To provide financial protection to cars against bodily injury or physical damage which results from a collision of traffic, it is important to have car insurance. It can be difficult to choose a car insurance company for 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 national auto insurance companies. Across large swaths of the US, they provide affordable coverage. To figure out which is the best auto insurance company, several differences are highlighted in this article.
Key Takeaways
- Allstate offers a wider range of insurance products, including auto, home, renters, and life insurance, while American Family Insurance primarily focuses on home and auto insurance.
- American Family Insurance has a more limited service area, operating in only 19 states, whereas Allstate has a nationwide presence.
- Allstate features more extensive digital tools and resources, such as a mobile app and online policy management, than American Family Insurance.
Allstate Family Insurance vs American Family Insurance
The 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.
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, it stands at ninth position. With the experience of 90 years, it has built itself into a popular brand of insurance.
Comparison Table
| Parameters of Comparison | Allstate Family Insurance | American Family Insurance |
|---|---|---|
| Founded | April 17, 1931 | 1927 |
| Headquarters | Northbrook, Illinois, US | Madison, Wisconsin, US |
| Type | Public | Mutual |
| Key people | Thomas J. Wilson | Jack Salzwedel |
| Additional discount | For 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 has been 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 home, auto, and life insurance. According to market share, Allstate now stands fifth among the largest insurance companies. 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.
DriveWise offers several online tools for the simplification of the purchasing process, such as the comparison page of Allstate Insurance. Allstate offers the span industry’s several sectors, 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 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 provides 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
- 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.
- Allstate Family Insurance is a bad choice if someone carries a speeding ticket, an at-fault accident, and a reckless driving violation. American Family Insurance could be a better choice in these kinds of cases.
- Allstate Family Insurance offers products like life, landlord, auto, renters, condo, home, motorcycle, boat, investment, business insurance, retirement products, and banking services. But American Family Insurance offers home health, commercial, auto, and life insurance products.
- 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 checks.
- 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 not to go for Allstate Family Insurance in comparison to American Family Insurance.
- 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
- http://erepository.uonbi.ac.ke/handle/11295/76794
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
The detailed comparison of Allstate and American Family Insurance is quite helpful in making an informed decision.
Thank you for providing such a comprehensive analysis.
The in-depth comparison table is very beneficial for evaluating the key features of Allstate and American Family Insurance.
The wide range of products and services offered by Allstate is impressive.
The history and background of the insurance companies is enlightening.
It is good to know there are many options available for car insurance.
Understanding the core differences between the insurance companies is essential for anyone looking to secure the best coverage.
Learning about the payment options and differences in policy for teen drivers is very informative.