American Family earned a score of 4.07 stars out of 5 on our 2025 Best Home Insurance Companies list. It’s a regional company and not ranked against national carriers, but it would have landed in sixth place if ranked.
Leslie Kasperowicz is an insurance expert and the executive editor of Insurance.com. Before joining QuinStreet, she was managing editor at Quote.com has a decade of experience writing about insurance. She also spent four years in customer service with Farmers Insurance.
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American Family scored 4.07 stars out of 5 on our annual Best Home Insurance Companies list. Considered a regional carrier as it serves less than half of states, AmFam wasn’t ranked against national companies but would have landed in 6th place if it had been.
In the 2025 survey, 86% of American Family customers surveyed rated it highly for customer service, and 86.2% plan to renew their policies.
Home insurance rates from American Family are below the national average, although not the cheapest. The company has an A rating from AM Best, indicating it will have no trouble meeting financial obligations, like paying claims. American Family scored well in most areas of the survey.
AM Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations.
Below is our review of American Family. It’s based on third-party metrics, including two J.D. Power studies (Home Insurance Study and Property Claims Satisfaction Study) and an in-depth survey of insurance customers. Find the full methodology here.
American Family has rates below the national average but isn’t the cheapest compared to other top companies. Its average home insurance rate is $2,504 a year, a little below the national average of $2,604.
Our survey found that 86% of American Family customers are satisfied with the carrier’s overall customer service, a solid score that’s in the middle on our survey. Amica led this category at 96.2%.
However, American Family ranked a little below the industry average of 640 for overall satisfaction in J.D. Power’s Home Insurance study with a score of 638.
Our survey found that 81% of respondents are happy with the policy offerings from American Family. Nationwide topped this category at 96.4%, with Liberty Mutual ranking second at 94.7%.
The survey found that 82.5% of American Family customers are satisfied or highly satisfied with the company’s ease of service – getting access to policy documents and the ability to make policy changes easily. This is a high percentage although many carriers scored higher.
According to our survey, 69% of respondents said they’d recommend American Family to others. Erie, another regional carrier, is the most recommended carrier, coming out on top of all insurance companies surveyed.
In our survey, 81% of American Family customers said they trust the company. Most companies scored in the 80s here, with Safeco earning the highest score at 95.7%.
According to our survey, 86.2% of American Family customers plan to renew their home insurance. Although it’s a solid percentage, many competitors had higher scores. Safeco again received the highest score at 100%.
Based on our survey results, 77.5% of American Family’s customers say they’re satisfied with the way claims are handled, which is lower than many competitors. Erie had a score of 100%, winning this category easily. J.D Power, however, gives American Family a score of 877 out of 1,000 for claims satisfaction, well above several competitors.
When asked to rate their digital experience, 83.7% of AmFam customers reported satisfaction. That was in the top half of the ranking. The American Family app is highly rated, with 4.7 stars, in the Apple App Store, but lower at 3.3 stars in the Google Play store.
American Family customers reported 69.6% satisfaction with the auto and home bundle offered by the company. Amica outpaced all other companies at 89.5%, although USAA would have come in first, if ranked, at 90%.
American Family’s auto and home bundling discount, at 16%, is about average.
American Family offers a good range of discounts, and customers gave AmFam a score of 61.4% in this category. Many carriers did better in this area though only two companies scored above 80%, with Amica coming out on top at 84.6%.
American Family Insurance was founded in 1927 as Farmers Mutual Insurance Company (no relation to today’s Farmers Insurance) in Madison, Wisconsin. Today, it is a Fortune 500 company with almost 14,000 employees. The company changed its name to American Family in 1963. The current American Family Insurance Group has 15 different insurance and financial companies under its umbrella
Sources:
American Family Insurance. “Insurance Built for You.” Accessed March 2025.
American Family Insurance. “Homeowners insurance discounts” Accessed March 2025.
American Family Insurance. “Our story” Accessed March 2025.
J.D. Power. “2024 U.S. Home Insurance Study.” Accessed March 2025.
J.D. Power. “2024 U.S. Property Claims Satisfaction Study.” Accessed March 2025.
Insure.com in the fall of 2024 surveyed more than 1,750 insurance consumers (1,011 people with home insurance). The survey was conducted by online market research company Slice MR.
Respondents were asked to name their home insurer and then grade it in the following categories:
The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.
We then asked respondents to provide a yes or no response to indicate their agreement with the following statements:
The percentage of respondents who said yes is presented in the results.
The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.
They then collected AM Best data, which measure financial strength, and National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives. The Insure.com team identified the NAIC codes of each underwriting company for each carrier and calculated a weighted average complaint index, weighted by the annual written premium. The associated NAIC complaint index score was used in the calculations.
They also collected insurance rate data from Quadrant Information Services.
With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector. For home insurers, we took the following and gave each a weight.
Each insurer was awarded between half a star and 5 stars. No company in the ranking received less than half a star in any category, and 5 stars was the most any insurer could receive.