The complaint has been investigated and
resolved to the customer's satisfaction
American Family InsuranceScam and cheating

I got a letter in the mail today American Family is canceling my homeowners insurance in January of 09. I am quite frankly stunned. I signed up with A.G. last year after having homeowners with another company for several years and no problems. At their urging since I had auto insurance through A.G. they gave me a good quote for comprehensive coverage and I took it. There was an inspection of the property and all was well.

About 3 months later during the winter months there was another inspection. I was told I had to repair a door to my swimming pool lock it and the fence to my back yard. A limb had fallen on one of the gates and broke it, I was waiting for spring to fix it, it was 20 degrees outside. I took care of the situation called the agent and heard nothing more until yesterday. I got a cancellation notice in the mail. It said I had not turned in requested information concerning my pool gate and deck.

I was told by my agent to correct the problems then give her a call and she would reinspect. Having done my part I heard nothing more I assumed all was well and never gave it a second thought. The issue with the deck is something entirely new. I have a large solid deck of treated lumber that I has not been stained in a couple of years, because I am going to strip it next year the red stain I use is to hot on the feet, like I said this was not an issue until I got a letter today.

I have never missed a premium or claimed anything on insurance ever, my house is kept in good repair. It's hard to tell what happened here since nobody has contacted me past the initial conversations last year. I have spoken with my agent a few times concerning other issues over the past year. I believe I dropped a 3rd car that I sold, and I called a little upset about this credit indexing A.G. was starting. If there was still a problem there was never any indication from her.

Oh well, I am going to find something else, I guess if this company can't recognize a good customer that is their loss, and I will move on. My question is of repercussion, all is well as long as I don't have problems getting insurance. If I have any problems though I have a great lawyer, who will be visiting my agent and A.G. with questions.


  • Valerie Nov 06, 2008

    October 2007, car was totaled in accident. Took 6 weeks of phone tag to clear up the claim, but it got done due to some hard work from our agent. Our agent took the info on the new car, and updated the records and ordered new cards so plates and registration could be transferred.

    Shortly afterward, our agent stopped dealing with AF. We called AF directly, emailed, and called again. 'Please send us the policy on the new car so we can transfer plates.' After the 1st of 2008, we contacted the original agent. Within a day, we had all the info we needed to set things straight, with another reliable company.

    Finally, in March of 2008, I got a letter from an agent in another town 18 miles away. It was a nice intro letter, welcome and all that. We finally were sent new insurance cards... on the vehicle that was totaled. I contacted the agent in the letter... and left a voice mail... several in fact. Polite ones, like...please call me, I have a question about a policy?

    A few weeks later, I got a collection letter from a AF for insurance due on... you guessed it... the totaled car that AF had somewhere in it's inventory of scrap cars.

    SO, I called them. They told me I had to prove the car was totaled... (huh? they have those records, don't they?) and I was obligated tom pay the insurance payments from January to June. They had sent out cards for that car, remember?

    I had them put disputed in the claim and asked them to verify their own records.

    -1 Votes
  • Am
    AmFam is a SCAM Sep 15, 2017
    This comment was posted by
    a verified customer
    Verified customer

    If you think they do their clients dirty. Look at how they do their own agents!!! 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.

    0 Votes

Post your comment

    By clicking Submit you are agreeing to the Complaints Board’s Terms and Conditions


    Unhappy consumers gather online at and have already logged thousands of complaints
    If you see dozens of complaints about a certain company on ComplaintsBoard, walk away.
    One of the largest consumer sites online. Posting here your concerns means good exposure for your issues
    A consumer site aimed at exposing unethical companies and business practices
    ComplaintsBoard is a good source for product and company gripes from especially dissatisfied people
    You'll definitely get some directions on how customer service can best solve your problem