For US insurance brokers, it’s standard practice to check an insurer’s critical metrics like financial strength and customer service ratings when searching for products to recommend to clients. In this guide, we'll focus on one of the industry's major players – American Family Insurance or AmFam.
We’ll delve deeper into American Family Insurance’s ratings, including financial stability and customer satisfaction. We'll also take a closer look at the products it offers. This should be enough to help you make informed decisions regarding whether to choose AmFam for your clients.
Checking an insurance company’s ratings is critical for assessing whether the insurer is worth your attention. Insurance industry best practices involve checking the ratings from the big four: A.M. Best, Fitch, Moody’s, and S&P Global.
These ratings are a clear sign of whether it can honor insurance claims. Strong ratings are also proof of robust balance sheet strength, prudent risk management, and reliable operating performance.
For brokers, these independent evaluations provide pertinent disclosures, including details about an insurer’s capitalization, profitability, and long-term stability. You can find more detailed information in our guide on insurance ratings agencies and why their ratings matter.
To get a better picture of the insurer's financial resilience and claims-paying ability, let's look at American Family Insurance's ratings from these agencies:
American Family Insurance’s A.M. Best rating reflects the company’s strong balance sheet, adequate operating performance, favorable business profile, and appropriate enterprise risk management.
A.M. Best, however, revised their outlook to “stable” from “negative” due to improved operating results and projected year-end financial metrics. The rating applies to American Family Mutual Insurance Company, S.I., its core affiliates, and American Family Life Insurance Company.
Fitch Ratings affirmed American Family’s A+ (Strong) financial strength rating, which is the fifth highest of Fitch’s 21 rating categories. The outlook was revised to negative in 2020, reflecting potential impacts from the COVID-19 pandemic and the company’s redeployment of capital for growth and diversification.
Moody’s assigned AmFam an “A1” rating, reflecting its established franchise, sound balance sheet, conservative leverage, and high-quality investment portfolio. This rating was affirmed in 2020 and remains current based on the latest available public disclosures.
S&P Global credit rating agency affirmed American Family’s “A” rating, citing the company’s strong financial profile and wide presence. This rating was confirmed for 2020 and is the most recent public rating from S&P. S&P, however, does not always update its ratings annually – insurers are usually the ones that request ratings and may not have done so in the past few years.
| Rating agency | Financial strength rating | Outlook/notes |
|---|---|---|
| A.M. Best | A (Excellent) | Stable |
| Fitch | A+ (Strong) | Negative (2020) |
| Moody’s | A1 | Affirmed (2020) |
| S&P Global | A | Affirmed (2020) |
How American Family Insurance rates among customers is another important metric brokers should consider. These scores show how customers view the insurance company and how they rate their satisfaction with their products, services, and claims.
For insurance companies, J.D. Power ratings, like those they give for claims satisfaction, digital experience, and regional customer satisfaction, are key benchmarks. J.D. Power ratings matter because they are independent, trusted, and based on real customer experiences.
Their ratings can help brokers and consumers identify insurers that excel in service, responsiveness, and overall value. J.D. Power’s ratings can be critical for finding the most suitable carriers in a crowded and competitive insurance market.
AmFam is ranked regionally for overall customer satisfaction. The perfect score that a rated company can achieve is 1000 points. In the 2025 study, American Family scored:
As for its auto insurance, American Family Insurance scored 692 out of 1,000 in the 2025 claims satisfaction study. This placed it above the industry average but not among the top performers.
American Family Insurance is rated by Consumer Reports (CR) as a trustworthy and competitive insurer, particularly for auto and home coverage. It stands out for its low complaint levels and competitive pricing, though customer satisfaction and claims experience are rated average.
The American Family Insurance’s ratings from Consumer Reports make it a good option for many insurance buyers, especially those seeking bundling discounts and solid financial backing. Here are CR’s ratings for different metrics of this carrier:
Strengths: Competitive rates for safe drivers, good bundling discounts, and a low level of consumer complaints
Weaknesses: Customer satisfaction scores are typically average, with some reports of slower claims processing and digital experience not as strong as larger competitors
American Family is considered a solid choice for auto insurance, especially for those who qualify for discounts and live in one of the 19 states where it operates. You can also check out our guide to the top car insurance companies in the US to make comparisons. =
Strengths: Competitive pricing, especially for new homes, and good bundling options
Weaknesses: Some customers report issues with claims handling and rate increases
Home insurance from American Family is generally rated as competitive and reliable, with fewer complaints than many other large insurers.
Consumer Reports and NAIC data indicate fewer complaints than average for American Family Insurance.
The core products of this carrier include:
Apart from standard coverages, American Family offers several insurance products that other carriers do not, making them stand out in the market. Their unique products include:
This is a telematics program that rewards safe driving with discounts. While this usage-based insurance is available from other insurers, American Family’s DriveMyWay program is tailored for its markets and offers unique features and app integration.
This is a customer rewards program that provides incentives for engaging with American Family’s online tools and completing certain activities. This loyalty program is unique to American Family.
This AmFam product pays for a brand-new car if a policyholder’s vehicle is totaled within the first year of ownership. While some insurers offer similar coverage, this insurer’s terms and bundling options are competitive.
American Family is one of the few major insurers with a dedicated, customizable suite for farm and ranch owners, including coverage for dwellings, machinery, livestock, and crops.
American Family Insurance serves primarily the Midwest and some Western states. The insurer does not offer new policies in most southern or eastern US states.
As of 2025, American Family Insurance offers its core products in these 19 states:
As with other insurers, choosing American Family Insurance and its products comes with its share of benefits and drawbacks:
American Family offers affordable premiums, especially for safe drivers and those who bundle multiple policies.
This carrier has comprehensive coverage options, including auto, home, life, business, farm and ranch, and specialty insurance.
AmFam maintains high financial strength ratings, indicating high reliability in paying claims.
Good discounts
This insurer offers generous bundling, loyalty, safe driver, and multi-vehicle discounts.
AmFam receives fewer complaints than the industry average.
Their DriveMyWay program rewards safe driving with additional savings.
Clients report good, personalized service through a large network of local agents in its operating states.
This carrier’s products are only available in 19 states; some larger insurers have nationwide coverage.
Despite its low complaints, some customers report slow claims processing and inconsistent service quality.
Its online tools and mobile app are less advanced than some of its larger competitors.
Some customers experience premium hikes after claims or policy renewals.
AmFam’s car insurance rates and acceptance may be less favorable for drivers with poor records.
The big question remains: is this carrier and its products worth using and recommending to your clients? The answer is not a definite yes or no. Whether AmFam and its products are suited to your clients depends on a few factors. Those who live in the 19 states where the insurer operates and need personal, or business coverage can find American Family Insurance as a solid, reliable choice.
As for clients who need car insurance, they may have to look elsewhere if they have a poor driving history. To find alternatives, check our guide comparing rates of the biggest car insurers. Also, clients who seek a carrier with excellent digital tools and digital experience will have to look at some of the other larger insurers.
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