American Family home insurance review and ratings 2023

American Family ranks at No. 8 in’s 2023 Best Insurance Companies home insurance survey with a score of 2.9 stars out of 5. It ranked highly for claims satisfaction.

Reviewed by: Leslie Kasperowiczquality verified
Leslie Kasperowicz
Leslie Kasperowicz

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like and and managing content, now at

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Our take

American Family’s customers are highly likely to recommend the company to their friends, landing it among the top picks, with a No. 8 ranking on’s 2023 Best Home Insurance Companies list. 

Eighty-eight percent of American Family customers surveyed rated it highly for customer service, and 94% would recommend the company to others. It also stands out from the pack when it comes to claims satisfaction. 

Home insurance rates from American Family are below the national average, and although rates aren’t the lowest among the home insurers surveyed, they’re close. The company has an A rating from AM Best, indicating it will have no trouble meeting financial obligations, like paying claims. However, our survey found American Family scored below average in categories like ease of service and policy offerings.

American Family
American Family Ratings
Overall Rating: 2.9
Average Premium: 4.6
NAIC: 0.60
Customer Satisfaction: 4.4
AM Best Rating: A

Pros and Cons

  • Rates are lower than the national average
  • Customers rate it highly for claims satisfaction
  • Long list of available discounts
  • Other insurers rate higher for policy offerings
  • Not available in all states

Below is’s review of the company. 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, including an explanation of our survey scores.

How much American Family costs

American Family has rates below the national average but isn’t the cheapest compared to other top companies. Its average home insurance rate is $2,139 a year, below the national average of $2,433.

Company Average annual rate
American Family $2,139
Allstate $1,895
Travelers $3,763

How American Family scores for customer satisfaction

Our survey found that 88% of American Family customers score it highly for customer satisfaction, better than many of its top competitors. It ranked just a few percentage points behind State Farm, which led this category.

However, American Family ranked second for overall satisfaction in J.D. Power’s Home Insurance study with a score of 842.

Company Percent of customers that are satisfied J.D. Power overall satisfaction score (out of 1,000)
American Family 88% 842
State Farm 93% 829
Nationwide 81% 816

How American Family scores for policy offerings

Our survey found that 79% of respondents are happy with the policy offerings from American Family. Travelers led this category. Most insurance companies scored fell between 80% and 90%, placing American Family a bit on the low side.

Company Percent of customers satisfied with the company’s policy offerings
American Family 79%
Travelers 91%
Progressive 88%

How American Family scores on ease of service

The survey found that 83% of American Family customers are satisfied or highly satisfied with the company’s ease of service – getting access to policy documents and the ability make policy changes easily. Travelers led here. 

In this category, most companies’ scores fell between 80% and 90%

Company Percent of customers satisfied with the company’s ease of service
American Family 83%
Travelers 91%
Nationwide 81%

Would current customers recommend American Family to others?

According to our survey, it’s an emphatic yes – 94% of respondents said they’d recommend American Family to others – tying it with Travelers for second place among companies we ranked and behind the winner, State Farm.

Company Percent of customers who would recommend the company to others
American Family 94%
State Farm 97%
Allstate and Progressive 92%

How trustworthy is American Family?

In all,  73% of American Family customers who responded said they trust the company. State Farm led this category. In most cases, companies had scores in the 70th and 80th percentile range.

Company Percent of customers who say they trust the company
American Family 73%
State Farm 83%
Progressive 74%

Do American Family customers plan to renew?

According to our survey, 94% of American Family customers plan to renew their home insurance. That’s high compared to many of its competitors. American Family appears to inspire loyalty. Travelers led this category.

Company Percent of customers who plan to renew with the company
American Family 94%
Travelers 97%
Farmers 87%

How American Family scores on claims handling

Based on our survey results, 83% of American Family’s customers say they’re satisfied with the way claims are handled. J.D Power gives American Family a rating of 868/1,000 for claims satisfaction, well above many competitors. Liberty Mutual, which isn’t ranked, led this survey category.

Company Survey score for claims handling J.D. Power claims satisfaction score (out of 1,000)
American Family 83% 868
Liberty Mutual 98% 876
Progressive 44% 874

How American Family scores for discounts

American Family offers a good range of discounts, however, it placed in the middle in this category among ranked companies. Liberty Mutual, which isn’t ranked, won this category.

Company Survey score for discounts
American Family 52%
Liberty Mutual 81%
Farmers 50%

American Family coverage types

  • Standard homeowners
  • Manufactured home
  • Condo owners
  • Renters
  • Personal Property

American Family discounts

  • Multi-product
  • New homeowners
  • Renovated
  • Age of home
  • Generational
  • Savvy habits that save
  • Loyalty
  • Smart home

Other policies offered

  • Auto
  • Life
  • RV
  • Boat
  • Business insurance
  • Farm and ranch
  • Pet
  • Snowmobile
  • Health
  • Travel
  • Umbrella

States where American Family offers coverage

States where American Family offers coverage
North Dakota
South Dakota
Not available

Company background

American Family

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

Resources & Methodology


American Family Insurance. “Insurance Built for You.” Accessed December 2022.

American Family Insurance. “Homeowners insurance discounts” Accessed December 2022.

American Family Insurance. “Our story” Accessed December 2022.

J.D. Power. “2022 U.S. Property Claims Satisfaction Study.” Accessed December 2022

J.D. Power. “2022 U.S. Home Insurance Study.” Accessed December 2022

Methodology in the fall of 2022 surveyed more than 1,500 people with auto, home, life and health insurance (805 with home insurance). The survey was conducted by online market research company Slice MR. Respondents were asked to name their insurer and the editors then selected – based on the number of responses – the top companies for this year’s Best home Insurance Companies ranking. needed 20 or more of a company’s customers to respond to the survey for that insurer to be included in the ranking, although in some categories the editors did consider companies with 18 or 19 responses.

Respondents were first asked to grade their insurer in the following categories – customer satisfaction, claims satisfaction and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.

Survey score calculation. Respondents were then asked to rank their insurer’s top three attributes out of more than a dozen presented – including customer satisfaction and policy offerings. For a number one choice, five points were given; for a second choice, three points; and for a third choice, a single point. The total points for each choice – first, second and third – were then divided by the number of each company’s customers who responded to that survey question to create a percentage. Those percentages are presented in the results as scores. 

Respondents were then asked if they would recommend their insurer to someone else. The percentage who said yes is presented in the results.

They also were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with the statement. The percentage of those who said they agreed or strongly agreed is presented in the results.

The editors compiled the survey results and then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives, and AM Best data, which measures financial strength. 

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 used the following weights to calculate the overall score for each company: 

  • AM Best: 25% of total score
  • NAIC: 15% of total score
  • Annual premium: 20% of total score
  • Survey: 40% of total score (10% customer satisfaction, 10% recommended and 10% renewal rate, 10% claims handling)

No company in the ranking received less than 1 star in any category and 5 stars was the most any insurer could receive.

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