A private mutual company, AMFAM (American Family Insurance Company) was founded in 1927, by insurance salesman Herman Wittwer as Farmers Mutual Insurance Company (not Farmers Insurance Company).
Farmers Mutual Insurance Company / Wittwer’s only line was car insurance, which he sold to farmers in Wisconsin, as he believed farmers were a lower risk than city dwellers – they drove less and hardly ever drove in winter.
Eventually Farmers Mutual expanded their lines to include home, life, commercial and health, and in 1963 Framers Mutual changed its name to American Family Mutual Insurance Company/ ‘AmFam’.
Still a private company, its current headquarters are in Madison Wisconsin.
As most auto insurance companies, they offer the following discounts:
- Multiple policies
- Safe driving records
- Car safety features
- Senior Citizen
Premiums are all based on discounts, limits of insurance and deductible set at the inception of the policy.
The insurance industry’s goal (same as others) is to be profitable, so they are extremely careful with their ‘pay outs’ in case of a claim. In the case of a privately owned company the rules are even more rigorous and strictly enforced.
The overall satisfaction record of AmFam’s insured’s is varied.