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Review of the American Family Insurance Company

According to the National Association of Insurance Commissioners (NAIC), American Family Insurance is the tenth-largest auto insurer in the United States. In 2007, the company wrote $3,559,758 of direct, private-passenger auto premiums. American Family's market share is estimated at about 2.2%. Although it is not one of the largest insurers, this brand remains a contender because of its dedication to customer service and quality. Read on for an overview of this provider and how it stacks up against the competition.

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American Family got its start on October 3, 1927 when Herman Wittwer, an salesman, began Farmers Mutual Insurance Company in Madison, WI. Wittwer chose the name because the company only offered auto policies, and it primarily targeted farmers. The organization's founder believed that farmers were less of a risk to insure because they drove less frequently than city drivers. Eventually, Farmers Mutual began offering more products and changed its name to American Family Mutual Insurance Company in 1963 to more accurately reflect its larger policyholder base.

Customer Satisfaction

This provider is particularly well-known for the customer service provided by their agents. One of the areas in which ity excels is the ease with which policyholders can get in touch with the provider, whether through a representative or an agent. Although the insurer usually performs well in customer satisfaction surveys, it did not fare well in the 2008 J.D. Power and Associates study. Here is how the provider performed on various measures of policyholder satisfaction:

  • Overall experience: 3/5
  • Policy offerings: 3/5
  • Pricing: 2/5
  • Billing and payment: 3/5
  • Contacting the insurer: 4/5

Financial Strength

A policy is worthless unless the provider that issues it has a solid financial foundation. Since its beginning, the carrier has consistently demonstrated financial stability. Because this is a mutual company, the policyholders are the owners. This allows the provider to focus more closely on results in the long run. Currently, they have about $15.5 billion of assets under management and $4.1 billion of policyholder equity. The provider is also regularly rated positively in financial indexes like A.M. Best and Standard and Poor's.


In the beginning, the provider offered only auto policies. Today, the carrier offers a variety of coverage options and financial products in 19 states. Moreover, it is the third-largest mutual casualty and property insurer in the United States.