American Family vs USAA Car Insurance for 2023

*monthly rates are based on an average of minimum and full coverage for a 45-year-old male driver

American Family Car Insurance

Pros:

• Comprehensive Coverage: American Family offers a range of coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection.

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• Digital Features: The company provides a user-friendly mobile app and online account management capabilities, making it easy for customers to access policy details and handle claims online.

• Discounts: American Family offers various discounts, such as multi-policy discounts and good driver discounts, to help lower the cost of insurance.

• Coverage in Multiple States: American Family offers coverage in 19 states, providing options for customers in those areas.

Cons:

• Limited Eligibility: American Family’s services are available to a limited number of states, potentially leaving out customers in other areas.

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USAA Car Insurance

Pros:

• Military Focus: USAA caters specifically to active and retired members of the U.S. military and their immediate family members, offering specialized support and competitive rates.

• Comprehensive Coverage: USAA provides a wide range of coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection.

• Efficient Claims Processing: USAA is known for its efficient claims processing and excellent customer service, particularly important for military members who may need quick assistance.

• Digital Tools and Resources: USAA offers digital tools and resources beyond insurance, including financial planning tools and military-specific resources.

Cons:

• Limited Eligibility: USAA’s car insurance is only available to military members and their families, which may exclude a large portion of the population.

• Limited Coverage Area: While USAA offers car insurance in all 50 states, its eligibility restrictions limit access for many potential customers.

• Not for Civilians: USAA primarily serves the military community, so civilians may not be eligible for their insurance.

Best Overall Car Insurance Company: USAA

In our assessment of American Family and USAA car insurance, we find USAA to be the best overall car insurance company when all factors are considered. Here’s why:

Competitive Rates: USAA consistently offers more competitive rates, with an average annual cost of $875 compared to American Family’s $1,178, as per ValuePenguin’s study. This affordability is especially appealing for the military members and their families whom USAA primarily serves.

Specialized Military Support: USAA’s commitment to the military community is a standout feature. They understand the unique needs of military personnel and provide tailored services and support. The efficient claims processing and exceptional customer service cater to the specific requirements of military members.

Comprehensive Coverage: Both American Family and USAA offer a wide range of coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection. USAA’s specialization in serving the military community adds an extra layer of trust for those eligible for their services.

Digital Tools and Resources: USAA goes beyond traditional insurance offerings by providing an array of digital tools and resources related to personal finance, investments, and military-specific needs. This comprehensive approach enhances the value they provide to their customers.

Efficient Claims Handling: USAA’s commitment to efficient claims processing, reflected in positive customer feedback, ensures that policyholders receive quick and effective assistance during challenging times.

While American Family offers attractive features, such as discounts and coverage in multiple states, USAA’s unique focus on military members, competitive rates, and comprehensive support makes it the best choice overall. If you are eligible for USAA’s services, it is the preferred option for car insurance based on our evaluation.

History and Mission of American Family vs USAA

American Family was founded in 1927 and is headquartered in Madison, Wisconsin. The company’s mission is to “inspire, protect, and restore dreams” by providing comprehensive insurance products to individuals and families. American Family offers car insurance in 19 states, including Arizona, Colorado, and Iowa.

USAA, on the other hand, was founded in 1922 by a group of military officers who wanted to insure each other’s vehicles. Today, USAA serves millions of members who have served or are currently serving in the military, as well as their families.

The company’s mission is to “facilitate the financial security of its members, associates, and their families through provision of a full range of highly competitive financial products and services.” USAA offers car insurance in all 50 states.

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Products and Services: American Family vs USAA

American Family offers standard types of car insurance coverage such as liability coverage, collision coverage, and comprehensive coverage. In addition, they also offer personal injury protection, uninsured motorist coverage, and underinsured motorist coverage. These coverages can help protect you financially in the event of an accident, theft, or other unexpected events.

USAA also offers standard types of car insurance coverage such as liability coverage, collision coverage, and comprehensive coverage. They also offer personal injury protection, uninsured motorist coverage, and underinsured motorist coverage. In addition, USAA offers add-ons such as rental reimbursement, roadside assistance, and accident forgiveness.

Both American Family and USAA offer a range of car insurance products and services that can help protect you financially in the event of an accident or other unexpected events. Depending on your individual needs and circumstances, one provider may be a better fit for you than the other.

Cost of Coverage

The cost of car insurance from American Family and USAA can vary depending on a variety of factors, such as your age, driving history, location, and the type of coverage you select. Here is an overview of how the cost of insurance from each company compares:

American Family: According to a study by ValuePenguin, the average cost of car insurance from American Family is $1,178 per year. However, this can vary widely depending on factors such as location and driving history.

American Family offers a variety of discounts that can help lower the cost of your insurance, such as multi-policy discounts, good driver discounts, and discounts for taking a defensive driving course. They also offer the KnowYourDrive program, which can provide personalized feedback and potentially lower rates based on safe driving habits.

According to the same study by ValuePenguin, the average cost of car insurance from USAA is $875 per year. However, it’s worth noting that USAA only offers insurance to military members, veterans, and their families.

USAA also offers a variety of discounts that can help lower the cost of your insurance, such as safe driver discounts, multi-vehicle discounts, and loyalty discounts. They also offer the SafePilot program, which can provide personalized feedback and potentially lower rates based on safe driving habits.

States Offering American Family and USAA

American Family and USAA are both car insurance providers that offer coverage in a variety of states across the US. Here is an overview of the states where each company offers coverage. American Family offers car insurance in 19 states across the US, including:

• Arizona
• Colorado
• Georgia
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Minnesota
• Missouri
• Nebraska
• Nevada
• North Dakota
• Ohio
• Oregon
• South Dakota
• Utah
• Washington
• Wisconsin

It’s worth noting that American Family offers different types of insurance products and coverage options in different states, so it’s important to check with the company directly to see what options are available in your area.

USAA: USAA offers car insurance in all 50 states, as well as Washington D.C. However, as mentioned earlier, USAA only offers insurance to military members, veterans, and their families, so not everyone is eligible to purchase coverage from USAA.

It’s worth noting that the availability of insurance products and coverage options can vary by state, so it’s important to check with each company directly to see what options are available in your area.

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Discounts Available

Both American Family and USAA offer a variety of discounts that can help customers save money on their car insurance premiums. Here is an overview of the discounts offered by each company:

American Family:

• Multi-policy discount: If you have more than one policy with American Family, such as home or life insurance, you can save money on your car insurance premiums.
• Good driver discount: If you have a clean driving record, you may be eligible for a discount on your car insurance premiums.
• Defensive driving discount: If you complete a state-approved defensive driving course, you may be eligible for a discount on your car insurance premiums.
• KnowYourDrive discount: If you sign up for American Family’s KnowYourDrive program, which uses telematics technology to monitor your driving habits, you may be eligible for a discount based on your safe driving habits.
• Young driver discount: If you have a young driver on your policy who maintains good grades, you may be eligible for a discount on your car insurance premiums.
• Loyalty discount: If you’ve been with American Family for a certain amount of time, you may be eligible for a discount on your car insurance premiums.

USAA:

• Safe driver discount: If you have a clean driving record, you may be eligible for a discount on your car insurance premiums.
• Multi-vehicle discount: If you insure more than one vehicle with USAA, you may be eligible for a discount on your car insurance premiums.
• Loyalty discount: If you’ve been with USAA for a certain amount of time, you may be eligible for a discount on your car insurance premiums.
• Family discount: If your parents are USAA members, you may be eligible for a discount on your car insurance premiums.
• Good student discount: If you maintain good grades in school, you may be eligible for a discount on your car insurance premiums.
• Defensive driving discount: If you complete a state-approved defensive driving course, you may be eligible for a discount on your car insurance premiums.
• Vehicle storage discount: If you store your car on a military base while you’re deployed, you may be eligible for a discount on your car insurance premiums.

It’s worth noting that the discounts offered by each company can vary depending on your location and other factors, and not all discounts may be available in all states. Additionally, it’s important to consider other factors besides discounts when choosing a car insurance provider, such as the cost of insurance, the quality of customer service, and the range of products and services offered.

Case Studies: American Family vs USAA Car Insurance 

Case Study 1: John’s Experience With American Family Car Insurance

John, a civilian driver residing in Colorado, recently purchased car insurance from American Family. He was attracted to the company’s comprehensive coverage options and affordable premiums. However, when John was involved in a minor accident, he faced challenges in filing a claim and experienced delays in the claims process.

Despite the initial difficulties, American Family eventually resolved John’s claim satisfactorily. This case study highlights the importance of considering both coverage and customer service when selecting a car insurance provider.

Case Study 2: Sarah’s Experience With USAA Car Insurance

Sarah, an active military member stationed in Arizona, opted for car insurance coverage from USAA due to the company’s focus on serving the military community. She found the rates offered by USAA to be highly competitive, and the company’s claims process was smooth and efficient.

When Sarah’s car was vandalized, USAA promptly handled her claim and provided excellent customer service throughout the process. This case study emphasizes the benefits of choosing a car insurance provider that caters specifically to military members and their families.

Case Study 3: Emily’s Experience With American Family Car Insurance

Emily, a military spouse living in Arizona, chose American Family for her car insurance coverage. She appreciated the company’s competitive rates and the ease of managing her policy online. When her vehicle was damaged in a hailstorm, Emily filed a claim with American Family. The company promptly responded, guiding her through the claims process and providing excellent customer support.

American Family efficiently resolved her claim, ensuring her vehicle was repaired to its pre-damage condition. This case study highlights the importance of seamless claims handling and responsive customer service, especially for military families.

Overview of American Family vs. USAA Claims Process

Ease of Filing a Claim (online, over the phone, mobile apps)

When it comes to the claims process, both American Family and USAA offer convenient options for policyholders. You can file a claim with both companies through multiple channels, including online, over the phone, and via mobile apps.

American Family provides a user-friendly online claims portal that allows you to initiate a claim from the comfort of your home. Alternatively, you can contact their claims department by phone to report an incident. Additionally, American Family offers a mobile app that facilitates the claims process, enabling you to upload photos and documents directly from your smartphone.

USAA, known for its commitment to serving the military community, offers a similarly streamlined claims process. You can report a claim online, call their dedicated claims hotline, or use their mobile app for quick and efficient claims submissions. USAA’s app is designed with the needs of military members and their families in mind, making it easy to access important information and file claims while on the go.

Average Claim Processing Time

The speed at which an insurance company processes claims is crucial for policyholders dealing with the aftermath of an accident or damage to their vehicle. While claim processing times can vary based on the complexity of the claim and other factors, both American Family and USAA are known for their commitment to efficient claims handling.

American Family aims to process claims promptly to minimize disruptions in their policyholders’ lives. Their claims team works diligently to assess claims and make fair settlements in a timely manner. The exact processing time may vary depending on the nature of the claim and individual circumstances.

USAA has a reputation for excellent customer service and efficient claims processing. Their focus on serving the military community extends to the claims department, where they strive to assist their members quickly and effectively. While processing times can vary, USAA’s commitment to its members often results in a smoother and faster claims experience.

Customer Feedback on Claim Resolutions and Payouts

To gauge the satisfaction of policyholders, it’s essential to consider customer feedback on claim resolutions and payouts. Both American Family and USAA have received reviews and testimonials from customers regarding their claims experiences.

American Family policyholders have reported generally positive experiences with the company’s claims process. Customers appreciate the assistance provided by American Family’s claims adjusters and their efforts to reach fair and timely resolutions. However, as with any insurance company, individual experiences may vary.

USAA, known for its exceptional customer service, often receives high praise for its claims handling. Military members and their families value the support and efficiency USAA provides during the claims process. USAA’s commitment to its mission of serving its members is reflected in the positive feedback it receives.

When evaluating these two insurers, it’s essential to consider not only the ease of filing a claim and claim processing time but also the overall satisfaction of policyholders with the resolution and payout process. Customer feedback can provide valuable insights into the quality of service provided by each company.

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Unleashing Innovation With American Family vs. USAA Digital and Technological Features

Mobile App Features and Functionality

In today’s digital age, insurance companies offer mobile apps to enhance the convenience of managing policies and accessing resources. Both American Family and USAA offer mobile apps with various features and functionalities.

American Family’s mobile app is designed to simplify policy management for their customers. The app allows users to view policy details, make payments, and access important documents. It also includes features like the KnowYourDrive program, which provides personalized feedback on driving habits and the potential for lower rates based on safe driving behavior.

USAA’s mobile app is tailored to the needs of military members and their families. In addition to policy management features, the app offers resources specific to military life, such as deployment checklists and financial tools. Members can easily report claims and access roadside assistance through the app, making it a valuable tool for those on the move.

Online Account Management Capabilities

Both American Family and USAA offer online account management capabilities, allowing policyholders to access their accounts and policy information through secure online portals.

American Family’s online account management portal offers a user-friendly interface where customers can review policy details, make payments, and update their information. The portal also provides access to important documents and policy-related resources.

USAA’s online account management system is designed to meet the unique needs of military members and their families. It offers a comprehensive suite of tools and resources, including budgeting and financial planning tools. Policyholders can easily manage their policies, view documents, and initiate claims through the online portal.

Digital Tools and Resources

Both insurance companies recognize the importance of providing digital tools and resources to assist policyholders in various aspects of their lives.

American Family offers a range of digital tools and resources, including educational content on insurance topics, safety tips, and tools to help policyholders understand their coverage better. These resources are available through their website and mobile app.

USAA goes beyond traditional insurance offerings by providing a wide array of digital tools and resources related to personal finance, investments, and military-specific needs. Members can access financial planning calculators, investment guidance, and educational content on various financial topics.

Roundup: American Family vs USAA

In conclusion, both American Family and USAA offer a range of car insurance products and services to their customers, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection coverage. Both companies also offer online account management systems and roadside assistance as optional add-ons to their policies.

Ultimately, the best car insurance company for you will depend on your individual needs and preferences, as well as the coverage options and pricing available in your area. It’s always a good idea to compare quotes and research different companies before making a decision to ensure that you’re getting the coverage you need at a price that fits your budget.

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