American Family Insurance auto insurance

Overview

American Family Insurance — AmFam — is a Wisconsin mutual insurer owned by its policyholders rather than stockholders. The American Family Insurance Group ranked #10 among U.S. private passenger auto insurers by 2025 direct premiums written, with $5.69 billion and a 1.53% market share, according to NAIC market share data. The company says it is the 12th-largest property-casualty insurer in the country overall.

American Family sells its own brand of auto insurance through more than 2,400 independent-contractor agency owners who represent only American Family — captive agents — in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin. It also reaches customers through affinity partnerships, and its subsidiary Homesite sells homeowners insurance direct. Headquarters are at 6000 American Parkway in Madison, Wisconsin; the company has about 10,500 employees. Bill Westrate is chair and CEO, having succeeded Jack Salzwedel as chief executive in 2022.

History

Herman Wittwer launched Farmers Mutual Automobile Insurance Company in Madison on October 3, 1927. In 1930 it formed National Mutual Casualty Company to insure non-farmers, merging the two in 1933, when it also expanded into Minnesota. Homeowners and life insurance followed in 1958, and in 1963 the company took the name American Family Mutual Insurance Company, S.I. It added commercial lines in 1975, completed its Madison national headquarters in 1992 and will mark its centennial in 2027.

Acquisitions turned American Family into a group of brands in the 2010s:

• The General (Permanent General Companies of Nashville), a nonstandard auto insurance brand, bought in 2012 — and sold to Sentry Insurance for $1.7 billion in a deal that closed December 31, 2024. The General is no longer part of American Family.
• Homesite, a Boston-based direct homeowners insurer, added in 2013.
• Main Street America, a Florida-based group joined through a 2018 merger. American Family's 2025 results cite an exit from personal lines at Main Street America.
• Ameriprise Auto & Home, acquired in 2019 and rebranded CONNECT, powered by American Family Insurance. In December 2025 CONNECT told customers it had changed its name to American Family Insurance.

During the pandemic American Family returned nearly $530 million in auto premium to almost 2 million households between April 2020 and March 2021.

Auto insurance coverage

Standard coverages include liability, collision, comprehensive, uninsured and underinsured motorist, and medical payments. Optional coverages listed by American Family include:

• Diminishing Deductible, which credits $100 against your deductible on day one and another $100 each year up to the policy maximum, then resets after a claim — a version of the disappearing deductible.
• Accident forgiveness, OEM coverage for factory parts, and loan/lease gap coverage.
• Emergency roadside assistance, rental reimbursement and Travel Peace of Mind coverage.
• Rideshare coverage for drivers working for app-based services, plus classic car policies.

Discounts and programs

American Family has two usage-based programs:

• DriveMyWay is an app that scores phone use, hard braking, speeding, and evening and late-night driving. You get a 15% introductory discount for enrolling and a 99-trip trial; American Family says most actively enrolled customers save 10% to 35%, but higher-risk drivers may see rates increase. The score affects liability, collision, comprehensive, medical and PIP coverages but not fixed fees.
• MilesMyWay rewards low mileage without an app or device: you photograph your odometer twice a year, and drivers under about 8,000 miles a year can save up to 25%. American Family says there is no penalty for driving more and the program is available in all of its states; see pay-per-mile car insurance: how the pricing works for how this differs from true pay-per-mile pricing.

Other discounts include multi-vehicle, multi-product, loyalty, Early Bird (getting a quote at least seven days before the new policy takes effect), Steer Into Savings for switchers, auto safety equipment and advanced driver-assistance systems, defensive driver (55 and older, in some states), good driving, full coverage, accident free and violation free (five years), good student, away at school (under 25, 100+ miles away), young volunteer (40 hours a year for drivers under 25), generational (parents are customers), AutoPay, full pay and paperless.

Claims

Report a claim through My Account online, the MyAmFam app, your agent or the 24-hour line, 1-800-MYAMFAM (800-692-6326), which also dispatches emergency roadside assistance. Storm damage claims can be opened by texting STORM to 26326. American Family's direct repair program is the Dreams Restored Program: participating shops handle estimates, bill American Family directly (minus your deductible) and carry a lifetime workmanship guarantee.

Ratings and reputation

Financial strength. On September 24, 2025, AM Best affirmed the A (Excellent) financial strength rating and "a+" long-term issuer credit rating of American Family Mutual and its core affiliates, with a stable outlook, noting stronger underwriting results and that the sale of The General "significantly improved capital levels." An A rating is a notch below the A+ or A++ held by several larger auto insurers; see AM Best financial strength ratings explained.

Results. American Family reported a 2025 combined ratio of 84.6%, a 12.4-point improvement, with a $2.6 billion underwriting gain, net income of $3.18 billion and members' equity of $14.3 billion. Policies in force fell 11% to 12.1 million, reflecting the sale of The General and the Main Street America personal lines exit; catastrophe claims dropped to $2.4 billion from $3.3 billion.

Customer satisfaction. In the J.D. Power 2026 U.S. Auto Insurance Study, where American Family's results include former CONNECT customers, it ranked third in the Northwest (640) and fourth in California (649) and beat the regional average in four of the five regions where it was ranked, falling below only in the Southwest (632 vs. 638). In the J.D. Power 2025 U.S. Auto Claims Satisfaction Study it scored 702, 11th of 20 and just above the 700 average.

Who it suits

American Family suits drivers in its 19 agent states who want a local agent from a policyholder-owned company, and especially low-mileage drivers who can use MilesMyWay without installing anything. Its satisfaction scores are above average in most regions where it is measured. Shoppers outside its footprint will generally not find an American Family agent, and its AM Best rating is a step below the industry leaders.

• Strengths: Mutual ownership and a much-improved 2025 combined ratio of 84.6%; MilesMyWay low-mileage savings with no tracking device and DriveMyWay's 15% enrollment discount; Diminishing Deductible and lifetime repair guarantee at Dreams Restored shops; above-average J.D. Power scores in four of five regions.
• Weaknesses: Agent-sold brand limited to 19 states; AM Best rating of A (Excellent), not A+ or A++; DriveMyWay can raise rates for higher-risk drivers; policy count down 11% in 2025 as it shed businesses.

How to contact American Family Insurance