Understanding the Cost of Your Insurance
At American Family, we do our best to keep your insurance costs as low as possible while providing the dependable coverage you’ve come to expect.
What does your premium reflect?
Your insurance premium is based on what you insure – auto, home, personal belongings, etc. – and the type of policy you purchase, including the coverages, limits, endorsements and deductible.
Factors such as fire department accessibility, personal credit history and age of your home or auto play a role as well.
What can cause my premium to change?
The following changes may alter your auto or home insurance premium:
- increasing or adding a coverage
- making improvements to your home (e.g., building a deck, remodeling the kitchen, finishing the basement)
- lowering your deductible
- losing a discount
- adding another driver
- getting a ticket
- having an accident
- lengthening your commute
- adding coverage for a new purchase, hobby or collection
- having a claim
Also, if an insurance provider’s expenses go up, it may result in a general rate increase.
Are all insurers’ premiums rising?
Generally, yes. Many factors continue to drive up the cost of doing business for all insurance providers. They include:
- Weather patterns and increased storm losses
- Increasing costs of claims
- Higher repair and replacement costs
- Medical costs
- Insurance fraud
What is American Family doing to minimize premium increases?
- American Family supports research on improving safety standards, technology and the quality of materials for the home and auto industry. We are a member of both the Institute for Business and Home Safety (IBHS) and the Insurance Institute for Highway Safety (IIHS). This allows us to better understand the risks you face while pursuing your dreams and to advocate for changes that help bring down insurance premiums by reducing these risks.
- We have special programs to help streamline the repair process and hold down costs like online claim reporting. These include the Certified Repair Program for autos, the Homeowners Repair Program and the Emergency Water Removal Program.
- American Family invests in our operations to help control and reduce expenses – from MyAccount (allowing you to manage your insurance information electronically) to award-winning, energy-efficient lighting systems.
- We offer a dedicated Special Investigations Unit to investigate potentially fraudulent claims and help stop insurance fraud.
What can I do to help manage my premium?
There are various ways you can offset rising premiums while keeping your auto and home safe.
- Meet with your agent to review your coverage, limits, deductibles and discount options.
- Move to a higher deductible. The higher the deductible you select, the lower the premium you’ll pay. Keep in mind, though, the deductible is the amount of money you agree to pay upfront in the event of a covered loss.
- Take advantage of all discounts. American Family offers more than 25 discounts to help you save on your auto and home insurance.
- Get your credit on track. Your credit score is an indicator of responsibility. Typically, the better your score, the lower your insurance premium.
- Be a safe driver. This benefits you, your passengers and everyone on the road. And if you have a new driver, check out our Teen Safe Driver Program – an innovative way to help teens make better choices behind the wheel.
- Maintain your vehicles and property. Staying proactive with routine maintenance and small repair jobs on your car and around your home can prevent larger expenses down the road and help to minimize insurance claims.