What American Family Insurance rating says about its performance

What American Family Insurance rating says about its performance | Insurance Business

What American Family Insurance rating says about its performance

Learn about the American Family Insurance rating and its implications for U.S. brokers. Gain essential insights to guide clients confidently.

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 explore American Family Insurance’s ratings, covering financial stability and customer satisfaction, and examine the range of products it offers. This information should help you decide whether AmFam is a suitable choice for your clients.

American Family Insurance ratings and why they are important

Checking an insurance company’s ratings is essential for determining whether the insurer merits attention. Industry best practices call for reviewing the scores from the four major agencies: A.M. Best, Fitch, Moody’s, and S&P Global.

These ratings indicate the company’s ability to meet claim obligations. Strong scores also reflect a solid balance sheet, prudent risk management, and dependable operating performance.

For brokers, these independent assessments disclose key details such as an insurer’s capitalization, profitability, and long‑term stability. More information is available in our guide on insurance rating agencies and the significance of their ratings.

To illustrate the insurer’s financial resilience and claims‑paying capacity, consider American Family Insurance’s ratings from these agencies:

Financial Strength Rating (FSR): A (Excellent)

Issuer Credit Rating (ICR): a+ (Excellent)

American Family Insurance’s A.M. Best rating signals a strong balance sheet, satisfactory operating performance, a favorable business profile, and effective enterprise risk management.

A.M. Best upgraded the outlook to “stable” from “negative” after better operating results and projected year‑end financial metrics. The rating covers American Family Mutual Insurance Company, S.I., its core affiliates, and American Family Life Insurance Company.

Financial Strength Rating: A+ (Strong)

Outlook: Last reported as negative (due to industry and company‑specific factors in 2020)

Fitch affirmed American Family’s A+ (Strong) financial strength rating, the fifth‑highest of Fitch’s 21 categories. The outlook turned negative in 2020, reflecting possible effects of the COVID‑19 pandemic and the company’s capital redeployment for growth and diversification.

Insurance Financial Strength (IFS) Rating: A1

Ranking: Fifth highest of 21 available Moody’s ratings

Moody’s assigned AmFam an “A1” rating, highlighting its established franchise, sound balance sheet, conservative leverage, and high‑quality investment portfolio. The rating was affirmed in 2020 and remains current based on the latest public disclosures.

Ranking: Sixth highest of 21 available S&P ratings

S&P Global affirmed American Family’s “A” rating, citing a strong financial profile and broad presence. The rating was confirmed for 2020 and is the most recent public rating from S&P. S&P does not always update ratings annually; insurers typically request updates, and this may not have occurred recently.

American Family Insurance ratings summary

Rating agency
Financial strength rating
Outlook/notes

A.M. Best
A (Excellent)
Stable

Fitch
A+ (Strong)
Negative (2020)

American Family Insurance customer satisfaction scores

How American Family Insurance is perceived by customers is another key metric for brokers. These scores reveal how policyholders evaluate the company’s products, services, and claims handling.

For insurers, J.D. Power scores—covering claims satisfaction, digital experience, and regional customer satisfaction—serve as important benchmarks. They are valued because they are independent, trusted, and based on real customer feedback.

Their rankings help brokers and consumers pinpoint insurers that excel in service, responsiveness, and overall value. J.D. Power’s assessments are especially useful for navigating a crowded and competitive insurance market.

1. J.D. Power U.S. Auto Insurance Study (Regional Customer Satisfaction)

AmFam is ranked regionally for overall customer satisfaction. The highest possible score is 1,000 points. In the 2025 study, American Family posted:

Central Region: 674 (above the regional average of 647)

2. J.D. Power U.S. Auto Claims Satisfaction Study

In the 2025 claims satisfaction study, American Family Insurance earned 692 out of 1,000 points. This places it above the industry average, though not among the top performers.

3. J.D. Power U.S. Insurance Digital Experience Study

Service Segment: American Family tied for third place with a score of 715.

Shopping Segment: American Family tied for third place with a score of 556.

Consumer Reports ratings for American Family

Consumer Reports (CR) rates American Family Insurance as a trustworthy and competitive carrier, especially for auto and home policies. It is noted for low complaint levels and competitive pricing, while customer satisfaction and claims experience are considered average.

These CR ratings make the insurer a solid option for many buyers, particularly those looking for bundling discounts and strong financial backing. Below are CR’s ratings for various aspects of the carrier:

American Family Insurance typically receives average to above‑average marks from Consumer Reports for its auto and home insurance offerings.

Strengths: Competitive rates for safe drivers, attractive bundling discounts, and a low volume of consumer complaints.

Weaknesses: Customer satisfaction tends to be average, with some reports of slower claims processing and a digital experience that lags behind larger rivals.

American Family is viewed as a reliable choice for auto coverage, especially for drivers who qualify for discounts and reside in one of the 19 states where it operates. You can also consult our guide to the top car insurance companies in the US for comparisons.

American Family home insurance

Strengths: Competitive pricing, particularly for new homes, and strong bundling options.

Weaknesses: Some policyholders report challenges with claims handling and premium increases.

Home insurance from American Family is generally considered competitive and dependable, with fewer complaints than many large insurers.

Data from Consumer Reports and the NAIC show that American Family Insurance receives fewer complaints than the industry average.

American Family Insurance products

The core offerings of this carrier include:

Unique American Family Insurance products

Beyond standard coverages, American Family provides several distinctive products that set it apart in the market. These unique offerings include:

A telematics program that rewards safe driving with discounts. While other insurers also offer usage‑based policies, DriveMyWay is customized for American Family’s markets and features unique app integration.

A loyalty program that gives incentives for using American Family’s online tools and completing specific activities. This rewards scheme is exclusive to the carrier.

This product replaces a totaled vehicle with a brand‑new car if the loss occurs within the first year of ownership. Although similar options exist elsewhere, American Family’s terms and bundling choices are competitive.

American Family is among the few major insurers that provide a dedicated, customizable suite for farm and ranch owners, covering dwellings, equipment, livestock, and crops.

American Family product availability

American Family Insurance primarily serves the Midwest and parts of the West. It does not issue new policies in most southern or eastern states.

As of 2025, the carrier offers its core products in the following 19 states:

American Family Insurance pros and cons

Choosing American Family Insurance, like any carrier, involves weighing advantages against disadvantages:

Affordable premiums, especially for safe drivers and customers who bundle multiple policies.

Comprehensive coverage options, including auto, home, life, business, farm and ranch, and specialty lines.

High financial‑strength ratings indicate reliable claim‑paying ability.

Bundling, loyalty, safe‑driver, and multi‑vehicle discounts are available.

Fewer complaints than the industry average.

DriveMyWay rewards safe driving with additional <a href="https://parentmoneylife.com/2026/09/10/how-many-americans-have-no-savings/” title=”How many Americans have no savings?”>savings.

Customers often receive personalized service through a large network of local agents in operating states.

Products are offered only in 19 states, whereas many competitors have nationwide reach.

Despite low complaint numbers, some policyholders experience slow claims processing and inconsistent service quality.

Online tools and the mobile app lag behind those of larger insurers.

Some customers see rate hikes after claims or at renewal.

Not ideal for high‑risk drivers

Rates and acceptance may be less favorable for drivers with poor records.

Is American Family Insurance worth it?

The central question is whether this carrier and its products merit recommendation. The answer isn’t a simple yes or no; suitability depends on several factors. Residents of the 19 states where the insurer operates and who need personal or business coverage can view American Family as a solid, dependable option.

Clients seeking auto insurance with a poor driving history may need to explore other carriers. For alternatives, consult our guide comparing rates of the largest auto insurers. Likewise, customers who prioritize advanced digital tools and a strong online experience may prefer larger insurers with more sophisticated platforms.