American Family Insurance

American family should change its name to American Wreckers Insurance

While I am writing this complaint, I feel a surge of anger inside me. American Family is not my insurance company, I feel lucky about it. But, luck does not shower its love to you all the time. I got unlucky when my truck was hit by a vehicle which was insured by American Family. The accident was a pure fault of the other driver. He ran a red light and collided with my vehicle at an intersection. The officer who investigated the accident, wrote in his report about the happening and it was well mentioned that the driver of the other vehicle was at fault.

It was a clear understanding and did not have taken so much from my end to prove my innocence. I contacted the insurance company and they messaged me after few days. The message only spoke about the acknowledgement that they had about the accident. Later, when I did not see them calling back, I made several attempts to reach out to them. Finally, after many days and numerous phone calls, they got in touch with me.

They started their call by saying that I would be liable for the towing cost to their dealer’s shop. I needed to pay for the storage and the towing charge. Otherwise, they won’t move my vehicle and it would remain at its original place. It sounded like a threat more than a request. The person on the call wanted me to help the company in mitigating their cost by spending on the transfer of my vehicle from one place to another.

It took several calls to try to resolve the matter. When, nothing was done from their end, I escalated the issue to the higher authorities. But, they seem to keep idle as well. No one wants to move his head further with my claim.

I did have one small issue before which was taken care of without any trouble. Most probably, because it was much smaller to be taken into consideration. However, this accident showed me the real picture of these guys. If they cannot provide even the basic customer requirements, then why on earth are they into insurance business?

I was not ready to pay $500 from my pocket for something that was done by their policy holder. But, they were adamant too. Hence, I am still here, without any solution and my truck hanging out there in the garage without repair. I am deciding about hiring a lawyer to sue them as I do not want them to leave without trouble. They asked me for a police report that was submitted long back, but they like sitting over things and doing nothing.

This company is worthless, and any insurance coverage taken would be no less that worthless itself. If you wish to stay away from problems, stay away from American Family auto insurance.

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1 review on American Family Insurance


    In my opinion, American Family Insurance scams its own insurance agents. They profit from terminating their agents who are local small business owners trying to build a business to achieve their dreams. American Family Insurance is all about protecting the dreams of their clients, but at the same time they are crushing the dreams of their agents.

    Here are some facts:
    •American Family Insurance agents are in a contract that can be terminated at any time for any reason.
    •American Family Insurance agents DO NOT own their “book” (the policies) and have no rights to it if American Family chooses to terminate them.
    •When an American Family Insurance agent gets terminated (no matter the reason, if any), all of their policies get “bulk transferred” to another agent(s). American Family doesn’t pay commissions on these bulk transfers for 12 to 23 months.
    •In addition to corporate American Family pocketing the commission for 12 to 23 months, the agent who receives these bulk transferred policies only gets paid 57% of the normal commission rate after that 12 to 23 month period.

    American Family Insurance is literally profiting from terminating agents. Now, you would think that a growing insurance company would be increasing its agency force, but the amount of American Family Insurance agents has actually decreased by close to 25% over the last several years.

    Why would American Family Insurance terminate good agents?

    It doesn’t matter if you are a good agent or a bad agent, the company will profit more and help its bottom line by firing you. Even if you are a great agent, the company is paying you 100% of the commission rate on your policies. They can terminate you, transfer those policies to other agents, not pay any commissions at all for 12 to 23 months (the new agent is forced to service the policies for free) and then only pay 57% of the commission rate after that.

    American Family Insurance pockets 100% of the commission for those 12 to 23 months, then pockets 43% of what should be paid out to its agents

Madison WI US
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Reported Loss :500 $
Severity of Scam :Extremely High
Reported by : johnk
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