Difference Between Allstate Family Insurance and American Family Insurance (With Table)

To provide financial protection to cars against bodily injury or physical damage which results from the collision of traffic it is important to have car insurance. It can be quite difficult to choose a car insurance company due to many reasons. The discount of every company varies according to your vehicle, location, and driving record.

When it comes to the US, Allstate Family Insurance and American Family Insurance are two of the most popular nation’s auto insurance companies. Across the large swaths of the US, they provide affordable coverage. To figure out which one is the best auto insurance, company there are several differences highlighted in this article. 

Allstate Family Insurance vs American Family Insurance 

The main difference between Allstate Family Insurance and American Family Insurance is that Allstate Family Insurance earns an A+ rating from BBB with higher than 466 customer complaints. On the flip side, American Family Insurance earns an A from BBB with only 15 customer complaints.  

The Allstate Family Insurance Is an American-based insurance company. It also has operations of personal lines insurance in Canada. In 2019, it ranked 79th in the Fortune 500 of the largest corporations in the United States by total revenue.  

The American Family Insurance is also known as the AmFam. It is the 13th largest casualty and property, insurance group. Among the private passenger auto insurer is stands at ninth position. With the experience of 90 years, it has built itself into a popular brand of insurance. 

Comparison Table Between Allstate Family Insurance and American Family Insurance 

Parameters of Comparison Allstate Family Insurance American Family Insurance 
FoundedApril 17, 19311927
HeadquartersNorthbrook, Illinois, USMadison, Wisconsin, US
Type PublicMutual
Key peopleThomas J. WilsonJack Salzwedel
Additional discountFor farm vehicles, utility, newly retired, and seniors.None available

What is Allstate Family Insurance? 

“You’re in good hands” is the popularly known slogan of Allstate Family Insurance company, and this slogan is a chief since its creation in 1950. In 1931, this insurance company was founded by General Robert E. Wood.

This writing policy has been done for 19 years for insurance such as home, auto, and life. According to market share, Allstate now stands at the fifth position among the largest insurance company. Across the entire US, there are more than 12,000 agents of Allstate.

Over the years, it solidified itself among millions of Americans as a top insurer. Currently, it ranks either fourth or second in premium amounts written for auto and home respectively. Innovative programs like Drivewise have an A+ rating from AM is best for financial strength.

Several online tools are offered by DriveWise for the simplification of the purchasing process, as the comparison page of Allstate Insurance. Span industry’s several sectors are offered by Allstate, which breaks down the three major insurance types for the company.

What is American Family Insurance? 

The abbreviation for American Family Insurance is AmFam. It is a private mutual company based in America that focuses on the insurance of casualty, property, and auto and also proposes health, life coverage, and homeowners, commercial insurance as well as retirement and investment planning products.

The history of American Family Insurance is traced back to October 3, 1927. In Madison, Wisconsin, Herman Wittwer was an insurance salesman who opened farmers mutual insurance company. The only product of this company at that time was auto insurers whose target market was farmers.  

The products included in American Family Insurance are universal, whole life and term insurance, personal umbrella insurance, business, and personal auto insurance, business liability key policy, home insurance, and many more. For their insureds, it generally offers a prize system, namely Dreamkeep Rewards. 

National Safety Council in 2010 selected this insurance company for the Teen Driving Safety Leadership Award as a receiver of it. Because this company provided a video feedback program that allows parents to look at their teen’s actions. Out Magazine recognized this company as an LGBT-friendly insurance company in 2015.

Main Differences Between Allstate Family Insurance and American Family Insurance 

  1. When it comes to Better Business Bureau rating, Allstate Family Insurance earns an A+ rating from BBB with higher than 466 customer complaints. On the other hand, American Family Insurance earns an A from BBB with only 15 customer complaints.  
  2. If someone carries a speeding ticket, an at-fault accident, and a reckless driving violation then Allstate Family Insurance is a bad choice. American Family Insurance could be a better choice in these kinds of cases.  
  3. Allstate Family Insurance offers products like life, landlord, auto, renters, condo, home, motorcycle, boat, investment, business insurance, retirement products as well as banking services. But home health, commercial, auto, and life insurance products are offered by American Family Insurance.  
  4. Allstate Family Insurance comes with payment options like direct deposit, debit card, electronic check, credit card, prepayments, and through their mobile app. On the other hand, American Family Insurance offers all payment options like Allstate but except prepayment and electronic check.  
  5. Driver’s age is an indicator of potential risk, and that’s why insurers assign rates accordingly. When it comes to the policy of teen drivers then it is better to not go for Allstate Family Insurance in comparison to American Family Insurance. 

Conclusion 

It can be concluded that both Allstate Family Insurance and American Family Insurance are two of the insurance company which is famous for their auto insurance. Allstate Family Insurance is a public company that was founded on April 17, 1931. On the other hand, American Family Insurance is a mutual company founded in 1927.  

The headquarter of Allstate Family Insurance is located in Northbrook, Illinois, US, whereas Madison, Wisconsin, US is the location where headquarter of American Family Insurance is situated. Better Business Bureau rated Allstate Family Insurance with A+, but it received more than 466 customer complaints. On the flip side, Better Business Bureau rated with A, and fortunately, it received only 15 customer complaints. 

References 

  1. http://search.ebscohost.com/login.aspx?direct=true&profile=ehost&scope=site&authtype=crawler&jrnl=08896402&AN=31534933&h=SZ0X2J89RVrfFnNifuDougl128k1pBX2t9yE%2FHcpVHS1bDTkp38YTTRz7kXeradHIvjVG%2F0vmD8yC801nFTK0A%3D%3D&crl=c
  2. http://erepository.uonbi.ac.ke/handle/11295/76794
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