Car insurance companies have some of the most memorable commercials—take the GEICO Gecko and Flo from Progressive, for example. But for years, one company had the catchiest jingle, and that was American Family Insurance
, with its "All your protection under one roof." How long has the insurance company been in business? And, how do American Family's rates compare to other major insurers?
American Family Insurance was initially marketed to farmers
Almost 100 years ago, a Wisconsin insurance salesman named Herman Wittwer had a brilliant business plan. Why not open an auto insurance company just for farmers? According to American Family Insurance's
website, Wittwer felt that farmers were a key market to target because they drove less than people living in cities. And, some farmers might not drive at all during the Upper Midwest's cold winter months. Why should they pay the same amount as their urban counterparts, who often drove all year long? Remember, this was back when Ford Model Ts filled the roads.
In 1927, Wittwer founded Farmers Mutual Automobile Insurance Company. In the first few decades of business, the company expanded its customer base and product offerings. By the early 1960s, the name was changed to American Family Mutual Insurance Company to reflect these changes. Wittwer's story is detailed in the book, Dare to Dream: The Remarkable Story of American Family Insurance.
Today, we all know the company as American Family Insurance. The brand offers auto, home, and life insurance, which allows customers to take advantage of insurance bundling
. The American Family group also operates other insurance companies: The General, Homesite, and Main Street America Insurance. Celebrity advertisements help American Family appeal to a broad consumer base
In recent years, American Family has turned to celebrity endorsements to promote their services. If you saw one of the commercials recently, there's a good chance it featured the home-flipping Property Brothers, twins Jonathan and Drew Scott.
According to U.S. News
, the company boasts high customer satisfaction rates. Where policyholders are divided, though, is whether its premiums offer the best value. Drivers with a clean record will likely find lower premiums elsewhere. However, American Family offers below average rates to drivers with a DUI
or an accident on their record. American Family rewards customers through a variety of cost-savings programs. The "Generational" discount offers savings to new policyholders whose parents are existing customers. College students who maintain a 3.0 GPA or higher or don't take their vehicles to school with them may qualify for lower premiums. And, the company has joined other major insurers in offering low mileage rates.
American Family offers coverage throughout much of the U.S.
The company has certainly seen phenomenal growth over the last century. Wittwer's insurance company that was geared solely at Midwestern farmers is now available in 19 states. The company has stayed true to its roots and is still headquartered in Madison. There are additional offices in Colorado, Minnesota, Arizona, and Missouri. The American Family also operates other brands: The General, which is an auto insurance provider, as well as Homesite and Main Street America Insurance.
MORE: American Family Car and Home Insurance, Explained
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