworthy and competitive, especially for car and home insurance, but notes that customer satisfaction and claims handling are average.
American Family offers a wide range of insurance products. They cover auto, home, life, business, farm and ranch, and specialty insurance like pet and travel coverage. The company stands out with some unique options, such as its DriveMyWay program, which rewards safe drivers through telematics. Another perk is DreamKeep Rewards, a loyalty program for customers engaging with their online tools. They also provide new car replacement coverage for vehicles totaled within the first year. For farmers and ranchers, they offer tailored insurance for dwellings, machinery, livestock, and crops — a rare find among big insurers.
However, American Family’s services are limited to just 19 states, mostly in the Midwest and some Western areas, including Arizona, Colorado, Georgia, Illinois, Ohio, and Wisconsin. This regional availability means it’s not an option for everyone, unlike larger insurers with nationwide coverage.
Like any company, AmFam has its ups and downs. On the plus side, it offers competitive rates, especially to safe drivers and those bundling multiple policies. Discounts for loyalty, multi-vehicle ownership, and safe driving are attractive features. The company also keeps complaints below the industry average and boasts a strong network of local agents offering personalized assistance.
On the downside, some customers report slower claims processing and mixed customer service experiences. Its mobile app and online tools are not as advanced as those of bigger insurers. There are also reports of premium increases after claims or renewals. Additionally, drivers with poor records might find that American Family’s car insurance options are less friendly or affordable.
So, is American Family Insurance a good fit? For residents in its service areas looking for solid personal or business insurance with good financial backing, it’s a reliable choice. Those who prioritize digital tools or have a spotty driving record may want to consider other options. For brokers, knowing these details helps to find the best match for each client’s needs.